Treasury backs user-pay system for world-class roads

The South African National Roads Agency (Sanral), welcomes finance minister Nhlanhla Nene's endorsement of the user-pay principle as key foundation of infrastructure development.

In his Budget 2015 speech yesterday, Minister Nene said government remains committed to the principle of "cost recovery from road users" and that it will continue to be the "principal financing mechanism" for the Gauteng Freeway Improvement Project (GFIP).

He also said concerns regarding the socio-economic impact of toll tariffs in Gauteng have been noted and revised monthly ceilings will soon be proposed.

Sanral's General Manager of Communications, Vusi Mona, said minister Nene's support for the principle of tolling bodes well for sustaining world-class road infrastructure in South Africa.

"Minister Nene's announcement of some relief for users of the e-tolled roads will hopefully bolster compliance. We welcome his affirmation of the user-pay principle and his pronouncements bring policy certainty on this matter. As we await the conclusion of the process led by Deputy President Cyril Ramaphosa, Sanral is pleased with the signal sent by the Budget speech. This will enable us to plan better as to how we will service the GFIP debt while continuing to maintain the road. Also, it should send a positive message to investors and rating agencies about policy certainty and government's commitment to the user-pay principle."

In the same speech, the finance minister spoke about the importance of the private sector and partnerships with state-owned companies in order to strengthen infrastructure investment and service delivery, a point also mentioned in the country's National Development Plan.

"This confirms Sanral's approach of mobilising private sector investment in order to deliver quality roads. The toll funding option facilitates projects that would otherwise not have been possible had there been reliance solely on money from the fiscus," Mona said.