Business Unity South Africa (Busa) is considering making a proposal to Parliament for closer scrutiny of the funding model of the South African National Roads Agency Limited (Sanral), which plans to charge toll fees on Gauteng freeways to repay R22-billion in loans for infrastructure upgrades.

Busa, which submitted a preliminary report to the Gauteng Freeway Improvement Project (GFIP) e-toll steering committee, which started public consultations on Thursday, said it believed that the existing eight-year arrangement to repay the loan was “unnecessarily ambitious”, considering the lifespan of the infrastructure financed would exceed two decades.

“We believe this situation is analogous to the controversy over the proposed 2010 Eskom tariff increases, which was significantly reduced on the basis of a new financing ‘mix’.”

Gauteng motorists could from the end of June start paying 66 c/km, before discounts, to drive a car on the upgraded highways.

Various organisations voiced concerns over the toll fee structure, resulting in Transport Minister Sibisuso Ndebele suspending the gazetted tariffs on March 8, to allow for consultation.
Busa also emphasised that the use of funds raised through the fuel levy should be reconsidered, including the ring-fencing of funds for roads construction and maintenance.

“In particular, since the e-toll systems are mooted to be replicated in the City of Cape Town and eThekwini Municipalities, Busa believes that the better leveraging of the fuel levy may make for a much more predictable, simple, measurable and equitable user pays mechanism,” it stated.

The Gauteng toll system would have significant national implications Busa said, and called for adequate prior consultation on future projects that have costs implications for business and consumers in general.

“If we are to create five-million jobs in a decade, then every policy, regulation and tariff determination needs to be tested against that imperative. Business believes the current tariff proposal and mooted e-tolling trajectory will weaken the competitiveness of our economy, and therefore the ability of the economy to create jobs.”

Busa also highlighted a number of procedural concerns relating to the stakeholder consultation process on the GFIP, including a request for a meeting with the Transport Minister, which have not yet been finalised, as well as vague responses from the Department of Transport (DoT) in relation to requests for clarity.

“Expectations created by the March 8 statement on the establishment of the steering committee were also not realised and the mooted inclusion of business in the composition of the steering committee did not transpire. The ‘constitution’ of the steering committee, which was to be finalised by March 20, has also not yet been released.”

The steering committee met with stakeholders, including the Road Freight Association, Southern Africa Vehicle Rental and Leasing, the Automotive Association, National Association of Automobile Manufactuers of South Africa, the Retail Motor Industry, South African Tourism Association, Johannesburg Chamber of Commerce, Afriforum, Tourism Business Council of South Africa, Accredited Chamber and the South African Local Government Association on Thursday.

The DoT steering committee said some of the concerns raised pertained to how the tariffs were arrived at, why the tariffs seemed expensive, why the GFIP should be tolled at all, the need of proper planning and seeking alternative sources of funding.

Since the toll fee tariffs were announced, the DoT invited submissions from organised formations and members of civil society, and said scores of written submissions have been received.

“Thus far, the majority of the submissions received raised concerns and indicate dissatisfaction about the tariffs that have been proposed.”