Recent media reports that the South African National Roads Agency Limited (Sanral) is insolvent are “factually incorrect”, says the roads agency.

Sanral operates two portfolios, namely toll roads and non-toll roads.

The non-toll road portfolio receives around R10-billion a year from the National Treasury. These funds are used by Sanral to manage its non-toll network, which accounts for 84% (16 584 km) of the total national road network of 19 704 km, says Sanral communication head Vusi Mona.

There are no funding challenges within the agency’s non-toll portfolio, he empha- sises, as the funds from the national fiscus are ringfenced for use on non-toll roads only.
The second portfolio accounts for 16% of the total road network, and comprises agency toll roads (1 832 km), as well as those roads run by concessionaires (1 288 km).

Agency toll roads are financed through the capital markets by issuing bonds, while those operated by the concessionaires are financed through private-sector capital on a ‘build, operate and transfer’ basis.
Importantly, there is no cross-subsidisa- tion of funds between the toll portfolio and the non-toll portfolio, reiterates Mona.
However, with regard to its toll portfolio, Sanral has almost totally depleted its available cash, he confirms.

“Under the present circumstances”, Sanral is not able to fund itself through the capital markets.

The agency has been unable to start electronic tolling (e-tolling) on the improved Gauteng freeway network, owing largely to social resistance to the multibillion- rand, market-funded project, which counted on e-tolling to pay the bills.

The agency is also still awaiting President Jacob Zuma’s signature on the Transport Laws and Related Matters Amendment Bill, before it can legally start e-tolling on the province’s freeways.

E-tolling was originally scheduled to start in 2011.
The current situation means that road network expansions can no longer be undertaken, as Sanral lacks the ability to raise third-party funding, says Mona.

Parliament already had to make a special appropriation of an additional R5.7-billion for Sanral to meet its current interest and cost liabilities.
“If Sanral is to deliver on its mandate, it is vital that e-tolling must go ahead. It is disingenuous of Outa (Opposition to Urban Tolling Alliance, the body spear- heading a court battle against e-tolling) to blame the agency of trying to use the toll portfolio’s financial challenges to force the President to sign the Transport Laws and Related Matters Amendment Bill.

“Sanral implements government policy,” Mona says.

“At this stage, Sanral is awaiting the signing of the Bill by the President. Thereafter, the [Transport] Minister may conclude the process to publish the final regulations and notices. Once published, toll will commence within 14 days of the date of publishing.”