Recent media reports that the South African National Roads Agency Limited (Sanral) was insolvent, were “factually incorrect”, the roads agency said on Thursday.

Sanral operated two portfolios, namely toll roads and non-toll roads, it noted in a statement.

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

There were no funding challenges within the agency’s non-toll portfolio, he emphasised, as the funds from the national fiscus were ring-fenced for use on non-toll roads only.
 
The second portfolio accounted for 16% of the total road network, and comprised agency toll roads (1 832 km), as well as those roads run by concessionaires (1 288 km).

Agency toll roads were financed through the capital markets by issuing bonds, while those operated by the concessionaires were financed through private sector capital on a build, operate and transfer basis.
 
Importantly, there was no cross-subsidisation of funds between the toll portfolio and the non-toll portfolio, reiterated Mona.
 
However, with regards to its toll portfolio, Sanral had almost totally depleted its available cash, he confirmed.

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

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

E-tolling was originally scheduled to start in 2011.
 
The current situation meant that road network expansions could no longer be undertaken, as Sanral lacked the ability to raise third-party funding, said 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 spearheading a court battle against etollling] to blame the agency of trying to use the toll portfolio’s financial challenges to force the President to sign the Transport and Related Matters Amendment Bill.

“Sanral implements government policy,” Mona said.

“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.”