Non-toll portfolio healthy
Reports that the South African National Roads Agency Limited (Sanral) is broke, are factually incorrect.
Reports that the South African National Roads Agency Limited (Sanral) is broke, are factually incorrect.
According to Sanral, the agency operates two portfolios namely toll roads and non-toll roads.
“The non-toll portfolio consists of funds from the national fiscus, received from National Treasury, to the amount of approximately R10-bn per annum. These funds are used by Sanral to manage its non-toll network, which accounts for 84 per cent of the total national road network,” says Vusi Mona, spokepserson for Sanral.
He adds that there are no funding challenges with the agency’s non-toll portfolio.
“These funds are used for non-toll roads only, and the agency continues to run its business as per usual with the funds received from the national fiscus.
“The second portfolio accounts for 16 per cent of the total road network, and constitutes of agency tolls and those run by concessionaires,” says Mona.
“The agency tolls are financed through the capital markets by issuing bonds, and the ones operated by the concessionaires are financed through private sector capital on a Build, Operate and Transfer basis.
“Importantly, there is no cross-subsidisation of funds between the toll portfolio and the non-toll portfolio.
“With regards to its toll portfolio, Sanral has almost totally depleted its available cash.
“Sanral is not able to fund itself through the capital markets under the present circumstances,” he says.
“That has meant that the future growth of road networks could not be undertaken without Sanral’s ability to raise third-party funding.
“Parliament had to make a special appropriation of an additional R5.7-bn to meet Sanral’s current interest and cost liabilities.
“If Sanral is to deliver on its mandate, it is vital that e-Toll must go-ahead.”
Mona adds that at this stage, Sanral is awaiting the signing of the Bill by the President.
“Thereafter, the 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,” he says.
