The National Treasury has warned that the termination of e-tolls will force the state to pay R11.1billion in unguaranteed debt and will also be responsible for guaranteed debt which currently stands at R19bn, according to documents obtained by Independent Media.
“In the event of the termination of the e-tolling or default in the guarantee, government may have to support the balance of the unguaranteed debt of R11.1bn in addition to the guaranteed debt,” reads the document which was presented to the National Council of Provinces standing committee on appropriations this week and prepared by Treasury official Pindi Masiso.
In total, the SA National Roads Agency Ltd (Sanral) has R15bn in unguaranteed debt. Treasury has guaranteed R19bn of the R21bn debt Sanral incurred in financing the e-toll system, officially referred to as the Gauteng Freeway Improvement Project (GFIP).
“Given that Sanral’s continuing liquidity challenges and default risk specifically related to GFIP, by un-earmarking the transfer to the non-toll by R5.75bn, this would allow for a shifting of funds from non-toll to toll network,” Treasury advised.