The SA National Roads Agency (Sanral) has concluded a loan agreement to the value of R7bn with the New Development Bank (NDB) to support various projects in the toll portfolio.
The group said on Tuesday that it followed the approval in March 2024 of a R16.5bn borrowing limit, which included a R7bn guarantee for the NDB loan.
The loan would support various projects in the toll portfolio, in particular the key economic corridors along the N2/N3 in KwaZulu Natal and the N1, Sanral said. It will become effective as soon as the standard conditions precedent have been met.
The balance of the borrowing limit not used by the NDB loan will be used to raise funding in the domestic market, including bonds and syndicated and bi-lateral loans.
"Sanral is looking forward to the positive impact that will emanate from the long overdue funding that will greatly assist the entity carry out its mandate," it said.
Business Day reported in June that the Gauteng government continued to chip away at the R15.9bn debt for the scrapped e-toll system.
The gantries of the controversial Gauteng freeway improvement project (e-toll) gantries were disconnected in April 2024 after years of contestation by civil society groups.
The provincial government inherited 30% of the debt with interest, which amounts to R15.9bn.
The government plans to pay the e-toll debt over five years. In 2022, the provincial government entered into an agreement with the National Treasury and the transport department to pay 30% of the debt while the national government would cover 70%.
With Sinesipho Schrieber
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