Outa seeks answers to road costs

Outa's Wayne Duvenhage says that an extra nine cents on the fuel costs will finance the costs of upgrading Gauteng's freeways, with virtually zero administration costs. Image: YouTube

In its presentation to the e-tolls advisory panel set up by Gauteng Premier David Makhura, Outa's Wayne Duvenage said it had information that the cost of the project rose from R6.4bn in 2006 to R20.6bn in 2012.

He said attempts to establish reasons behind the increased cost had come to nought. Engineering firms Outa had approached refused to furnish any information that could "undermine Sanral" because the roads agency was a major client, claimed Duvenage.

Last week, Consulting Engineers SA - representing over 500 companies - said some of its members benefited from the initial stages of the freeway project. Some more members could also benefit from the extension of the project, with a further 381km of freeways still to be tolled.

Consulting Engineers SA emerged as the sole endorser of the e-tolling system, arguing it was the only practical way to collect fees and fund road infrastructure projects.

Widescale collusion

E-tolls should be scrapped in Gauteng as opponents speak out against them at a special hearing in Midrand convened by Gauteng Premier David Makhura. Image: Tolplan

Allegations of wrongdoing regarding the freeway project are not new to these proceedings.

Using the findings by the Competition Commission of widescale "corruption" by construction companies in the building of World Cup-related infrastructure, labour unions and civil bodies have demanded Sanral repay motorists' e-toll bills.

Construction companies had been found to have colluded and artificially inflated prices were fined R1.4bn by the commission.

Outa also raised the prospect of using the fuel levy to fund future road infrastructure projects.

It showed that in 10 years to 2013, the government raked in billions from the fuel levy. The government is expected to make even more from the levy this year. The fuel levy is R2.14 a litre at the moment.

According to Outa, the fuel levy "attracts zero administration costs" while administration of the e-tolls system costs R1.3bn a year.

"This system is falling far short of its intentions and targets. We are not saying it will fail. It has failed," Duvenage said.

Outa proposed a 9c increase in the fuel levy to raise R2bn annually to pay off the loan.

Source: The Times via I-Net Bridge