A s state-owned company SANRAL’s financial management meet the strict requirements of national legislations – especially the Companies Act and the Public Finance Management Act.
Its Integrated Report is a public document and presented to Parliament on an annual basis and includes audited financial statements. SANRAL has received an unqualified audit report from the Auditor General for 15 years in a row.
SANRAL has two main areas of business, which are funded in different ways:
- National roads that are not subject to tolling comprise 87% of the network and receive funds for development, upgrading and maintenance from the national fiscus.
- National toll roads that are directly managed by SANRAL – 7% of the network – are funded by toll levies and borrowings on commercial markets.
In 2017/18, SANRAL recorded total revenue of R16.2bn. The bulk of this came from the fiscus and included an amount of R463m to offset the loss of income from lower toll fees on the Gauteng Freeway Improvement Project.
SANRAL’s total expenditure for 2017/18 amounted to R26.5bn. Two-thirds of this was allocated to non-toll roads and the amount was about 2.3% lower than in the previous financial year.
TOLL ROADS MANAGED BY SANRAL INCLUDE:
- Sections of the N1 in the Western Cape, Free State, Gauteng and Limpopo – north of Bela Bela to the border with Zimbabwe
- A stretch of the R31 near Brandfort in the Free State
- Several sections of the N2 in the Eastern Cape and KwaZulu-Natal, including near King Shaka Airport
- A short part of the N4 just west of Pretoria
- The Gauteng freeway system – N1/N3 and R21
- The N17 from Gauteng through to Ermelo in Mpumalanga
- Other toll roads – 6% of the national network – are managed as 30-year concessions by three private companies, TRAC, N3TC and Bakwena. They are responsible for the maintenance and operation of the roads and required to return the assets to SANRAL at the end of the contract. The start of the concessions are: TRAC in 1997; N3TC in 1999 and Bakwena in 2001.
About 30% of total spending is allocated to capital projects and a further third to road repairs and maintenance.
SANRAL recorded a loss of R260m after the deduction of finance costs and before taxation. This was much lower than losses incurred during the previous two years.
Concessioned roads by the numbers |
|
| 6% | The length of the national road network managed as toll road concessions |
| R4.7bn | The combined toll revenue earned by the three concessionaires |
| R1.6bn | The amount spent on capital road improvement and maintenance |
| 8 200+ | The number of jobs created in the construction sector by concessionaires |
| R234m | The value of work allocated to small business enterprises |
BUILDING SOUTH AFRICA THROUGH BETTER ROADS
People's Guide 2018