The South African National Roads Agency Limited (SANRAL) remains under financial pressure due to COVID-19 related disruptions and its inability to collect toll fees from the Gauteng Freeway Improvement Projects.
This is reflected in the Treasury’s June quarterly report submitted to Parliament. The report gives a reflection of the contingent liability exposure of the government.
The report reveals that SANRAL continues to experience high debt levels and insufficient operating cash flows.
Treasury says over the years, government would provide special grants to compensate for lost income but it says the grants have not been enough to reduce SANRAL’s overall debt burden.
However, Treasury says the special grants have been enough to cover the agency’s interest costs.
Treasury says uncertainty over the Gauteng e-tolls project has led to reduced investor confidence.
It says further debt or refinancing of SANRAL will therefore depend heavily on government support in the form of guarantees and expectations of grant transfers.
National Road Agency | Lack of revenue to blame for annual loss: Sanral