SA must make up mind on foreign investment

Posted On Thursday, 17 February 2011 02:00 Published by eProp Commercial Property News
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Sanral CEO lambasted over news that a mainly foreign-owned consortium has a R4bn contract to collect tolls on the new Gauteng Freeway Improvement Project.

Road InfrastructureSA National Roads Agency Limited (Sanral) chief executive Nazir Alli lambasted the outcry over news that a mainly foreign-owned consortium has a R4 billion contract to collect tolls on the new Gauteng Freeway Improvement Project (GFIP).

Speaking at a National Press Club conference in Pretoria, Alli said the country was seeking foreign direct investment, but at the same time there would be an outcry if a foreign company was given work.

"We need to make up our minds. Are we going to say we don't want foreign investment?" he asked.

ETC Joint Venture won the R6.22 billion tender to operate the controversial toll system.

It consists 65 percent of the Swedish and Austrian branches of the traffic technology company Kapsch while the South African company TMT holds a 35 percent stake.

There were four tenders for the project, with ETC Joint Venture the cheapest. The most expensive tender at R15.29 billion came from a Norwegian/Italian/South African joint venture.

On February 4 Alli announced that motorists can expect to pay 66 cents a kilometre before discounts when travelling on the 185km GFIP.

The announcement has caused an uproar with consumer groups and unions saying that the poor would be the most affected.

Alli said that tolls collected would be used to pay off the estimated R20 billion in loans obtained to build the system and to maintain the roads.

He said he believed that the tolls would have a minimum impact on inflation.

 

Last modified on Wednesday, 30 October 2013 07:40

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