South Africa’s New Development Bank (NDB) has approved US $478m loan for the South African National Toll Roads Strengthening and Improvement Programme. The program is designed to improve key national roads in South Africa with its main objective being to reduce transport costs in the country.
Scope of the project
The scope of the project which will be done under the South African National Road Agency Limited (SANRAL) includes: the construction of additional lanes to widen roads, rehabilitation of pavements for existing toll sections of national roads and rehabilitation of related infrastructure such as intersections and bridges along major roads.
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Disbursement of the loan
However, according to Vusi Mona, Sanral communications GM the US $478m NDB loan is still pending approval from the Minister of Transport with the concurrence of the Minister of Finance. Mona adds that the purpose of the NDB loan would be to unlock some of the toll capital expenditure projects that have been held in abeyance owing to the impasse around electronic tolling in Gauteng.
The proposed projects are all on existing toll routes requiring expansion or upgrades and maintenance. Mona further noted that the loan will be delivered in the local currency once the Ministers of Transport and Finance approve. “The loan will run for a tenure of 15 years with competitive rates and the government as a guarantee,” he said.
NDB was established by China, Brazil, India, Russia, and South Africa with an aim to mobilize resources for development infrastructures in their countries as well as other developing countries.
