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Supplements - N3 Toll Commission
As Minister of Transport, I have the privilege of having one of South Africa's greatest assets under my care, namely, our national roads network. South Africa is lauded by overseas investors for many positive attributes but one which always stands as a powerful selling tool for our country and its economy is our infrastructure and especially the exceptional quality of our roads. In the light of this, it is imperative that we, as custodians of this national asset, ensure that this reputation not only remains intact but is further enhanced for future generations. For indeed, without good roads, our economy will flounder and our future will take on a decidedly bleak look. It is also imperative that South Africa, as part of the global economy, projects to the world an infrastructural capability that embraces First World standards. The economic integration of the southern African region under SADC is an added reason for the need to preserve and enhance the quality of our roads. On this point, we can stand proud that our roads do in important respects meet the demands. But we are now faced with a serious problem viz the lack of resources. It would be folly for the Government to shoulder full responsibility for the building, upkeep and maintenance of our national roads. For one, it would not be able to do so for it is an undisputed fact that Government does not have the money for large infrastructure projects. Combine this with the fact that we have inherited an infrastructure backlog of more than R7-billion and it stands to reason that partnerships are the way forward. Our national roads network is a shared asset that benefits everyone in this country. It should therefore be a shared responsibility and this is the principle which I, as Minister of Transport, am fully committed to. It is thus with delight that I embrace the concept of partnerships as encompassed in the N3 concession contract for it puts the Government and the concessionaire onto a solid platform of strength built on the foundation of a win-win relationship. The third partner in this alliance is the user of the road and here I am also fully committed to the user/pay principle that will apply on the N3 and other national routes around the country, although the concerns of the local communities must be taken into consideration. The user-pay principle is one which has been adopted by many countries around the world for the simple reason that it ensures a reliable and speedy delivery of infrastructure and services. It provides for an enabling process which ensures delivery on promises. User pays means that the people who directly benefit from the improved infrastructure and services pay for the use of them and in that way, become partners in the infrastructural developments of our country. This contract - worth R3,5-billion in capex for the route - also plays a greater role in the economy of South Africa as it will take on the State's existing debt of R1,38-billion on the road as well as maintain and improve the existing road, build new sections, operate them and return the infrastructure back to government in good condition and free of debt after the 30-year concession. It is important to note that the debt will be settled up-front with R1,38-billion being paid by the concessionaire to the National Roads Agency at the outset of the contract rather than over the 30 year period. It would be remiss of me to end this foreword without paying tribute to my predecessor, Mac Maharaj, under whose reign negotiations for this milestone contract were started. His vision was not only courageous but also wise for the end result, as outlined in this supplement, holds tangible benefits for all the citizens of South Africa. In truth, there is no single stakeholder here - we are all winners in this project and as such, I pledge the Government's full support to the concessionaire for the risk and responsibility it has taken on in the best national interests of our country and all road users. Dullah Omar |
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