The National Treasury has announced it will have to cover Sanral’s annual revenue shortfall for the next the twenty-two years
The shortfall cover was decided upon after government announced that an etolls dispensation would give motorists a reduction in fees along with a limited time 60% discount, which then resulted in Sanral seeing a significant loss in revenue on a monthly basis.
Although there were disputes as to exactly how much the loss was, government said it would be putting up 390 million a year from the National Treasury.
Over a twenty-two year period, that figure rises to just over R8.5 billion rand.
Apart from government’s assistance, Sanral itself will attempt to raise around R400 million per month by auctioning off some of its bonds, between February and November.
“Interest in Sanral bonds might increase once information is released on the extent to which Gauteng motorists had attempted to settle their outstanding debt,” RMB credit analyst Elena Ilkova told Business Day Live
“As long as we can reflect positive trends and provide information to our investors, our auctions should be successful. Any uncertainty results in less than positive results,” said Sanral’s chief financial officer, Inge Mulder.[Source – BDLive, image – CC JMK]