Question NW2767 to the Minister of Transport

Reply:

(a) Since the inception of the contract in October 2009, the toll operator has been paid R3 840 million up to August 2017 for toll operational costs. This amount includes the amount of R476 million paid under provisional sums for amongst others, rates and taxes of all properties related to the project, rental costs of customer services centers, purchasing of e-tags, printing of invoices and other correspondence to violators and posting of these invoices. The honorable member is invited to view the monthly information at the offices of SANRAL.

(b) The contractor participated in a tender process during which the contractor provided rates for the provision of services in terms of the requirements of the Contract. These rates are fixed for the contract period and only adjusted for inflation in accordance with the published CPI. At the end of every month, measurement of the quantity of services performed by the contractor takes place. The contractor is then compensated for these services in accordance with the tendered rate. For example the contractor is required to record each toll transaction. The end of month payment will be calculated by multiplying the actual number of toll transactions recorded, with the tendered rate as was provided at the tender stage. Provisional sums are paid in terms of invoices produced e.g. municipal accounts, postage costs, etc. The toll operator therefore does not receive the toll revenue, but is compensated for services provided in terms of tendered rates.

(c) The current e-toll operations contract comes to an end in December 2019 and has an option to be extended for a further 2 years. SANRAL will review its options and the performance of the current contractor before making a decision whether to extend the contract for such an extension or retender.

(d) R645 million.