A presentation by Mr Whity Maphakela, director of road infrastructure and industry development at the South African Department of Transport. Delivered during a Transport Forum Special Interest Group event held in Pretoria, South Africa on 6 December 2018.
1. Mr. Whity Maphakela
Act Chief Director: RIID
Thursday 6 December 2018
Overview of the RSA Roads Funding Policy
Presentation at the Transport Forum
2. • Mandate of the Department of Transport
• Strategic Issues facing the Roads Sector
• South African Road Network and Conditions
• Effects of Road Condition on Roads
• Extent of Backlog
• Delayed Maintenance
• Current Funding
• Objectives of the Roads Policy
• Proposed Policy Provisions
• Structure of the Roads Policy
• Road/Infrastructure Institutional Arrangements
• Policy Statements
• Revenue Sources
• Departments / Stakeholders Consulted
• Progress Report
• Government Commitment
• Next Steps 2
3. 3
Minister of Transport
Roads Rail Aviation Maritime
Integrated
Transport
Planning
Public
Transport
Support
Branches
Deputy
Minister
Director General
Vision
“Transport, the Heartbeat of Economic Growth
and Social Development”
Mission
The Department of Transport aims to lead the
development of efficient and integrated
transport systems by creating a framework of
sustainable policies and regulators; and
implementable models to support government
strategies for economic, social and international
development.
ATNS
ACSA
CAA SAMSA5 x Road
Agencies
PRASA Other Agencies (not under DoT)
• BMA
• TRASNET (TFL & NPA)
• SARS
• CSIR
4. Constitution of
the Republic of
South Africa
• Schedule 4 Part A and B defines:
• Provincial Roads - Exclusive competency of
Provinces
• Municipal Roads - Exclusive competency of local
government (metro, district and local)
• National roads - Exclusive competency of the
Minister of Transport
White Paper
on National
Transport
Policy (1996)
• Identified fragmentation of responsibility and co-ordination of
infrastructure across government levels and with parastatals
• Enabled creation of SANRAL to plan, develop, maintain S.A.
National Road network
• Mandated the creation of national forum to improve the “co-
ordination of infrastructure planning for all modes of transport”
and encouraged the creation of provincial /local co-ordination
structures
(RISFSA) &
Rural
Transport
Strategy
• Provided framework for Intergovernmental co-operation on
management and maintenance of national, provincial and
local road network (RCB)
• Establishment of national norms for information and
decision support systems to manage roads
• Ensure a sustainable funding for roads
• Development of human capacity for roads development
and maintenance
• Development of rural road infrastructure to support social
and economic development in rural areas 4
5. • Aging road network in relation to typical design lifespan (20 years);
• Extent of road network condition in poor to very poor condition;
• Exponential increase in vehicle traffic, especially freight traffic -
increases maintenance requirements & the need to upgrade roads;
• Lack of investments / inadequate funding -
• periodic maintenance resulted in a rapid deterioration of the road network
• the current maintenance effort at current funding levels is inadequate to
address maintenance backlog;
• Lack of road condition data and maintenance of Road Asset
Management System (RAMS) - affects project prioritisation by Road
Authorities;
• Slow Implementation of a Road Classification System - especially at
municipal level;
• Proclamation of roads - especially rural access roads;
• Technical Skills – lack of capacity to plan, implement, monitor and evaluate
projects and to report on existing road infrastructure investments. 5
6. South Africa has the 10th Longest Total
and 18th Longest Paved Road Network in
the World _ 2014/15
Roads Represents one of the largest
public infrastructure investments in
most countries
RSA Road Replacement Cost
>R2 Trillion
6
9. 0% 20% 40% 60% 80% 100%
SANRAL
EASTERN CAPE
FREESTATE
GAUTENG
KWAZULUNATAL
LIMPOPO
MPUMALANGA
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
Percentageof Network
Authority
Very Poor (km)
Poor(km)
Fair(km)
Good (km)
Very Good (km)
10. Type Year V-Good Good Fair Poor V-Poor
Length (km) 2013 8,104 18,016 25,064 13,946 4,355
% 2013 11.66% 25.93% 36.07% 20.07% 6.27%
11. 0% 20% 40% 60% 80% 100%
EASTERN CAPE
FREESTATE
GAUTENG
KWAZULUNATAL
LIMPOPO
MPUMALANGA
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
Percentageof Network
Authorithy
Very Poor (km)
Poor (km)
Fair (km)
Good (km)
Very Good (km)
12. Type Year V-Good Good Fair Poor V-Poor
Length (km) 2013 1,886 9,331 34,993 56,737 37,394
% 2013 1.34% 6.65% 24.93% 40.43% 26.64%
18. • SARF (200) - Failure of the road network (condition and ability to cope with increased
demands imposes an estimated R20 billion per year in access road user costs (fuel
consumption, tyre wear, vehicle maintenance) up to ten times in congestion wear.
• For rural communities, poor state of many municipal access roads contributed to the
soaring vehicle operating costs and hampered the ability of communities to access
services in key health and education sectors.
• Authorities have obligation to plan, design, construct and maintain the roads network,
to protect public investment, to ensure continued functionality of transportation system;
• Authorities also have to provide a reliable, effective, efficient and integrated transport
system that supports the sustainable economic and social development
• Although a series of transport and roads strategies and plans have been developed
since 1994, in particular the White Paper on National Transport Policy of 1996,
management of roads and its users has not been fully addressed within an overarching
national policy, specifically on roads infrastructure, road safety and NMT users.
• The Green Paper: Roads Policy for South Africa sets out the strategic position of
National Government on all matters relating to road regulation, roads infrastructure,
road safety and Non-motorised Transport (NMT).
18
19. There is a need to improve the governance, administration and efficiency of Road
Authorities (National, Provincial and Local Government) in South Africa : the
Roads Policy seeks to
• address the planning, design, construction and maintenance of the road network, to
protect the public investment in the road infrastructure, to ensure the continued
functionality of the transportation system,
• promote the safety of all road users (particularly NMT users as the vulnerable group),
• improve access and mobility of the marginalised groups and the rural communities in
terms of accessing basic social services and job opportunities by overcoming spatial
and geographic barriers,
• Improve road safety by providing a reliable, effective, efficient and fully integrated
transport infrastructure and services.
• address the cross-sectional alignment and integration across national departments
enhancing cooperation to steer relevant industries towards more holistic and
responsible practice.
19
20. Strengthening/ regravel backlog: Roads in Poor to Very Poor condition (2013)
Authority Paved Gravel Total
% Length Cost (R ‘000) % Length Cost (R ‘000) Length Cost (R ‘000)
SANRAL 11.86 2354 R 18 832 000 0 0
R
- 2354 R 18 832 000
Provinces -9 35.21 15947 R 127 574 080 65.67 94131 R18 826 140 110078 R 146 400 000
Metros- 8 4.12 2127 R 10 635 000 8.48 1227 R 245 315 3354 R 10 880 000
Municipalities 3.62 1363 R 4 089 000 28.54 86245 R 17 249 009 87608 R 21 338 000
TOTAL BACKLOG 21791 R 161 130 080 181603 R 36 320 464 203394 R 197 450 544
Value of backlog
20
21. • Since 1988, the condition of roads in the country has deteriorated dramatically. The
Roads Board realized quite early on that expanded toll revenue strategies are not
sustainable and that it can only be applied to a small part of the overall network. To
maintain the road network in 1998, it was estimated that around 35c/l of the
approximately 96c/l fuel tax would have been required.
• Presently there is an acute shortage of funds for road infrastructure implementation
and maintenance programs. This has led to deferred maintenance programs and large
backlogs.
• At the same time the South African public placed more pressure on Government to
deliver better quality of road infrastructure.
• The large backlog of deferred maintenance required R197 billion and the cost of poor
roads is largely felt by the road user.
• Road transport operations, including law enforcement operations and regulation, are
funded from the National Treasury through the Department of Transport, licensing
fees, penalty revenue and cross-border permits. However, the funds allocated have
not been adequate.
• The current revenue sources such as licensing fees, penalty revenue and cross-border
permits for law enforcement operations are not ring-fenced and has fallen short of
covering the law enforcement operations. 21
22. 0
20
40
60
80
100
2008 2013 2018 2023 2028
Year
RoadCondition
Repair Cost = X / km
Good
Fair
Poor
Very Poor
3-5 Years
Repair Cost = 6X / km
5-8 Years
Repair Cost = 18X / km
(Ratio 1:6)
(Ratio 1:18)
Delays in road maintenance of 3 to
5 years increases the required
repairs costs 6 - 18 times
23. Transfers to Sanral for non-toll roads over the medium term:
• R29.1 Billion Capital related investment on non-toll roads
• R4.3 Billion for the Moloto Road upgrade
• R1.7 Billion to compensate for the reduced tariffs on the GFIP
• R18.2 Billion for general road strengthening and maintenance
An additional R2.1 Billion in 2019/20 and 2020/21 for the
construction of the N2 Wild Coast highway
23
24. • National Road Condition scenarios with and without toll
0
10
20
30
40
50
60
70
80
90
100
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Non-TollNationalRoadNetworkCondition(%)
Year
ForcastedNon-TollNational Road NetworkConditon
R12bn/yearFiscusFunding for18,283 km - NO New Toll Roads
VeryGood
Good
Fair
Poor
VeryPoor
27. • Ensure alignment with national developmental priorities;
• Provide an over-arching policy that covers all aspects of the road sector and
applies to all three spheres of government;
• Prescribe national principles, requirements, guidelines, frameworks and national norms
and standards - applied uniformly in provinces and municipalities (level of service);
• Determine responsibilities, applicability and scope
• Identify & implement institutional reform regarding governance structures in the road
sector;
• Determine financial options in the road infrastructure investments, road safety, law
enforcement and enabling mechanisms to implement programmes and projects;
• Provide Policy certainty with clear and concise regulatory framework for roads;
• Ensure Integration of plans for stream-lined and integrated service-delivery;
• Maximize jobs creation and skills development;
• Ensure Integration of NMT as a recognised mode in the transport system;
• Clear national directive on how to tackle road safety;
• Ensure proper, Monitoring, Evaluation & Reporting of transport programmes 27
28. • Management of Roads to considers the legal framework and institutional relationships on spheres
of government, road infrastructure provision, technical capacity and employment creation.
• Non-Motorised Transport chapter to focus on animal-drawn transport, cycling, walking, eco-
mobility and environmental sustainability and innovative solutions.
• Road Safety chapter to respond to 5 pillars of the Decade of Action Plan (Global Road Safety
Plan), which was adopted by South Africa, namely: road safety management, safer roads and
mobility, safer vehicles, safer road users and post-crash responses.
• This policy will ensure that appropriate staff are appointed for in Road Safety, NMT &
Infrastructure Divisions to ensure effective M&E, timeous & accurate reporting hence capacity
building to be prioritised.
• The final policy statements on funding for roads to be based on discussions with National Treasury
in order to influence equitable share allocations.
• Integration with other sections to include freight, public transport, rural access and regional
integration. For these sections, the focus is limited to a roads infrastructural response only
because there will be sector specific policies to address these issues in more detail.
• The proposed policy shall apply to all public roads in South Africa that are managed by Roads
Authorities. While there are roads and streets in South Africa that are planned, financed,
constructed, owned, managed and maintained by parties other than road or local authorities, it
can be applied by private road owners and the National Road Traffic Act shall be applicable.
28
29. 29
NON-MOTORISED
TRANSPORT
• Regulation, Institutional
Arrangements and
Governance
• Integrated Transport and Land
Use Planning
• Funding
• Social Health and Economic
Opportunities
• Road Safety
• Environmental Sustainability
ROAD SAFETY
• Road safety management
• Enforcement
• Collection of crash data
• Engineering Actions
• Road Safety Education, Driver
Training & Driver Testing
• Research
• Policy Implementation
SUSTAINABLE APPROACH TO ROADS
PERFORMANCE
EVALUATION
ROAD INFRASTRUCTURE
• Institutional
Relationships
• Management of Roads
• Technical Capacity
• Employment Creation
• Responding to user needs
FUNDING LEGISLATIVE
FRAMEWORK
30. 30
Current Road Owner Proposed Owner
SANRAL
Current national road network
Remaining Strategic Network (after reviewed)
SANRAL
SANRAL
Provinces
Primary Network
Portions of provincial roads within metropolitan boundaries
Portions of provincial roads within local authority boundaries
But portions of provincial roads within local authority boundaries
that have skills and capacity to manage their own network
SANRAL/Provinces
Metros
Provinces
Local Authorities
Metros & Local
Authorities
Approach roads to border posts (up to country’s border) and ports SANRAL
Other government
departments and
state owned entities
Approach roads to border posts and ports SANRAL
-
Un-proclaimed roads Assigned to provinces and
local authorities depending
on RIFSA classification
Proposed assignment of roles and responsibilities
31. Policy Statement 8.1
Government will put mechanisms in place to prioritise road transport infrastructure
development and maintenance (including public transport facilities) within their
Equitable Share
Policy Statement 8.2
DoT to provide grant allocations to provincial road authorities proportionate to
their own budget allocations for road infrastructure.
a) Mechanism to be put in place to ensure budget allocations by provinces are not
retracted upon receipt of grant allocations
b) All funds/grants shall be prescriptive to allow for appropriate and integrated
development of roads, public transport and NMT infrastructure.
c) National Treasury and the DoT will introduce a performance-based approach in
administering grant funds, continuously monitor performance, and will incentivise
performing Road Authorities through access to top-up funding, where performance
targets have been met or exceeded.
31
32. Policy Statement 8.3
Government supports the implementation of the user-pay principle, where
required, in a sustainable manner.
a) Government supports user-pay principle in the road sector to ensure quality road
infrastructure in support of socio-economic growth.
b) Additional revenue streams (mixed sources), based on an integrated funding model
to be actively sought, including user-pay principle, developer contributions / tariffs for
roads and the use of the road reserve as an income-generating source.
c) Extent of private sector involvement in roads delivery and potential partnerships with
Private Sector will be investigated to determine the most appropriate funding model.
d) Government to pursue harmonised implementation of user-pay principle in line with
regional road transport agreements.
e) Government will develop a toll policy in order to guide tolling of the South African
road network.
f) Government to establish a Single Transport Economic Regulator (STER) to ensure
fair and equitable levying of road transport charges.
32
33. Policy Statement 8.4
All road authorities with the support of National Treasury to continuously
explore innovative funding mechanisms for the road transport sector.
a) Innovative ways of securing finance for the development of road
infrastructure will be explored and supported. These include the sale of
bonds and Private Public Partnerships, Build-Operate-Transfer (BOT) or
Fund-Rehabilitate-Operate-Maintain (FROM) contracts that enable
Government to obtain financing from private sources rather than the
fiscus.
b) Government to create an enabling environment for investment by
respective institutions.
33
34. Policy statement 8.5
The DoT supports the role of the private sector within the roads sector to fast-
track roads delivery.
a) Roads infrastructure will be funded through investments by the private sector.
b) Road Authorities need to consider alternative funding models partnering with
the private sector for construction, maintenance and financing of projects.
However, this has to be done within the existing legislative parameters.
c) In the event any particular Provincial Road Authority would want to partner with
a recognised Development Finance Institution (DFI), the DoT shall support their
application to the National Treasury based on the merits of the business case.
d) Government to create an environment conducive enough to attract private
sector funding in the development of road infrastructure and develop fair and
sustainable funding models that will attract private sector investment.
34
35. Policy statement 8.6
Increase funding opportunities and availability for the non-motorised transport
sector.
The three spheres of government to establish funding for NMT that will promote NMT
and ensure full use of the funding.
Policy Statement 8.7
Government to provide sufficient funding for improving road traffic safety,
regulation and law enforcement across the three spheres of government.
Policy statement 8.8
Government to enhance coordination between the three spheres of government
in the implementation of respective programmes, including infrastructure
funding.
35
36. Policy Statement 8.9
Government to put mechanisms in place to encourage generation of data for use
by the roads transport sector for planning purposes.
Policy Statement 8.10
Government should investigate interventions, including skills development,
capacity building and the streamlining of processes, in order to optimise
expenditure of allocated budgets to achieve efficiency in project implementation,
and an enabling funding framework.
Policy Statement 8.11
Government to support the goal of enhancing regional connectivity, trade and
integration through prioritised investment in relevant infrastructure
programmes.
Policy Statement 8.12
All road authorities will prioritise funding for projects that will promote a
reduction in greenhouse gas emissions in line with the Green Transport
Strategy. 36
37. At national level
• For road infrastructure: general tax (equitable share), toll,
specific taxes, (carbon, fuel), loans and bonds, the road
reserve portfolio, business opportunities, weigh bridges, and
weight distance charges;
• For regulation and law enforcement: general tax, business
opportunities, specific taxes, cross border charges, weigh
bridges, traffic fines and donor funding;
• For road safety: general tax, specific taxes (carbon, fuel),
traffic fines and donor funding; and
• For victims of road crashes: general and specific taxes and
fuel levies.
37
38. At provincial level :
• For road infrastructure: general tax (equitable share and
grants), toll, the road reserve portfolio, business
opportunities, weight distance charges, driver license
fees, vehicle license fees, developer contributions, weigh
bridges, provincial airport levies/duties and business
opportunities.;
• For regulation and law enforcement: general tax, permit
fees, traffic fines, business opportunities, driver license
fees, vehicle license fees, traffic fines and donor funding;
an
• For road safety: general tax, traffic fines and donor
funding.
38
39. At Municipal level
• For road infrastructure: general tax (equitable share and
grants), toll, loans, the road reserve portfolio, congestion
charges, municipal rates and taxes, property rates, fuel levy,
permits, developer contributions, emission charges, driver
license fees, vehicle license fees and parking;
• For law enforcement: general tax, congestion charges,
municipal rates and taxes, property rates, fuel levy, emission
charges, parking, permit fees, traffic fines and donor funding;
and
• For road safety: general tax, municipal rates and taxes,
emission charges, traffic fines and donor funding.
39
40. Discussions at a Technical Level
• Officials of the Department of Transport
• COTO Technical Committees (comprises of Road Authorities from Provinces & Metros, SANRAL
and representatives from SALGA, DPW, NT)
• Roads Coordination Body,
• National Non-motorised Transport Committee,
• National Road Incident Management Systems (RIMS) Technical Committee
• Inter-Provincial, Policy and Planning Committee (IPPP),
• Legislation Technical Committee,
• National Road Safety Committee,
• Road Safety Education Committee,
• Law Enforcement Committee,
• National Transport Forum,
• Presentation Local Government Forums via SALGA
• Meetings held with the Department of Public Works, Human Settlements, National Treasury, and
entities such as Road Accident Fund (RAF), Road Traffic Management Corporation (RTMC),
Cross Border Road Transport Agency (CBRTA), Railway Safety Regulator (RSR), Road Traffic
Infringement Agency (RTIA)
• Telephonic and email correspondence including a questionnaire sent to all provinces, district
municipalities, local municipalities as well as other key stakeholders
40
41. Provincial Consultation sessions
• Eastern Cape: 29 September 2015
• Free State: 9 September 2015
• Gauteng: 15 September 2015
• KwaZulu Natal: 3 September 2015
• Limpopo: 22 September 2015
• Mpumalanga: 6 October 2015
• Northern Cape: 25 August 2015
• North West: 18 August 2015
• Western Cape: 1 September 2015
National Workshop
• 21/22 July 2016
41
42. Administration Structures and with the Political Principals
• Committee of Transport Officials (COTO)
➢ 7 August 2015
➢ 29 January 2016
• Transport MINMEC
➢ 27 August 2015
➢ 12 February 2016
• ESEID Cluster Meeting
➢ 13 July 2016 - DGs Forum
• NEDLAC
➢ September 2018
• Roads Funding Workshop
➢ 7 – 8 March 2018
42
43. • Published for public comments in Government Gazette
41488 on 9 March 2018
• Written comments from interested parties, stakeholders and
organizations accepted up to 9 April 2018
• Made available on through the gazette and the
Departmental website
• Consultations with various stakeholders
• SEAIS Certificate
• Comments incorporated
43
44. • Government will continue to investigate other sources of
funding that may be pursued with the objective of ensuring
that this policy and various programmes implemented with a
view to enhance socio-economic development, trade with
countries in the region and regional integration, reducing the
cost of doing business and improving skills development in
the sector.
44
45. • Cabinet approval
• Raise awareness on the Policy
• Policy implementation
• Implementation Monitoring and Evaluation
45