Hit the road, Sanral told

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The SA National Roads Agency said the court's decision would put road users at risk and impede job creation.

The City of Cape Town argued in court that Sanral CEO Nazir Alli took a unilateral decision to toll the highways. It contended that the tolls would cause disproportionate financial harm and hardship for poor communities along the highways, and that the authorisations given to Sanral by the ministers of transport and of the environment were unlawful.

No evidence

Judges Ashley Binns-Ward and Nolwazi Boqwana set aside the approvals yesterday. They found no evidence that the Sanral board had considered the public's representations during the public consultation period. "Obviously, if the directors did not collectively consider and apply their minds to the responses obtained in terms of the intent-to-toll process, they were not in a position to decide to apply for the ministers' approval, or to authorise the declaration," the court ruled.

"It is significant that Sanral showed no evidence whatsoever to indicate that a board meeting had taken place between May 30 2008, when the period for submission of comments and representation closed, and September 2 2008, when Sanral's proposal was submitted to the minister for approval."

Sanral dissapointet

Sanral spokesman Vusi Mona said the agency was disappointed with the ruling, which meant "the realisation of the project will either be delayed or may never happen".

"It will also prevent the direct and indirect creation of some 5,000 jobs for the first three years of the project, and about 500 jobs a year in the 30-year concession period.

"If Sanral is not allowed to proceed with the project now, the province, the city and their constituents will not have upgrades for at least the next 20 years, if at all."

Court's ruling a victory

In court papers, the city council claimed that "the public will, over the 30-year concession period, pay between R44.9-billion and R48.4-billion in toll fees (2010 values, excluding VAT)" and that if "Sanral undertook the upgrades, and operated and maintained the highways on a non-tolling basis, the cost would be R22.5-billion (2010 values, excluding VAT)".

Cape Town mayor Patricia de Lille hailed the court's ruling as a victory for the country and invited Sanral to discuss with her other ways of funding road upgrading. "It is a victory for the poor people living next to the N1 and the N2 who were never consulted," said De Lille. "It is also a victory for the agricultural sector because they are moving their produce on a daily basis from the farms to the harbour for export."

Source: The Times