Brussels, 22/07/2009 (Agence Europe) - On Thursday 16 July, the European Investment Bank decided to lend €120 million to the South African National Roads Agency Ltd (Sanral) for the upgrading and extension of two key toll roads in northern South Africa. The projects are of strategic importance to South Africa's transport infrastructure, and are part of an ongoing programme by the national authorities to upgrade and extend the road network. The planned improvements and extensions will contribute to enhanced economic competitiveness as a result of reduced transportation costs and travel times.
The EIB funding will be used to support the upgrade and widening of 30km of the R21 linking Pretoria and the O.R. Tambo International Airport near Johannesburg, as well as improvements to over 160km between Springs and Ermelo on the N17 which links Johannesburg and Swaziland. The road enhancement schemes will bring significant safety benefits as a result of improved road alignment, the construction of emergency lanes and grade separated junctions. The project also has a strong social component as it will help to develop less advanced regions and create direct and indirect employment opportunities during the construction and management stages. Moreover, Sanral's corporate social policy aims at promoting the advancement of entrepreneurs from previously disadvantaged groups.
“The attractive terms and conditions of the EIB's funding as an AAA-rated institution, and the fact that these long-term funds can be made available in South African rand, will bring significant value-added to this project, improving the long-term sustainability of Sanral's toll road operations”, the Bank states. (O.L./transl.jl)