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Cape Town - Authorities did not determine whether it was affordable or financially viable to toll sections of the N1 and N2 into Cape Town, the Western Cape High Court heard on Tuesday.
Geoff Budlender, for the City, argued that crucial information about costs only came to light after the bidding process, long after they had already decided to go ahead with the toll project.
The court was hearing an application by the City to have Sanral's decision to toll sections of the N1 and N2 reviewed and set aside.
Budlender called the process "entirely irrational".
"This is a case about decisions with huge consequences that will last for at least 30 years. Not one of the authorised decision-makers ever considered the consequences."
Budlender said the evidence showed the environmental minister at the time gave environmental authorisation on the assumption that his transport counterpart would consider the socio-economic impact.
The City also argued that the transport minister gave his approval to declare the toll roads on the basis that Sanral had complied with the relevant procedural steps, rather than him considering the merits of the application.
The minister had misunderstood his legal duty by not considering the socio-economic impact of the manner in which the road would be used, including tolling, the court heard.
Budlender further argued that the Sanral board never made the decision to declare the roads as toll roads.
"It was never asked to decide and it never made such a decision."
Base tariffs in a draft concession contract for the proposed tolls are equivalent to 74c per km, based on 2013 values and excluding VAT.
Budlender said this tariff was almost three times that of the 26c per km toll tariff for the Gauteng Freeway Improvement Project.
According to the draft contract, if the transport minister determined a tariff lower than the base tariff, Sanral would have to pay the shortfall to Protea Parkways Consortium, Budlender said.
"The public will, over the 30 year concession period, pay between R44.9 billion and R48.4 billion in toll fees, based on 2010 values excluding VAT."
The case continues.
