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Cape Town - The SA National Roads Agency (Sanral) is to create a debt funding competition for its Winelands toll project.
Sanral CEO Nazir Alli said on Thursday in parliament that this will be the first time such a tool is used to fund projects in South Africa.
"We're still working on the rules and the condititions but it will include, for example, looking at best rates on offer and periods of tenure."
The Winelands project has an estimated cost of R10bn and the potential to create 5 000 jobs.
Alli said about 80% of the funds needs to be sourced from the debt market. The rest will be equity funded.
"It's becoming increasingly difficult to source funds in the debt markets. The market is still very nervous."
He said the timing on the project is still unclear.
Sanral had earlier indicated it hoped to start construction in the second quarter of 2012. Alli said this is only an indication and not a fixed date.
The Cape Town city council is challenging the tolling of the route.
Sanral CEO Nazir Alli said on Thursday in parliament that this will be the first time such a tool is used to fund projects in South Africa.
"We're still working on the rules and the condititions but it will include, for example, looking at best rates on offer and periods of tenure."
The Winelands project has an estimated cost of R10bn and the potential to create 5 000 jobs.
Alli said about 80% of the funds needs to be sourced from the debt market. The rest will be equity funded.
"It's becoming increasingly difficult to source funds in the debt markets. The market is still very nervous."
He said the timing on the project is still unclear.
Sanral had earlier indicated it hoped to start construction in the second quarter of 2012. Alli said this is only an indication and not a fixed date.
The Cape Town city council is challenging the tolling of the route.
