Projects

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Project Name The National Non-Toll Roads Management Program (the Program)
Country The Republic of South Africa
Sector Transport
Concept Approval Date 15 October 2020
Board Approval Date 15 December 2020
Total Project Cost USD 3.7 billion
Loan Amount USD 1 billion
Borrower The Republic of South Africa
Project Context

National roads make up the primary road network and play a particularly important role in the economy as they form the strategic corridors that connect the country’s economic hubs, and provide access to sea ports and neighbouring countries. These roads are relied upon for the movement of both freight (60% of trips) and passengers (90% of trips).

Project Objective
By improving critical segments of the non-toll road network, the Program aims to ensure that the national non-toll road infrastructure is maintained in an optimal condition. These improvements are expected to translate to a reduction in the cost of transportation for road users.
Project Description
The components of the Project include:
(i) Upgrading road segments by constructing additional lanes and improving the existing pavement structure
(ii) Rehabilitating existing road pavements
(iii) Constructing new roads and/or road related infrastructure (bridges, intersections etc.)
(iv) Maintaining the road network
Expected Benefits
By reducing road user costs, the Program will be a catalyst in increasing the competitiveness of the South African economy as stipulated by the South African National Development Plan 2030 (NDP).
Construction activities will also result in the creation of employment.
Environmental and Social Aspect
The Project has been categorized as Category B in line with NDB’s Environment and Social Framework (ESF) environmental and social (E&S) as impacts are likely to be of moderate significance, site-specific and temporary. These will be mitigated by following the country systems and common industry practices for environmental protection, occupational and community health and safety, labour protection, and security. The Program activities will be mainly implemented within the existing road footprints and road servitude. For new roads and structures, site locations and routes will be based on the alternative analysis, thus avoiding or minimizing interference with protected and sensitive natural and cultural areas, land acquisition and resettlement.
Financing Aspect The total cost of the Project is estimated to be USD 3.7 million. Financing sources are as follows:
Source of Funds Amount (USD million)
New Development Bank
1,000
Other sources available to government of RSA
2,700
Implementation
April 2020 – March 2023.
The Program will be implemented through the Department of Transport in accordance with existing processes employed for the maintenance of national roads and in accordance with applicable procurement legislation.
Contacts NDB Borrower
Public Sector Department

Charmaine Kazamula

Department of National Treasury of South Africa
debtissuanceandmanagement@treasury.gov.za