The socio-economic impact of the Gauteng Freeway Improvement Project and E-tolls Report Report of the Advisory Panel appointed by Gauteng Premier, Mr David Makhura 30 November 2014 GAUTENG PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA Socio-economic Impact Gauteng Freeway Improvement Project and E-tolls Table of contents Part One: Preamble, Preface and Executive Summary Preamble ...................................................................................................................................................... i Preface ........................................................................................................................................................ iii Acknowledgements .................................................................................................................................... vi Members of the Advisory Panel ................................................................................................................ vii Executive summary .................................................................................................................................... 1 1. Introduction ................................................................................................................................... 1 2. Background to the recommendations of the Panel ...................................................................... 3 3. Recommendations ......................................................................................................................... 4 4. Conclusion ...................................................................................................................................... 8 Part Two: Main Report - Evidence and analysis, findings and detailed recommendations Definitions, Abbreviations and Acronyms ................................................................................................. 6 Tables .......................................................................................................................................................... 8 Figures ........................................................................................................................................................ 9 1 Guiding Principles ............................................................................................................................ 10 1.1 Conceptual Framework ........................................................................................................... 10 1.2 Critical Thrusts ......................................................................................................................... 10 1.3 Rationale for the Human Rights Approach to Socioeconomic Impact ................................... 11 1.4 Ethical Dimensions of Socioeconomic Impact ........................................................................ 11 1.5 Challenges of the Individual in the GFIP and e-tolls ........................................................... 12 1.6 GFIP, e-tolls, and environmental ethics .................................................................................. 13 2 Methodological framework ............................................................................................................. 14 2.1 Introduction ............................................................................................................................. 14 2.2 Selection of Methods ............................................................................................................... 14 2.3 Facilitation of Roundtables and Public Hearings: Critical Considerations .............................. 15 2.4 The Political Economy of the Gauteng Transport System: Challenges to Methodology ....... 16 2.5 GFIP: The Need for New Way of Impact Assessment and of Thinking ................................... 17 2.6 Limitations ................................................................................................................................ 19 3 Scope of work and context .............................................................................................................. 22 3.1 Establishment of the Panel ...................................................................................................... 22 3.2 Plan of work ............................................................................................................................. 22 3.2.1 Background ...................................................................................................................... 22 3.2.2 Desktop and primary research ........................................................................................ 23 3.2.3 Consultation ..................................................................................................................... 23 3.2.4 Assessment and Limitations of the Consultation Process .............................................. 24 3.3 The Gauteng economy and investment in transport infrastructure ...................................... 26 3.4 Policy considerations ............................................................................................................... 28 3.5 Road network and modal split ................................................................................................. 30 3.6 Description of GFIP and e-tolls ................................................................................................ 32 3.7 Assessment of infrastructure policy and projects ................................................................... 37 4 Political consequences ..................................................................................................................... 38 4.1 Introduction and Context ........................................................................................................ 38 4.2 The Importance of Political Legitimacy ................................................................................... 40 4.3 The Political Impact of Inadequate Consultation .................................................................... 40 4.4 Contextual Challenges ............................................................................................................. 41 4.5 Protest Against e-tolls: Causes ................................................................................................ 41 4.6 GFIP: Collective Consumption and Socio-economic Inequalities ........................................... 44 4.7 Recommendations ................................................................................................................... 45 4.7.1 The Primacy of Democratic Consent ............................................................................... 45 4.7.2 Creating an Enabling Environment ................................................................................. 46 4.7.3 The Central Importance of the Implementation Phase .................................................. 46 4.7.4 e-tolls Policy ..................................................................................................................... 47 4.7.5 Excerpts from stakeholders ............................................................................................. 47 5 Economic impact .............................................................................................................................. 48 5.1 Background .............................................................................................................................. 48 5.2 Introduction ............................................................................................................................. 49 5.3 Travel costs and benefits to households and businesses ....................................................... 50 5.3.1 Direct and indirect benefits of the GFIP upgrades ......................................................... 50 5.3.2 Direct and indirect costs of e-tolls .................................................................................. 53 5.4 Analysis: Estimated costs and benefits versus the lived experience of road users ............... 62 5.5 Macro-economic impacts of GFIP and e-tolls ......................................................................... 68 5.5.1 Evidence and analysis of GFIP and e-tolls on economy .................................................. 68 5.6 Conclusions .............................................................................................................................. 76 5.7 Recommendations ................................................................................................................... 77 6 Social impact .................................................................................................................................... 78 6.1 Background .............................................................................................................................. 78 6.2 Envisaged impact ..................................................................................................................... 80 6.3 Evidence and analysis .............................................................................................................. 83 6.4 Findings .................................................................................................................................... 85 6.4.1 Overall Appreciation of GFIP 1 Road Infrastructure ......................................................