Integrated Transport Plan.pdf - Durban

Funds can also be generated from alternative funding sources such as
levies on non-users who benefit from improvement and expansion of the
road network. Such levies could be in the form of a payroll tax or
surcharge on property tax either generally or more specifically located.
Commercial development and exploitation of land if in conjunction with road
improvements, could also bring in sizeable funds. The scope for raising
debt finance has been considered and the appropriate debt instrument
evaluated.
12.5 The Way Forward
In summary, the current situation reflects the following:-
� There is indication of an expected direct expenditure cut on
transport of some 40% (Year 2004 to 2005);
� There is a growing need for capital investment in the transport
systems and currently there is a backlog which current funding
levels do not address;
� The extent of future municipal capital allocations to transport by
direct and indirect funding is uncertain; indicative budgets suggest
a shortfall in funding needed for the 5 Year ITP implementation
plan;
� There are a variety of other potential sources for raising funds for
transport at the local level; some of these based on the user pays
principle. The fundamental question of such funds being dedicated
to transport needs to be considered;
� There are a variety of potential external funding sources with
varying requirements for repayment depending on the source and
nature of the funding. Some of these have been used but only to a
limited extent.
Against this background it is clear that unexploited and unexplored sources
to date need to be pursued as part of a comprehensive funding strategy.
Increasingly there is recognition of the need and support for the ‘user-pays’
principle and where applicable this should be carefully evaluated.
Way forward
eThekwini Integrated Transport Plan
Summary Report
12.4
Funding Strategy