During the concession period, the roads are both built and maintained at no cost to the State; At the end of the concession period, the State is left with an improved asset that is not only of greater value, but also entirely debt-free. Further, since the roads are funded without recourse to a government guarantee and their existence brings both tangible and quantifiable economic benefits, South Africa's international credit rating is improved thereby; and Perhaps most importantly, money that NRA saves the Government from having to spend on maintaining and expanding the road network can be used for social development programs without jeopardizing the long-term fiscal objectives. Government’s NRA looks increasingly to the private sector for capital to invest in the road infrastructure. NRA's Act entitles it to raise funds by means of loans from any source - including the money and capital markets - with the approval of the Minister of Transport and in consultation with the Minister of Finance. Therefore, while NRA has raised capital through the issuing of loans, it has also put market-making structures in place to facilitate tradability in the debt. It is long-term intention to create a market in its debt NRA’s in order to facilitate borrowing requirements, enhance its liquidity and, in so doing, reduce its cost of borrowing. All capital market bonds are listed by the Bond Exchange and can be traded both locally and offshore. Further, all conditions relevant to foreign investors have been met. Legal and Regulatory Structure The NRA is an independent, statutory company registered under the Companies Act in 1998 and established in 1998 by the South African National Roads Agency Limited and National Roads Act. The South African government, represented by the Minister of Transport, is the sole shareholder and owner of the Agency. The NRA mandate is to develop, maintain and manage South Africa's 7,200 kilometre national road network excluding land. Organisational Structure Board of Directors reports directly to the Minister of Transport via its NRA’s Chairman. Board members are experts in various spheres of business and infrastructure development. key strategic challenge is the long-term NRA’s sustainability of the primary road network. Therefore, a program has been developed to finance the provision of a primary road network consisting of both toll and non-toll roads. The organization structure of the NRA is shown below in figure below.
During the concession period, the roads are both built and maintained at no cost to the State; At the end of the concession period, the State is left with an improved asset that is not only of greater value, but also entirely debt-free. Further, since the roads are funded without recourse to a government guarantee and their existence brings both tangible and quantifiable economic benefits, South Africa's international credit rating is improved thereby; and Perhaps most importantly, money that NRA saves the Government from having to spend on maintaining and expanding the road network can be used for social development programs without jeopardizing the Government’s long-term fiscal objectives. NRA looks increasingly to the private sector for capital to invest in the road infrastructure. NRA's Act entitles it to raise funds by means of loans from any source - including the money and capital markets - with the approval of the Minister of Transport and in consultation with the Minister of Finance. Therefore, while NRA has raised capital through the issuing of loans, it has also put market-making structures in place to facilitate tradability in the debt. It is NRA’s long-term intention to create a market in its debt in order to facilitate borrowing requirements, enhance its liquidity and, in so doing, reduce its cost of borrowing. All capital market bonds are listed by the Bond Exchange and can be traded both locally and offshore. Further, all conditions relevant to foreign investors have been met. Legal and Regulatory Structure The NRA is an independent, statutory company registered under the Companies Act in 1998 and established in 1998 by the South African National Roads Agency Limited and National Roads Act. The South African government, represented by the Minister of Transport, is the sole shareholder and owner of the Agency. The NRA mandate is to develop, maintain and manage South Africa's 7,200 kilometre national road network excluding land. Organisational Structure NRA’s Board of Directors reports directly to the Minister of Transport via its Chairman. Board members are experts in various spheres of business and infrastructure development. NRA’s key strategic challenge is the long-term sustainability of the primary road network. Therefore, a program has been developed to finance the provision of a primary road network consisting of both toll and non-toll roads. The organization structure of the NRA is shown below in figure below.
694780ESW0P0960Vietnam0201090final.docx