The Government has revoked the controversial Development Manager (DM) model for delivering infrastructure projects citing inflated costs, procedural flaws, and an unsustainable financial burden on state resources.
Transport and Infrastructure Minister Noah Salakae told Parliament on Wednesday that all three Presidential Directives approving the model have been repealed, ending the approach just under two years after its introduction under the Second Transitional National Development Plan (TNDP II).
The DM model, which engaged nine Development Managers to oversee 148 projects nationwide, was initially intended to fast-track delivery. But a government-commissioned review found that the model’s capped 14% fee structure, procedural shortcomings, and weak legal alignment significantly inflated project expenses.
“The DM fee structure can be deemed as one of the major contributors to high project costs,” Salakae said, noting that unlike industry practice, the model did not apply a sliding scale that lowers fees for larger projects.
The review, concluded in March and made public last week, also revealed that some project budgets lacked comprehensive cost estimates, making direct comparisons difficult.
Economic headwinds and declining revenue inflows have compounded the situation, forcing the government to rethink how it delivers major infrastructure. Of the 148 projects, 16 already under construction will continue under alternative delivery or financing arrangements, while the remaining 132, still at the conceptual stage, will undergo a thorough reassessment.
