Government will require at least P11.47 billion to complete the remaining infrastructure projects approved under the controversial Development Manager (DM) procurement model, Parliament has been told.
Responding to a question from Bobirwa MP Taolo Lucas, Minister of Transport and Infrastructure Noah Salakae said only 16 out of the 148 projects initially planned under the DM model are continuing, while 132 were suspended following a government review.
Lucas had asked the minister to account for the number of projects cancelled, the financial implications of those decisions, the projects allowed to continue, their total cost, and whether government would use the DM model in future.
In his response, the minister said government had originally planned to implement 148 projects using the Development Manager procurement model, but a comprehensive review found that only a small number had reached construction stage. Sixteen projects had progressed to construction stage, while 132 projects were suspended.
The minister said the 16 projects that were allowed to proceed involve road works and school infrastructure that had already reached advanced stages, making cancellation costly and impractical. Government decided to continue with these projects to avoid job losses, contractor claims and the risk of higher costs if the works were stopped and later re-tendered.
He told Parliament that the exact financial cost of cancelling the suspended projects has not yet been determined because negotiations with the respective development managers are still ongoing. The precise financial implications for the suspended 132 projects will be determined through the ongoing negotiations with the respective Development Managers, which are expected to conclude in May 2026.
The minister said the 16 projects that were allowed to proceed involve road works and school infrastructure that had already reached advanced stages, making cancellation costly and impractical. Government decided to continue with these projects to avoid job losses, contractor claims and the risk of higher costs if the works were stopped and later re-tendered. Considerations included the risk of job losses for workers and subcontractors, demobilisation costs, contractor claims, deterioration of partially completed works and the likelihood of higher costs due to inflation if projects were restarted later.
Salakae said completing the 16 ongoing projects will require a total of P11,470,654,576.59, which will be spread across government budgets up to the 2027/2028 financial year. He added that government is still engaging development managers to explore alternative delivery methods and funding arrangements that could reduce the burden on the public purse while ensuring that critical infrastructure projects are finished.
The minister also confirmed that government has formally abandoned the Development Manager procurement model following concerns about its implementation, saying the Presidential Directives that authorised the use of the model have been revoked and the system will not be used in future. He said government remains committed to completing priority infrastructure projects and ensuring that future procurement systems deliver value for money.
