Minister of Transport and Infrastructure Noah Salakae has announced a review of the Development Manager (DM) model, a major shift in Botswana’s approach to infrastructure development. The announcement was made during a parliamentary session following President Duma Gideon Boko’s State of the Nation Address on November 19, 2024. In his address, the President highlighted the need to reassess the DM model, particularly in relation to its impact on project construction costs.

Minister Salakae acknowledged the growing public concern over the DM model, noting that citizens from various sectors of society have raised issues with the model’s efficacy. He thanked Parliament for the opportunity to provide clarity on the matter.

The DM model was introduced in December 2022 under former President Mokgweetsi Masisi’s administration as part of a Cabinet Directive under the Second Transitional National Development Plan (TNDP). Then Minister of Finance first announced the model during the 2023 Budget Speech, presenting it as a new approach to project implementation and management. The plan sought to address persistent challenges associated with traditional project delivery, including delays, substandard quality, cost overruns, and financial risks.

The model was intended for use in large-scale infrastructure projects, such as road construction, government office buildings, institutional housing, hospitals, schools, stormwater drainage, and redevelopment projects, including the Kasane-Kazungula Revitalization Project. The total cost of these projects was set at P13.3 billion, with the funding linked to the Second TNDP.

In December 2022, a Request for Expression of Interest (EOI) was floated by the then Ministry of Transport and Public Works. It called for Development Managers within the infrastructure and built-environment sectors to submit proposals for prequalification. The DM model was based on the Engineering Procurement Construction Management (EPCM) system, where a project manager oversees subcontractors and suppliers.

After the EOI process, nine companies were prequalified to serve as Development Managers. These included HSNV Mining, Okavango Africa Consortium, Bothakga Burrow, Nama Consulting Engineers/Knight Piesold Joint Venture, Bigen Africa Services, K-HILL Consortium, Pro-Serve Consulting (Pty) Ltd, Zutari Botswana (Pty) Ltd, and DEVMCO Group (Pty) Ltd. The prequalified firms were later invited to tender, marking a shift from the EPCM model to the Engineering Procurement and Construction (EPC) approach. This shift required Development Managers to assume greater responsibility for project design and construction, thereby absorbing more of the associated risks.

By July 2023, each of the nine Development Managers had been allocated individual project packages valued at between P1.1 billion and P1.9 billion. Preliminary negotiations concluded in August 2023, with contracts signed in October 2023. The Development Managers were tasked with implementing a total of 148 projects under the TNDP, with a combined budget of P13.2 billion. However, according to the project memoranda, the total estimated cost for DM projects was closer to P27 billion.

Minister Salakae defended the need for the projects, noting their role in advancing Botswana’s development and improving citizens’ lives. However, he acknowledged concerns regarding the best model to use for project delivery, which prompted the government to launch a review of the DM model.

The review will be led by a Special Task Team that will examine the DM model’s legal structure, rationale, and overall implementation. The review will also assess compliance with relevant laws and the mandate given to Development Managers. The team’s findings and recommendations will be submitted to the Ministry of Transport and Infrastructure for further action.

As part of the review, 70 of the 148 projects will be suspended. The remaining 78 projects will continue to avoid the financial and legal risks associated with demobilization. However, these projects will still be subjected to the review process. The review is expected to take 40 days to complete.

Minister Salakae concluded his statement by reiterating the government’s commitment to ensuring an effective and efficient review process. The review aims to establish a more effective infrastructure delivery model that serves Botswana’s development goals.