Half-billion pula lost to non-starter DM projects
Spira Tlhankane | Wednesday February 18, 2026 06:03
The Ministry of Transport and Infrastructure has set aside funds in the 2026–2027 financial year to settle outstanding payments and certified claims arising from the Development Manager (DM) model adopted by the previous administration.
The allocation comes after 132 projects were halted at conceptual stages 1 and 2, meaning most never progressed beyond drawings, feasibility studies, and preliminary processes.
According to notes in the draft 2026–2027 expenditure estimates, the Ministry will use P509.7 million to settle what it terms “contractual and financial obligations” tied to the suspended projects.
“The TEC for the programme needs to be increased by P509,666,793 from P37,000,000 to P546,666,763 to introduce a new project, DM Consultancies. The funds required are to settle outstanding payments for 132 Development Manager projects that have progressed to stages 1 and 2,” reads the document in part.
An internal review conducted early last year examined all DM contracts and found that out of the entire portfolio, only 16 projects were sufficiently advanced and remain ongoing.
The rest, 132, were stopped in their tracks with the Ministry revealing that the projects had already entered into binding agreements, triggering payment obligations even though physical implementation had barely begun.
Last week, Finance Minister Ndaba Gaolathe revealed that a comparative assessment of the DM model uncovered alarming cost disparities.
“We have undertaken a comprehensive review of the DM model as part of our broader effort to halt financial haemorrhaging and restore value for money,” he told Members of Parliament.
“The DM model was introduced in 2023 with a clear and noble objective to address long-standing inefficiencies in project delivery, accelerate implementation, and improve coordination across complex infrastructure programmes. Indeed, in several jurisdictions internationally, this model has delivered positive outcomes.”
Gaolathe revealed that under the DM approach, the construction of new primary schools was approximately 34% more expensive.
He added that a principal hospital project recorded a cost variance of over 56%, amounting to more than P630 million, whilst road projects were, on average, 11% more costly.
“The experience with the DM model has exposed systemic weaknesses that must now be decisively addressed. These include ad hoc decision-making, inadequate cost-benefit analysis, weak project selection and appraisal processes, poor adherence to established control frameworks, and limited institutional capacity to conceptualise and execute mega-projects.
“Botswana’s history of underperforming mega-projects makes it clear that business as usual is no longer an option,” Gaolathe emphasised.
The findings by Gaolathe paint a picture of a model that was not only stalled but also significantly inflated in cost. With most of the 132 projects halted at early conceptual stages, the P509.7 million effectively amounts to paying for designs, consultancy work, and contractual commitments without tangible infrastructure to show for it.
Critics argue that this represents one of the costliest administrative reversals in recent years, with half a billion pula committed to projects that never broke ground.
Whilst the government maintains that settlement is necessary to honour contractual obligations and avoid costly litigation, the financial hit underscores the risks embedded in the DM model.
As Parliament prepares to debate the 2026-2027 budget this week, the half-a-billion pula stands as a stark reminder of the financial consequences of flawed procurement models and a bitter pill for taxpayers footing the bill.