Addressing Infrastructure Challenges in Gaborone: The Case for Output-Based Performance Contracts

The Gaborone OPRC – which links road maintenance, drainage and street infrastructure by linking payment to performance – was approved by Cabinet in 2022. Botswana’s Road Fund Levy, which is ring-fenced for road maintenance, can be strategically allocated within this model to maximise impact 

 

DOUGLAS RASBASH

Special Correspondent

 

The recent heavy rains and subsequent flooding in Gaborone have highlighted serious deficiencies in the city’s infrastructure. The inability of drainage systems to cope with water runoff and the deterioration of road surfaces are symptoms of chronic under-maintenance.

The consequences extend beyond inconvenience – poor infrastructure reduces asset values and erodes the economic gains made during Botswana’s diamond-fuelled growth era. If these issues are not urgently addressed, the city’s infrastructure will continue to degrade, making future repairs even more costly.

The Need for a New Approach

The fundamental problem lies in ineffective maintenance management. Limited public funds, bureaucratic inefficiencies, and a lack of accountability in service delivery have led to a backlog of necessary repairs. But with an increasingly constrained fiscal environment, Botswana must adopt a more disciplined and efficient approach to infrastructure maintenance.

If the public sector cannot effectively manage infrastructure upkeep, outsourcing maintenance through structured contracts with clear accountability measures should be considered. The Output- and Performance-Based Road Contract (OPRC) Model is a proven solution to road maintenance challenges. This approach shifts the focus from conventional maintenance contracts, which often rely on rigid specifications and short-term fixes, to long-term performance outcomes.

Instead of paying contractors for individual repairs, payments are tied to achieving pre-defined service levels over a contractual period, ensuring sustained road quality and functionality.

How the OPRC Model Works: Contractors are responsible for road maintenance over a fixed period (e.g. 5 to 10 years), covering key elements such as street works, lighting, drainage, traffic management, and road surfacing. Performance indicators dictate payment, ensuring that roads meet specific service quality standards. Contractors only receive full compensation if they maintain roads in an acceptable condition, as measured by metrics such as smoothness, pothole prevention, and effective drainage.

Risk is transferred to the private sector, incentivising cost-effective, high-quality maintenance solutions rather than reactive, piecemeal repairs. Innovation and efficiency are encouraged, as contractors have the flexibility to apply cost-effective maintenance techniques to meet performance standards.

Advantages of Implementing the OPRC Model in Gaborone are improved road quality and longevity. Roads and drainage systems are consistently maintained at a high standard, reducing the need for frequent emergency repairs. Long-term contracts reduce the total cost of infrastructure upkeep by prioritising preventative maintenance over costly reactive measures.

Payments are tied to results, ensuring that contractors deliver on their obligations. Botswana’s Road Fund Levy, which is ring-fenced for road maintenance, can be strategically allocated within this model to maximise impact. The Road Fund Levy provides a dedicated revenue stream for road maintenance, making it an ideal funding source for an OPRC programme targeted at Gaborone’s street infrastructure.

The terms of the 2001 RFL Regulation will need to be amended to permit it to be spent on Gaborone City Council Roads and not only state roads. By channelling these funds into a well-structured OPRC initiative, Botswana can ensure that road maintenance is managed efficiently and transparently.

Key Benefits: Deferring maintenance only result in higher costs and further deterioration of valuable public assets.  OPRCs have been widely implemented in various countries to improve road maintenance efficiency and reduce costs. Countries such as New Zealand, Australia, Brazil, Finland and Canada have reported cost savings ranging from 10% to 35% compared to traditional contracts.

For road agencies, there is a reduced workload, lower maintenance costs, better quality control, and fewer contract disputes. For road users, there is safer and more reliable roads with consistent service levels. For contractors, there is a guaranteed long-term workload and potential for business growth. For job creation, OPRC creates long term employment and also training.

A case study in Sydney, Australia showed that OPRCs led to a 16% cost reduction in maintenance while maintaining road quality. Additionally, competition introduced through contracting improved productivity by 22% among government road maintenance staff. The overall effectiveness of budget allocation improved by 10%, allowing more funds to be redirected towards safety and structural improvements rather than labour-intensive environmental work

Building on our experience: Given Botswana’s decade of experience with Performance-Based Contracts (OPRCs) for non-urban roads in collaboration with the World Bank, implementing an OPRC model for Gaborone’s city roads is a logical next step. The global evidence suggests that OPRCs can enhance road maintenance efficiency by shifting the focus from inputs (such as labour and materials) to service levels and long-term outcomes.

This approach often results in better budget forecasting, more consistent road conditions, and faster emergency repairs while also transferring risks to contractors rather than the government.

However, urban road OPRCs present distinct challenges. They require more sophisticated contract management due to higher traffic volumes, complex infrastructure (e.g. intersections, pedestrian zones, and drainage), and integration with public transport networks. Additionally, long-term budget commitments can be politically sensitive, and there is a need for capacity-building to ensure effective oversight and enforcement.

Example of the City of Gaborone.

A city-specific OPRC should include but not be limited to the following key performance criteria.

  1. Road Surface & Structural Condition Pavement Roughness (IRI – International Roughness Index): Must not exceed a set threshold (e.g., IRI < 2.5 for main roads).
  2. Pothole-Free Percentage: No pothole should exceed a defined size (e.g. max 50mm depth) or be left unrepaired beyond a specified response time.
  3. Crack Sealing Compliance: Cracks must be sealed within a set period to prevent water infiltration and structural damage.
  4. Skid Resistance: Roads must meet safety friction requirements, measured periodically.
  5. Drainage & Flood Management Drainage System Functionality: 100% of drains must remain unblocked, with inspections before and after the rain season.
  6. Floodwater Clearance Time: Water should not accumulate for more than a set number of hours after heavy rain.
  7. Traffic Management & Safety Road Markings & Signage: All signs and markings should be visible and intact, with no faded paint beyond a set percentage.
  8. Street Lighting: 98% operational lighting at all times, with faulty lights fixed within 48 hours.
  9. Accident Reduction Targets: Contractor must demonstrate how maintenance contributes to reduced accidents.
  10. Urban Mobility & Public Convenience Sidewalk & Pedestrian Path Maintenance: No trip hazards exceeding 20mm height difference.
  11. Traffic Flow & Congestion Reduction: Measured via average speeds on major corridors, ensuring smooth movement.
  12. Noise and Air Pollution Compliance: Encouragement of low-noise resurfacing techniques and dust suppression measures.
  13. Response and Service Levels Emergency Repair Response Time: Urgent repairs must be completed within a maximum of 24-48 hours.
  14. Routine Inspections and Reporting Compliance: Regular condition surveys must be carried out, with public reporting on compliance.
  15. Public Complaints Resolution Time: Complaints related to road conditions must be resolved within an agreed timeframe (e.g. 7 days).

These criteria ensure roads are safe, resilient, and well-maintained while holding contractors accountable. Botswana’s infrastructure challenges demand urgent and innovative solutions. Visitors, businessmen and investors are undoubtedly put off by the condition of our streets.

Although OPRC will never prevent flooding from unusually high levels of precipitation, it can provide a sustainable way to maintain Gaborone’s roads, drainage and street infrastructure by linking payment to performance. It will ensure that our precious infrastructure is robust and retains its asset value. Moreover, it should be noted that the Gaborone OPRC is project RD1 in the Botswana National Multimodal Masterplan approved by Cabinet in 2022.

With funding from the Road Fund Levy and a commitment to disciplined execution, this approach can help Botswana transition to a more efficient and resilient infrastructure management system to the benefit of all.