Lack of resources in Bhutan slows down construction, realty

SHORTAGE of labour and disruption in raw material supply has resulted in slow-down in Bhutan’s labour-intensive sectors such as construction and real estate.

Since the Himalayan kingdom closed its borders early in March, new expatriate labourers from the neighbouring states of India could not be brought in while those who left on break are stranded.

The sector is short of skilled and semi-skilled workers while construction materials are running out.

Traders in the capital Thimphu and southern border town Phuentsholing have reported a surge in demand for construction materials, but said they are not able to meet the demand.

Minister of Labour and Human Resources Ugyen Dorji said although the tourist restrictions had no direct impact on the construction sector, the restrictions imposed on the recruitment of foreign workers has led to unmet domestic demand for workers in the construction sector.

As of now, there are 28,363 foreign workers in the country.

A landlord in Thimphu, whose construction is on hold, said that when the construction is delayed for long periods of time, already-built structures such as walls deteriorate, incurring additional costs.

The technical graduates within the country, another builder said, are engaged in other construction sites. “It is hard to get skilled workers such as plumbers and electricians.”

Thimphu-based construction company Vajra Builders Pvt Ltd announced vacancies for 50 labourers, but only 20 turned up.

As an immediate intervention to help the construction sector continue the affected projects, the labour ministry worked with the Ministry of Home and Cultural Affairs’ Department of Immigration to facilitate redeployment of foreign workers in the country from one employer to another upon completion of their construction works. This was not allowed in the past.

Noting that most Bhutanese refuse to work in the construction sector due to poor and unsafe working conditions, the labour ministry has also been encouraging the implementation of a pension scheme to those working in the private sector and ensuring compensation system. “These are essential to protect the workers,” said the minister.

In an effort to attract and retain people in the construction sector, Ugyen said the ministry was calling for higher wages and mechanising the ways of doing things – such as using labour-saving equipment, power tools, and also improving on-site facilities.

On April 24th, Prime Minister Dr Lotay Tshering said the labour ministry had proposed a 300 million ngultrum ($4.0 million) budget to implement a construction stimulus plan.

He was speaking at the 17th session of Meet the Press, an interaction between the media and the government held on the last Friday of every month.

Ugyen said the ministry was also working on a project that caters to the needs of the stimulus plan. Through a dual training programme, trainees will learn skills on the job and at an institute.

However, the organiser said that with a shortage of materials, more Bhutanese could not be recruited as most construction projects have been suspended.