Bhutan’s construction sector, which mainly relies on men and materials resourced from India and other neighbors, has been hit hard by the coronavirus surge in India and Nepal.

Restrictions and border closure escalated labor cost up to 50 percent and the material cost too spiked during the period, reported the national newspaper Kuensel. Furthermore, the shortage of laborers and raw materials has become another big challenge to complete several projects within deadline. 

In Bhutan, most construction materials come from the Indian state of West Bengal. The state is currently under lockdown for 14 days. Shortage of materials has spiked the cost up to 60 percent in Bhutan, the report said. 

For contractors, cost escalation is a major concern. “We have to complete the project at the cost that was agreed upon during the signing of the contract,” Kuensel quoted an executive of a Bhutanese construction firm as saying. 

Profit margins that they maintained while signing these contracts have already been leveled by increased costs. Some of them are even facing losses. 

Also, the availability of local construction workers is in doubt. Most Bhutanese workers are farmers and return to their villages as the season approaches. Workers from West Bengal, in India, won’t be able to come due to border closure and the lockdown there. 

The sector plays an important role in the country’s economy. In 2017, it contributed around 15 percent of the country’s GDP. However, since last year, the industry is struggling. Many, who couldn’t afford losses, have opted for other businesses.

(SAM)