The COVID-19 pandemic has given rise to many issues. And one of them is an exodus of workers leaving a noticeable gap in the country’s construction sector. Although the Bhutanese workforce is filling the space gradually, the situation is far from being stable. In Phuentshogling, the labour shortage is delaying the town’s biggest ongoing project, the Phuentshogling Township Development Project.
Phuentshogling township development project is the biggest urban development project in the country. It is divided into five zones, which is spread over 1146 acres of land. Currently, the works are carried out in Zone A. The first package under Zone A which began in November 2018 is supposed to complete by May 2021 but the labour shortage has delayed the progress of the works.
The first package includes river training, backfilling, construction of walkways, landscaping and 12 cross drainage works. As of now, almost 60 per cent of the works is complete.
“Before the pandemic started, we had over 500 labourers. Since it is a labour-intensive project, we need a majority of skilled workers. We depend mostly on the labourers coming from across the border. But with the closure of border gates, labourers from India stopped coming in. We faced difficulty in managing the workers here,” said Kamal Dhakal, the project manager of Construction Development Corporation Limited (CDCL).
According to CDCL, the project implementing agency, many Bhutanese are interested to work for the Project. But due to the Red Zone status of Phuentshogling town, they are not enlisting themselves. For now, the CDCL is managing with workers from the town’s neighbouring areas.
Meanwhile, the second package of the project will include road network, water treatment and supply, sewerage collection and treatment, power supply and telecommunication.
“We are under process of tendering out the second package, which we will do by January 2021. Package two is also a 30 months project and we are targeting to finish it by the end of 2023,” said the project manager.
The Asian Development Bank (ADB) is funding 70 per cent of the project’s cost which comes to around USD 53 M. Of it, USD 24.6 M is a grant and the rest is a loan. Similarly, the government is financing 30 per cent of the total costs.
ADB recently approved a concessional loan of USD 18.5 M and a grant of USD 10 M for Zone A of the project. It is expected to complete by 2024. Once complete, the project will not only give a new way for town expansion but also create more trade and job opportunities.
Sonam Penjor
