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MoU signed to outsource DANTAK projects to Bhutanese contractors

September 9, 2023
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The Project DANTAK will outsource most of its projects to Bhutanese contractors for a period of one year. A Memorandum of Understanding was signed between the Construction Association of Bhutan and the Project DANTAK, yesterday. The president of the association said the MoU will help increase chances for small contractors to get more projects.  

The MoU will allow Bhutanese contractors to execute infrastructure projects under Project DANTAK in Bhutan. The MoU also establishes a proper framework to execute projects under Project DANTAK.

It also aims to facilitate mutual advantage in knowledge transfer, ensure adherence to standardised procedures, enhance occupational health and safety measures, and promote timely and quality execution of projects.

“As per the MOU, the contractors will now whether we are in a small, medium or large, we will be given the preference and DANTAK has agreed to outsource most of their project works to Bhutanese contractors and at this time of our economy where we need an uplift is like a breath of fresh air,” said Trashi Wangyal, the president of Construction Association of Bhutan.

Today, Bhutan has more than 3,000 contractors. Contractors BBS talked to say the MoU presents more project opportunities for them.

“So far, about 90 per cent of road widening and renovation works were done by DANTAK. If we start implementing as per what was signed in the MoU, contractors will also get DANTAK projects and not only rely on government projects. We will not face a problem of not having work,” said Karma Drukgyal, a contractor.

“The Bhutanese government do give us work. But there are too many contractors, which is why the work available is insufficient. Now, DANTAK will give us this opportunity to work,” said Tshering Lhamo, another contractor.

“We have more than 3,000 contractors and about 80 per cent of them are small contractors. So, Project DANTAK has agreed to outsource even the small works like maintenance or construction works that are small in magnitude and in terms of amount, they have agreed to outsource these works. Our chances as contractors and small contractors have increased manifold for them to acquire works,” said Trashi Wangyal, the president.

As per the MoU, the agreement will be in effect for a year unless it is terminated by mutual agreement.

Project DANTAK, a joint venture between the Bhutanese government and the Indian Border Roads Organisation has been instrumental in constructing and maintaining vital road networks, bridges, and other infrastructure projects in Bhutan since its inception in 1961.

The association also hosted the fifth Bhutan Construction Expo starting yesterday. 96 exhibitors comprising manufacturers, distributors and suppliers are showcasing their products.

Samten Dolkar

Edited by Sherub Dorji

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