Many of Kalay’s construction companies have gone out of business after costs rose dramatically since last year’s military coup, making them unprofitable.
An engineer said cement and iron have become very expensive and estimated that half of the companies in the capital of Sagaing Region have ceased operations.
He said the company he works for signed a contract before the coup and continues to work without raising prices, but may stop soon.
“We’ll try to explain the situation to the house owner,” he told Khonumthung News.
The engineer understands that ending a project in the middle of construction is a problem for everyone, and that’s why they’re still working, while pointing out that many businesses have shut down or slowed down their operations.
“If the house owner gives us a little more money than stipulated in our contract, we can continue operations.”
After the rise of the dollar, he said they may have to ask their customer to stop at least until the kyat stabilizes. Food costs have gone up but worker’s salaries have stayed the same, the engineer explained.
A bag of cement, which cost about $2 before the coup, now sells for $6, and the price of iron bars has risen from $330 to $950 a ton.
There are over 10 construction companies in Kalay, employing about 500 workers, 8 engineers and 40 foremen. Currently, over 70 private houses, some churches and private hospitals are being built in the town.