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The construction sector in Thimphu Thromde faces significant challenges due to frequent disruptions in the supply of sand, a critical material for building and infrastructure projects. These disruptions, primarily occurring from May to October, have led to delays, increased costs, and potential compromises in construction quality, according to a recent study by the Competition and Consumer Affairs Authority (CCAA).
Sand, a vital component in concrete work, has seen supply disruptions during peak construction months, exacerbating issues for builders. The Natural Resources Development Corporation Ltd. (NRDCL), which holds the monopoly on sand extraction and distribution, struggles to meet demand during the summer months due to high river water levels, making dredging difficult.
According to the study, sand production is significantly higher during the winter compared to the summer months.
NRDCL, through its six regions (Sha, Rinpung, Jakar, Zhongar, Phuntsholing, and Gelephu), extracts and supplies sand throughout the country. The Sha Region caters to sand requirements in Thimphu, Wangdue, Punakha, Tsirang, Dagana, Paro, Haa, Trongsa, and Chukha.
NRDCL supplies three types of sand: river sand, stock sand, and dredged sand, with varying costs and availability. The supply process involves an App, “My Resources NRDCL,” where customers can register and order sand. However, the distribution is limited during the summer, with customers facing a maximum of five truckloads per week, depending on availability.
During peak construction months from May to October, builders faced severe supply disruptions, with 72 percent in July–August, 9.4 percent in September–October, and 12.5 percent in May–June experiencing shortages. While 21.9 percent of affected builders waited for NRDCL to resume supply, a significant 46.9 percent sourced sand from truckers and 21.9 percent from other construction sites, often at inflated prices. However, the period from May to October is characterized by high river water levels, making dredging difficult, while the construction work is at its peak.
The majority of construction owners (81 percent) were able to arrange sand even during the low season (May to October) from NRDCL. 12.5 percent of construction owners obtained it directly from truck drivers, while the rest had to arrange it from other construction sites when they faced supply shortages.
The study revealed that buying sand from sources other than NRDCL is most common during the lean supply season, at the height of construction work. Owners do not seem to mind paying the higher prices since it is costlier to stop work because of a lack of raw materials.
The construction owners claim that the amount they were required to pay per truck ranged from Nu 30,000 to Nu 45,000, which is an increase of 132.9 percent to 349 percent over the regulated price (Nu 12,880) of the dredged sand sourced from the Phuentsholing. This situation has given rise to an illicit sand trade, with truckers supplying sand directly to customers, bypassing NRDCL regulations.
The regulated price of stock sand and river sand is Nu 12,469.40 and Nu 11.411.80 respectively.
Study also found out that it is not clear how truckers get access to sand, which they can supply directly to customers, or if it is obtained by illegal means. There appear to be no check-posts between source and destination as in the past. Therefore, if any are occurring, illegal movements can be curbed through more intensive monitoring of the routes.
In terms of the monitoring, the Department of Geology and Mines (DGM) conducts unannounced inspections to curb illegal sand transportation truckers found ferrying sand illegally are penalized as per the Mines and Minerals Management Act 1995.
However, the effectiveness of these measures is questioned, as truckers continue to access and supply sand through potentially illegal means. The study suggests implementing GPS tracking systems on trucks to monitor movements and prevent unethical practices.
To address these challenges, the study recommends several measures, such as increased stocking where more sand is extracted and stored during off-peak seasons to ensure supply during peak demand. Exploring new sources, like identifying new extraction sites, considering environmental impacts. Consider importing sand from India during peak seasons and using crushed sand. Investigate the feasibility of using manufactured sand (M-Sand), an eco-friendly alternative used in other countries.
