Rising prices force some Arakan construction sites to suspend operations

By DMG 09 Dec 2022

DMG Newsroom
9 December 2022, Sittwe

Some construction sites in Arakan State have suspended operations due to the high prices of building materials, according to construction companies.

Building materials like bricks, sand and gravel are produced in Arakan State, but their prices have increased due to junta travel restrictions. The prices of cement and iron procured from outside Arakan State have also risen, in some cases doubling, according to one construction company manager.

Government-funded construction sites have also been affected by price hikes, according to construction companies.

“All of the building materials, including gravel and sand, have increased [in price]. Some companies that have won government tenders have also suspended operations. The price of gravel has increased by more than 50 percent,” said one construction company manager.

The regime has reopened some roads and waterways following an informal ceasefire with the Arakan Army reached in late November, but the junta still imposes limits on the amount of building materials, according to sources in the local construction industry.

“There are travel restrictions and prices have also increased. Some construction sites have been suspended as a result,” said manager Ko Aung Naing Win of the construction firm Aung Thabyay Htoo Co.

Some companies are suspending their operations until prices go down.

“They may resume operations when it is easier to transport building materials,” said deputy secretary Ko Tun Hla Kyaw of the Arakan State Constructors Association.

Local bricklayers in Arakan State and other manual workers are struggling to make ends meet as many construction sites have suspended their operations. Jobs are scarce in Arakan State, furthermore, as there are few established industries and factories in the area.