Chiang Mai (Mizzima) – Due to a reduced budget, Burmese government construction projects in Naypyitaw, the capital, have stopped or been temporarily suspended and several thousands of workers have lost their jobs.
The reason for the budget cuts is unclear, but one government official said money had to be redirected to support regional and state governments. Construction company owners said that the suspension of the ongoing work would last three months to one year.
“The government does not want companies to halt the construction projects. But some companies are three months behind in paying salaries so the companies shut down the work,” a contractor told Mizzima. He said large companies owe many debts to associated smaller companies. According to figures compiled by an express bus service in Naypyitaw, about 20,000 workers left the capital this week.
Sources said all but a few high priority government projects were halted.
“It has become obvious this week. At least 3,000 workers per day went back to their hometowns,” another government employee said. Because so many people left Naypyitaw, it was difficult to buy bus tickets, he said.
Twenty big construction companies including Max Myanmar, Htoo, Asia World, Naungdon, A One, Aryoneoo, Eden, TZTM, and ACE have construction projects in Naypyitaw, in addition to Dekkhina Thiri Township, Zabu Thiri Township, Pobba Thiri Township, Ottara Thiri Township and Zeyar Thiri Township.
An employee of the Max Myanmar Company said it halted all of its work except the football stadium project.
Meanwhile, construction continues in Naypyitaw on an International Airport to be built by GE Engineering Unit with a completion date of 2012.
Similarly, construction work continues on the Zeyar Thiri Football Stadium and Zabu Thiri Stadium, which will host SEA Games in 2013.
The new capital was built under the former junta in 2004 and the Ministry for progress of Border Areas and National Races and Development Affairs managed the project. New President Thein Sein replaced the ministry with the Ministry of Border Affairs. Major General Thein Htay is Border Affairs Minister.
The Central Committee for Development of Border Areas and National Races formed in 1989 was reorganized in April 2011 by President Thein Sein, and he now chairs the committee.
