The Construction Development Corporation Limited (CDCL) is rapidly emerging as one of Bhutan’s leading engineering and construction companies, expanding its operations beyond roads and bridges into large-scale hydropower and national infrastructure projects.
However, despite its growing technical capacity and project portfolio, the state-owned company says retaining skilled Bhutanese engineers and workers has become one of its biggest challenges amid increasing migration opportunities abroad and workforce shortages in the construction sector.
CDCL officials said the company has completed infrastructure projects worth several billion ngultrums while continuing to strengthen its engineering expertise, project management systems, and technical workforce.
According to Lok Bahadur Ghalley, General Manager at the Corporate Strategy Office, CDCL has completed 13 permanent concrete bridges across Bhutan with a total contract value of Nu 1.1 billion. The company has also launched and de-launched 163 bailey bridges, generating around Nu 135.44 million in earnings.
In addition, CDCL has completed 23 road and infrastructure projects valued at more than Nu 1.5 billion.
“Beyond the financial value, these projects form critical components of Bhutan’s transport and trade connectivity,” Ghalley said. “The projects have played a vital role in improving regional accessibility and supporting economic development.”
Officials said the company began preparing for hydropower construction more than a decade ago by recruiting and training engineers and technical staff before securing its first hydropower project in 2016.
Today, CDCL is simultaneously implementing four hydropower projects, reflecting what officials described as the success of long-term investment in workforce and technical capacity building.
The company has also introduced continuous training programmes for engineers, technicians, and machinery operators, alongside project management training initiatives aimed at improving leadership capacity among project engineers.
As a subsidiary of Druk Holding and Investments (DHI), CDCL said it has been able to invest in specialized machinery and equipment required for complex infrastructure and hydropower works.
Despite these developments, officials acknowledged that retaining experienced Bhutanese professionals remains difficult.
“We continue to invest in training and skill development, but retaining experienced manpower has become increasingly difficult,” Ghalley said, noting that many professionals are leaving for overseas opportunities, particularly in countries such as Australia.
Officials said the loss of skilled engineers and technical workers creates additional pressure because large infrastructure projects require specialised expertise and long-term experience.
Apart from workforce retention, CDCL identified cash flow constraints, supply chain disruptions, difficult terrain, and manpower shortages as major obstacles affecting project implementation.
Officials explained that large infrastructure projects often require significant upfront payments for materials and equipment, while payment releases from clients can sometimes take months due to verification and approval procedures.
To maintain project continuity, CDCL said it uses overdraft facilities and inter-corporate borrowing arrangements to manage financial pressure and avoid delays.
Supply chain disruptions have also become a recurring challenge, especially as many specialised construction materials and tunnelling equipment are imported from India, China, and European countries.
Bhutan’s mountainous terrain, unpredictable weather conditions, and rising fuel prices have further increased logistical and operational costs.
To reduce delays, CDCL said it has signed supply agreements with manufacturers and suppliers for essential materials such as steel, cement, sand, and aggregates, while also adopting a “buffer-based planning model” involving advance planning systems, high-capacity mechanisation, and regular project performance reviews.
Officials also acknowledged that Bhutan’s small population limits the availability of skilled workers needed for major infrastructure works, leading to periodic reliance on foreign labour during acute shortages.
Despite this, the company said it continues to prioritise the development of a national workforce, with most employees being Bhutanese.
As the company takes on increasingly complex projects, questions have emerged regarding the ability of Bhutanese firms to independently manage large infrastructure developments.
CDCL officials said the company now possesses strong in-house expertise in construction execution and currently has experienced engineers capable of handling large infrastructure and hydropower projects independently.
However, they admitted that certain specialised design areas, particularly large bridge and hydropower system designs, still require external consultants.
“At present, our in-house design expertise is mainly limited to building projects,” Ghalley said.
Officials said many experienced structural and bridge engineers previously employed by the company have left, prompting plans to train a new generation of technical specialists in the coming years.
To improve accountability and project monitoring, CDCL has implemented a dual-level progress tracking system involving weekly project reviews and monthly management-level assessments.
Each project also operates under performance compacts linked to employee appraisals, incentives, promotions, and training opportunities.
The company further said strict quality control measures are enforced through internal audits and implementation manuals, with disciplinary action possible for non-compliance.
CDCL added that talent development programmes and staff incentives remain key components of its long-term strategy to strengthen employee retention and prepare future leadership within the organisation.