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Afghan Contractors Feeling Drawdown Pinch
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Afghan Contractors Feeling Drawdown Pinch



In Afghanistan, the construction industry has thrived since the fall of the Taliban. NATO and the international community have pumped billions of dollars into building roads, schools and military bases. But with the drawdown of troops and NGOs, construction spending is now drying up, leaving Afghan contractors scrambling to find new business. NPR's Sean Carberry spoke with a few of them.

SEAN CARBERRY, BYLINE: I'm standing in the hallway of the Mustafa Omid Construction Company here in Kabul. And if the people had their way, we'd be talking next to a construction site. But for now, the jackhammers are silent, the cement trucks are silent and these offices are very silent.

ABDEL WAKIL SAADAT: (foreign language spoken)

CARBERRY: Abdel Wakil Saadat is the president of the company. He says they do smaller projects, mostly schools funded by Japan. Last year, they did half a million dollars in business; this year, zero, and they have no projects coming up. They have let go all but a few administrative staff. It's not what Saadat had in mind when he started the company in 2004.

SAADAT: (Through Translator) At the beginning we thought there is a need for a lot of construction work and there is a big opportunity. We thought our business would continue to grow.

AMIR SEDIQI: There was so much construction work done over the past few years. Everyone and their brother in Afghanistan has a construction company.

CARBERRY: Amir Sediqi is CEO of Associates in Development, a construction firm based in Kandahar. They're a midsized company that's focused on U.S. government-funded projects. A couple of months ago, they finished a $15 million project and they had upwards of 400 people on staff. They're currently bidding on jobs, but for now, there's no hammering or sawing going on.

SEDIQI: As of right now we just got rid of two offices and in the works of potentially downsizing a third office, which we're going to be down to about 25 staff members.

CARBERRY: Nationally, there are thousands of jobs on the line. And it's not just unskilled laborers being laid off - it's engineers, accountants and project managers, some of whom are likely to take their skills to other countries. Naeem Yassin is the head of the Afghan Builders Association, a trade organization that represents about 500 Afghan contractors. He says that for years the country was swimming in money from NATO, USAID and other international donors.

NAEEM YASSIN: 2010, just for the U.S. Army Corps of Engineers, they had us around $6 billion to $7 billion project.

CARBERRY: He says last year it dropped to $5 billion, and next year he says it will be around $2 billion; and other donors are dialing back too. But, he remains optimistic that there will be future growth in housing and non-military building. The Builders Association recently held a conference in Washington, D.C., in hopes of luring more business. Amir Sediqi attended the conference, and said it was full of Afghan contractors in a mild state of panic.

SEDIQI: There was this depressed look in their eyes, and they were just really looking for a solution to the lack of work right now.

CARBERRY: The situation isn't helped by the fact that many private investors are holding off on spending in Afghanistan until they see what things look like after NATO troops withdraw in 2014. Aziz Mobarez is another contractor hoping to find a future niche. Like others I spoke with, he wishes we could have met at a job site rather than his new downsized office space. He got into the business in 2007, anticipating 20 percent annual growth. Now...

AZIZ MOBAREZ: Honestly, I'm giving myself and the company another six month. I think that after six month, we cannot survive or we change our activity.

CARBERRY: So, for now, he and many other contractors are submitting bids and waiting, and worrying about whether they will break any more ground. Sean Carberry, NPR News, Kabul.

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