It was approved earlier this year by North Korean leader Kim Jong Un in defiance of tough sanctions placed on the hermit state over its nuclear weapons tests.
"Project managers are now openly providing drugs to construction workers so that they will work faster," a construction source in Pyongyang told Radio Free Asia.
"[They] are undergoing terrible sufferings in their work."
Human rights workers in Asia said the working conditions amounted to slave labour and urged the UN to take further action against Kim.
Phil Robertson, Asia director for Human Rights Watch, said: "It's going to be hard to verify that this is happening, but if it is confirmed then we utterly condemned it.
"The real issue here is slave labour, and our immediate reaction to this was that if they want faster workers why not actually pay them, instead of resorting to giving them drugs?
"The North Korean Government wants to finish these buildings to somehow prove that they are a developed country. But this kind of forced labour has been unilaterally condemned by the international community."
Robertson added: "It is a throwback to the World War II when governments regularly resorted to forcing labour of their citizens."
ABOUT METHAMPHETAMINE
1 Part of the amphetamine family of stimulant drugs, it is also known as Crystal Meth, P or Ice. It gives an intense high, followed by a severe comedown and is highly addictive.
2 It makes users feel very up, exhilarated, alert and awake. It can also make you feel agitated, paranoid, confused and aggressive.
3 The risks include increased heart rate and blood pressure, raising the risk of heart attack.
4 Other risks: Evidence of brain damage with long-term use; severe psychoses; overdoses can cause strokes; and lung, kidney and gastrointestinal damage.
North Korea has been producing methamphetamine to increase its funds since the 1970s.
It was was initially sold as a medicine, but quickly became a hugely popular drug.
It is produced in state-run facilities by underpaid chemists and sold both domestically and internationally.
As the production and sale of opium declined in the early 2000s, methamphetamine became even more widespread.