How much does energy security cost: 140 million was spent to protect the South Ukrainian NPP

The experts analyzed the measures taken by Energoatom and Ukrhydroenergo to prevent blackouts, including the construction of protective structures for key energy infrastructure facilities. The total value of orders for the protection of the South Ukrainian NPP amounted to UAH 140 million.

This was reported by analysts of the Dozorro online platform for public control of public procurement.

On August 26, Russia launched its largest attack on Ukraine's energy infrastructure. Enemy drones and missiles damaged facilities in 15 regions, causing power outages in many parts of the country. Each new attack on energy facilities increases the likelihood of winter blackouts.

All procurements with titles containing anti-drone/anti-drone protection or protective structures for NPPs and HPPs were selected. Over the two years, 135 procurements totaling UAH 13.28 billion were counted. They included the development of design and estimate documentation, the purchase of materials for protection, the construction of protective structures, the installation of anti-drone systems, and supervisory services.

If we break down the funds by area, the development of design and estimate documentation cost UAH 1.38 billion. UAH 10.92 billion was spent on materials, construction of protective structures, and installation of anti-drone protection. Another UAH 400 million was spent on engineering services, including design and technical supervision. Also, projects and their implementation were ordered for more than UAH 530 million.

17 procurements concerned nuclear power plants with a total value of UAH 1.29 billion. The remaining procurement is aimed at protecting hydroelectric power plants. "Energoatom orders the construction of protective structures directly, and the details of the contracts are classified for security reasons, which became possible thanks to Cabinet of Ministers Resolution No. 1178.

Almost all of the work on the development of design documentation for the construction of protective structures for three NPPs was carried out by Construction Industry Countryinvestbud LLC. Subsequently, the same company received an order for the construction of these structures and designer's supervision.

Construction Industry Countryinvestbud LLC is owned by Yuriy Romashko. Since 2020, the company has received orders for UAH 852 million, almost all of which are from PJSC Ukrnafta and SE NNEGC Energoatom. The total value of orders for the protection of the South Ukrainian NPP amounted to UAH 140 million.

The first procurement was published in November 2022, and an expert assessment of the construction estimate was ordered for UAH 36 thousand. In February of the following year, the South Ukrainian NPP branch of Energoatom signed an agreement with Energoprombud LLC for works worth UAH 31 million, which were to be completed by the end of April 2023.

In late summer 2023, it was reported that the South Ukrainian NPP planned to purchase temporary protective structures at a price that was 20% too high. Following the intervention of the Verkhovna Rada's provisional investigative commission, the contract price was reduced from UAH 31.1 million to UAH 24.8 million.

In July 2023, Energoatom ordered the development of design documentation for the construction of a protective structure for the NPP for UAH 18.3 million. Two months later, the customer announced that Construction Industry Countryinvestbud would carry out the construction for UAH 96.3 million.

There are also two other procurements on Prozorro related to the protection of nuclear power plants, but the details of the facilities are classified. At the end of last year, Energoatom announced a contract with Construction Industry Countryinvestbud to develop design documentation for additional sections of protective structures worth UAH 6.7 million, and in February of this year, the company was instructed to perform work on these sections worth UAH 252.9 million.

The analysis showed that significantly more money was spent on protecting hydroelectric power plants than nuclear power plants. "Ukrhydroenergo signed agreements for the protection of hydroelectric power plants worth more than UAH 12 billion, while Energoatom signed agreements for only UAH 1.29 billion. The question of whether this is enough to reliably protect the three NPPs with a total capacity of 7835 MW, which account for about half of Ukraine's electricity production, remains open.

In early August 2024, a case was brought to court on charges of four people involved in an embezzlement scheme for the purchase of air conditioning systems at the South Ukrainian NPP. According to the investigation, the head of the production and technical equipment department facilitated the victory of two companies in the bidding for the purchase of industrial air conditioning systems. The equipment was delivered at inflated prices, which resulted in more than UAH 12.3 million in losses to the state.

In September, the Antimonopoly Committee uncovered collusion in a public tender and fined the bidders. The case also involved the purchase of network equipment for the plant. In particular, the Antimonopoly Committee of Ukraine found collusion between DTZ Group LLC and individual entrepreneur Ivan Spychak during the tender for the purchase of network equipment organized by the South Ukrainian NPP in 2020.

Анна Бальчінос