A new company has been awarded the contract for the reconstruction of a children's hospital for 100 million in Kherson

Kherson Children's Hospital signed a contract for reconstruction without holding an auction. The contract was signed with the same owner whose company had previously terminated the agreement due to violations, and a public organization accused the contractor and hospital officials of overcharging.

This was reported by Intent with reference to the Prozorro procurement system.

The Kherson Children's Regional Clinical Hospital, a municipal non-profit enterprise, has begun reconstructing the reception area of the main building and the diagnostic department. The works cover the first floor of building A and the premises of building L, where a computed tomography scanner will be installed.

The contract for the works was concluded without an auction with the Magistral Plus consortium, and the expected value of the deal was UAH 102.5 million.

SCREENSHOT: Prozorro

The project is funded under the Ukraine Facility program, and the works are to be completed by December 31, 2026.

According to YouControl, the company was established on June 6, 2025. Its founders were Valk Construction Company LLC and Avtomagistral-Zakhid LLC. The latter company is associated with Serhiy Yuzvishyn, who during the year became the owner of several companies that won state tenders for more than a billion hryvnias. Prior to that, Avtomagistral-Zakhid had ties to the former head of the Ternopil Region Road Service, Bohdan Yulyk. Despite its young age, the company has already been featured in several journalistic investigations. In 2025, the company earned more than 148 million in public procurement, 102.5 of which came from hospital reconstruction.

SCREENSHOT: YouControl

The tender for the hospital renovation was held back in May, but it was canceled a few days later. The reason was the inability to eliminate violations of public procurement legislation: the procurement plan and the tender announcement did not state that the project was being implemented under the EU's Ukraine Facility initiative.

As for the company, it also appears in the court materials of the Kherson City Court of August 19, 2025. The NGO Platform Public Control stated that hospital employees, together with representatives of Avtomagistralia-Zakhid, allegedly developed a scheme to overstate the cost of work during the reconstruction of the emergency department.

Although the court refused to enter this data into the URPTI, the same hospital later terminated the contract with the company for UAH 135 million due to violations. The reason was the monitoring of the procurement, which was launched by the State Audit Service in August. During the inspection , auditors recorded violations: the contractor did not eliminate the customer's comments, and products from countries banned from EU co-financing programs were found among the materials. In addition, the company had no proven experience in performing similar work.

After that, a newly created company of the same owner was awarded the same contract without an auction or competition.

Анна Бальчінос