Analysts calculate overpayment of 4 million for sewer repair in Izmail

On March 24, the Housing and Utilities Department of the Izmail City Council signed an agreement with Rodnik, a private enterprise, to repair an emergency sewer for UAH 16.6 million.

DOZORRO analysts reviewed the information on prices for material resources for the current repair and found a possible overpayment of UAH 3.7 million, which is almost 22% of the contract value.

The works are scheduled to be completed by November 30, 2026. The contract was signed directly, without an open tender with special conditions. The customer explained this decision by the fact that the emergency situation needs to be resolved urgently. This is a section of the network on Prydunayska Street (from houses 284 to 437), which has actually failed due to wear and tear and destruction. This has already led to a sinkhole and flooding and may leave residents without sewerage.

Market prices & Estimates

The price of the contract is dynamic - it can be adjusted in the course of the work. Therefore, DOZORRO is currently preparing a letter to the contracting authority with calculations and a request to reconsider the overpriced prices. Analysts saw the biggest overpayment for sand - UAH 2.3 million. Rodnik PE plans to supply it at UAH 1848 per cubic meter, although market prices in Odesa region are several times lower.

For example, Dvor.ua sells sand at 546.8 UAH/cubic meter, and Leon-Building sells it at 406 UAH/cubic meter. In addition, according to the National Institute of Infrastructure Development (NIDI), the average price of sand in Odesa region in March was 347.8 UAH/cubic meter. NIDI is a state-owned enterprise that maintains a database of prices for material resources, in particular, for road construction materials. It can be taken into account by customers and designers when making estimates. At the same time, it is worth considering that the contractor did not include warehouse costs in the estimate, so part of the overestimation may be due to them.

The Housing and Utilities Department of the Izmail City Council may also overpay on sewer pipes with a diameter of 1,000 millimeters. The contractor included them in the estimate at UAH 10.8 thousand per meter. Instead, Promtruboprovod LLC sells the same pipes at UAH 9185.58/m, Altex at UAH 8363.5/m, and Drainage System at UAH 8564/m. The potential overpayment on this item could amount to another UAH 1.1 million.

Other items with the highest probable overpayments are listed in the table below.c

Usually, construction materials are purchased in bulk for large projects. Therefore, their cost should be lower than in regular stores. Instead, Rodnik will supply them at prices higher than even retail prices.

Journalists of "Nashi Hroshi" also drew attention to the procurement for the repair of the sewer collector.

Rodnik PE is owned by Ihor Dekhtyarev. As reported by the Anti-Corruption Dimension, he is a member of the Izmail City Council from the Servant of the People party and has ties to the mayor, Andriy Abramchenko. Both have a political background in the Party of Regions. Since 2016, the company has received over UAH 945 million in contracts through Prozorro.

DOZORRO analysts have already recorded overpricing in the procurement of this contracting authority. In December last year, the Housing and Utilities Department of the Izmail City Council ordered major repairs of water supply and sewerage networks in the city. When analyzing prices for material resources, DOZORRO found a potential overpayment of UAH 2.3 million, which is almost 11% of their value.

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Кирило Бойко