Billions for reconstruction: who got the main contracts in Mykolaiv region

Journalists investigated who receives billion-dollar contracts for the restoration of Mykolaiv region. Four companies turned out to be the region's favorites.

This was reported by the Center for Public Investigations.

After the start of the full-scale invasion, Ukraine began the reconstruction process. Instead of large-scale construction, for which hundreds of millions of hryvnias were previously allocated, attention was focused on restoring the destroyed infrastructure. Regional agencies that previously operated as road services were renamed as infrastructure restoration and development services.

In almost three years, the recovery service in Mykolaiv region has implemented dozens of projects aimed at rebuilding infrastructure damaged by the hostilities. Funding has come not only from the state and local budgets, but also from international partners. The Kingdom of Denmark supports the implementation of certain reconstruction projects.

Mykolaiv region received twice as much funding for reconstruction as Odesa, which is justified by the severe destruction and occupation in 2022. Already in the first year of de-occupation, 53 tenders for more than a billion hryvnias were announced, many of which were allocated for construction work.

In 2023, the Mykolaiv Region Reconstruction Service launched 153 tenders worth over UAH 16 billion, with about 40% going to the construction and repair of roads and bridges, 25% to architectural and engineering services, and the rest to information services. The most expensive project was the reconstruction of a secret facility worth UAH 1.9 billion, which was carried out without bidding by the Kyiv-based Ukrtransmist company.

The region's leading contractors are Odesa-based Rostdorstroy and Avtomagistral-Pivden, which received UAH 5 billion and UAH 2.9 billion in 2023, respectively. Experts emphasize the risks of cartelization of the market, when several companies win major tenders, which affects transparency and pricing. Also, agreements worth UAH 2.2 billion were signed with the Eurotransmist consortium.

This consortium was registered a year ago. Its founders include the aforementioned Ukrtransmist company, European Road Construction Company LLC, and Bridge Engineering LLC. All of them received budget funds. According to the YouControl analytical system, theEurotransmist consortium is part of the Keloyev family group. It is noteworthy that since December, the consortium has been in a state of suspension.

The activities of Rostdorstroy deserve special attention. The company, associated with Odesa MP Yuriy Shumacher, is actively expanding abroad, with businesses in Romania, Austria, and the United Kingdom. These companies continue to develop during the war. In 2018, the founders of Rostdorstroy were not Yuriy Schumacher and Yevhen Konovalov, but a Cypriot offshore company with a Russian trace.

In 2024, 14.3 billion hryvnias worth of tenders were announced, with the largest amount of money allocated for the construction of a water pipeline - 7.4 billion. Rostdorstroy, Avtomagistral-Pivden and Avtostrada, which together created the National Association of Road Workers of Ukraine, remain the favorites of the trade.

Problems with transparency and equal access to contracts remain relevant. It is emphasized that most billion-dollar contracts are distributed among large companies, which raises doubts about their effectiveness for the budget.

The restoration of Mykolaiv region's infrastructure is an important step for the region, but it requires stronger control to avoid market monopolization and ensure efficient use of public and international funds.

Recently, a contract was signed with Rostdorstroy, a company affiliated with the Odesa mayor's party Trust the Deeds, to repair a road in Mykolaiv region. More than one hundred million hryvnias were allocated from the budget for this purpose. Bidding for road repairs was announced by the Service for Infrastructure Restoration and Development in Mykolaiv Oblast.

The company was awarded a four hundred million dollar contract for road repairs. The bidding was held without a competitive procedure. The lot amount was reduced by four million.

And the contract for the construction of a shelter for the Radsadiv Lyceum in Mykolaiv region was given to a scandalous Odesa developer. The tender was awarded without bidding to an Odesa-based company that has repeatedly been involved in criminal and journalistic investigations.

Анна Бальчінос