Construction of water intake from the Southern Bug in Mykolaiv entrusted to a company with a history of corruption

The state has ordered the next stage of construction of a water supply system for Mykolaiv to a company that is already involved in criminal proceedings for alleged embezzlement of budget funds. The new contract was awarded without competition as additional work to the previous contract.

This was reported by the Center for Public Investigations.

The Service for Infrastructure Restoration and Development of Dnipro Region announced a tender for the design and construction of a water intake from the Pivdennyi Buh River in Nova Odesa and a main water supply pipeline to supply water to Mykolaiv. The procurement was explained by the need to eliminate the consequences of the destruction of the Kakhovka HPP. This is the third section of a large water supply project, which was decided to be issued as additional work to the previous contractor.

The non-competitive procurement was justified by the fact that the additional work was entrusted to the same contractor who was already working under the main contract. The law allows this if the amount of additional work does not exceed 50% of the value of the previous contract and is ordered within three years. The task to adjust the project documentation was approved on July 1, 2025.

SCREENSHOT: Prozorro

After the amendments were made, the project was divided into two phases: the construction of the third lift pumping station and pre-treatment facilities. The pre-treatment plant is a key technological element for the stable water supply of Mykolaiv, with a capacity of 120 thousand cubic meters per day. The complex will include a filtration station, disk filtration, purified water tanks, reagent systems, networks, and electrical rooms.

The project cost was estimated at over UAH 916 million. On November 27, 2025, the contract was signed with Avtostrada Group of Companies LLC. The works are to be completed by April 24, 2026.

The company has repeatedly appeared in high-profile criminal proceedings related to public contracts. In particular, Dnipro law enforcement officers are investigating the possible misappropriation of budget funds during the construction of the Khortytsia water main, a project worth more than UAH 5.3 billion that Avtostrada received without open bidding after the Kakhovka hydroelectric power plant was blown up. According to the investigation, the company purchased sand from the Novopavlivskyi quarry at UAH 68-115 per ton, but indicated higher prices in the documents and entered into contracts with unidentified counterparties.

According to YouControl, Avtostrada Group has been operating since 2015 and has received government contracts worth more than UAH 110 billion. The company is part of businessman Maxim Shkil's MS Capital financial and industrial group. The group includes road, logistics, trade and agricultural enterprises.

SCREEN SHOT: YouControl

The company was one of the largest contractors of the Big Construction program and regularly receives large-scale contracts for infrastructure restoration. At the same time, the company's activities have repeatedly attracted the attention of law enforcement and public organizations. For example, the head of the NGO Non-Stop Ukraine filed a complaint claiming that the ultimate beneficiary had created an organized group to systematically misappropriate public funds and win large tenders, but the court dismissed the complaint.

In addition, law enforcement officers are investigating possible corruption schemes in the Kyivavtodor municipal corporation and among its contractors associated with the Avtostrada group. Media outlets have also linked the company to former Odesa Mayor Trukhanov.

In April, the court allowed investigators to obtain documents in the case of possible abuse by Mykolaiv Regional State Administration officials during the reconstruction of a water supply system worth over UAH 100 million, which alleges overstatement of the scope and cost of work.

Анна Бальчінос