EU allocated 50 billion euros for reconstruction: how Odesa and Mykolaiv regions spent the money

Journalists exposed overpayments and dubious contracts when using EU funds to rebuild infrastructure in Odesa and Mykolaiv regions. In total, the EU has allocated 50 billion euros to Ukraine to repair schools, hospitals, and defense structures after the war.

The relevant analysis was made by the Nick Center.

Ukraine will receive 50 billion euros from the European Union over four years under the Ukraine Facility program, most of which is intended to directly support the country's budget, recovery and reconstruction. Nikcenter journalists analyzed procurements funded by European donors in Mykolaiv and Odesa regions and found numerous problems: potential overpayments, contractors involved in criminal proceedings, newly established companies with no experience, and violations of deadlines.

Between January 1, 2024, and September 1, 2025, Prozorro registered 42 procurements of construction works at social facilities in Mykolaiv and Odesa regions with a total expected value of UAH 1.3 billion. The funds were mostly spent on educational institutions, including school canteens and protective structures.

We also financed the reconstruction of the Bilyayivka Lyceum in Odesa region and the overhaul of the intensive care unit of the Mykolaiv Regional Veterans Hospital. Thanks to the EIB loan, seven healthcare facilities, five schools and kindergartens, as well as infrastructure and administrative buildings are being built and repaired in the regions.

The Mayakivka Village Council in Odesa Oblast used the most funds under the Ukraine Facility program, with contracts worth UAH 208 million awarded under three tenders. However, the largest administrator of European funds in the south of the country was the Capital Construction Department of the Odesa City Council. Last year, officials signed contracts for reconstruction and restoration worth about UAH 836 million, and the largest contractor under the Ukraine Facility program is the Odesa-based company Eurospetsmontazh, whose contract for the reconstruction of Bilyayivka Lyceum No. 3 is worth UAH 155 million. All of the company's owners are registered in the occupied cities of Donbas.

Other large contractors that have received more than one hundred million hryvnias in European contracts include Exterior Design LLC (220.5 million hryvnias), RBD Odeskholovpostach PJSC (155.4 million hryvnias), SPC Flagman LLC (144.6 million hryvnias), Berezivkaagroshlyakhbud LLC (139.8 million hryvnias), and Bud-Marka LLC (136.5 million hryvnias).

In the Mykolaiv region, the three largest Ukraine Facility contracts were shared by Nikopolska-STK LLC (UAH 46.6 million for a shelter at Mykhailivskyi Lyceum), Zhytloprombud-8 Construction Company (UAH 45.5 million for the repair of the hospital for war veterans) and First Ukrainian Construction Company (UAH 43.7 million for a school shelter). In addition, two large road contracts of Rostdorstroy LLC for UAH 298.7 million were financed by the EIB.

The analysis showed that tenders financed by the Ukraine Facility or the European Investment Bank suffer from the same problems as other procurements: low competition and violations by contracting authorities during the tenders. According to the State Audit Service, complaints arose in 40% of procurements in the regions, and in ten cases, auditors demanded the cancellation of the tender results.

The undisputed "leader" in problematic procurement is the Capital Construction Department of Odesa City Council, with seven of its contracts funded by the EIB currently being reviewed by the courts.

Also last year, the Center for Public Investigations released a film about the restoration of facilities in Odesa and Mykolaiv regions after the Russian attacks, noting that some procurements may have been accompanied by abuse.

Анна Бальчінос