In the Kherson region, millions from the EU could go to a single contractor for the second time

Despite the relaunch of the tender for the restoration of water supply in the Kherson region, there was once again no competition in the bidding process. The only bid was submitted by the same company that had been rejected during the previous procurement process for failing to meet the requirements.

The Center for Public Investigations analyzed the procurement terms and the activities of the potential contractor.

The Department of Territorial Development of the Kherson Regional State Administration announced a tender for the second time for the major repair of the emergency water supply system in the village of Pravdyne.

<picture></picture>SCREENSHOT: Prozorro

According to information in the Prozorro system, the estimated cost of the work is 61.85 million hryvnias. The project involves restoring the water supply networks and addressing the system’s critical condition. All work is scheduled to be completed by December 25, 2027.

The reconstruction will be funded under the Ukraine Recovery Program III with support from the European Investment Bank. Of the total amount, over 29.25 million hryvnias will come in the form of a state subsidy, while nearly 32.6 million hryvnias will be provided by the local budget.

<picture></picture>SCREENSHOT: Prozorro

Participants had until June 17 to submit their bids. The contracting authority is currently reviewing the documents to determine the winner. Once again, the sole bidder for the contract was PP “Remontnik 1993,” which offered to perform the work at the full estimated cost without any price reduction.

This is the second attempt to carry out this procurement. The department announced a similar tender in March of this year. At that time, only one bidder participated.

The estimated cost of the previous procurement was the same—61.85 million hryvnias. It was anticipated that over 29.2 million hryvnias would come from a state subsidy under the Ukraine Recovery Program, and about 32.6 million hryvnias would come from the local budget with support from the EU’s Ukraine Facility program.

<picture></picture>SCREENSHOT: Prozorro

The sole bidder in the March tender was also PP “Remontnik 1993.” The company submitted a bid for the entire expected amount, but no contract was signed with it. The contracting authority rejected the bid due to non-compliance with technical requirements.

The department explained that the identified deficiencies could not be rectified after the deadline for submitting documents had passed. Among the issues cited was the absence of certain materials and resources required by the procurement terms.

Accordingto theYouControl analytical system, PP “Remontnik 1993” was established in 1997 in the Donetsk region and is currently registered in the Kyiv region. The company is owned by Taras Syvokobylskyi. Its main area of activity is construction. Since 2017, the company has participated in public procurement and has secured contracts worth more than 22 million hryvnias during that time. If it wins the tender for the reconstruction of the water pipeline in Pravdyne, this contract would be the largest in the company’s history. 

<picture></picture>SCREENSHOT: YouControl

Although the company is not involved in any criminal proceedings, it has previously been a party to a legal dispute with Ukrnafta. According to a ruling by the Northern Commercial Court of Appeal, the company was fined for failing to meet project deadlines. The case concerned the renovation of the auditorium in the “Borislavnaftogaz” building, which was completed nearly three weeks later than the deadline specified in the contract.

The work was supposed to be completed by February 7, 2024, but the project was not handed over until February 28. Due to the delay, the client imposed a penalty equal to 10% of the cost of the work that was completed late.

<picture></picture>SCREENSHOT: YouControl

Initially, the court refused to issue a court order for the collection of funds, but Ukrnafta appealed this decision. In its appeal, the company argued that the penalty was a monetary obligation arising from a breach of contract. The court agreed with this position and ruled to collect the penalty from PP “Remontnik 1993.”

Also in June, more than 15 million hryvnias for the reconstruction of a water pipeline in the Kherson region may be awarded to a company that participated in the tender without any competitors. The firm has previously been involved in cases related to uncompleted work and possible embezzlement of public funds.

Анна Бальчінос