Kherson Region Plans ₴50.8M Housing Restoration Amid Controversy

The Kherson region plans to restore houses for more than 50 million. Only one participant applied for the tender, and it almost did not reduce the initial price. The likely winner will be a company involved in investigations into the misappropriation of budget funds.

This was reported by the Center for Public Investigations with reference to the Prozorro procurement system.

In early March, the Infrastructure Restoration and Development Service in Kherson Oblast announced a tender for UAH 50.8 million to restore residential buildings in the village of Posad Pokrovske. The works are to cover Pershogo Maya, Pryozerna and Sadova streets, where roofs, facades, utility networks and interior spaces are to be repaired.

Posad Pokrovske was one of the most affected areas during the hostilities in 2022. The village was on the front line, subject to constant shelling and destruction.

Screenshot: Prozorro

The auction was supposed to take place on March 27, but only one bidder took part in it, so it is likely to be the one who will receive the contract. Interestingly, the offered amount was only UAH 539 less than the initial bid. According to the terms and conditions, the contractor is obliged to secure the contract for UAH 254,467, and all repairs must be completed by the end of 2026.

According to the YouControl online service, Energetic Road Construction LLC was registered in 2005 with a registered capital of UAH 1.8 million. The main KVED is the manufacture of concrete products for construction. The company has ties to the private enterprise Life Service and the Eurotunnelbud consortium and has been mentioned in 13 journalistic investigations.

Screenshot: YouControl

The company actively receives government contracts throughout Ukraine and has already signed contracts worth more than UAH 10 billion. Its co-founders are Maksym Kokarev, Yuriy Klimov, Andriy Kositsyn, and Oleksandr Kiblyk, the latter of whom, according to media reports, is the husband of Olena Kiblyk, a former employee of the State Center for Certification and Expertise of Agricultural Products.

The company is involved in several criminal proceedings, including the suspicion that its head was suspected of possible embezzlement of budget funds during the repair of emergency road damage in Kharkiv region. The cost of the works in 2022 amounted to UAH 27.7 million. Despite this, the Odesa utility company chose a company with a similar background as a contractor without holding a tender.

Since the end of February, the Kherson Oblast Reconstruction Service has started announcing tenders for the repair of houses in the village of Posad Pokrovske that were damaged by Russian shelling. In total, five tenders for over UAH 238 million were announced for housing repairs, as well as two auctions for the construction of 103 new houses.

In early March, the Ukrainian government allocated UAH 5.2 billion for the comprehensive reconstruction of five settlements, including Posad Pokrovsky. The government announced its intention to "rebuild better than before," which includes not only reconstruction but also the modernization of infrastructure to improve the living conditions of local residents.

Recently, the controversial Odesa-based company Rostdorstroy was awarded a contract to repair damaged buildings in the region. The cost of the work was over UAH 36 million, and the restoration is being financed from the state budget.

Анна Бальчінос