Multi-million dollar tender to strengthen the coast in Odesa's Arcadia stopped

In Odesa, a tender for the overhaul of the coastal protection in the Arcadia beach area has been suspended. The reason is a complaint about discriminatory conditions in the tender documentation.

Information about this is available on the Prozorro platform.

Thetender was announced on April 22 by the Capital Construction Department of Odesa City Council. It involves large-scale work on the site from 90/51 Novoberehova Street to the building on Arcadia Beach, 10. The cost of the project is over UAH 167 million, and the works are scheduled to be completed by the end of 2026.

Prozorro recorded a complaint from UKRSERVISGROUP regarding violations in the tender documentation. In particular, it concerns the unspecified amount of compensation for inflation and risk. The complaint has already been accepted for consideration by the Antimonopoly Committee, and the tender has been suspended while the appeal procedure is ongoing. At the same time, the procurement also received a request for a contract price, to which the customer responded with reference to construction standards.

The auction was supposed to take place on May 5, but the process is on hold due to the appeal. The further fate of the tender depends on the decision of the appeal body.

Oleksiy Potapsky, head of the Planning, Budget and Finance Committee of the Odesa City Council, told the Center for Public Investigations that only 10 million dollars are available for coastal protection in Odesa's Arcadia, which was estimated at 167 million. The city authorities plan to seek the rest of the funds through competitions for co-financing.

"We have allocated 10 million so that the city can continue to participate in the competition and seek co-financing, because the budget does not have the entire amount," explained Potapsky.

The project involves the dismantling of old concrete structures on land and underwater, including slabs, piles, and wave breakers. The next steps include the installation of new concrete fortifications, ramps, wave breakers, drainage and landscaping, some of which will be carried out by divers.

The total estimated cost of all works, according to the documents, is UAH 167.2 million. The source of funding for the procurement is the local budget and other sources not prohibited by law.

The assessment of the upcoming works, as explained to the Capital Construction Department, was provided by the Expert Inspection Center "Budekspertyza Pivden" LLC in April 2024. According to media reports, the company has already been involved in a number of scandals regarding possible overpricing of works.

By the way, it was this company that had previously estimated the repair of the Kyiv District Court building in Odesa at more than 112 million, although the contractor later agreed to do it for 106 million.

Ірина Глухова