Mykolaiv Awards ₴5M Street Repair Contract to New Company Amid Controversy

The contract for street repairs in Mykolaiv was awarded to a new company without competition. The company, registered in 2024, has already received contracts worth 60 million hryvnias and has ties to the defendants in the criminal case.

According to the Center for Public Investigations, at the end of March, Mykolaiv announced a search for a contractor to overhaul the intra-quarter passages on Okeanivska Street. More than UAH 5 million is planned to be spent from the budget for the overhaul of the road surface on Okeanivska Street.

The tender was announced by the administration of Korabelnyi district, and the works include renewal of the pavement, elimination of defects in the base and improvement of infrastructure at five addresses. The repairs are to be completed by the end of December 2025.

According to the Prozorro public procurement system, the auction was supposed to take place on April 14, but only one bidder, Bild Road, submitted an offer and is currently awaiting a decision.

Screenshot: Prozorro

The Center forPublic Investigations decided to find out what kind of contract the company received, whether there were any so-called "red flags" in its activities, and how much the company has already earned from public procurement.

According to the YouControl analytical system, Build Road LLC was registered in March 2024 in Mykolaiv with a registered capital of UAH 100,000. The main KVED of the company is the manufacture of concrete products for construction. The founders of the company are Dmytro Basistyi and Andrii Honcharenko.

Despite its recent presence on the market, the company has earned UAH 61.7 million in public procurement. The company's customers were the administration of the Korabelnyi district of Mykolaiv City Council, the Operational Linear Roads Department, and the Primary Health Care Center No. 2, a non-profit municipal enterprise of Mykolaiv City Council.

Screenshot: YouControl

As for court cases and enforcement proceedings, there is no information in the soda registers, but the company has already appeared in several journalistic investigations.

It turned out that two entrepreneurs - Andrii Gurko and Dmytro Basystyi - are related to the owners of the local company Kaiser. As Intent wrote, in June last year, the Antimonopoly Committee established the fact of anti-competitive collusion between a group of individual entrepreneurs and Kaiser LLC during the procurement of road repair and reconstruction services in Mykolaiv, which was carried out by the administration of the Korabelnyi district in 2019-2020.

The prosecutor's office filed a lawsuit to invalidate five contracts for road maintenance and recover almost UAH 3 million in favor of the state. Mykolaiv Oblast Commercial Court has opened proceedings on the claim.

Screenshot: YouControl

This automatically made it impossible for them to participate in public procurement. Since the entrepreneurs had already deregistered at the time of the decision, only Kaiser was fined, and it was also banned from participating in tenders for three years. Meanwhile, on the eve of this decision, the entrepreneurs set up a new company, Bild Road LLC, which began winning contracts in the Korabelnyi district from the first month of its existence.

But Kaiser LLC has already managed to earn more than 100 million on government contracts . The company has repeatedly been the subject of investigations by journalists. For example, in May last year, contracts for road repairs were signed in Mykolaiv without an auction. Contracts worth almost UAH 9 million were signed without a tender and at inflated prices.

Анна Бальчінос