Mykolaiv City Council Delays Decision on Municipal Enterprises' Procurement Participation

Mykolaiv city council did not support the decision to allow municipal enterprises to participate in procurement. Despite the arguments of the Department of Housing and Communal Services, the deputies doubted the feasibility of such a step and postponed the consideration to the next meeting.

This was discussed at a meeting of the Mykolaiv City Council's Standing Committee on Human Rights, Legality and Transparency.

As explained by Ihor Nabatov, First Deputy Director of the Department of Housing and Communal Services, the adoption of this decision would allow for greater competition in the procurement market and ensure equal access to it for enterprises subordinated to the city council.

However, the head of the commission, Olena Kiselyova, expressed doubts about the appropriateness and urgency of this step. She asked why the initiative was coming from the Department of Housing and Communal Services, even though the city council has an authorized procurement body, and what the consequences of such a decision would be.

In response, Nabatov noted that the Department oversees 17 utility companies, so the issue concerns their activities. He also emphasized that the technical and production capacities of the enterprises have recently increased, and in the future they will be able to compete in tenders. But they need to have legal grounds to do so in order to avoid challenges from other participants.

The commission members expressed concern that this decision would create the impression that everything was wrong with the procurement system before, and questioned the feasibility of such a step against the backdrop of a large number of already established MEs.

Kiselyova also pointed out that the participation of municipal enterprises in tenders for budget funds may cause conflicts of interest. She urged the authors of the draft to provide a clear plan for its implementation.

Nabatov added that in August 2025, a law signed by President Volodymyr Zelenskyy will come into force, according to which utility companies will be transformed into joint-stock companies, and thus will require new forms of interaction with public procurement.

Despite all the arguments, the commission did not support the project.

A similar decision was not made at the previous session of the city council. The document provided for mechanisms that would allow these institutions to participate in tender procedures without legal restrictions. However, the project did not receive the required number of votes. The city council notes that its reconsideration is scheduled for the next session.

Also in early February, the utility companyMykolaivoblteploenergo applied for an electricity supply license. From now on, it intends not only to produce its own electricity but also to buy it from producers to supply consumers.

Анна Бальчінос