Mykolaiv Regional State Administration ordered the reconstruction of the hub at inflated prices

The city of Mykolaiv ordered the reconstruction of a boiler house in Voznesensk to create a growth hub to house a gallery, podcast studio, and coworking space. A price check showed a significant overestimation of construction materials, which could lead to an overpayment of about half a million hryvnias.

This was reported by Nashi Hroshi.

The Mykolaiv Regional State Administration ordered the reconstruction of a boiler house at 1-A Sofiivska Street in Voznesensk worth UAH 24.53 million. The contract was awarded to Budtechno Prime Construction Company LLC.

The project envisages the creation of a growth hub that will combine resources, experts and tools to support startups, small businesses and other initiatives. The hub will include a contemporary art gallery, a podcast studio, a graphics school, a lithography workshop, a lecture hall, a coworking space, and a public bakery.

The building will receive comprehensive landscaping: concrete pavement, a wooden terrace, and modular landscaping. The first floor will have a lobby, assembly hall, coffee shop and technical rooms, while the second floor will have a gallery and offices for clubs and administration. An elevator will provide access for people with limited mobility.

The project was carried out by individual entrepreneur Dmytro Yavorsky, with expertise provided by Uk Expertiza LLC. The construction is partially funded by Energoatom JSC in the amount of UAH 12.21 million.

Price reviews showed an overestimation: gas blocks, concrete and floor panels were purchased at 20-45% higher than the market value. An automatic bioclimatic pergola cost UAH 1.25 million, although similar structures are cheaper on the market. In total, the overpayment on the identified items can reach half a million hryvnias.

The contract was awarded without competition: Budtechno Prime LLC submitted the required similar subcontract and an offer 1 kopeck higher than the threshold, which allowed the contract to remain dynamic. Budtechno Prime LLC was registered in May 2024 in Pervomaisk and is owned by Narek Velytsyan. This is the company's first government contract.

At the end of February, a court in Mykolaiv region allowed investigators to seize documents from a company suspected of abusing public procurement. The case concerns a major overhaul in Voznesensk, where the scope of work and cost of materials may have been overstated.

Анна Літман