Mykolaiv TETS Awards Over ₴70M Heat Network Renovation Tenders

Mykolaivska CHPP has awarded tenders for the reconstruction of heating networks worth tens of millions of hryvnias. The contracts were awarded to companies associated with criminal cases.

This was reported by the Center for Public Investigations.

In March, Mykolaiv CHP announced tenders for the reconstruction of heating networks totaling more than UAH 70 million. In particular, UAH 47.05 million was allocated for the repair of the network on 3 Slobidska Street, and UAH 23.36 million for the reconstruction of the section on 6 Slobidska Street.

The auctions for both tenders were held on March 18, with five companies participating: Spetstermontazh-energo LLC, NPP BMK LLC, Municipal Construction Group LLC, Progress-92 LLC, and PE Effect.

Screenshot: Prozorro

On April 21, the winners of the tenders were announced. The reconstruction of the network on 6-a Slobidska Street will be carried out by Progress-92 LLC, which submitted a proposal 206 thousand hryvnias cheaper than the expected cost.

The Center for Public Investigations drew attention to who got these multimillion-dollar contracts.

According to the Youcontrol analytical system, Progress-92 LLC was registered in 1992, with an authorized capital of UAH 14 thousand. Its main business activity is pipeline construction. Over the years of participation in public procurement, the company has earned more than UAH 486 million. The company is not mentioned in journalistic investigations, but it appears in criminal cases.

In particular, in 2017, according to a ruling of the Dniprovskyi District Court, a utility company of the Kyiv City Council entered into a contract with Progress-92 LLC for the reconstruction of a heating main on Sobornosti Avenue worth almost UAH 64 million. However, as law enforcement officers found out, part of these funds could have been stolen - officials and the contractor signed fictitious acts, which resulted in the unjustified spending of more than UAH 263 thousand from the budget. The investigation into the case was closed due to the expiration of the time limit.

The contract for repairing the heating network on 3 Slobidska Street was awarded to PE "Effect", which reduced the price by almost UAH 4.7 million.

Screenshot: Prozorro

This company is also not mentioned in journalistic investigations, but it is involved in criminal cases. In particular, one of them states that in July 2018, several people tried to extort money from the director of DPL Corporation by inventing a debt to PE Effect.

In 2021, the Ternopil City District Court found that officials of the Ternopil Road Service could have used their official position to enter into fictitious subcontracts with the company Effect. As a result, the company received payment for work it did not actually perform.

According to Youcontrol, the company was registered in 2005, has an authorized capital of UAH 500, and its main KVED is the construction of residential and non-residential buildings. The company has earned more than UAH 30 million in public tenders.

Also recently, in Mykolaiv, a 78-million hryvnia contract for the modernization of a pumping station was awarded to a company that has been involved in journalistic and criminal investigations. The company was also accused of ties to local authorities, corruption, and price gouging.

Анна Бальчінос