Odesa Region Contracts Overpay for Generators by ₴1.3M - Report

The Center for Public Investigations found that last year 174 contracts for the purchase of generators were signed in Odesa region for a total cost of UAH 36 million, and sometimes the customer bought generators more expensive than on the market, and sometimes the overpayment was more than 100%.

For example, in March 2023, the municipal institution "Center for Financing and Economic Activity of Educational Institutions and Facilities of the Khadzhybeyskyi District of Odesa" purchased generators for UAH 3.2 million, the CPR reported.

The prosecutor's office found that the authorized person approved the purchase with an overpayment of UAH 1.3 million.

In September 2024, the Department of Capital Construction, Housing and Communal Services, Communal Property of the Avanhard Village Council concluded an agreement for the purchase of 5 SDG16000S generators from DSO Group LLC for a total of UAH 900 thousand without using the Prozorro electronic system. They paid UAH 180 thousand for each unit. However, the same model can be purchased on the market for between UAH 134 thousand and UAH 150 thousand. Of course, one could say that this is the current price, and that the generator will cost more in the fall. But no, according to the aggregated hotline system, the average cost of these generators was 140 thousand hryvnias. So the capital construction department overpaid at least UAH 150 thousand.

The businessman sold three KP KU.5500EB generators to the customer for 38 thousand hryvnias each. They were selling them on the market for 35 thousand hryvnias each.

A month later, in November, the utility again signed a contract with the same businessman Fedorov without bidding for the purchase of 24 more gasoline generators for a million hryvnias. This time, Fedorov's Alligator Pg9000e generators cost 44 thousand hryvnias each, while the average price on the market was 33 thousand hryvnias per unit.

At the end of November, the Odesa Regional Prosecutor's Office held an open tender with specifics on the purchase of generators. Since only one supplier, DIFOK LLC, submitted proposals for the tender, the prosecutor's office signed an agreement with it to purchase three generators for UAH 1.8 million. The contract stipulated that, in addition to the generators themselves, the supplier had to install them and connect them to the grid. All of this must be done at its own expense.

Therefore, the EnerSol EPG-5500SE generator, which has an average market value of UAH 27.3 thousand, was sold to the prosecutor's office by DIFOK for UAH 37.5 thousand. Together with the installation, it will cost 88 thousand hryvnias.

Last year in November, the Pension Fund of Ukraine in Odesa region purchased 6 generators from Smart Grid LLC for UAH 1.4 million following an open tender with special conditions.

For the Smart Grid DG-Q35 generator, the supplier requested UAH 142.1 thousand, and for the Smart Grid DG-BS-11J - UAH 321.1 thousand.

It turned out to be impossible to find out the market prices for these generators, as they are not available either in the networks or on the manufacturer's website. The only thing is that the supplier provided a cost estimate for these installations: Smart Grid DG-Q35 costs 213.6 thousand hryvnias, and Smart Grid DG-BS-11J costs 96.4 thousand hryvnias.

Кирило Бойко