Restoration of the Jewish Hospital in Odesa for an EU loan: journalists reveal inflated prices in the estimate

In Odesa, the city council has chosen a contractor to restore the surgical pavilion of Hospital No. 1, known as the Jewish Hospital. The tender was attended by a single bidder, so the Capital Construction Department did not have to choose between the cheaper bidders.

As reported in the Prozzoro system, on September 13, the agreement was signed with Exterior Design LLC. The value of the contract for price adjustment is UAH 167 million 938 thousand.

The project involves large-scale works: repair of facades, interior decoration, installation of water supply, ventilation, heating, alarm systems, etc. The total cost of the work is financed by a loan from the European Investment Bank, and VAT is covered by the local budget.

Investigative journalists from the Nashi Hroshi publication found serious overestimates of prices for construction materials and equipment in the estimate. For example, rebar was priced at UAH 66,461 per ton, although its value on the market is two times lower. In particular, Metinvest-SMC LLC's online metal-roll store sells such rebar at UAH 29,110/t, while Odesa-based Zenit metalware offers it at UAH 33,400/t.

Prices for expanded polystyrene, curb stones and gas blocks are also overpriced, by 15-73% more than market prices.

BR 100.20.8 curb stones were priced at 299 UAH/unit. Recently, the Zaporizhzhia-based utility Eluash ordered them at 180 UAH/each, and the Kyiv-based utility Road Maintenance Department for the Repair and Maintenance of Roads and Facilities in Darnytsia District at 201 UAH/each, which is 33-40% cheaper, the investigators write.

In addition, a gas block measuring 150x200x600 was priced at UAH 4,709 per cubic meter. The online store "TBC Alex-Group" offers such aerated concrete at a wholesale price of UAH 3,210 per cubic meter, and "Epicenter" in Odesa offers such blocks at UAH 4,000 per cubic meter, which is 15-32% cheaper than in the estimate.

The indicated average salary of workers (UAH 13,708) was lower than the real average salary in construction in Odesa (UAH 23,000), which also raises questions about the transparency of the estimate.

Earlier, the reconstruction of Odesa Maternity Hospital No. 5, for which UAH 175 million was allocated, attracted the attention of journalists due to possible overpricing of construction materials and equipment. The project is being financed by a loan from the European Investment Bank, with VAT covered by the local budget.

Ірина Глухова