Road repairs in Beryslav district awarded to two contractors with "red flags"

Beryslav district of Kherson region plans to repair two local roads worth almost UAH 57 million. Both tenders were held without competition: companies that have been involved in scandals with public contracts took part in them.

This was reported by the Center for Public Investigations, citing data from the Prozorro procurement system.

In October, the state institution "Local Roads of Kherson Region" announced two open tenders with a total expected value of UAH 56.8 million.

The first tender concerns the repair of the road on the border of Dnipropetrovska oblast - from Zahradivka through Kochubeivka, Davydiv Brid, Kalynivske and Bobrovyi Kut to the border with Mykolaivska oblast (section 62+050 - 65+950 km). The expected cost of the works is UAH 39.1 million. The bids were accepted until November 3, and the auction was scheduled to take place on November 4. However, only one company, Avtomagistral-Zakhid, submitted an application.

SCREENSHOT: Prozorro

The company was founded in Ternopil in 2010 under the name Bioresurs-Energia. The founders were Vira Barchuk and Yurii Khanin. In 2017, the company changed its name to Avtomagistral-Zakhid, and in 2022, Oleh Barchuk, former head of the Zalishchyky District State Administration and head of the local Party of Regions organization, became the sole owner. In June 2023, Serhiy Yuzvishyn bought the company and moved it to the village of Verenchanka in Bukovyna.

According to YouControl, in 2025 alone, Avtomagistral-Zakhid received government orders worth more than UAH 1.2 billion. The company has previously participated in tenders with fictitious equipment, had large debts, and was involved in schemes to avoid open bidding by dividing roads into small sections to sign contracts without competition. The company also appears in the materials of the Kherson City Court of August 19, 2025: according to the "Public Control Platform", together with employees of the Kherson Children's Regional Hospital, the company allegedly developed a scheme to overestimate the cost of work during the reconstruction of the emergency department.

The second tender involves repairing the road on the border of Mykolaiv region (section km 0+000 - km 1+300) with an expected cost of 17.7 million. The bids were accepted until October 29, and the auction was scheduled for October 30, but only Budaliance Group Construction Company LLC submitted a bid. Both contractors must complete the work by December 31, 2025.

SCREEN SHOT: Prozorro

"Budaliance Group has been operating in the market for over 9 years and regularly participates in public procurement. The company has been repeatedly suspected of collusion with customers: contracts were terminated and then new ones were concluded for the same scope of work, but at inflated prices. The company earned more than UAH 2.5 billion from government contracts.

In April-June 2023, the company received almost UAH 29 million in advance for the work, but the director did not register tax invoices and understated tax liabilities, failing to pay more than UAH 2.1 million in VAT. As a result, the company was fined, but its director avoided criminal liability.

Kherson region also plans to allocate more than UAH 340 million to rebuild a bridge near the village of Kalynivske, which was destroyed during the hostilities, but the reconstruction is already accompanied by corruption risks and investigations. The Center for Public Investigations found out who the contractor is, how much money was spent, and who received the contract.

Анна Бальчінос