Dec. 26, 2024, 12:15 p.m.

Secret facilities: who in Odesa region is sharing billions in reconstruction costs

(Photo: Ivan Rusev/Facebook)

The Center for Public Investigations has analyzed the costs of restoring infrastructure in Odesa Oblast during the full-scale war. To do this, the experts used data from the Prozorro analytical module and reviewed the procurement announced by the Infrastructure Restoration and Development Service.

This is described in the article.

The first year of the war was characterized by insignificant reconstruction costs. From February to December 2022, only 224 procurements totaling UAH 123 million were announced in Odesa region. Of this amount, 15% was spent on furniture. The most expensive lot was a secret procurement worth UAH 80 million, which was awarded to Avtostrada, a company belonging to the group of Vinnytsia businessman Maksym Shkil.

In 2023, the amount of funding increased significantly: The Infrastructure Restoration and Development Service announced 164 procurements with a total expected value of UAH 8.19 billion.

The main areas of spending:

The largest sums were spent on two secret construction projects with a total cost of UAH 5 billion. The contracts for these works were signed without open bidding with Rostdorstroy(Odesa City Council member Yuriy Shumacher) and Automagistral-Pivden. Experts suggest that these projects may relate to the construction of defense facilities or the laying of new power lines.

As of the 11th month of 2024, 148 procurements with an expected value of UAH 7.95 billion have been announced in the region. The most expensive contract - worth UAH 1.5 billion - was awarded to Rostdorstroy. Also, UAH 1 billion was allocated for two projects implemented by Avtomagistral-Pivden.

In addition to construction, funds are spent on the purchase of petroleum products, fuel, and electricity (11.49%).

Experts pointed to corruption risks when allocating funds for secret facilities. For example, concrete tetrapods built to protect against the landing of Russian equipment disappeared under the sand, rendering them useless.

Additionally, the media has repeatedly mentioned the close ties between Avtomagistral-Pivden and Rostdorstroy, which often "play out" tenders.

According to Ivan Lakhtionov, Dozorro project coordinator, the risk of collusion between bidders often leads to an increase in the cost of procured services and can sometimes create conditions for corruption if there is a connection between the procuring entity and the contractor. Such cases must be reviewed by the Antimonopoly Committee, which is responsible for monitoring and checking such abuses. Unfortunately, however, the situation in the field of construction tenders in Ukraine remains problematic: the same companies mostly compete in large projects.

In his opinion, the key problem is the limited construction market in Ukraine. The biggest challenge in the recovery process is the ability of businesses to complete work in a timely manner. Large projects require significant resources that only large companies have. After the end of hostilities, one solution could be to involve European companies in rebuilding the country. However, the government must create favorable conditions for international contractors to be interested in working in Ukraine.

Ірина Глухова

You might also like:

Dec. 26, 2024

Billions for reconstruction: who got the main contracts in Mykolaiv region

Dec. 23, 2024

Mykolaiv awarded a thirty-million contract to repair water supply to an Odesa company

Dec. 26, 2024

Water pipeline construction in Mykolaiv region: contractors with criminal backgrounds and budget billions

Dec. 22, 2024

Trukhanov ordered to allocate one million to pay for road repairs to MP's firm

Dec. 17, 2024

Bureau of Economic Security rejects results of tender for repair of village council in Odesa region

Dec. 24, 2024

Government allocates EUR 50 million to Ukrainian ports

Dec. 26, 2024

Mykolaiv Bureau of Investigation will be guarded by the National Guard for 146 thousand per month

Dec. 24, 2024

Ovidiopol hospital offered 23 million for the second time to repair the department

Ochakiv to become one of the cities to open a rehabilitation center for war veterans

Dec. 25, 2024

Mykolaiv MP's company received a contract worth three million for a day's work

Dec. 18, 2024

The contract for the construction of a shelter in Mykolaiv region was awarded to a scandalous Odesa developer

Dec. 24, 2024

Additional 15 billion for eRestoration: who will receive compensation

Dec. 21, 2024

In Kherson region, construction of a shelter was entrusted to a company associated with corruption and treason

Dec. 20, 2024

Sixteen-million renovation of a kindergarten in Mykolaiv region was awarded to a company with a criminal history

Dec. 22, 2024

Odesa selects company to remove garbage from schools in Peresypskyi district