Court sets aside 38 million contract for construction of water supply system in Mykolaiv

In Mykolaiv, a court invalidated a contract for the reconstruction of a water main. The agreement had already been terminated, but this set a precedent for the prosecutor's office.

This was reported by Nikcenter with reference to the Unified State Register of Court Decisions.

Thecontractwas concluded between the Department of Urban Development of Mykolaiv Regional State Administration and Mykolaivmiskbud LLC for the reconstruction of the main water supply system.

The contract, worth UAH 38.8 million, was signed in November last year following a tender. However, back in June, the agreement was terminated by mutual consent of the parties without payment from the budget.

This case may set a precedent for reviewing other contracts concluded as part of the reconstruction of the water supply system in Mykolaiv. As part of these agreements, contractors have already received about UAH 100 million when the cost of materials, including pipes, was found to be overstated by 2-3 times.

In total, in 2022, the department procured works at 12 sections of the water supply system with a total value of UAH 1.3 billion. One of the tenders was canceled at the request of the Antimonopoly Committee. Three companies were awarded the contracts: "Mykolaivmiskbud, VKF Gazvodmontazh, and Odesaspetsenergo.

The State Audit Service opened investigations into all 11 tenders. As a result, the prosecutor's office filed a lawsuit to terminate the contracts and recover the money paid.

In particular, the commercial court is considering a lawsuit to terminate another contract with Mykolaivmiskbud, under which the prosecutor's office demands that UAH 32.9 million be returned to the budget and that the contractor be paid only for the cost of the work actually performed.

Recently, the Mykolaiv Oblast Infrastructure Restoration and Development Service ordered the construction of a water plant from the Southern Bug River and a city water supply system to supply the city with water without a tender. The total cost of the project is UAH 7.44 billion.

According to Proozorro, Avtostrada Group of Companies LLC will implement the first section for UAH 2.28 billion, the second section is entrusted to Ukrtransmist LLC for UAH 2.53 billion, and the third section to Rostdorstroy LLC for UAH 2.63 billion.

The problem with drinking water in Mykolaiv has been discussed for more than 2 years, so one of the main areas of work of the Infrastructure Restoration Agency for the next year is the construction of a water supply system. Negotiations with international financial organizations are currently underway to raise funding.

Анна Бальчінос