Odesa Region Tenders Under Scrutiny for Possible Overpricing Amid Reconstruction Efforts

After Russia's full-scale invasion of Ukraine and against the backdrop of massive attacks by unmanned aerial vehicles and missiles, the security of kindergartens, schools, administrative buildings, etc. was restored in Odesa region.

The Center for Public Investigations decided to investigate the procurement made by local authorities during such construction and found possible overpricing of some materials in the estimates.

Thus, the attention of journalists was drawn to a tender held by the Vyzyr village council of Odesa district, Odesa region. The tender was for the reconstruction and extension of an administrative building with a dual-purpose structure with protective properties of a radiation shelter and landscaping at 56 Oleksiy Stavnitser Street. The agreement was signed on October 23, 2024. One of the items in the final list of resources includes blocks of B3.5 small cellular concrete for mortar masonry with a density of 500 kg/m3 with the country of origin being Ukraine. In particular, 172.17 cubic meters of these blocks, totaling UAH 1 million 50 thousand 252, were valued at UAH 6 thousand 100 per cubic meter excluding VAT.

The CPR tried to find out how much a cubic meter of aerated concrete costs on the Ukrainian market today and was faced with the fact that B3.5 aerated concrete is not for sale. The maximum that the market offers is B2.5. Moreover, the journalists were assured that B3.5 is not produced in Ukraine at all.

In addition, the purchase of 83.14 cubic meters of construction aerated concrete was also taken into account for UAH 6.1 thousand per cubic meter without VAT. However, this item does not specify the details of what kind of aerated concrete they plan to purchase. The total amount to be spent on this is UAH 513,254.

However, a possible overpayment in this tender can also be traced to hot-rolled reinforcing steel of a periodic profile - in common parlance, "rebar". It includes six items ranging from 6 to 25-28 millimeters. Most of all, it is planned to purchase rebar with a diameter of 12 millimeters at UAH 47,944 per ton excluding VAT. A total of 21.48 tons was estimated at UAH 1 million 30 thousand 181. If we take into account VAT, which is 20%, then a ton of rebar for the Vyzyr village council will cost 57,533 hryvnias. But it can be found cheaper on the market - from UAH 33,500 to 40,000 per ton.

However, a possible overpayment was found in the tenders that Usativ village council held with Grado-Stroy and Dunayvodbud Mobile Mechanized Column-15. In one case, a shelter for 50 people is being built, and in the other for 200. In both cases, it is planned to purchase filters at a price of UAH 204,563 including VAT, but journalists found that the market offers them for UAH 70,500.

Another interesting situation is with asbestos cords, which in several tenders turned out to be more expensive than the market price, and in some cases almost three times as much.

The same Vyzyr village council set the price for it at UAH 416,427 per ton in its tender estimate. Accordingly, for 8.3 kilograms, they charged 3,467 hryvnias. That is, it comes out to just over 417 hryvnias per kilogram.

In the tenders of the Usativ village council, the price per ton is UAH 544,973 per ton and UAH 9,239 for almost 17 kilograms - UAH 545 per kilogram in the procurement for the construction of a civil defense facility for 50 people in Nova Emetivka, where the contractor is Gradostroy LLC, and UAH 497,732 per ton and UAH 16,533 for 32.25 kilograms, i.e. UAH 497 per kilogram, in an agreement with the private joint-stock company Mobile Mechanized Column-15 Dunayvodbud.

In February 2025, the Molohivka Village Council of Bilhorod-Dnistrovskyi District, Odesa Region, entered into an agreement with SVK BUD LLC for the first stage of overhaul of the civil protection structure of the radiation shelter No. 56228 for a total amount of UAH 10 million 912 thousand. The final list of resources includes the purchase of this asbestos cord at 646,852 UAH per ton, 9,557 UAH per 15 kilograms, or 637 UAH per kilogram.

However, in the Epicenter in Odesa, you can buy this cord at a price of one thousand hryvnias for 5 kilograms, that is, 200 hryvnias per kilogram, and a Zaporizhzhia supplier, the private enterprise Standard K, offers such a cord for 85.5 hryvnias per kilogram including VAT, and Kharkiv Trade Service LLC offers such a cord for 125 hryvnias per kilogram.

Кирило Бойко