In Dnipropetrovsk Oblast, road construction contracts worth 4.3 billion hryvnia were awarded without a bidding process
The company “Avtomagistral-Pivden,” which is linked to businessman Oleksandr Boiko, was awarded contracts to repair several state highways in the Dnipropetrovsk region without a competitive bidding process. The total value of the contracts awarded is 4.3 billion hryvnias.
“From August 2 to 7, 56,000 procurement notices totaling 25.30 billion hryvnias were published in the Prozorro system. ‘Avtomagistral-Pivden’ was the clear leader this week,” the report states.
Oleksandr Boiko’s company secured contracts in its home region of Dnipropetrovsk to repair a number of state highways for a total of 4.33 billion hryvnias.
“The funds for the repairs have not yet been physically allocated, so the financing in the contracts is deferred to next year. But it is clear that the contracting authority is counting on the money,” writes “Nashi Hroshi.”
This is because the contracts with “Avtomagistral-Pivden” were awarded without any competition, pursuant to a decision by the Dnipropetrovsk Regional Defense Council dated July 14. The minutes of the Council’s decision state that the repair of these roads is necessary “to ensure uninterrupted and safe passage for logistical support, the movement of motor vehicles, and the evacuation of the population.”
Analysts point to “Avtomagistral-Pivden’s high rates” in these non-competitive contracts.
Last week, the Restoration Service in Mykolaiv Oblast also held an open tender for the routine repair of certain sections of local roads. In this case, “Autostrada” won the contracts in competition with “Rostdorstroy.” Its rates for specific types of work on the T-15-06 road repair project, valued at 636 million hryvnias, were on average 10% lower than the Dnipropetrovsk-based “Avtomagistrali-Pivden’s price list for the H-08 highway repair project, valued at 692 million hryvnias, according to “Nashi Hroshi.”
"Avtomagistral-Pivden’s" costs are higher than "Autostrada’s" due to significantly higher prices for asphalt and paint, as well as the cost of delivery to the repair site, analysts note.
“The government did not save 10% on contracts worth 4.3 billion hryvnias. And half a billion hryvnias don’t just lie around on the streets in our poor country. Because someone immediately buries them somewhere,” the publication concludes.
This is reported
by the website “Nashi Hroshi.”
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