The Zhytomyr Northern Bypass Project Saved Nearly 70% in Costs
The Reconstruction Agency reported that more than 18 million hryvnias were saved during three tenders for technical supervision of the construction of the Zhytomyr Northern Bypass. The estimated cost of the work decreased from 27 million to 8.7 million hryvnias. Contracts are currently being signed with the winning companies.
The Recovery Agency conducted three open tenders for technical supervision services for the construction of the Zhytomyr Northern Bypass. The procurements were conducted through the Centralized Procurement Organization (CPO). As a result of the tenders, the cost of the work was significantly reduced, saving over 18 million hryvnias. This was reported by the Agency’s press service.
According to Serhiy Sukhomlyn, head of the Recovery Agency, the Centralized Procurement Organization was established in 2025 to make government procurement more transparent and competitive. At the same time, he noted that the organization has yet to receive state funding, despite repeated requests sent to the Ministry of Finance. “In 2025, we established the Centralized Procurement Organization. So far, despite numerous requests to the Ministry of Finance, we have not been able to secure government funding for the organization’s operations. Therefore, the Centralized Procurement Organization operates under conditions where it must independently secure funds for its operations,” Sukhomlyn noted.
He emphasized that even under these conditions, the organization is already demonstrating tangible results. “On just one project—the construction of the Zhytomyr Northern Bypass—we managed to save over 18 million hryvnias,” added the head of the Agency. To ensure maximum competition in the procurement process, the construction project was divided into three separate phases, and three tenders were announced accordingly.
The documentation was prepared in both Ukrainian and English to attract not only Ukrainian but also international companies to participate. Official invitations were also sent to potential bidders. Three companies participated in each tender. Among them were foreign firms with official representative offices in Ukraine. As a result of the auctions, the cost of technical supervision was significantly reduced.
For the first phase, the expected cost was 3.9 million UAH, but the winning bidder offered to perform the work for 1.9 million UAH. This resulted in a 51% savings. For the second phase, the initial amount was 6.5 million UAH. After the bidding, it decreased to 2 million UAH, resulting in a 69% savings. The greatest savings were achieved during the procurement for the third phase. The estimated cost was 16.6 million UAH, while the contract price was 4.8 million UAH. This is nearly 71% less than the initial amount.
In total, the expected cost of all three procurements was 27 million UAH. After the auctions concluded, it dropped to 8.7 million UAH. Thus, the total savings exceeded 18 million UAH, or about 68% of the initial cost. The Reconstruction Agency has already begun the process of signing contracts with the winning bidders. Once all formalities are completed, they will oversee the construction of the Zhytomyr Northern Bypass, according to the Agency’s press service.
Law enforcement officials have notified an official of the regional branch of the State Geocadastre in Chernivtsi Oblast that he is suspected of illegal enrichment. According to the investigation, the value of the assets he acquired exceeds his legal income by nearly 32 million hryvnias.
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