51 million hryvnias will be spent on the renovation of the “Karpaty” tourist base—the regional council will review the prices
The renovation of the “Karpaty” tourist resort in the Lviv region was contracted for over 50.8 million hryvnias, but investigative journalists found items in the cost estimate whose prices, according to their calculations, may be inflated by more than 3 million hryvnias. Specifically, this concerns cables, fire-rated doors, and moisture-resistant plywood. The Lviv Regional Council has already stated that it will review the entire cost estimate and adjust it if necessary.
The Lviv Regional Council’s municipal enterprise “Technical Supervision” has signed a contract for the renovation of the “Karpaty” tourist base’s huts in the village of Kamianka, Stryi District. The contract is worth 50.83 million hryvnias.
This was reported on October 5 by the publication “Nashi Hroshi.” According to the journalists, an analysis of the cost estimate indicates a possible overpricing of certain construction materials. Overall, they estimated the difference between the prices in the cost estimate and the cited market prices to be more than 3 million hryvnias. The project involves a children’s tourist camp located near Skole. It is planned to be renovated to prepare the population for national resistance. Only one company participated in the new tender—Budprime, a private enterprise. The bidding took place on August 13, and on September 8, the company was declared the winner.
What Needs to Be Done at the Camp
Under the contract, the contractor must construct four modular buildings by the end of 2027. The project also includes the installation of internal water supply and sewer systems, as well as heating and ventilation systems. Separately, the project includes electrical networks and lighting, as well as a fire alarm system. Initially, “Budprime” offered to perform this work for 42.35 million UAH. This was only about 20,000 UAH less than the expected procurement cost.
At the same time, the construction timeline was revised. While the work was originally planned to be completed earlier, the deadline has now been set for the end of 2027. As a result, following the procurement process, the municipal enterprise “Technical Supervision” signed a contract for 50.83 million UAH.
Why Did the Cost of the Work Increase?
Maria Zhelisko, acting director of the municipal enterprise “Technical Supervision,” explained to ZAXID.NET that the increase in cost is linked, in particular, to a change in how employee salaries are calculated. According to her, in the preliminary cost estimate, employee salaries at the site were calculated at 18,000 UAH. Following amendments to Cabinet of Ministers Resolution No. 526 of April 24, 2026, the estimate had to account for 42,000 UAH. “Amendments were made to Cabinet of Ministers Resolution No. 526 of April 24, 2026. In the preliminary budget, the salaries of employees working at the site amounted to 18,000 UAH; according to the resolution, the salary should be 42,000 UAH. Therefore, we were forced to revise the budget,” noted Maria Zhelisko.
The official also explained why the contract with the winning bidder was not signed immediately after the winner was determined. According to her, 17 million UAH had been allocated for this project at the beginning of 2026. However, due to changes in the rules and a new procedure for analyzing prices, the funding for construction projects was revised.
As a result, at the time the winner was selected, only about 500,000 UAH remained for the tourist camp. This amount was insufficient to register the contract. According to Zhelisko, the company was waiting for the funds to be reallocated. After the funding was increased, more than 4 million UAH became available for the project. The contract was signed for this exact amount, and the remaining funds are planned to be allocated in the 2027 budget.
Journalists found discrepancies in the prices of materials
“Our Money” analyzed the cost estimate for the work to be funded from the local budget. Journalists stated that it includes materials with prices that may be significantly higher than market rates. One example is the VVGng-LS 3×2.5 mm cable. In the cost estimate, its price is 200 UAH per meter. At the same time, according to the journalists, other sellers offer this cable for approximately 80–85 UAH per meter.
In other words, the difference can be more than double. Another example is the VVGng-LS 5×4 mm cable. In the cost estimate, it was priced at 522 UAH per meter. Meanwhile, journalists cited offers from other companies at around 195–200 UAH per meter.
Also, according to the investigators, the cost estimate listed fire-rated doors at 11,082 UAH per square meter. Separately, the journalists drew attention to 21-mm-thick FK moisture-resistant plywood. In the cost estimate, its price, according to the data provided, exceeds 1,700 UAH per square meter, while the market offers they found range from approximately 849 to 984 UAH per square meter.
Based on an analysis of these items, the journalists claimed there may have been an overpayment of more than 3 million UAH. However, this does not mean that the fact of overpayment has already been established. A final assessment of the cost estimate must be provided by an audit, specifically taking into account the actual conditions of the procurement and current prices at the time the materials were purchased.
The regional council promised to review the entire cost estimate
Following the publication of the investigation, the Lviv Regional Council stated that it would review the cost estimate. Acting Chairman of the Lviv Regional Council Yuriy Kholod instructed the Department of Jointly Owned Property and the municipal enterprise “Technical Supervision” to re-examine not only the items highlighted by journalists but the entire cost estimate.
The regional council also plans to compare the prices listed in the documents with current market prices. “The regional council’s position is simple: if the review confirms that materials can be purchased at a lower price, the cost estimate must be adjusted. Not a single hryvnia of budget funds will be paid at unreasonably inflated prices,” the regional council stated. Thus, the focus right now is specifically on the audit. If the calculations presented by journalists are confirmed, the cost of certain items will have to be revised.
“Technical Supervision” Denies Allegations of Price Inflation
Maria Zhelisko disagreed with the journalists’ claims of inflated prices. She noted that the procurement may still be reviewed by financial monitoring authorities. According to her, as of the time of her comment, the company had not received any remarks regarding prices. “If there were any price violations, financial monitoring would uncover everything, and we would receive specific remarks. Well, I don’t know—financial monitoring hasn’t been conducted yet, and we don’t know if it will take place. So far, there have been no complaints regarding price violations. Well, we’ll see. Right now, this is very strictly monitored,” she said.
The official also pointed out that prices on sellers’ websites are not always up to date. According to her, commercial companies may go a long time without updating information on the cost of goods. Therefore, she said, the final comparison must take into account the current prices at the time of purchasing the materials.
Experience with large-scale projects was required to participate in the tender
The tender terms stipulated that participants must provide evidence of a fully completed similar contract from 2022 to 2026. The company had to confirm its experience in carrying out a wide range of construction works. These included cladding walls and roofs with sandwich panels, as well as installing windows, doors, and flooring.
Experience in interior work related to heating and ventilation, water supply and sewer systems, as well as electrical installation work, was also required. Another requirement concerned financial indicators. The company’s revenue for 2025 was to amount to at least 100% of the expected procurement value.
Attempts Have Already Been Made to Renovate the Tourist Base
This is not the first attempt by the Lviv Regional Council to renovate the “Karpaty” tourist base. Back in late March 2025, the regional council began a large-scale renovation of the base in Kamianets. In May of that year, the municipal enterprise “Technical Supervision” announced a tender for the work.
“Elitbudpro” LLC was named the winner at that time. The company was to complete the work by the end of 2026 for approximately 58.7 million UAH. At the time of that tender, “Elitbudpro” was also the sole bidder.
However, in March 2026, the municipal enterprise terminated its contract with “Elitbudpro.” The contractor was paid 19 million hryvnias for the work already completed. After that, the municipal enterprise “Technical Supervision” announced a new procurement. It was published on July 29, 2026. In August, only one bidder participated in the tender—Budprime, a private enterprise.
What is known about “Budprime”
Budprime, a private enterprise, was registered in Lviv in 2007. The company’s main area of business is the construction of residential and non-residential buildings. According to YouControl, the company’s authorized capital is 500,000 UAH. Mykhailo Rushchyshyn is the director and owner of the company. “Budprime” already has experience executing large-scale government contracts. In March 2026, the company won a tender for the major renovation of the academic building of Lviv National Medical University on Shimzeriv Street. The value of this contract is 222 million UAH.
Previously, the company was awarded a contract worth 18.3 million UAH to renovate the LNMU university shooting range. It was to be converted into a facility for physical education and sports rehabilitation for war veterans and wounded military personnel. The company also carried out renovation work in individual classrooms at LNMU and the university hospital.
Other projects related to Budprime’s activities include a school in the village of Lybokhora in the Lviv region and a radiation shelter at the emergency hospital of Lviv’s First Medical Association. The company has also collaborated with “Lvivoblenergo,” “Lvivteploenergo,” village councils, and municipal institutions in the Lviv region.
Now it is up to Budprime to continue the renovation of the “Karpaty” tourist base. Following reports of possible overpricing of materials, the entire cost estimate must undergo an additional review.
