During the renovation of the Palansky Lyceum, building materials were found to have been purchased at inflated prices
On October 16, the Construction Department of the Cherkasy Regional State Administration signed a contract with the “Regional Construction Initiatives” consortium for the reconstruction of the Palansky Lyceum, valued at 182.44 million hryvnias.
According to the report, the cost estimate listed construction materials at prices approximately one and a half times higher than market rates.
The lyceum was damaged during the first days of the full-scale invasion in 2022.
In November 2023, the contracting authority signed a contract with “Klassika Komfortu” LLC for the reconstruction of the facility for 139.66 million hryvnias. In 2024, the company was blacklisted by the Antimonopoly Committee of Ukraine. According to the “Spending” portal, as of today, 5.56 million UAH has been paid under this contract. In August 2025, the department awarded the same company, without a competitive bidding process, an additional contract worth 20.85 million UAH for work related to the main contract.
By the end of 2027, the renovation of the Palansky Lyceum for 189 students at 5 Hrushevsky Street is scheduled to be completed. The lyceum building will undergo repairs to its windows and roof, as well as its heating, air conditioning, ventilation, water supply, and sewer systems. The project also includes electrical work, lightning protection, a security and alarm system, a gas detection system, and fire protection systems. Utility networks will be installed in the shelter, electrical work will be carried out, and an evacuation system will be set up. The project also includes construction work on the above-ground and underground sections of the sports hall, the installation of heat generators, and landscaping of the grounds.
The renovation is being funded by the European Investment Bank (EIB) and the local budget. This year, the EIB is set to allocate 5.63 million UAH, and in 2027—100.83 million UAH. VAT will be covered by the local budget. Given that the lyceum has only 189 students, the cost of the renovation amounts to nearly 1 million UAH per student.
The project was commissioned by Oleg Valentynovych Cherkov, a sole proprietor. A positive expert report was issued by the Cherkasy Regional Branch of the State Enterprise “Ukrderzhbudekspertiza.” The contract price is fixed and does not account for risks or inflation.
According to information on material prices, A500C-grade rebar with a diameter of 16 mm was ordered at 64,184 UAH/metric ton. (Prices listed here and below include VAT.) “Bulat Metal” sells it for 40,0035 UAH/metric ton, and “Iron World” for 49,520 UAH/metric ton. This is 23–38% cheaper.
Unplasticized polyvinyl acetate dispersion is listed at 360 UAH/kg. The “Dyvotsvit” store sells it for 209 UAH/kg, while “Lex Retail” sells it for 175 UAH/kg. This is 42–51% cheaper.
Sand was ordered at 880 UAH per cubic meter. Recently, the Education Department of the Uman City Council ordered sand at 389 UAH per cubic meter for the construction of a shelter at Uman Lyceum No. 1, and for the renovation of the cafeteria at Uman Elementary School No. 3, at 480 UAH/cubic meter. This is half the price.
Rectangular air ducts made of 0.7 mm thick galvanized sheet steel, with the longer side measuring up to 1,000 mm, were ordered at 3,520 UAH per square meter. The Education Department of the Uman City Council ordered such ductwork at 1,226 UAH per square meter for the construction of a shelter at Uman Lyceum No. 1, while the Department of Education, Youth, and Sports of the Talne City Council in Cherkasy Oblast ordered them for School No. 2 at 1,998 UAH/sq. m. This is 43–65% cheaper.
Detecto SMK100 addressable smoke detectors were ordered at 1,860 UAH per unit. “Hypermarket Bezpeky” and “Viatec” sell them at the same price of 1,345 UAH per unit, which is 28% cheaper.
The estimated overpayment for these items alone could amount to about 3 million UAH.
In addition, the cost estimate includes a number of items consisting of equipment sets for physics, chemistry, and geography classrooms, among others. It is quite difficult to compare their prices with market rates due to the lack of technical specifications for the components of these sets.
The consortium was awarded the contract without competition, as no other bidders submitted proposals for the open tender.
To participate in the tender, companies had to confirm the completion of at least two similar contracts over the past five years and provide documentation confirming that the relevant facilities had been put into operation or were ready for operation. The participant’s total work experience had to be at least four years.
The company’s average annual turnover over the past five years had to be no less than 30% of the expected procurement value. Additionally, as required by the European Investment Bank, participants were required to confirm that their average annual revenue over the past two years—excluding the period of martial law—amounted to at least 50% of the initial value of contracts under the National Key Infrastructure Project and/or the Priority Infrastructure Project that had not yet been completed at the time of proposal submission.
The Contracting Authority reserves the right to verify the prices of material resources. In the event of a clear overstatement of the average price of material resources (determined by the Contracting Authority based on a price analysis taking into account the provisions of the CMU Resolution dated November 19, 2025, No. 1512 “Certain Features of Determining Construction Costs Under Martial Law”), the contractor is obligated to accept and adjust the cost of materials as recommended by the customer
The contract provides that the Client has the right to defer payment for work performed. The deferral period begins on the date martial law is lifted in Ukraine and lasts for 180 days following such termination. In other words, payment may be deferred for the entire duration of martial law and for an additional six months after its termination.
The acting director of the Construction Department of the Cherkasy Regional State Administration is Oleksandr Matsko. The head of the Regional State Administration is Ihor Taburets.
The “Regional Construction Initiatives” consortium (Kyiv) was registered in early 2026. The consortium is headed by Yuriy Horay. The founders are the following firms:
“Analytik” Expert Council LLC (Kyiv), owned by Yuriy Horay;
“Euroautobahn” LLC (Vinnytsia), owned by Vitalii Kravtsov;
“Creator Company” LLC (Chaiky village, Kyiv Oblast) owned by Mykola Maksimkin;
“Alfa-Gaz” LLC (Starokostiantyniv, Khmelnytskyi Oblast) owned by Vitalii Skop;
“Sinta – Service” Private Enterprise (Brovary), owned by Igor Baklan.
Since its inception, “Regional Construction Initiatives” has received contracts totaling 282.91 million hryvnias, the largest amount from the current contracting authority.
This is reported on “Prozorro,” citing a report by “Nashi Hroshi.”
As a reminder, Russians attacked a lyceum in the Kyiv region, causing a fire.
A Russian attack damaged a high school and a cultural center in the Kirovohrad region.
In Odesa, a law high school was damaged as a result of shelling.
