23.03.2025 Kyiv Tenders

562 million for a dubious tender under the supervision of Kyiv enterprises and the Department of Infrastructure

The Kyiv City Council held a tender for the reconstruction of the dams of sludge fields No. 1 and No. 2 of the Bortnychi Aeration Station for UAH 562.5 million. The customer was KIEVBUDRECONSTRUCTION, which is subordinated to the Kyiv City Council’s Department of Housing and Communal Infrastructure.

Who received half a billion from the city authorities?

The winner of the tender was TFM-Vostok LLC, a company that had not previously participated in any public procurement, although it was established in 2018.

The requirements for participants were minimal – it was enough to provide any contract with earthworks from 2019. In view of this, TSM-East confirmed its experience through a contract for the repair of a building in Melitopol, the customer of which was Techpidtrymka Facility Management LLC, associated with the former owner of TSM-East, Dmytro Pasichnyk.

The main violations found

The tender documents were drafted in such a way that TPM-Vostok was awarded the contract. Other participants either did not meet the formal requirements or did not offer real competition.

At the same time, the main scheme of siphoning off budget funds was focused on overstating the cost of works and materials. In particular:

  • Soil was purchased at 372 UAH/ton with a market price of 30 UAH/ton.
  • The delivery of the soil was estimated at UAH 974/ton, which is several times more expensive than the real market price.
  • The total amount allocated for the purchase of soil alone is UAH 225 million, which is almost half of the entire tender.

In fact, the Kyiv City Council has allocated hundreds of millions of hryvnias for a project that may remain only on paper.

Once again, a critical project for the reconstruction of a strategic facility has become just another scheme in which officials and contractors “spray” public money. We have filed a complaint with the regulatory authorities demanding to check where half a billion hryvnias are actually being spent. We will see how the controllers react.

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