29.06.2024 Kharkiv Reconstruction of Ukraine

How City Authorities Profit from the Reconstruction of Affected Areas.

Russia has used FAB-500 bombs on Kharkiv for the first time, which are twice as powerful as the usual KAB and FAB-250 bombs. The FAB-500 is equipped with a planning and correction module, turning the bombs into guided missiles that hit their targets using GPS navigation.

Reconstruction of Northern Saltivka

The 16-story building on Northern Saltivka in Kharkiv, located at 60 Nataliia Uzhvii Street, has become a symbol of the wartime city. After long discussions and promises from the mayor, the Department of Improvement, Reconstruction, and Renovation of the Kharkiv City Council announced a tender for emergency restoration work (major repairs) with a total amount of 208,843,988 UAH.

Only one participant took part in the competition – “Construction Firm ‘Promtex'”. The main activity of the company is the construction of residential and non-residential buildings. The company was founded on 03.07.1996.

Some of the works listed in the cost estimate documentation are clearly overpriced. Furthermore, many of the listed works are related to demolition, with the overall cost appearing suspiciously high.

Is Reconstruction of High-Rises Justified During Constant Shelling?

As stated in one of the materials: “The cost of restoration is too high – it would be cheaper to buy new apartments. This is a typical double 16-story panel building with 64 apartments in each building, so there are 128 apartments in total. Therefore, they plan to spend 1,789,844 UAH (over 46 thousand USD) on the restoration of each apartment. According to calculations, the cost of restoring one square meter will be approximately $801/m².”

The Inefficiency of Such Expenses:

1. Prioritizing Resources: In wartime, the main task is to ensure the safety and vital needs of residents. Significant financial resources should be directed to protecting the population, evacuation, medical assistance, and restoring infrastructure that provides essential city functions, such as water supply, electricity, and transportation.

2. Constant Risk of Destruction: Kharkiv is under constant shelling, creating a high likelihood of new destructions even after repairs are completed. Investing such a significant sum in one object, which may be damaged or destroyed again, is an unjustified risk.

3. Economic Instability: In wartime, the city and country’s economy as a whole face serious difficulties. Financial assistance must be distributed as efficiently as possible to maintain stability and city functioning. Spending over 208 million UAH on one building can lead to a deficit of funds for other critical needs.

4. Social Justice: In wartime, it is important to ensure equitable distribution of resources among all affected areas and groups of the population. Focusing on one object may cause discontent among residents of other damaged buildings who also need help.

5. Alternative Solutions: Instead of major repairs, it would be more appropriate to consider temporary and less costly solutions to provide essential living conditions for residents, such as temporary shelters, mobile housing modules, or repairing only the most necessary structures. Thus, spending 208,843,988.00 UAH on major repairs of one multi-apartment residential building during active hostilities is an inefficient and risky decision.

Regarding the suspicious activity of the Kharkiv city authorities, the Department of Improvement, Reconstruction, and Renovation, and “Construction Firm ‘Promtex'” in the reconstruction of Northern Saltivka, we have sent materials to law enforcement and regulatory authorities. As a result of their review, the Kyiv District Court of Kharkiv, in its ruling of 27.06.2024 in case No. 953/5631/24, ordered authorized persons from the SU GUNP in the Kharkiv region to initiate an investigation. A similar decision was made by the Oktyabrsky District Court of Poltava on 26.06.2024 in case No. 554/6570/24.

Will there be real efforts to combat blatant budget misappropriation during wartime, especially in reconstruction efforts?

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