Construction for veterans in Rivne region: contract for 158 million UAH raised questions

On December 4, the Department of Construction and Architecture of the Rivne Regional State Administration signed a contract with the private enterprise "Modena" for the construction of a medical and rehabilitation building for war veterans and internally displaced persons in the village of Klevan. The cost of the contract is UAH 158.19 million, and the work is scheduled to be completed in just 26 days, by the end of December.

This is reported by the publication "Nashi Groshi". This concerns the completion of the construction of the building for the KP "Rivne Regional Hospital of War Veterans" at 39 Derazhnenska Street. The construction of the facility itself began in 2023. According to the results of the tender, the contractor was initially ordered to work for UAH 239 million, but on the day the contract was signed, the amount was reduced by almost UAH 81 million.

In total, four contracts worth UAH 1.33 billion have already been concluded with Modena Private Enterprise at this facility. In 2023, the company received UAH 434.65 million, in 2024 - UAH 300.88 million, another UAH 437.18 million is planned for 2025, and the current contract is UAH 158.19 million. According to the Spending portal, as of today, UAH 913.75 million has already been paid for the work performed.

The construction is financed by the Ukraine Facility program. The project documentation was adjusted by Top Hyp LLC, and a positive expert opinion was provided by Proexp LLC.

At the same time, the analysis of the estimate raised questions among analysts and experts. In particular, electronic locks for Mifare and DESfire Standart cabinets were purchased for UAH 12,076 per unit, although analogues are available on the market that are 7–9 times cheaper. Sandwich panels of an unknown manufacturer were installed for UAH 6,480 per square meter, while products of Ukrainian manufacturers cost from UAH 999 to UAH 2,015. Aluminum composite panels of NG flammability class were installed for UAH 7,507 per square meter, despite the fact that imported analogues are sold for UAH 1,377–2,338.

Medical equipment attracts special attention. An anesthesia and breathing apparatus for the MRI room was purchased for UAH 3.48 million, although similar Belgian-made equipment costs about UAH 2.29 million. For these items alone, the estimated overpayment could reach UAH 12 million.

Also in the estimate, the average salary of a worker was determined at 23,900 UAH. At the same time, the average salary in the construction industry of Rivne, according to market estimates, is about 28,000 UAH, and the optimal level reaches 40,000 UAH. Experts note that such a difference may create risks of shadow salary payments due to the margin embedded in the inflated prices for materials.

The tender was held without competition. To participate in the procurement, it was required to have at least 40 employees and experience in implementing similar contracts within the last three years.

The Department of Construction and Architecture of the Rivne Regional State Administration is headed by Andriy Yarusevych, the authorized person for public procurement is Viktoriia Kovtunovych, and the head of the Rivne Regional State Administration is Oleksandr Koval. Private enterprise "Modena" is registered in the village of Oleksandria, Rivne region, the owner and manager of the company is Oleksandr Kucheruk.

According to public procurement data, since 2017, Modena has received government contracts worth UAH 2.22 billion, and the company concluded the largest contracts with the current customer.

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