Construction of a 3 billion UAH oncology center starts in Kharkiv: prices for materials are significantly overstated

Construction of a new regional cancer center worth over 3 billion hryvnias, financed under the Ukraine Facility program, has begun in Kharkiv. The Capital Construction Department of the Kharkiv Regional State Administration has signed an agreement with the Building Group consortium, which is to complete the first phase of the facility by the end of 2028. It is planned to build a medical building, a power unit, a medical gas station, and arrange shelter for over a thousand people.

Despite the importance of the project, journalists from Nashi Groze found signs of possible overpricing in the estimate. Some building materials are listed at prices that exceed market prices. For example, ceramic bricks in the documents cost almost twice as much as those from local suppliers, and the cost of gypsum mixtures is several times higher than the offers of large retailers. Also, the column for transportation of materials often contains zeros, which may mean a “built-in” cost of delivery without decoding. According to preliminary estimates, the potential overpayment for just three items could reach about 30 million hryvnias.

The consortium became the sole bidder. The customer required confirmation of significant experience in performing complex construction works, and the contractor referred to several previous projects in the Kharkiv region, including the reconstruction of a hospital and administrative buildings. It is planned to involve a number of subcontractors in the work.

Journalists also note the connections of some of the consortium members with business structures associated with former MP from the Party of Regions Anatoly Denisenko. Previously, these companies had already received significant government orders, and analysts have repeatedly noted suspiciously high estimates.

The construction of the cancer center is one of the largest medical infrastructure projects in front-line Kharkiv. Not only the implementation timelines, but also trust in the reconstruction programs in the region, which is under daily threat of shelling, will depend on the transparency and efficiency of the use of funds.

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