Odesa overpays tens of millions for roads due to lack of competition

The Odesa City Council has once again found itself at the center of a scandal over road contracts. In June 2025, the Department of City Economy announced a large-scale tender for road repairs worth UAH 221.3 million. However, the procedure actually turned into a formality: the sole participant and winner was Rostdorstroy LLC.

The tender conditions were written in such a way that real competitors could not even submit documents. The requirements for work experience and availability of special equipment were inflated, and the deadlines were set within unrealistic limits. This allowed only one player to remain on the market - Rostdorstroy.

Analysis of the estimate shows significant overpricing of materials and work compared to market prices. As a result, the city risks overpaying tens of millions of hryvnias, while the real cost of the work remains opaque.

The company has long been receiving major road contracts in Odessa. Its position as a "monopolist" in the local market is consolidated thanks to the loyalty of city hall officials, who actually prescribe the conditions for a particular contractor. Such cases have already become systemic: the community loses money, and companies close to the government steadily earn hundreds of millions.

Thus, the story of road repairs worth UAH 221 million confirms: tenders in Odessa are increasingly turning into a mechanism for distributing budget money among "their own", rather than competitive procedures.

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