Under the guise of affordability: Kyiv City State Administration is spending tens of millions on hospital renovations

While Kyiv residents with limited mobility are forced to overcome stairs, thresholds, and the lack of basic accessibility in healthcare facilities every day, a scheme for the use of budget funds is being implemented in the capital under the slogan of "barrier-freeness." This involves the overhaul of the "Consultative and Diagnostic Center" in the Shevchenkivskyi district of Kyiv, the total cost of which exceeds 95 million hryvnias and already at the start raises serious questions about the reasonableness of the costs.

Administrative and financial control over the project was carried out within the vertical of the Kyiv City State Administration. The city mayor Vitaliy Klitschko, his deputy Vladyslav Andronov, the director of the Department of Health Tetyana Mostepan, and the head of the KNP Natalia Berikashvili were involved in making key decisions. It was these officials who coordinated the estimates and procurement parameters, but no public reservations were made on their part regarding the feasibility or cost of the work. This creates grounds to speak of coordination of actions between the customer and the contractor.

The tender procedure was structured in such a way that real competition disappeared at the initial stage. The winner was LLC “Ukrainian Production and Construction Alliance “Center”” (EDRPOU 34280208), which turned out to be the only participant in the procurement. Discriminatory conditions of the tender documentation and strict deadlines for the completion of the work actually turned the competition into a formality, depriving the city of the opportunity to save budget funds.

Analysis of the estimate documentation shows a systematic overpricing of construction materials. Metal reinforcing mesh, window sills, building mixtures and primers are set at prices that significantly exceed the average market price. In a number of items, the difference reaches 50–100%. Only for a limited list of materials, the potential overpayment is estimated at more than 4.38 million hryvnias, which indicates not errors in calculations, but a systemic financial model with a built-in margin.

The wage fund attracts special attention. The estimate sets the average salary at about 26.5 thousand hryvnias, which is significantly lower than the real market rates in Kyiv for construction work. According to estimates, the wage fund deficit reaches almost 9.5 million hryvnias. This difference is probably compensated either by overpriced materials or through unofficial payments to employees.

Additional risks are also confirmed by the contractor's reputation. LLC "Ukrainian Production and Construction Alliance "Center"" is involved in at least 11 criminal proceedings related to the appropriation and embezzlement of property, fraud with financial resources and tax evasion. In addition, the company has at least 9 commercial court decisions regarding non-fulfillment of contractual obligations. Despite this, the company continues to receive large budget contracts, in particular in the healthcare sector.

As a result, we have a typical situation for the capital: under loud declarations of care and accessibility, a scheme is hidden, where millions of dollars in budget funds end up with contractors with a dubious reputation, and citizens with limited mobility never receive the promised convenient and safe medical services.

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