Drog-Bud won the tender to repair the T-14-04 highway
From November 27 to December 2, 66 thousand messages on purchases worth UAH 11 billion were published in the Prozorro system, write Our money.
To repair roads and bridges on 1.2 billion hryvnias were tendered last week, or 11% of all purchases during this period.
Half of this achievement came from one contract for the repair of the T-14-04 Chervonograd-Rava-Ruska highway for 14.1 million euros (or 528 million hryvnias). This road leads to a major border crossing between Ukraine and Poland. Moreover, it was not raffled in a row at open auctions. It was given under the negotiation procedure, since we are talking about additional work not taken into account in the original project.
In 2017, the Lviv Road Service at open auction raffled the repair of this road for money provided on credit by Poland on the terms of tied assistance. At that time, four Polish companies competed in a row, and the contract with a 10% discount was won by Drog-Bud. A deal worth 21.5 million euros was concluded with her.
The conditions assumed that the contractor was responsible for both the design of the facility and the performance of work. Then it turned out that for various reasons, funding was delayed. As of September 2022, only 12% of the planned construction work has been completed. That is, in fact, the repair work under the five-year-old contract was almost never carried out. And they could hold new open auctions and get a new price.
But they acted differently. On November 22, 2022, it was decided that there was a need to increase the cost of the work to 28.6 million euros. This completely covered the discount that Drog-Bud gave to win the auction, and threw 5 million more on top. And after this increase in the price of the original agreement from 21.5 to 28.6 million euros, they took advantage of the norm of Ukrainian legislation that the old contractor can be given a new contract for additional work worth up to 50% of the price of the original agreement through the negotiation procedure. If these 50% concerned the original price, then the new contract should not cost 14.1 million euros, but half of 21.5 million euros. That is, at this stage, they managed to entrust about 4 million euros.
In Poland, Drog-Bud has been working on the road works market since 1998, the Ukrainian representative office in Lviv was opened in 2016, when Ukravtodor was headed by Pole Slavomir Novak. Zdzisław Nowak was the head of the Polish company at that time. Taras Sirotinsky, the former head of the Lviv road service, worked in the Ukrainian representative office of Drog-Stroy. In 2020, he moved to the post of adviser to Prime Minister Denys Shmygal, and Novak received suspicion for receiving bribes from Ukrainian contractors.
Top 10 largest purchases last week. Drog-Bud
Customer mln. Contractor Deal subject
1. Highway service in Lviv region 528.39 Drog-Bud Spolka z ograniczona odpowiedzialnoscia Major overhaul of the public highway of state importance T-14-04 Chervonograd-Rava-Ruska km 3+137 — km 56+307, Lviv region (additional construction works) UA-2022-11-29-008374-a-a1
2. JSC Ukrgasdobycha 164.27 LLC Anvitrade Diesel fuel UA-2022-11-30-014097-a-c1
3. JSC Ukrgasdobycha 129.15 LLC Martin Trade Diesel fuel UA-2022-11-30-014100-a-b1
4. Road service in the Zhytomyr region 96.67 SUNP Avtostrada LLC Not subject to disclosure in accordance with regulatory legal acts RU-2022-12-01-011913-a-c1
5. Ukrgazvydobycha JSC 223.48 K2 Energy LLC Diesel fuel UA-2022-11-30-014088-a-c1
6. State Enterprise “Roads of Kharkiv Region” 96.40 LLC “Parking+” Operational maintenance of public roads of local importance in the Kharkiv region RU-2022-11-29-008150-a-c1
7. JSC “Zhytomiroblenergo” 94.59 LLC “Zhytomyr Regional Energy Supply Company” electric power UA-2022-11-04-005550-a-c1
eight. Chernigovoblenergo JSC 83.33 Intex Invest LLC Fuel UA-2022-11-15-011472-a-b1
9. Branch “Production Support Center” JSC “Ukrzaliznytsia” 82.86 LLC “Trading House “Cable Center” Cable and wire products RU-2022-10-28-009629-a-b1
10. Branch “Production Support Center” JSC “Ukrzaliznytsia” 77.30 LLC “Trading House “Ukrkabel-Kyiv” Cable and wire products UA-2022-10-28-010069-a-a1
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