The municipal corporation “Kyivavtodor” has been indecisive for over two weeks regarding the signing of a contract with the company “Avtostrada” of Maksym Shkil for the major repairs of Kharkiv Highway in the Dnipro and Darnytsia districts of the capital. According to the tender results, the project cost is 1.26 billion UAH, and the winner was selected on September 16.
This is reported by Finway
Why the Cost of Repairing Kharkiv Highway Raises Questions
According to reports, the sum of over one billion hryvnias for a five-kilometer stretch of road has caused a stir. This effectively means about a quarter of a billion hryvnias for each kilometer, which significantly exceeds the average cost of asphalting in Kyiv. For comparison, the recent repair of a one-kilometer section of Dragomanova Street cost “Kyivavtodor” only 40 million UAH.
Reviewing similar projects in the past highlights the difference in cost: in 2010, the repair of Kharkiv Highway was planned for 101 million UAH (at 2011 prices, when the dollar exchange rate was 8 UAH). The current project is not only 12 times more expensive but also includes significantly more additional elements, such as street widening and the installation of traffic light crossings, which may impact road safety.
Discussion on Margin and Project Feasibility
Particular attention is drawn to the issue of margin, which remained high even after the tender and a 10% reduction in the expected price. Society and experts express concerns about the feasibility of such expenses in light of the budget deficit and issues with military salary payments.
“Perhaps due to the scandal that may arise. Because it involves pouring a large sum of money into rear asphalt against the backdrop of a budget deficit for paying military salaries,” the publication writes.
The discussion surrounding this agreement continues, and a final decision regarding the signing of the contract for the major repairs of Kharkiv Highway has yet to be made.