In 2025, the Kherson region remains one of the territories of Ukraine closest to the frontline, where any public procurement acquires not only economic but also vital importance. During the spring and summer of 2025, we monitored key tenders in the region: the construction of an outpatient clinic in Davydiv Brid, the purchase of mobile shelters, current and capital repairs of roads, the development of local waste management plans, as well as the comprehensive reconstruction of the village of Posad-Pokrovske of the Chornobaivka community. The analysis of seven cases revealed systemic problems, including a lack of competition, the involvement of contractors with a dubious reputation and a history of violations, criminal proceedings, and minimal customer oversight. This report summarizes the results of the observation. It demonstrates that the transparency and efficiency of public procurement in the frontline zone are crucial matters of security and community well-being.
Large-scale construction in the Kherson region: who makes money from the ruins of Posad-Pokrovske
The village of Posad-Pokrovske in the Chornobaivka community has become one of the key objects of the state experimental project for the comprehensive reconstruction of de-occupied territories in the Kherson region. According to the State Agency for Reconstruction, all 940 buildings were damaged in the fighting in 2022, with 80% of them completely destroyed. In March-April 2025, the Infrastructure Restoration and Development Service announced tenders for over UAH 1.8 billion for housing construction, road repair, gas supply reconstruction, the construction of an outpatient clinic, and a security center.
The main contracts for housing construction and road infrastructure were awarded to LLC "EUROPEAN ROAD CONSTRUCTION COMPANY", LLC "ROSTDORSTROY", LLC "ENERGY-ROAD CONSTRUCTION", and LLC "Avtomagistral-Pivden". All of them have a history of criminal proceedings and media scandals. The lack of competition in tenders and the political connections of contractors jeopardize the transparency and effectiveness of reconstruction.
The Kherson Region Road Restoration Under the Control of Several Companies
In 2025, the restoration of roads in the Kherson Region also became a large-scale state project: the Kherson region awarded roadwork contracts worth more than UAH 1.7 billion. Based on our monitoring, we prepared two separate reports on state tenders for the restoration of roads in the front-line Kherson Region. The first report provides a detailed account of the Skhidne-Zagorianivka road repair, while the second summarizes who is building roads in the region and the amounts for which contracts were signed. An analysis of tenders on Prozorro shows that there is virtually no competition in the market. Only a few selected companies become winners, cheaper offers are rejected due to formal errors, and sometimes the difference between them and the won contract is only one hryvnia.
The most active contractors: LLC "EUROPEAN ROAD CONSTRUCTION COMPANY", LLC "ROSTDORSTROY", LLC “Avtostrada Group of Companies”, LLC "Avtomagistral-Pivden", LLC "Construction Company "Budalians Group", and LLC "Construction Firm Paritybudinvest". This practice creates systemic risks of corruption and inefficient use of budget funds.
Outpatient clinic for millions
The construction of an outpatient clinic in the village of Davydiv Brid in the Kherson region is being carried out by LLC "New Heat Technologies". The second stage of the project will cost the state UAH 15.3 million, while the first stage will cost UAH 16.2 million. Both tenders were held without competition. The total cost of the project exceeds UAH 33 million, with a significant portion of the funding coming from international sources, specifically the European Investment Bank. The company is involved in criminal proceedings, has related enterprises in the temporarily occupied territories and a history of anti-competitive violations. Monitoring of this procurement has been initiated by the Western Office of the State Audit Service, which confirms the existence of official control; however, transparency and control over cost effectiveness remain questionable.
Shelter Procurement: Minimal Competition, Maximum Risks
In June 2025, two tenders for shelters for frontline communities were held in the Kherson region without competition: the Tiahynka Village Council ordered three mobile shelters from Myradyma LLC (UAH 976,000), and the Kalynivka educational institution ordered a protective structure in Bobrovyi Kut from Budkom LLC (UAH 28.1 million). The contractors have a history of submitting questionable tenders and facing criminal proceedings, and the bidding process took place with minimal price reductions. These procurements highlight the risks to the effective use of budgetary and international funds, underscoring the importance of transparency and control in projects that directly impact people's safety.
Former official and tenders for ecology
The Beryslav City Council signed a contract for the development of a local waste management plan for over UAH 350,000 with LLC “Company Center LTD”, which was the only participant and, accordingly, the winner of the tender. The company has a direct connection with the former head of the Department of Ecology at the Lviv Regional State Administration, Myroslav Khomiak, and the company PE “NVF “Ekotop”. The combination of the position of the former official and business structures that receive state orders in the field of ecology. For comparison, similar tenders cost UAH 155,000 in the Mala Liubasha community and UAH 679,000 in Okhtyrka, indicating significant price variability and necessitating additional monitoring.
Our monitoring revealed that key tenders in the frontline Kherson region are often awarded to companies with a dubious reputation, frequently without competition. This poses risks to the efficient allocation of budget and international funds.
To enable citizens to actively monitor the public procurement process, we have developed clear instructions that help everyone easily start monitoring tenders in their community. Even simple actions can really improve the transparency and quality of procurement. We will continue to monitor new procurements, track their associated risks, and report the results to the public for oversight.
This material was published with the support of the Czech non-governmental organization NESEHNUTÍ within the framework of the Transformational Cooperation Program of the Ministry of Foreign Affairs of the Czech Republic.
