Due to the inaction of the Kyiv authorities, the metro to Vynohradar will cost UAH 8 billion more
23 September 2024 16:08
The construction of the Syretsko-Pecherska metro line to Vynohradar turned out to be UAH 8 billion more expensive than expected. Instead of the planned UAH 5.9 billion, the project now requires almost UAH 14 billion to complete. This was reported by "Komersant Ukrainian" citing the State Audit Service of Ukraine, which conducted a financial audit of the Kyiv Metro.
The main reasons for the rise in price include an overdue debt of UAH 4 billion and a delay in construction. The auditors blame this on the dishonest contractor Kyivmetrobud JSC and the inaction of the Kyiv authorities.
According to the audit, in 2018-2019, Kyivmetrobud received advance payments of UAH 2.59 billion, but did not use them for their intended purpose. Instead of continuing construction, the contractor placed part of the funds on deposit accounts, including UAH 1.7 billion with Ukrgasbank. In addition, a significant portion of the budget money was used to pay for audit, legal and advisory services, financial risk insurance, and financial assistance to other companies. The funds were practically not allocated for construction.
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Nevertheless, at the end of 2019, Kyiv Metro transferred an additional UAH 1.41 billion to the contractor, of which only UAH 44.1 million was spent.
Due to these violations, the resumption of construction of the Vynohradar metro station will now cost the budget much more.
“Now the resumption of the Vynohradar metro construction will cost the budget 2.5 times more. According to the results of the recalculation of the cost of work, the estimate for the last 6 years (from 2018 to 2024) has increased by UAH 8 billion: from 5.9 to almost UAH 14 billion,”
– the State Audit Office reported.
In addition to the increase in the cost of work, an additional UAH 69.4 million will be needed to adjust the construction project.
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