Since the beginning of 2025, the State Enterprise “Local Roads of the Zaporizhzhia Region” has been implementing large-scale projects to construct anti-radiation shelters, so-called “underground schools”, at educational institutions across the region.

The procuring entity has announced eleven tenders, seven of which have already been completed. The total value of the concluded contracts exceeds UAH 760 million. Four companies were selected as contractors: Vivat Bud LLC (one contract), Melcity LLC (two contracts), Esco Zaporizhzhia LLC (three contracts), and Company Positive (one contract).

Friendly Bidders: How Connections Undermined Competition

Tenders were conducted as open bidding with features. In each case, only one participant submitted a bid and was automatically awarded the contract. Notably, Vivat Bud LLC, Melcity LLC, Esco Zaporizhzhia LLC, and Company Positive never competed against one another, despite the procurement contracts being similar in both scope and content. However, these companies reference one another in their work experience certificates. In their tender proposals, both Esco Zaporizhzhia LLC and Vivat Bud LLC stated that they had previously acted as subcontractors on projects carried out by Melcity LLC, specifically for the construction of anti-radiation shelters at Zaporizhzhia Academic Lyceum No. 46 and Zaporizhzhia Gymnasium No. 107. To support this fact, both companies included letters of recommendation from Melcity. However, there is a notable nuance: in its own tender documentation, Melcity indicated that it did not intend to engage subcontractors for these projects. 

Last year, DOZORRO TI Ukraine team identified a trend of single-bidder tenders for the construction of underground schools across Ukraine. In Zaporizhzhia, another issue emerged: the State Enterprise “Local Roads of the Zaporizhzhia Region” refused to provide cost estimates, despite requests from both the public and a Member of Parliament. At the time, there was no requirement to disclose unit prices for construction materials alongside the contract.

Overpriced Safety 

The DOZORRO team analyzed the available cost estimates and identified a potential overpricing of building materials, which could result in an overpayment of UAH 58 million. The contract includes a dynamic pricing clause, allowing for adjustments during the execution of the works.

Interestingly, the tender documentation did not require participants to submit any justification or cost breakdown for their tender proposals. It was sufficient for bidders to merely agree to the procuring entity’s terms of reference. 

Under the law, prices for materials must be published, but only after signing the contract. This gave the state-owned enterprise the opportunity to hide the cost of building materials at the stage of determining the winner.

Analysts found the most likely overpricing in the cost of Icopal Foundation Antyradon SBS 4.0 rolls, a material used for waterproofing. Contractors included it in the estimates at a rate of UAH 1,030 per square meter. For comparison, Pershyi Dim offers the same material at UAH 469.79 per square meter, while the Polish company REALBUD lists it at UAH 371.20 per square meter. This inflated price was not incidental, it was embedded at the design stage by Hradproekt-M LLC, the company responsible for developing the design and estimate documentation for the shelters.

The estimated overpayment for this material may reach UAH 17.4 million.

Concrete grade C25/30 W6 F100 was included in the estimates at rates ranging from UAH 4,930.00 to UAH 5,764.26 per cubic meter, while the Zaporizhzhia-based manufacturer Concern VM LLC offers the same concrete at UAH 3,800 per cubic meter. 

This may lead to an overpayment of another UAH 16.5 million. 

Top 5 positions with overpayment

 (aggregated data for 7 tenders)

Designer and supervisor: two in one

Hradproekt-M LLC developed the design and estimate documents for all construction projects. The company was established at the end of 2020 in Melitopol. First, it was founded by Yevhen Shevchenko through his other company, Techproekt-M LLC. In 2022, the company was re-registered in Zaporizhzhia, and in 2024, Maksym Yehorkin became its new owner. 

 Notably, Yehorkin was also a technical supervisor for the construction of a shelter at the Komyshuvakha Gymnasium “Dzherelo”, the very project his company had designed. This situation can create a potential conflict of interest in the supervision of work. Legislation explicitly prohibits employees of design and construction organizations, which act as contractors on a given project, from performing technical supervision at the same facilities. Maksym Yehorkin is the owner, not an employee of the company; therefore, this legal provision does not apply to him. 

In public procurement, Hradproekt-M LLC collaborates most often with the State Enterprise “Local Roads of the Zaporizhzhia Region.” Of the 104 contracts it has concluded, almost half were signed with this company. For context, prior to relocating to Zaporizhzhia, the firm mostly worked with the Department of Major Construction of the Melitopol City Council, which was headed by Victoriia Repashevska from December 2019 to May 2024. 

Following her appointment as head of the Local Roads of the Zaporizhzhia Region, Hradproekt-M LLC began actively cooperating with the enterprise. This raises concerns that the selection of the design company may have been influenced not solely by the quality and integrity of its project implementation, but also by prior working relationships.

Who conducted the examinations

All shelter construction project examinations were conducted by Pivdenekspertproekt LLC, a Zaporizhzhia-based company founded by Aliona Taranych in 2016. However, in early 2025, ownership of the company was transferred to Maryna Shcherbakova. 

According to Nashi Hroshi, the enterprise issued a positive expert opinion report for the construction of a shelter at the “Potential” Lyceum. However, the media outlet identified potential overpricing in the cost estimates for bricks, concrete, rebar, and other materials.

It is also worth mentioning that Maryna Shcherbakova may have ties to local authorities. According to the Unified State Register of Declarations, a woman with the same full name is listed as the wife of Anton Popov, Chief Engineer of the Major Construction Department in Zaporizhzhia. She also has the same surname and patronymic as Oleksandr Shcherbakov, Deputy Head of the Zaporizhzhia Regional State Administration, which oversees the State Enterprise “Local Roads of the Zaporizhzhia Region.” It is quite possible that they are related.

Who is in charge of the construction projects?

The construction of underground schools is carried out by four companies: Vivat Bud LLC, Melcity, Esco Zaporizhzhia and Company Positive. 

Vivat Bud LLC

Vivat Bud LLC was founded by Volodymyr Tarasenko in 2024. In 2019-2020, he was the Deputy Head of the Zaporizhzhia Regional State Administration. During that period, the company was re-registered to Oleksandr Koroliov as the new owner. After his dismissal from the administration, Tarasenko returned to business and once again became the owner of Vivat Bud. At that time, his wife, Maryna Tarasenko, owned another company with almost identical name—Vivat Invest. In 2022, Tarasenko became the official owner of that company as well.

Melcity LLC 

Another contractor for the construction of shelters is Melcity LLC, owned by Volodymyr Novoseltsev. The company is allegedly connected with the State Enterprise “Local Roads of the Zaporizhzhia Region.” According to Nashi Hroshi, Melcity leased equipment from Dorrem Technologies, where Yuliia Tsynka serves (or previously served) as Chief Accountant. Her husband, Viktor Tsynka, was the head of the State Enterprise “Local Roads of the Zaporizhzhia Region” until May 2024. 

Last year, Local Roads of the Zaporizhzhia Region already signed several contracts for the construction of underground schools with this company:

• for Zaporizhzhia Lyceum No. 107: UAH 110.6 million and additionally for UAH 7.4 million;
• for Zaporizhzhia Academic Lyceum No. 46: UAH 101.4 million;
• for Liutserna Lyceum: UAH 16.6 million. 

At the beginning of this year, Melcity received over UAH 16 million for additional works at Zaporizhzhia Lyceum No. 107. 

Esco Zaporizhzhia LLC 

Esco Zaporizhzhia LLC was registered by Kateryna Cherniakova in 2016. As early as 2020, the company had a different owner, Volodymyr Bondarenko.

Company Positive LLC

Company Positive LLC was founded in 2009 by Mykola Bielyi, former member of Zaporizhzhia City Council. The company is registered in the village of Soniachne in Zaporizhzhia region. Since 2016, the company has been owned by Maksym Haidai.

Last year, the company already signed contracts with the State Enterprise “Local Roads of the Zaporizhzhia Region” for the construction of “underground schools”:

• for Zaporizhzhia School No. 88: UAH 109.5 million;
• for “Zaporizhzhia Sich” Collegium Specialized Boarding School: UAH 112.6 million;
• Zaporizhzhia Collegium “Elint”: UAH 108.4 million;
• for Bilenke Lyceum “Leader”: UAH 95.6 million; 
• for Zaporizhzhia Lyceum “Logos”: UAH 107.2 million; 
• for Semenkove Lyceum: UAH 60.6 million.

Inquiries and responses

DOZORRO experts sent a letter to the procuring entity outlining calculations of possible overpayments and requesting a reduction in inflated prices. In response, the company explained that the prices for the construction of shelters at Komyshuvakha Gymnasium, as well as Gymnasiums No. 84 and No. 32, could be adjusted during implementation, as the contract price is dynamic. However, in practice, the contract prices were never revised.

In subsequent tenders for shelters at the Cossack Lyceum, Lyceum No. 31, and Gymnasium No. 106, some item prices were reduced. For instance, the price of mineral plaster dropped fourfold—from UAH 132 to UAH 31.20 per kilogram—and the price of asphalt concrete decreased by 25%, from UAH 6,585 to UAH 5,280 per ton. These reductions resulted in savings of approximately UAH 1.7 million.

However, the prices of many key materials, those with the highest potential for overpricing, remained unchanged. Therefore, we contacted the procuring entity once again, requesting a review of these items in the latest three procurement contracts. If no response is received, we will proceed to examine the work acceptance certificates before payment.

This material is funded by the European Union. Its content is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of the European Union.