The municipal enterprise «Capital Construction», which is set to be wound up, has already accumulated debts amounting to half a million

The Mykolaiv municipal enterprise ‘Capital Construction’ is facing liquidation with debts of 500,000 hryvnias. Photo: NikVesti archive

The municipal enterprise «Capital Construction of Mykolaiv», which the city council plans to liquidate, has accumulated over half a million hryvnias in debt.

This came to light during a meeting of the city council’s housing and utilities committee on 24 March, reports NikVesti.

According to Tetiana Dymytrova, deputy head of the municipal property department, the enterprise is effectively unable to carry out its economic activities.

As of 1 January 2026, the utility’s debts are distributed as follows:

• 475,000 hryvnias — VAT debt;

• 43,000 hryvnias — arrears on holiday pay;

• 29,000 hryvnias — wage arrears.

At the same time, the assets on the company’s balance sheet amount to just 58,000 hryvnias, which is almost ten times less than the total debt.

Furthermore, the company, which was supposed to have a staff of six, currently has only one employee — the director, who has been mobilised into the Armed Forces of Ukraine. The chief accountant resigned back in mid-2025, and the company’s remaining contracts have already been completed.

«The draft decision proposes to wind up the municipal enterprise and establish a three-member liquidation committee. There is no money to maintain this enterprise; they are not generating any revenue,» explained Tetiana Dymytrova.

Over the coming months, the commission is to draw up a liquidation balance sheet and determine how to settle the debts.

Councillors supported the decision to liquidate the company, noting that if this is not done now, «the debts will continue to grow». The draft resolution is scheduled to be submitted for consideration at the city council session on 26 March.

As a reminder, the municipal enterprise «Capital Construction of the City of Mykolaiv» was established in 2012 as the contracting authority for the construction, reconstruction and repair of municipal property in Mykolaiv, replacing the capital construction department that had previously operated within the city council.

In 2016, following his election as mayor, Mykolaiv’s mayor Oleksandr Sienkevych announced a return to the model where capital construction would operate as a department of the city council rather than as a separate entity, and would have a designated fund administrator. The Capital Construction Department was established, acting as the contracting authority for repair and reconstruction works across all areas of municipal property. Over the last few years, the Capital Construction Department has shown a negative trend in the use of Mykolaiv’s budget funds; in particular, by the end of 2025, the Department had spent only 142.7 million hryvnias out of the planned 235 million hryvnias. Thus, their budget execution rate stood at 60.7%. The work of the Capital Construction Department is coordinated by Deputy Mayor Serhii Korenev.