Mykolaiv Water Utility awarded a ₴56 million contract for sewer repairs to a company implicated in a criminal case

A water utility crew at the site of a burst pipe on 4 Pozdovzhna Street in Mykolaiv, August 2024. Photo courtesy of ‘NikVesti’

In Mykolaiv, the municipal utility Mykolaivvodokanal has selected a contractor to reconstruct the sewerage collector on Ihor Bedzai (Chkalov) Street — on the section between 6th Slobidska and Inzhenerna Streets. The contract was awarded to a private company without a tender.

This is evidenced by data from the ProZorro public procurement system, NikVesti reports.

On 20 March, Mykolaivvodokanal announced a tender worth 59,205,300 hryvnias. The project involves replacing existing reinforced concrete pipes. The sole bidder was the private company ‘Effect’, which offered to carry out the work for 56,050,000 hryvnias.

Screenshot from the ProZorro public procurement system

Screenshot from the ProZorro public procurement system

According to data from the YouControl analytical system, the winning company was registered in the Odesa region in 2005. The company’s founder is Tetiana Ioano.

The company’s main activity is the construction of residential and non-residential properties. It is also stated that the company’s authorised capital amounts to just 500 hryvnias. Despite this, the company wins tenders and secures contracts.

At the same time, the company has been implicated in criminal proceedings. In particular, in 2018, law enforcement investigated a possible attempt to extort money from the management of one of Odesa’s companies under the pretext of a non-existent debt. The ruling states that a man was abducted, beaten, and then forced to sign a document stating that he «owed» 200,000 dollars.

Also, in 2021, the court considered a case regarding the alleged conclusion of fictitious subcontracting agreements involving this company to obtain funds for works in Ternopil that were not actually carried out. According to the investigation, officials may have forged documents, in particular by concluding additional contracts and subcontracts for the very same road works that had already been completed or partially completed earlier. As a result, budget funds could have been transferred repeatedly or without justification, including significant sums to the contractor PP «Effect», even in cases where the work was not actually carried out or was not completed in full. There is also mention of the possible preparation of false certificates of work completed.

It should be recalled that during a meeting between water utility staff and the new CEO, Hennadii Iziumov, on 15 April, the topic of the dismissal of Technical Director Vasyl Telpis was raised. An audio recording of this conversation is in the possession of the editorial team at NikVesti.

During the meeting, the employees stated that Telpis’s dismissal came as a surprise to them, as he had worked at the water utility since the 1980s and had been acting as manager following the death of Boris Dudenko.

At the meeting, Hennadii Iziumov assured those present that he had not taken the decision to dismiss Telpis. According to him, Telpis was dismissed by the Supervisory Board.

However, the Supervisory Board of the Mykolaivvodokanal Municipal Enterprise subsequently stated that it had not taken a decision to dismiss the company’s technical director, Vasyl Telpis, as previously reported by the new CEO, Hennadii Iziumov.

The water utility has a new head: what is known about Iziumov

At the end of January 2026, a new general director of the municipal enterprise «Mykolaivvodokanal» was appointed in Mykolaiv. The post was taken by Hennadii Iziumov — the former head and chief engineer of water supply construction projects at the municipal enterprise «Mariupolvodokanal».

His appointment followed a competition in which 19 candidates took part. Prior to this, the company was headed by Borys Dudenko, who had managed the water utility since 2016 and died on 15 October 2025 following a long illness.

During the selection process, Hennadii Iziumov presented a plan for his first 100 days, which included assessing the company’s current state, stabilising operational processes, strengthening management discipline, establishing cooperation with the supervisory board and the city authorities, and preparing a medium-term development strategy.

Also in February, a list of performance indicators was approved for the Mykolaivvodokanal company, against which the company’s performance will be assessed in future.