Mykolaiv Capital Construction Department spent almost 11% of its budget over nine months

The Mykolaiv Capital Construction Department has spent just 13.4 per cent of its planned funds in nine months. Photo: NikVesti archive

Over nine months, the Mykolaiv Capital Construction Department has spent less than 11 per cent of the funds allocated for the whole of 2026. Of nearly 260 million hryvnias, only 28 million have been spent.

This is reported in the «NikVesti» article «Money is running out, payments are being delayed. What’s happening with Mykolaiv’s budget?».

Over the nine-month period, the department had planned to spend 209.7 million hryvnias, but in fact spent only 28.1 million. This represents 13.4 per cent of the amount planned for this period — the lowest figure among the main administrators of the city budget.

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The least amount of money was spent directly on construction. Of the planned 54.4 million hryvnias, only 2.08 million, or 3.8 per cent, was spent. 8.33 million hryvnias out of 104.36 million were spent on major repairs — around 8 per cent.

However, problems with spending the funds had arisen even before the Treasury began delaying payments in September. In the first six months, the department had spent only 13.3 per cent of the funds allocated for that period. Over the following three months, the situation remained virtually unchanged.

Mayor Oleksandr Sienkevych explained to NikVesti that the work is being delayed for several reasons. In particular, funding for some projects was allocated late, procurement takes a long time, and contractors are short of staff.

For example, state funding for the refurbishment of school canteens and the construction of shelters was approved in March–April, whilst the funds from the city budget required to carry out these projects were only allocated at the beginning of June.

According to the mayor, contractors do not always submit documentation for completed work on time. Sometimes errors are found in the documents, so they have to be redrafted.

«Deadlines are also affected by labour shortages and mobilisation measures faced by contractors. A separate issue is the quality of document preparation: certificates of completion are submitted late and contain comments regarding scope and cost. In such cases, the CCD returns them for revision so that payment is made in accordance with the work actually carried out,» said Oleksandr Sienkevych.

Deputy Mayor Serhii Korenev also explained that during construction, it is often necessary to amend designs and find new workers to replace those who have been mobilised.

«There are many problems; this is construction, after all, not buying a car or equipment. They relate to design work, the need to amend plans, and contractors having to recruit additional workers to replace those called up for military service,» explained Serhii Korenev.

Oleksii Savchuk, Head of the Capital Construction Department, said that he had previously expected to use around 70 per cent of the department’s budget by the end of the year.

«Before the Treasury suspended payments, I could see that it was realistic to achieve 70 per cent of the target,» noted Oleksii Savchuk.

However, the official is now unable to say how much money will be spent by the end of the year. According to him, the Treasury is withholding payment for 22 certificates of completed construction works, amounting to nearly 29 million hryvnias.

In total, the department had planned work on 29 sites in 2026. These included the construction of school shelters and the refurbishment of canteens, hospitals and sports facilities. Some of the work will continue into 2027.

NikVesti previously reported that, in the first half of the year, the Capital Construction Department had utilised only 13.3 per cent of the funds allocated for that period.

Mayor Oleksandr Sienkevych also attributed the low budget execution figures of the Capital Construction Department to the fact that the city had deferred some payments for capital works until the end of the year in order to meet priority needs.

Furthermore, in Mykolaiv, the Treasury has been withholding payments from the city budget totalling over 370 million hryvnias since mid-September. As a result, the city is unable to pay for some of the work and services carried out on time.