Sienkevych suggested that in 2027, Mykolaiv would have no capital expenditure

Construction work in the Mykolaiv region. Photo from the NikVesti archive, used for illustrative purposes

Against the backdrop of a shortage of funds for salaries and the operation of the water utility, as early as November, Mykolaiv’s mayor, Oleksandr Sienkevych, expressed fears that next year the city would be left with no funds at all for capital expenditure.

Oleksandr Sienkevych made these remarks during a session of the Mykolaiv City Council on 6 November, according to NikVesti.

The discussion arose following a request from councillor Olena Kiseliova. She asked for funds to be allocated in next year’s budget to purchase premises to house the Academy of Children’s Creativity. According to Olena Kiseliova, a working group had already considered the possibility of the purchase and supported it, but was still awaiting one final assessment.

In response, Oleksandr Sienkevych emphasised that funding sources must be determined in consultation with councillors during the budget preparation process. He pointed out that even before the end of the current year, the city is short of 819 million hryvnias.

According to the mayor, Mykolaiv is short of 819 million hryvnias until the end of 2026, and appeals to the central government for assistance have so far yielded no results. Under these circumstances, the city does not currently plan to initiate any major new projects. First and foremost, this concerns the completion of works that began this year and are already almost finished.

«Therefore, together with you, we will once again receive a list of capital expenditure items from our main budget administrators and will work with you to address them. What worries me and what I very much fear is that we will have absolutely no capital expenditure at all next year. That is to say, broadly speaking, we’ll need to finish off some work, give some areas a final coat of paint, and complete the projects we started this year, which are now almost finished. We do not plan to initiate any other new projects on such a large scale. That is why we will decide together with you,» said Oleksandr Sienkevych.

The mayor recalled that this year, requests from department heads for capital expenditure exceeded 3 billion hryvnias. However, this amount was reduced to 316 million hryvnias. Oleksandr Sienkevych explained that these expenditures include not only construction and repairs, but also the purchase of necessary furniture and equipment.

«We have 316 million in capital expenditure. Let me remind you that the list of capital expenditure submitted by our various main administrative bodies totalled around three-odd billion hryvnias. And from those three-odd billion hryvnias, we have reduced this figure to 316 million. This includes the purchase of furniture and other essential items, because the capital expenditure we are undertaking also covers smaller purchases. If, for example, we are handing over a storage facility, we need to buy furniture for it, as well as other items not covered by the renovation project,» explained Oleksandr Sienkevych.

What is happening with the funding for construction and renovation in Mykolaiv

In 2026, the Mykolaiv Capital Construction Department planned works at 29 sites, including school shelters, canteens, hospitals and sports facilities. Some of the works were scheduled to continue into 2027.

However, over the first nine months, the department spent 28.1 million hryvnias out of the 209.7 million planned for this period. This represents 13.4 per cent of the nine-month plan and less than 11 per cent of the department’s annual budget, which stood at almost 260 million hryvnias.

Exactly 2.08 million hryvnias of the planned 54.4 million were spent directly on construction, whilst 8.33 million of the 104.36 million hryvnias were spent on major repairs. Problems with meeting the plan had arisen even before the Treasury’s payment delays in September.

Oleksandr Sienkevych attributed this to the late allocation of funding, protracted procurement processes, a shortage of staff among contractors, and errors in payment documentation. In particular, state funding for canteens and shelters was approved in March–April, whilst municipal co-funding was allocated in early June.

The situation was subsequently complicated by payment delays through the Treasury. Oleksii Savchuk, head of the Construction Management Department, reported that work certificates for the shelter at Lyceum №3 remained unpaid, amounting to approximately 6 million hryvnias. This created difficulties with the supply of equipment, as suppliers sometimes demanded full payment in advance.

According to Oleksii Savchuk, work on the shelters for Lyceums №3 and №38 was scheduled to be completed this year, with the facilities due to be commissioned in 2027. Oleksandr Sienkevych also explained that the possibility of allocating the remaining funds to the same works next year would depend on funding sources, the earmarking of funds and the relevant budgetary decisions.

On 29 October, councillors failed on two attempts to approve Mykolaiv’s budget forecast for 2027–2029. The Director of the Finance Department, Vira Sviatelyk, warned that the forecast indicates a shortfall in funds necessary for the stable functioning of the local authority.