The Capital Сonstruction Departnent stated that their work cannot be assessed by the low percentage of budget execution

Head of the Capital Construction Department of Mykolaiv, Oleksii Savchuk, photo NikVesti

The Capital Construction Department (CCD) of Mykolaiv stated that the quality of their work cannot be assessed solely on the basis of low city budget execution rates.

This position was expressed yesterday, 22 January, during a press conference by the head of the CCD, Oleksii Savchuk, in response to a question from a journalist from NikVesti.

As is well known, the Capital Construction Department (CCD) of Mykolaiv is one of the worst performers in terms of the city's budget execution for 2025. In particular, the CCD spent only 142.7 million hryvnias out of the planned 235 million hryvnias. Thus, their budget execution rate was 60.7%. This is evidenced by official data on last year's budget execution published on the Mykolaiv City Council website.

The CCD of Mykolaiv performed the worst among all administrators in terms of budget execution. CCD data on budget execution

If the CCD had not taken away about 70 million hryvnias in December, then with the actual volume of expenditures remaining unchanged, the level of implementation would have been even less than half, i.e. 46.8%, and the amount of unspent funds would have increased to over 162 million hryvnias. It should be noted that the UKS systematically fails to spend budget funds: the implementation rate at the end of 2024 was 32%, and at the end of 2023 it was 32.4%.

Responding to a question from NikVesti about the reasons for such systematic under-execution of the budget, and whether they are related to poor planning by the CCD or to force majeure events that recur from year to year, the head of the Department stated that he considers it wrong to evaluate his work solely on the basis of this indicator.

«I believe it is wrong to evaluate work based on the percentage of budget execution. Budget execution is possible in various ways. For example, advancing work. If we simply advance contractors, this will also be considered budget execution in the statistics. However, we will not see the actual implementation of the project. Secondly, we work directly with contractors, and we do not have issues such as financing other organisations. Therefore, taking this into account and the fact that we are currently at war, this has a significant impact on the speed of project implementation in terms of labour, which is currently in short supply. I also see that delivery times at the sites are not comparable to pre-war times,» said Oleksii Savchuk.

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Oleksii Savchuk also added that the third factor affecting the implementation of budget indicators is financing.

«Even if the budget provides for funds, there is a resolution that regulates the order of payment for these works, and if the site is in the third queue, then God willing, the contractor will receive these funds within a month of signing the act of completed works. I don't want to defend contractors in any way, I'm just telling it like it is. And all these labour, material resources and financing are three components that affect the timing of project implementation. Therefore, it is very difficult to compare with pre-war times,» said the official.

In fact, even in the pre-war period, the Mykolaiv Capital Construction Department showed a shortfall in the budget relative to the planned annual indicators. For example, according to the city council, in 2021, the Mykolaiv Capital Construction Department fulfilled only 54% of its annual budget for capital expenditures. In 2020, the percentage of capital expenditure execution was 75.8%.

«In fact, if you talk in percentages, the budget execution rate is 60%, including subsidies. If we exclude subsidies that affect the statistics but could not actually be implemented, the budget execution rate is 72% as of December 2025. Therefore, evaluating the work only in percentage terms — these are projects that are actually being implemented in Mykolaiv, and there are not just one or two projects, there are more, projects that are not included in these budgets, such as the Arkas Gymnasium, the shelter in Gymnasium 61, and those that are being implemented as part of co-financing, such as the Zavodskyi Administrative Service Centre. None of this is reflected in the specific budget figures that you see,» said Oleksii Savchuk.

Earlier, Mykolaiv Mayor Oleksandr Sienkevych said that the Capital Construction Management and the Department of Housing and Communal Services were unable to spend 300 million hryvnias of the budget in 2025 due to the TCC and problems with contractors.