Overpayment and Tender Irregularities Discovered in Odessa’s Valikhovsky Building Restoration

Price Discrepancies in Construction Materials Uncovered

According to Рубрика — Суспільство: Investigations into the budget for restoring the Valikhovsky building of Odessa’s city infectious disease hospital revealed significant mismatches between listed prices for construction supplies and prevailing market rates. Journalists identified a potential overpayment totaling 12.51 million hryvnias across seven material categories. The restoration contract, valued at 148.6 million hryvnias, was signed in October 2024 with the consortium "AVIS." This building is a protected architectural monument, and the renovation aims to increase hospital bed capacity from 65 to 73.

Significant Price Variations Noted

The cost estimates showed notable inflation compared to prices for similar materials used in other projects. For example, ceramic tiles were priced at 1,656 UAH per square meter in the budget, while another facility procured them at 1,174 UAH per square meter. Wooden doors were estimated at 55,800 UAH per square meter, nearly double the 30,320 UAH per square meter paid by a different medical institution. Additionally, the budget listed tile adhesive Ceresit CM 11 at 24 UAH per kilogram-twice the retail price. Gypsum plaster was also quoted at 24 UAH per kilogram, compared to a competing offer of 13 UAH.

The State Audit Office further uncovered tender documentation violations, including double-counting labor costs for rented equipment. Despite audit findings, the client did not immediately terminate the contract. As of October 2026, restoration continued even though Odessa’s Capital Construction Department sought contract cancellation through the courts.

Material Costs in Question

• Ceramic tiles: 1,656 UAH/m² (budget) vs. 1,174 UAH/m² (other project)
• Wooden doors: 55,800 UAH/m² (budget) vs. 30,320 UAH/m² (another medical facility)
• Ceresit CM 11 tile adhesive: 24 UAH/kg (budget) vs. half that price retail
• Gypsum plaster: 24 UAH/kg (budget) vs. 13 UAH/kg (comparison)

Root Causes Behind Contract Issues

• Faulty tender documentation
• Duplicate accounting of personnel expenses for leased machinery
• Delay in contract termination by the client
• Ongoing legal proceedings regarding contract cancellation

This report is part of the "Accountable Reconstruction of Housing and Healthcare Facilities: Public Investment Monitoring through the Window of Recovery" project, financially supported by the European Union.

The identified pricing inconsistencies and tender violations suggest systemic challenges in public procurement processes. Addressing these issues is vital to safeguard public funds and ensure effective completion of healthcare infrastructure projects. The Capital Construction Department’s forthcoming actions and judicial decisions will play a critical role in resolving these concerns.

As concerns about budget discrepancies in the Valikhovsky building restoration grow, it's essential to consider similar issues faced by other projects in the region. For instance, the restoration of Odessa's City Hospital No.1 surgical pavilion has also seen costs surge significantly, reaching 369.1 million UAH due to inflation and unexpected repairs. To explore how these financial challenges are affecting local healthcare infrastructure, visit this report on rising restoration expenses.