Mykolaiv Scales Up Municipal-Sector Reform to Two More Enterprises

On 20 August in Mykolaiv, the results of independent Integrity Assessments of two municipal infrastructure enterprises — Mykolaivelectrotrans and Mykolaivoblteploenergo — were presented.

In his opening remarks, Head of the EUACI Allan Pagh Kristensen noted

“This assessment is an integrity ‘health check’ covering transparency, management, and procurement — both companies passed it. Importantly, this is not a beauty contest but a tool for improvement, to be followed by risk-mitigation plans for the enterprises, which will be implemented by the enterprises, the City Council and with support of the EUACI.” 

The assessment was based on comprehensive methodologies, tailored to each enterprise’s specifics. It covered a comprehensive analysis of 8 key areas for Mykolaivelectrotrans and 7 for Mykolaivoblteploenergo.

Key Findings

Mykolaivelectrotrans. PwC’s assessment indicates a solid level of maturity — 407 out of 640 (minimum benchmark score — 384). Strengths include well-established communications and external audit, quality procurement processes, and customer services. At the same time, there is room for improvement — the development of a unified strategic plan, further digitalization, and an integrated asset-management system.

Mykolaivoblteploenergo. The enterprise scored 285 out of 435 (minimum benchmark score — 261). It has established core heat-supply processes and conducts annual audits, with well-developed communications. Key recommendations include process digitalization, development of a long-term strategy, and the introduction of systems to improve operational manageability.

“We are continuing our cooperation with the EUACI: following the pilot at Mykolaivvodokanal, we are developing two more municipal enterprises — updating procurement, launching internal assessment, and publicly establishing supervisory boards. In the near future, I will approve an order on risk-mitigation plans for Mykolaivelectrotrans and Mykolaivoblteploenergo. Our goal is for municipal enterprises to be transparent and understandable to the community and international partners, operate under modern rules, and deserve trust,” noted Oleksandr Sienkevych, Mykolaiv City Mayor.

Next, the Mykolaiv City Council, with the EUACI support, will prioritize the recommendations and determine the implementation timeline. The City will also begin introducing corporate governance elements at the enterprises (supervisory boards, KPIs, transparent executive selection procedures, internal audit).

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