The EU Anti-Corruption Initiative started cooperation with the Mykolaiv City Council in 2022 within the Integrity City Component of the Program. One of the priorities of the joint work is to improve procurement policies in departments and offices directly involved in the reconstruction.
Recently Mykolaiv took another step towards improving procurement efficiency by introducing mandatory monitoring of prices for goods and basic material resources during reconstruction. This decision was made by the executive committee of the Mykolaiv City Council on 8 May.
The decision and draft document were developed at City Mayor Oleksandr Sienkevych’s initiative with the EUACI support.
From now on, due to a sustainable price analysis procedure, the costs of goods and basic material resources will be reasonable, and corruption risks in procurement processes will be minimized.
Monitoring of current prices for key material resources will be conducted at the stage of preparing cost estimates, as well as forming the expected cost of procurement of works and services. Previously, there was no unified procedure for analysing prices, and the monitoring itself was carried out on an ad hoc basis. As a result, there was a high risk of overpricing in procurement.
Mykolaiv implemented its first successful case in March this year. As part of the preliminary monitoring, during a tender for repair work in one of the city’s damaged residential buildings, overpricing for a metal ramp was identified. As a result, an additional agreement was signed with the winner of the tender to reduce the price and save over UAH 1 million. Overall, the price of the goods was reduced by almost 10 times.
