«Zaporizhtransformator» raised the price of a transformer for «Ukrenergo» by 10%

«Zaporizhtransformator» raised the price of a transformer for «Ukrenergo» by 10%.

PJSC NEC «Ukrenergo» on 19 October, following a tender, concluded an agreement with PJSC «Zaporizhtransformator» to purchase a transformer for 37,24 million UAH excluding VAT (or 44,69 million UAH including tax). The purchase price also includes a chief-assembly service costing 0,38 million UAH.

This is reported in the Prozorro system.

By 30 March 2024 the manufacturer must deliver to the Pershotravneva substation in Dnipropetrovsk region a power transformer TDTN63000/150-70 U1 with an advance payment of 80%.

The capacity of the ordered transformer is 63 MegaVoltAmperes. Therefore, its unit cost is $19,2 thousand per one MegaVoltAmpere (hereafter – MVA) of capacity.

During Russia’s attacks on Ukraine’s power system, in January 2023 «Ukrenergo» ordered from «Zaporizhtransformator» a transformer of the same capacity TDTN-63000/150-U1 for the Pavlohradska substation for 33,98 million UAH. That purchase was made without VAT. Even excluding tax, the January price was 10% lower than the current price.

It turned out that the price increase was initiated by «Zaporizhtransformator» itself.

After the January purchase, «Ukrenergo» twice announced tenders to buy a transformer for Pershotravneva at the tender price for Pavlohradska – for 33,98 million UAH (excluding VAT). But in both cases the purchases ultimately did not take place.

In April both Ukrainian manufacturers applied to the tender: «Zaporizhtransformator» and ELIZ. But ELIZ, although it won the tender at the expected price, subsequently failed to upload the winner’s documents and its proposal was rejected. And «Zaporizhtransformator» submitted a proposal above the expected cost – 37,50 million UAH (excluding VAT).

In June neither of these companies applied to the tender with an expected price of 33,98 million UAH. Therefore, in both cases the reason for cancelling the bids was “no proposals received.”

Thus, in order to eventually purchase the transformer needed during expected shelling of the power system by Russia, «Ukrenergo» was forced to raise the expected tender price to 39,59 million UAH (excluding VAT). This price took into account the “wishes” of manufacturers expressed at previous tenders canceled due to lack of proposals.

This time both Ukrainian manufacturers did come to the tender and even offered discounts. But, as noted above, the winner’s price from «Zaporizhtransformator» still turned out to be a quarter higher than it was in winter – 37,24 million UAH excluding VAT. And this effectively matched the plant’s April proposal, when it submitted 37,50 million UAH.

The founders of Zaporizhzhia LLC ELIZ are Eduard Sapozhnikov, Mykhailo Dyachenko, Vitalii Pustovyi and LLC «Sich-98» of Tetiana Sapozhnikova and Mykhailo Dyachenko. The plant’s website says its production capacities allow the manufacture of a wide range of power transformers in the capacity range up to 63 MVA, but in the table opposite transformers of type TDTN the capacity is listed only up to 40 MVA. The tender documentation required experience in manufacturing a power transformer with a voltage class of 110 kV or higher in the last five years. The competitor proved that in 2021 it delivered to LLC «Skhid Energo Service» a transformer TMN-4000/110-U1 for 4,30 million UAH.

Regarding «Zaporizhtransformator», in 2019 a bankruptcy case was initiated. The plant belonged to Kostyantyn Hryhoryshyn, who left Ukraine long ago after, by court decision, handing part of the business to Vadym Novynskyi. In November 2022 the enterprise, as strategically important, was placed under the management of the Ministry of Defense until the end of martial law.

Anna Soroka, Yurii Nikolov, «Our Money»