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Automatically translated version. May contain inaccuracies compared to the original.
Illustration by Artificial Intelligence
Following the shelling of bridges in Kyiv, the authorities for the first time since the war began began to consider how to preserve connectivity between the left and right banks. According to Infrastructure Minister Mykola Kalashnyk, the option under consideration is the construction of earthen dams with pontoon crossings.
A dam is a fairly simple structure made of stone and other loose materials. The main cost is the materials themselves and their delivery.
Let us imagine that the authorities find the will not to steal on building materials and will not buy them from just anyone at any price. Instead, they will source them from the state quarries of Ukrzaliznytsia.
But there are really few options for organizing delivery within Kyiv. Construction and procurement firms handle the delivery of building materials. The issue hinges on what price list to pay. In other words, how much will it cost to transport 1 tonnes/cubic meter of sand or gravel over 1 kilometers.
There are many reference points. For example, Autostrada is currently building a water supply line 40 kilometers from front-line Zaporizhzhia, where a lot of sand is needed. In the estimate for that project, the price for transporting 1 tonnes per kilometer is 8,45 UAH (equivalent to 13,85 UAH per cubic meter per kilometer; prices here and below include VAT).
The National Institute for Infrastructure Development provides data on the cost of transporting bulk materials by dump trucks in Kyiv region in August at 8,08 UAH per tonne-kilometer (citing the Kyiv Regional Restoration Service and the same Autostrada; for some reason other firms did not report). Given that sand has a bulk density of 1,4 tonnes per cubic meter, this amounts to 11,30 UAH per cubic meter of sand transported per kilometer.
In other words, the normal rate for transportation is in the range of 8–9 hryvnias per tonne-kilometer (12–13 UAH per cubic meter of sand).
But Nashi Hroshi analyzed the latest major construction tenders in Kyiv. It turned out that there is a special atmosphere here that easily drives the price up to… 20 UAH and even 37 UAH per cubic meter per kilometer!
Name of procurement item
Contract value, mln UAH with VAT
Transport charge per 1 cubic meter over 1 km with VAT
Sand
Gravel 20-40 mm
SPC S-7
Reconstruction of the transport interchange at the intersection of Persha Prosp. and Hetman Street in Solomiansky and Shevchenkivskyi districts, Kyiv
605,12
26
37
Construction of the Large Ring Road along the section from Marshal Rokossovsky Avenue to Bohatyrska Street with construction of a multi-level transport interchange
319,46
21
28
32
New construction of the Memorial Square with structures to commemorate the Defenders on Stepanenka Street, 22 in Kyiv
436,50
21
28
32
Thus, the prices for transportation in the capital’s tenders are 3–4 times higher than what we identified above as normal prices for delivering building materials. Consequently, this is simply a gold mine. Here is a simple calculation.
Take one cubic meter of sand and transport it across Kyiv to a dam construction site; suppose this is 15 kilometers from any outskirt of the city. A normal dump truck carries 10 cubic meters. At the normal price, the cost of delivery by truck:
13 UAH per 1 cubic meter × 15 km × 10 cubic meters per truck = 1950 UAH.
If, however, we take twice the price from the Peremohy–Hetman reconstruction estimate, then one truck would cost 3 900 UAH.
A very healthy margin. And it will churn money like a perpetual motion machine. After all, dam construction is simply dumping all sorts of loose building materials into the river. Which just need to be transported there. And even if international donors stood with a meter and counted how many cubic meters were actually delivered, the inflated price would still enrich the beneficiaries.
Infrastructure Minister Kalashnyk slipped that the cost of this project could run into tens of billions of hryvnias. Very roughly, the cost of delivering building materials could account for half of the total budget. So just in case, we will translate this article into English so donors can see what the initial figures for the tender are.
What kind of embezzlement could take place during the delivery of building materials for the construction of dams across the Dnipro in Kyiv?
Following the shelling of bridges in Kyiv, the authorities have, for the first time since the war began, begun to consider how to preserve transport links between the left and right banks. According to Infrastructure Minister Mykola Kalashnyk, the option currently under consideration is the construction of earthen dams with pontoon crossings.
A dam is a fairly simple structure made of stone and other loose materials. The main cost lies in the building materials themselves and their delivery.
Let us imagine that the authorities find the will not to embezzle funds on building materials and will not buy them from just anyone at any price. Instead, they will source them from the state-owned quarries of Ukrzaliznytsia.
However, the state has very few options for organizing delivery within Kyiv. Construction and procurement firms handle the delivery of building materials. The crux of the matter is what price list to use for payment. In other words, how much it will cost to transport 1 tonne/cubic meter of sand or gravel over 1 kilometers.
There are many reference points. For example, Autostrada is currently building a water pipeline 40 kilometers from Zaporizhzhia, near the front line, where a lot of sand is needed. In the cost estimate for that project, the price for transporting 1 tonne per kilometer is 8.45 UAH (equivalent to 13.85 UAH per cubic meter per kilometer; prices here and below include VAT).
The National Institute for Infrastructure Development provides data on the cost of transporting bulk materials by dump trucks in Kyiv region in August at 8.08 UAH per tonne-kilometer (citing the Kyiv Regional Reconstruction Service and the same Autostrada; for some reason, other firms did not report their figures). Given that sand has a bulk density of 1.4 tonnes per cubic meter, this amounts to 11.30 UAH per cubic meter of sand transported per kilometer.
In other words, the standard rate for transport is around 8–9 hryvnias per tonne-kilometer (12–13 UAH per cubic meter of sand).
However, Nashi Hroshi analyzed the latest major construction tenders in the city of Kyiv. It turned out that there is a rather peculiar atmosphere here. One that easily drives the price up to… 20 UAH, and even 37 UAH per cubic meter per kilometer!
In other words, the transport rates in the capital’s tenders are 3–4 times higher than what we have indicated above as normal prices for the delivery of building materials. Consequently, this is simply a goldmine. Here’s a simple calculation.
Let’s take one cubic meter of sand and transport it across Kyiv to a dam construction site; let’s assume this is 15 kilometers from any outlying area of the city. A standard dump truck carries 10 cubic meters. At the standard rate, the cost of delivery by truck
is 13 UAH per cubic meter × 15 km × 10 cubic meters per truck = 1,950 UAH.
If, however, we take twice that rate from the cost estimate for the reconstruction of the Peremohy/Hetmana junction, then a single truck will cost 3,900 UAH.
That’s a very healthy margin. And it will churn out money like a perpetual motion machine. Because building dams is simply a matter of dumping all sorts of loose building materials into the river. Which just need to be transported there. And even if Ukraine’s international donors were to stand there with a meter and count how many cubic meters were actually delivered, the inflated price would still line the pockets of the beneficiaries.
Infrastructure Minister Kalashnik let slip that the cost of this construction project could run into tens of billions of hryvnias. Very roughly speaking, the cost of delivering building materials could account for half of the total budget. So, just in case, we’ll translate this article into English so donors can see what the initial figures for the tender are.
Document: PDF proof of the original version of the news item "Який розпил можуть влаштувати на доставці будматеріалів для будівництва дамб у Києві". It records the publication content at the moment of the first scan, the preservation date and the source: Our Money.
