12:35 05.08.2014

Only Japanese company to be general contractor of reconstruction of Bortnychi aeration station

4 min read

Kyiv, August 5 (Interfax-Ukraine) – Construction companies which will participate in the reconstruction of Bortnychi aeration station have been selected and they are affiliated with Yuriy Ivaniuschenko (also known as Yura Yenakiyevsky), Andriy Kliuyev and Oleksandr Yanukovych, Director of Zynoviy Kulik Institute of Global Policies Serhiy Kryzhanovsky has said.

Head of the project realization department of the housing and municipal infrastructure department of Kyiv City Administration Hennadiy Hera said that the statements are a pre-election campaign.

"The project is not profit-making, but the scheme of carve-up of the funds that will be provided by the Japanese government has been drawn up. I know that [Kyiv Mayor Vitali] Klitschko met Yura Yenakiyevsky," Kryzhanovsky said at a press conference at Interfax-Ukraine on Monday, referring to his sources.

He said that the first disbursement of the loan of the Japanese government at 0.1% per annum for 40 years with the total volume of UAH 10.5 billion on the reconstruction of the Bortnychi aeration station will be provided at the end of this summer.

Kryzhanovsky also said that he submitted an application to the Prosecutor General's Office asking to check the contract.

Deputy Director of Energia research and industrial organization (Cherkasy region) Andriy Bocherykov and Director of U.S. company UC Energy Group Ltd. Volodymyr Antonov said that an alternative planned project on the reconstruction of Bortnychi aeration station worth $457 million with a payback period of 1.5 years thanks to the construction of a waste recycling plant.

They said that the project foresees the installation of a complex which disinfects water with oxidizers. They did not disclose the details of the project, adding that the purpose of the press conference is the attraction of attention to the problem of the Bortnychi aeration station and embezzlement of funds.

Hera, in turn, said that he does not know any of the presented persons and they did not visit him on the issue of the project, while the tenders to select construction companies which will participate in the reconstruction have not yet been held.

"It's likely that this is the political project. The only goal of such politicians is the pre-election campaign to receive political dividends. The persons do not know technical aspects, and I even cannot dispute with anyone, as they do not know what to answer to the technical issues. The talks about the payback period of 1.5 years are tall tales, which do not have any grounds," Hera said.

He aid that the first disbursement on the reconstruction of the Bortnychi aeration station could be provided in March after reaching the agreements and after the project is launched technically.

The coordinator of the project Kateryna Karpenko said that in May public joint-stock company Kyivvodokanal signed a framework memorandum with Japan International Cooperation Agency (JICA) that the agency is mulling the provision of credit funds. Before the signing of the credit agreement Ukraine is to fulfill several liabilities taken.

Karpenko added that at the end of summer it is expected that the Ukrainian cabinet will allocate UAH 109 million and not the first disbursement by Japan, including UAH 5 million to revise the European project for the Japanese technology and UAH 104 million for the preparation of the construction site.

"These are the funds of the State Environment Protection Fund. There is no a resolution on the allocation of the funds. Japanese money will be sent only when the credit agreement is signed," she said.

Karpenko said that the obligatory condition of the agreement on the allocation of the credit funds is the control over the spending of the funds by a Japan representative during the whole period of construction.

"I would say more that the general contractor will be only from Japan and 30% of equipment is Japanese. This is foreseen in the agreement," she said.

She said that it will take 7.5 years to realize the project. The first phase is 4.5 years and the second phase is three years.

"If we implement the complex of measures of the first phase, odor will disappear in 4.5 years after the start of the realization of the project," Karpenko said.

At present, the Economic Development and Trade Ministry assessed the payback period. The Regional Development, Construction, Housing and Utilities Economy Ministry is to assess the economic efficiency of the project.

The Cabinet of Minister of Ukraine approved the blueprints on the reconstruction of the Bortnychi aeration station in Kyiv worth UAH 10.47 billion on April 23, 2014.

Japan decided on April 17 to provide a loan of $1.5 billion to Ukraine to realize some programs, including $1.1 billion to modernize the Bortnychi aeration station in Kyiv.

AD
AD
AD
AD