EIB's $5 Million Kindergarten Grant Under Scrutiny for Inflated Costs.

Barvinok Kindergarten Reconstruction Project

According to TSN.ua: The European Investment Bank (EIB) allocated 199 million hryvnias for the reconstruction of the Barvinok kindergarten in Bilohorodka, Kyiv region. However, the project is now under investigation due to identified tender violations and inflated prices for construction materials, raising suspicions of misconduct that could jeopardize its implementation. This case highlights ongoing challenges in Ukraine's public procurement system, which international donors are closely monitoring.

Irregularities in the Tender Process

The tender for the kindergarten's reconstruction was announced multiple times, including in 2024 with an estimated cost of 160 million hryvnias. In December 2025, a contract was signed for 199.27 million hryvnias with LLC "Spetstermomontazh-Energo." Since 2017, this company has been awarded contracts totaling over 3 billion hryvnias, raising questions about its business practices. Experts point to a 9 million hryvnia overpayment in the estimate, noting that the price for rebar was listed at 55,248 UAH/ton against a market rate of 35,500 UAH/ton.

Furthermore, LLC "Spetstermomontazh-Energo" also secured a 199 million hryvnia contract to reconstruct a school in the village of Horenychi. This has prompted additional questions about the company's pricing, especially in light of a police investigation opened in 2023 concerning repairs at the Tripilska Thermal Power Plant, where the company was selling cable for 606 UAH per meter.

The village council head declined to speak with journalists, fueling further suspicions about the process's transparency. Additionally, the kindergarten's designation as a restricted-access facility has complicated efforts by journalists and the public to obtain information.

The EIB's official response to the allegations against LLC "Spetstermomontazh-Energo" was: "Thank you for bringing the allegations regarding LLC 'Spetstermomontazh-Energo' to our attention."

The situation with the Barvinok kindergarten reconstruction underscores the critical need for transparency in the use of public funds. With identified tender violations potentially pointing to systemic issues in public procurement, oversight by relevant authorities is paramount. Experts are calling for a thorough analysis and verification of all project stages to prevent potential abuses and unfair practices in the future.