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Contractor for building subway to Vynohradar area in Kyiv places UAH 1.5 bln on deposit, receives interest – prosecutor's office

KYIV. Nov 23 (Interfax-Ukraine) – The prosecutor’s office of Kyiv city in court demands to recover UAH 183 million from the contractor for the construction of two subway stations in Kyiv and a forked branch on the section of the Syretsko-Pecherska line from the Syrets station to the Vynohradar residential area.

According to the press service of the city prosecutor’s office, the budget funds were transferred to the contractor as an advance payment under the construction contract, but the contractor used part of the funds for other purposes and placed more than UAH 1.5 billion in deposit accounts with a banking institution, having received from them own income (interest from the placement of funds) in the amount of UAH 139.1 million during 2019.

At the same time, the current legislation and the terms of the contract oblige the contractor to use these funds exclusively for their intended purpose, that is, for the construction of the subway.

In this regard, the city prosecutor’s office filed a lawsuit with the Economic Court of Kyiv in the interests of the state in the person of the Kyiv City Council and municipal enterprise Kyiv Metropoliten to recover UAH 139.1 million received in the form of interest on budgetary funds, as well as UAH 44.4 million of interest for groundless storage and use of budgetary funds from the contractor.

As reported, JSC Kyivmetrobud won the tender for the construction of Prospekt Pravdy and Mostytska stations on the Syretsko-Pecherska line of the Kyiv subway in the direction of Vynohradar residential area in 2018. The cost of the work, proposed by the winner, amounted to UAH 5.981 billion. Under the agreement of November 20, 2018, the transfer of the finished object was scheduled for November 26, 2021, subject to the target budget being brought, the term of the agreement expired on December 31, 2021.

In July 2021, municipal enterprise Kyiv Metropoliten reported that the construction of stations on the Syretsko-Pecherska subway line was being carried out according to the established schedule, and the contractor did not apply for a change in terms. In addition, the municipal enterprise said that the project is financed from the budget in the prescribed amount. However, in August, JSC Kyivmetrobud filed a lawsuit against Kyiv Metropoliten to amend the agreement on the construction of the above-mentioned subway section in terms of postponing the commissioning of the facility until May 12, 2023, and the term of the agreement until June 16, 2023. The Economic Court of Kyiv accepted the claim for consideration and opened the proceedings.