Ukrhydroenergo: The image displays a transformer with half the power, which is essential for releasing as much electricity as possible from the hydroelectric power plant to consumers. Destroying these transformers in Ukraine has caused significant energy delivery problems even when all power units are working.
In late November, the government permitted the purchase of goods, works, and services for power facility construction without tender procedures if approved by the Ministry of Energy (changes to the Resolution of the Cabinet of Ministers No. 1178). Following this, Ukrhydroenergo spent money without restraint, as reported by Our Money.
For 10 million hryvnia, the state-owned company ordered an inspection of the equipment at the Dniester pumped storage power plant to assess its condition and suitability after the missile attack that Russia launched on October 31. Additionally, the Dnieper and Kremenchug hydroelectric power stations were shelled. Subsequently, the company spent a large amount on replacing the damaged equipment.
Ukrhydroenergo spent a quarter of a billion on purchasing equipment.
On December 21, Ukrhydroenergo bought a 400 megavolt-ampere (MVA) autotransformer for the Dniprovska HPP, valued at 6 million euros, or UAH 233 million, without going through a bidding process. The transformer, ANAR3E (ATDTSTN) 400,000/330/150, is very powerful.
The cost of transformers is determined by their power, meaning the price per megavolt-ampere is essential. Different manufacturers have varying prices, but there's a trend: the more powerful the transformer, the lower the price per MVA. It's analogous to books: the larger the print run, the lower the cost per copy.
“Our money” examined this metric, and found that Ukrhydroenergo paid $15.9 thousand per MVA for the 400 MVA transformer, while worldwide manufacturers offer transformers with half the power at this price, according to Nashi Dengi.
Moreover, this price contradicts the usual cost of purchasing such transformers in Ukraine. In December 2021, Ukrenergo bought 195 MVA autotransformers from Zaporizhtransformator for $14.2 thousand per MVA. By January 2022, the price had dropped to $13.1 thousand per MVA (more on this in the article “Attack on Ukrenergo in pursuit of billions”). In 2018, Zaporizhtransformator sold transformers to Ukrenergo for $7.5 thousand, and in 2016, for $7.9-10.0 thousand per MVA. Additionally, Ukrhydroenergo's purchase outside Prozorro raised doubts, as the supplier was not the manufacturer but an intermediary – Nyutek Engineering from Bulgaria, a country without the production of powerful transformers. However, the company had prior experience working with Ukraine, having secured a contract for supplying shut-off and control valves for the Zaporozhye nuclear power plant in 2020. At that time, the company also provided products from a German manufacturer, despite not being its own. Furthermore, the owners of the Bulgarian company were Tsvetanka Bancheva from Bulgaria and Ukrainian Denis Pensky from Krivoy Rog. This raised suspicions about Vladimir Zelensky's team from Kryvyi Rih being involved in nuclear contracts. Following the scandal, the Ukrainian was removed as the founder of Nyutek Engineering, and Bulgarian Rumen Ivanov took his place.
So the conclusion from this case is as follows: permission to purchase outside the rules of Prozorro allows the customer not to justify the choice of supplier in any way.
Half a billion to the “Poles”
In another fresh contract of Ukrhydroenergo electrical cabinets and transformers worth 500 million hryvnias were mixed up in a heap. And it is impossible to simply divide the purchase price by the number of goods purchased, and therefore compare it with the market price. And this is the second drawback of the government's decision to withdraw purchases from Prozorro.
And you need to compare, because Ukrhydroenergo has chosen a very interesting company NPP Energo-Plus Europe to develop these 500 million hryvnias. Although it is registered in Poland, it again has a Ukrainian trace. Its director is Ukrainian Yevhen Korf.
Evgeny Korf is a businessman from Kremenchuk, who in 2020 was elected to the Poltava Regional Council from the Opposition Platform – For Life. Then he was and still is the owner of the Ukrainian LLC NPP Energo-Plus, the namesake of the Polish supplier NPP Energo-Plus Europe.
Among his business partners is Victoria Popenko: she, together with Korf, founded the Charitable Fund “Trust and Help”. This is a relative of the well-known energy expert Oleg Popenko, they are co-founders of the NGO Center for Assistance in the Implementation of Energy Efficient and Environmental Projects. In turn, Oleg Popenko is part of the team of the People's Deputy from “Fatherland” Oleksiy Kucherenko, who publicly attacks the activities of “Ukrenergo”.
Margin for foreigners
It begs a logical question. If the suppliers have obvious Ukrainian traces, then why should the state customer choose a foreign gasket as a supplier? Everything is simple. A contract with a foreign company allows you to immediately convert everything into currency and legally transfer money abroad. And there is already scamming the margin away from the eyes of the National Bank, the State Financial Monitoring Service and law enforcement officers. Moreover, the margin will remain on the pads. Real manufacturers sell them the goods at their price X. Then the “pad” adds its 30% and the customer pays for the goods at the price X + 30%. And now 30% is immediately taken out of the state pocket directly abroad.
Finally, let us recall our text “Mykytas’ scandalous records of kickbacks led to a fresh state contract for 35 billion”, which also referred to the contract of Ukrhydroenergo.
Yuriy Nikolov, Anna Soroka, translated by Skelet.Info
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