Sienkevych explainied the low budget implementation figures for the Capital Construction Department

Oleksandr Sienkevych explained the low budget implementation rates of the Capital Construction Department. Photo: NikVesti archive

Mayor Oleksandr Sienkevych explained that the low budget implementation rates by certain departments, in particular the Capital Construction Department, are due to the city delaying payment for work carried out because of a shortage of funds.

He spoke about this in a comment to NikVesti.

According to Oleksandr Sienkevych, the city is deliberately delaying payment for most capital works, as it is prioritising funds for the payment of wages and utility bills.

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«Well, that’s not the case. We have a balanced budget, and most capital works are paid for at the end of the year. And since we’re short of funds and the money is being used to pay wages and utility bills, we’re not trying to rush or pressure those carrying out the work so that we can pay them sooner. On the contrary, we’re holding off until the end of the year,» he said.

At the same time, the mayor commented on the low level of budget implementation by the Capital Construction Department, which stood at around 6 per cent as of July.

«The level of work completed there stands at 40 per cent. Again, we are not paying them any funds. They have invoices that we are ready to pay, but to do so, we are adjusting the monthly limits for individual projects and paying on a project-by-project basis,» explained Oleksandr Sienkevych.

It should be noted that NikVesti previously reported on the low budget implementation rates of the Mykolaiv City Council’s Capital Construction Department, whose work is coordinated by Deputy Mayor Serhii Korenev. As of 1 August, the department had spent only 22 million hryvnias out of the 234.6 million allocated for the year, or 9.5 per cent of the budget allocation. This was the lowest figure among all the city council’s departments.

It is worth noting that, assuming the department maintains the same rate of budget implementation during the second half of the year, it can be expected that around 200 million hryvnias will remain unspent by the end of 2026.

During a staff meeting on 4 August, the mayor, Oleksandr Sienkevych, asked Serhii Korenev to report on the implementation of projects and to outline which projects are planned to be completed by the end of the year.

The problem of low budget absorption is not new for the CCD. By the end of 2025, the department had spent only 142.7 million hryvnias out of the planned 235 million, or 60.7 per cent of the budget. In 2024, the budget execution rate stood at 32 per cent, and in 2023, it was 32.4 per cent.

Commenting on these figures at the start of the year, Oleksandr Sienkevych attributed them to problems with contractors, whilst the Capital Construction Department emphasised that it was incorrect to assess their work solely on the basis of the budget implementation rate.