«Due to financial difficulties»: the city council plans to wind up the municipal enterprise «Capital Construction»

The Mykolaiv City Council currently has both a capital construction department and a municipal enterprise of the same name; photo: NikVesti

A draft resolution on the liquidation of the municipal enterprise «Capital Construction of the City of Mykolaiv» is set to be submitted to the Mykolaiv City Council for consideration.

The relevant draft resolution has been published on the Mykolaiv City Council website, and it is planned to be put forward for consideration by councillors at the session scheduled for 26 March, reports NikVesti.

«Due to the impossibility of continuing economic activities, given the financial insolvency of the Mykolaiv City Council’s municipal enterprise «Capital Construction of the City of Mykolaiv» to fulfil its obligations and the lack of positive development dynamics in the city,» the draft resolution states.

Mykolaiv City Council councillors are being asked to liquidate the municipal enterprise Capital Construction

Members of the Mykolaiv City Council are being asked to liquidate the municipal enterprise Capital Construction

The document provides for the establishment of a liquidation commission and sets a two-month deadline for creditors to submit their claims.

The liquidation commission will be headed by Taras Kutyr, deputy head of the capital construction department of the Mykolaiv City Council.

The explanatory note to the draft decision states that its aim is to prevent the creation or increase of debt to third parties due to the inability to continue economic activities in the future.

The municipal enterprise «Capital Construction of the City of Mykolaiv» was established in 2012 as the contracting authority for the construction, reconstruction and repair of municipal property in Mykolaiv, replacing the Capital Construction Department which had previously operated within the city council.

In 2016, following his election as mayor, Mykolaiv’s mayor Oleksandr Sienkevych announced a return to the model where capital construction would operate as a department of the city council rather than as a separate entity, and would have a designated fund administrator. The Capital Construction Department was established, acting as the contracting authority for repair and reconstruction works across all areas of municipal property. Over the last few years, the Capital Construction Department has shown a negative trend in the use of Mykolaiv’s budget funds; in particular, by the end of 2025, the Department had spent only 142.7 million hryvnias out of the planned 235 million hryvnias. Thus, their budget execution rate stood at 60.7%. The work of the Capital Construction Department is coordinated by Deputy Mayor Serhii Korenev.