The Ministry of Development has explained why the procurement process for the reconstruction of buildings under the World Bank project in Mykolaiv will be restarted

The aftermath of the shelling of Mykolaiv on 25 May 2025. Archive photo by NikVesti

The Ministry of Community and Territorial Development of Ukraine explained that the procurement process to select contractors for the development of projects to rebuild destroyed residential buildings in Mykolaiv has been restarted due to the requirements for tender participants. The possibility of easing the conditions for participation in the procurement is currently being considered.

This was reported to NikVesti by the Ministry of Community and Territorial Development in response to a recent statement by a representative of the Housing and Utilities Department of Mykolaiv City Council.

During a briefing last week, the first deputy director of the Housing and Utilities Department, Ihor Nabatov, stated that the development of project documentation for the restoration of buildings had allegedly stalled «due to complications» between the Ministry of Infrastructure and the World Bank regarding the HOPE project («Housing Repair for Empowerment of People»).

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However, the Ministry of Community Development has denied this information. They say that the possibility of restarting procurement is being considered following a decision by the city council.

«Procurement takes place in accordance with World Bank rules. These rules set out clear requirements regarding the transparency of procedures and the prevention of conflicts of interest, particularly in cases involving state-owned enterprises. These rules have been in force since the start of the project, and it is important to understand them correctly in order to comply with all procedures.

It is noted that procurement takes place in stages, and information on its progress is recorded in the STEP system via the Ministry of Development of Communities and Territories of Ukraine. Each procedure may result either in the conclusion of a contract or in its cancellation followed by a re-tender — depending on the circumstances and compliance with established rules. To date, there have been no re-tenders or cancellations of procedures in any of the project’s participating communities,» the Ministry explained.

They emphasised that state-owned enterprises under the Ministry of Development’s jurisdiction participated in HOPE project procurements — both individually and as part of consortia.

«Given their institutional link to the Ministry of Development, this could have created potential risks of conflict of interest within the meaning of World Bank rules,» the Ministry stated.

The Ministry of Development has assured that it has informed the Mykolaiv City Council of this and provided recommendations on possible solutions within the framework of the procedures.

«At the same time, these recommendations do not alter the conditions for participation in procurement and do not introduce new requirements. This approach helps to avoid future risks of appeals and delays in project implementation, and ensures compliance with World Bank rules at all stages of procurement. These issues are not new requirements — they are a necessity for the correct application of existing procedures to minimise risks,» the Ministry of Development said.

They explained that as of 21 March, no procurement in Mykolaiv under the HOPE project had yet been completed.

«At present, the re-tendering of at least two of the five procurements already announced is under consideration,» they explained.

The Ministry of Development explained that the World Bank is not a party to the procurements and does not make decisions on behalf of the contracting authorities — its role is to oversee compliance with procurement rules.

They also added that the possibility of lowering the qualification requirements is currently being considered. However, the city council must approach the World Bank with this proposal and obtain the relevant approval.

«Mykolaiv City Council is currently considering this option with the aim of reaching as many potential participants as possible. This can be implemented subject to approval by the World Bank, which is awaiting a formal request from the local authority,» they said.

The Mykolaiv City Council’s evaluation panel is currently conducting a detailed review of each participant to ensure they meet the specified qualification criteria, according to the Ministry of Communities. In particular, applicants must confirm:

• 10 years’ experience in designing CC3-class facilities;
• proven experience in navigating permitting procedures in Ukraine;
• the presence in their portfolio of designs for large-scale residential building projects (from 6,000 square metres);
• experience working to IFI standards and conducting technical surveys.

«Any deviation from these established criteria may result in disqualification from further participation, as the HOPE project requires a necessary level of professionalism from successful consultants and precision in the execution of work,» they added.

HOPE: Housing Reconstruction in Mykolaiv

In 2025, it was announced that Mykolaiv would receive 150 million hryvnias from the World Bank to develop design and cost estimates for the restoration of apartment blocks as part of the «HOPE: Housing Repair for Empowerment and Opportunities» project. The design work will be carried out not on a building-by-building basis, but in clusters. Each of the 21 clusters comprises between 2 and 5 multi-storey buildings that have been damaged.

Initially, the plan was to develop reconstruction designs for 54 buildings, but this number is now being increased to 69.

NikVesti asked the city authorities whether they would manage to rebuild the residential buildings according to the developed plans before the projects’ validity period expires. They replied that they were not sure whether they would manage to rebuild all the buildings by 2027. However, Mykolaiv’s mayor, Oleksandr Sienkevych, expects that once the project documentation for the restoration of the high-rise buildings has been drawn up, the World Bank will also finance their reconstruction.

Read also the article by NikVesti «Reconstruction or just paperwork: how Mykolaiv will spend the World Bank’s 150 million hryvnias»

It later emerged that this list included at least four buildings for which design and cost estimate documentation had already been drawn up — this is discussed in the NikVesti article «Projects for the reconstruction of four buildings in Mykolaiv will be commissioned twice: Why this happened and how the authorities will avoid duplication».

The Department of Housing and Communal Services explained that the projects already developed by the city include stabilisation measures, whereas the HOPE project focuses on energy efficiency and urban regeneration. «In any case, our projects are more limited in scope than those to be developed under HOPE,» they added.

As of November 2027, tenders were ongoing to select contractors for the major refurbishment of the apartment blocks included in the HOPE project. Work on the refurbishment of 54 high-rise buildings under the HOPE project is scheduled to begin by November 2027.