«There were no significant changes», — The Antimonopoly Committee has issued its findings regarding the tender for waste sorting in Mykolaiv

Solid waste landfill near Mykolaiv. Archive photo by ‘NikVesti’

The Antimonopoly Committee of Ukraine has submitted its conclusions regarding the updated terms of the tender for household waste sorting in Mykolaiv. The decision to approve these terms and hold the tender will now be submitted to the city council for approval.

The relevant draft decision has been published on the Mykolaiv City Council website, reports NikVesti.

Under this decision, councillors are to approve the updated Procedure for the operation of the household waste sorting complex in Mykolaiv. The City Council’s Department of Housing and Communal Services is to announce a tender to select a waste sorting operator within 10 days of this decision being adopted.

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Ihor Nabatov, First Deputy Director of the Housing and Utilities Department, told NikVesti that the terms of the tender have not changed significantly.

«Yes, we have the approval of the Antimonopoly Committee. You may note that the number of criteria has increased and some criteria have been modified, but not significantly. For example, regarding the land plot, this criterion remains and, in terms of points, is one of the most significant. However, a wider range of entities has been added that could theoretically qualify and utilise this criterion.

Whereas previously we spoke of land being owned or used, in this case we are referring to both sub-use and preliminary agreements. For example, a party has agreed with the owner or land user that, should they win the tender, a main contract will be signed with them. And all this is formalised by a preliminary agreement,» explained Ihor Nabatov.

He also added that the terms regarding the duration of the contract have changed slightly. It will now be for a maximum of 15 years, but with the option to extend it for a further 10 years upon expiry.

«Overall, to be honest, there have been no significant changes. The percentage of the remuneration has remained the same. We also specified and confirmed that if a participant did not provide a specific figure in their proposal regarding the duration, the contract term is 15 years. If a participant proposed a term of less than 15 years, then the figure they proposed is taken. It cannot be more than 15 years. However, the contract may be extended in the future, after 15 years, but for no more than 10 years. In other words, overall we are talking, once again, about those 25 years planned by our participant, but they are effectively split up,» said Ihor Nabatov.

It should be noted that following consultations with city councillors, the tender conditions were revised to take their recommendations into account. The updated documentation has been submitted to the Antimonopoly Committee of Ukraine for review. Once the AMCU’s conclusions have been received, the tender is scheduled to be put forward for approval at a session of the Mykolaiv City Council.

The situation regarding the construction of a waste sorting line in Mykolaiv

The issue of waste sorting in Mykolaiv was raised as far back as 2019, when the cost of two lines was estimated at approximately 10 million hryvnias. At the time, Mayor Oleksandr Sienkevych insisted that the costs should be borne by investors, not the city budget. Although a waste management programme was adopted, it never came to fruition.

The Supreme Court ruled that the city council’s inaction was unlawful and ordered the construction of a sorting line, as the landfill, which has been in operation since 1972, had reached the end of its useful life.

In 2024, councillors approved the operating procedures for the solid waste sorting complex and announced an investment tender. The first tender did not take place, whilst the second was won by Waste To Energy Niko LLC. However, the company received only the minimum required score, and councillors and the head of the regional state administration, Vitalii Kim, criticised the lack of transparency in the procedure and the unfavourable terms.

Law enforcement opened an investigation and carried out searches at the city council. At the session on 28 August, councillors did not support the approval of the contract with the winner. The city authorities are preparing new tender conditions. Oleksandr Sienkevych stated that the process would be public, involving international partners, notably from Denmark.

Read also the article by NikVesti: «How Mykolaiv plans to start sorting waste».