The financing mechanism for the completion of the construction of the facilities of the “Ukrbud” and “Kyivmiskbud” companies will be determined by the end of 2024, the city will sign a memorandum with the initiative group of investors, Kyiv Mayor Vitaly Klychko said.
“Together with an initiative group of investors, we have agreed to sign a memorandum and approve a road map in the near future to resolve issues related to the completion of the Ukrbudu and Kyivmiskbudu facilities.” By the end of the year, we have to determine the funding mechanism so that next year the work can already begin. Currently, a number of decisions are being prepared in order to submit them to the consideration of the Kyiv City Council,” Klychka quotes press service of the Kyiv City State Administration.
According to the mayor, after allocating funds for the completion of construction, facilities with a high degree of readiness will be launched first.
KMDA reminded that the government did not allocate funds for the completion of the construction of “Ukrbud” facilities.
Lyubov Mochalova, the founder of M-PR Triada, in a comment to “Interfax-Ukraine” noted that from a reputational point of view, the decision to finance the extension is correct and timely, since “Kyivmiskbudu” does not have the opportunity to independently complete the facilities of “Ukrbudu”, which the company has publicly stated several times declared
“I hope that the volume of necessary investments will be calculated correctly and the promises will not turn into a long-term construction, as the opposite will negatively affect the reputation of the real estate market in general and the level of trust in this industry on the part of potential clients and investors,” she said.
As the president of the holding company “Kyivmiskbud” Vasyl Oliynyk noted earlier, the company asked the city to replenish its authorized capital.
“In order to start with the first volume of objects, we needed UAH 1.88 billion for this year and UAH 2 billion for the next year. We did not announce the amount in our letter. The amount recommended by the commissions is UAH 2.28 billion. That’s a good number. The main shareholder – the city – must decide on recapitalization. Currently, deputies of the Kyiv City Council are finalizing this issue to put it to a vote,” he said in a comment to the Interfax-Ukraine agency.
As reported, in March 2024, the KMDA created a temporary commission to resolve problematic issues related to the activities of JSC “HC Kyivmiskbud”.
According to the results of the audit of “Kyivmiskbud”, conducted in 2023 by the state-owned enterprise “Baker Tilly Ukraine Consulting”, LLC “Audit firm NHD-AUDIT” and LLC “Ernst & Young”, it was established that there were no signs of actions to bring the company to bankruptcy, concealing the facts of financial insolvency or carrying out mass transactions by related parties. At the same time, the auditors established that the activity of “Kyivmiskbud” was disrupted due to external factors: COVID-19, a full-scale war, the “Ukrbud” factor.
On November 17, 2023, the Kyiv City Council Commission approved an interim report with recommendations and proposals regarding the further work of the developer, including the purchase of apartments in Kyivmiskbudu facilities, consideration of the possibility of a financial loan or recapitalization of the company.
The commission also recommended that the Kyiv City Council address the Cabinet of Ministers regarding the issue of compensating “Kyivmiskbud” for the total planned loss related to the completion of the projects of the construction corporation “Ukrbud” in the amount of UAH 2.28 billion.
HC “Kyivmiskbud” was created on the basis of the property of the state communal construction corporation “Kyivmiskbud” in 1994 by combining controlling stakes of 28 enterprises and other assets in its charter capital.
The JSC includes 40 JSCs in which the company owns shares, six subsidiaries and 51 companies with the rights of an associate member.
Kyiv City Council (80%) is the main shareholder of PJSC HC Kyivmiskbud, according to data from the National Securities and Stock Market Commission (NCSCFR).
