The Kyivmiskbud holding company has prepared and sent to the Kyiv City State Administration a detailed calculation of the amount of funds needed to resume construction of residential complexes, which amounts to UAH 4.84 billion, the company’s press service told Interfax-Ukraine.
According to Vasyl Oliynyk, Chairman of the Board and President of Kyivmiskbud, the financial forecasts are based on economic indicators provided by one of the Big Four audit companies and are based on the hryvnia/US dollar exchange rate. Kyivmiskbud specialists have been working on identifying and justifying the necessary funds for the past four months.
“The baseline scenario of financial forecasting provided by Ernst & Young envisages the need for funds in the amount of $107,569,366, which, according to the exchange rate of UAH to the US dollar, which is included in the draft state budget of Ukraine for 2025 ($1 = 45 UAH), amounts to UAH 4,840,621,470). If we subtract the funds required for the completion of Ukrbud’s facilities, which are to be provided by the Cabinet of Ministers, from the baseline scenario of E&Y’s financial forecast (UAH 4.84 billion), the required amount of additional capitalization from the Kyiv City Council will be UAH 2.56 billion,” the head of Kyivmiskbud explains.
Earlier, the Kyiv City Council’s Standing Committee on Budget, Socio-Economic Development and Investment Activity instructed Kyivmiskbud to calculate the amount of funds the company needs to stabilize its operations.
As reported, in March 2024, the KCSA set up a temporary commission to resolve problematic issues related to the activities of PrJSC HC Kyivmiskbud.
An audit of Kyivmiskbud conducted in 2023 by state-owned Baker Tilly Ukraine Consulting, NHD-AUDIT LLC and Ernst & Young LLC found no signs of actions to drive the company into bankruptcy, concealment of financial insolvency or massive transactions by related parties. At the same time, the auditors found that Kyivmiskbud’s operations were disrupted by external factors: COVID-19, a full-scale war, and the Ukrbud factor.
On November 17, 2023, the Kyiv City Council Commission approved an interim report with recommendations and proposals for the developer’s further work, including the purchase of apartments in Kyivmiskbud’s facilities, consideration of a financial loan or additional capitalization of the company. The commission also recommended that the Kyiv City Council address the Cabinet of Ministers on the issue of compensating Kyivmiskbud for the total planned loss associated with the completion of Ukrbud’s projects in the amount of UAH 2.28 billion.
HC Kyivmiskbud was established on the basis of the property of the state municipal construction corporation Kyivmiskbud in 1994 by merging controlling stakes in 28 enterprises and other assets in its authorized capital. The holding company consists of 40 joint-stock companies in which the company owns shares, six subsidiaries and 51 companies as associate members.
According to the National Securities and Stock Market Commission (NSSMC), the main shareholder of PrJSC HC Kyivmiskbud is the Kyiv City Council (80%).
Source: https://interfax.com.ua/
