Business news from Ukraine

Business news from Ukraine

“Autostrada” has invested EUR 1 mln in equipment for metro construction

The “Autostrada” Group of Companies has begun the reconstruction of a 1.2-meter-diameter sewer collector in the metro construction zone in Vinogradar; to carry out this work, a remotely controlled shield system from Herrenknecht AG was purchased, with an estimated cost of EUR 1 million.

According to the Autostrada press service, the project will involve laying a new storm sewer system with a total length of 400 m using over 200 pipes. The work is being carried out using the microtunneling method (a high-precision trenchless technology for laying underground utilities without breaking ground), which allows work to proceed in densely built-up urban areas without impacting traffic or the surrounding infrastructure.

The preparatory phase is currently underway—two shaft shafts (launch and reception chambers) are being constructed, from which tunneling will begin in just a few months.

To carry out the work, Autostrada has purchased a remote-controlled shield system from the German manufacturer Herrenknecht AG. The cost of the equipment is approximately 1 million euros. The maximum length of a single tunneling run can reach up to 150 m, ensuring efficiency and continuity of work.

On the section between the “Mostytska” and “Varshavska” stations, over 1,000 m of double-deck monolithic tunnels have already been constructed (500 m per deck). Work on their finishing is being carried out simultaneously on two sections, which significantly accelerates the pace of construction. The construction of monolithic structures on the fork branch section toward the future “Vinogradar” station has also been completed.

At the “Mostytska” station, construction of prefabricated full-section tunnel linings, each approximately 200 m long, has been completed. The next stage is the installation of cable structures in the completed tunnels, which serves as a preparatory step for the subsequent installation of utility networks and the station’s power supply systems.

In the shaft above the deep-level tunnel between the “Syrets” and “Mostytska” stations, installation of the ring-laying machine has been completed; this machine will replace the rings of the left-hand tunnel lining with larger-diameter rings. The right-hand tunnel in this section has already been built.

Construction of the turnaround sidings at the “Varshavska” station is in its final stage. Currently, a shield-type airtight seal—a massive steel structure designed to isolate tunnels and stations—is being installed here. It protects the metro from potential emergencies, including shock waves, flooding, and hazardous substances, and serves as a critical component of the civil defense system, enabling the division of underground structures into sealed compartments.

At all metro construction sites in Vinogradar, work is underway to relocate utility lines outside the construction zone. The relocation of water supply and drainage systems, as well as power lines, is being carried out in stages. Such work ensures the uninterrupted operation of the city’s infrastructure and creates the necessary conditions for the continued execution of construction and installation processes without restrictions.

As previously reported, in August 2024, the municipal enterprise “Kyiv Metro” signed a contract to continue construction of the Syretsko-Pecherska Line toward the Vinogradar residential area. The winner of the tender was Avtostrada Group of Companies LLC. The project duration is set at 30 months, with a total cost of 13.785 billion UAH. The procurement was conducted on the Prozorro public procurement platform. “Avtostrada” resumed metro construction in November 2024.

In December 2023, the Kyiv Metro municipal enterprise terminated its contract with Kyivmetrobud JSC through the courts due to failure to meet construction deadlines. The issue of recovering a portion of the advance payment—the use of which is not confirmed by the relevant certificates of work performed—as well as penalties, is being resolved in court.

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Alstom has been awarded contract worth nearly €1 bln to build Belgrade’s first metro line

According to Serbian Economist, the French company Alstom has been awarded a €915 million contract to supply a comprehensive turnkey solution for Belgrade’s first metro line—Serbia’s first fully automated metro system. The company announced this on March 27, and the news portal Parametar (https://www.parametar.rs/) described the deal as one of the largest infrastructure projects in the region in recent years.

The first phase of Line 1 will connect Makishko Pole and Karaburma. The 15-kilometer section will include 15 stations, with approximately 11 kilometers running through tunnels in the city center.

The contract calls for the delivery of 32 driverless three-car Metropolis trains, as well as signaling and telecommunications systems, power supply, track infrastructure, platform doors, depot equipment, a centralized control center, and cybersecurity systems. The trains will operate using Urbalis CBTC technology, which will enable fully automated service with intervals of up to 90 seconds.

Alstom has already entered the design phase for Line 1. The company emphasizes that the project is being implemented with the support of French government funding, and the agreement itself will be reflected in the financial statements after the finalization of the financial agreement.

The Belgrade metro project is estimated at €4–7 billion in total, and the financing needs for the first line alone could reach €2.5 billion. Construction work on the project is being carried out separately, notably with the participation of Chinese contractors, making the construction model Franco-Chinese in terms of supply and execution.

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Kyiv Metro announces new tender for purchase of 50 railcars

The Kyiv Metro has re-announced a tender for the purchase of 50 railcars as part of the Kyiv Urban Transport Modernization II project, funded by a loan from the European Bank for Reconstruction and Development (EBRD), the subway reported.

According to the report, the tender involves the purchase of 10 five-car trains with a free passage between cars (a “tube”), including the supply of spare parts, consumables, equipment and tools for rolling stock maintenance and repair.

The procurement will be conducted in the format of an open tender with prequalification. The deadline for submitting proposals for the first stage is May 2025.

As reported, the first similar tender in August 2023 was won by Kryukiv Carriage Works (KVSZ), which offered 10 trains for EUR79.2 million (including VAT), which was 37% cheaper than the offer of the second participant, Czech Skoda.

KVSZ proposed a 97-meter-long metro train with an asynchronous traction drive with three motorized and two trailed non-motorized cars, with domestic-made bogies, with a total passenger capacity of 1,650 people.

However, in November of the same year, Kyiv Metro canceled its decision to award the contract to KVSZ, and the carriage plant, in turn, tried to appeal the decision in the Kyiv Commercial Court, but to no avail.

The court’s decision dismissing KVSZ’s claim came into force in November 2024.

According to the court materials, Kyiv justified the decision to cancel the award of the contract by the fact that KVSZ tried to replace the supplier of the main equipment (in particular, control systems, traction power and equipment, traction gearboxes, subway control system) from the Spanish CAF (which was agreed with the EBRD) to a Polish or Japanese company.

At the same time, KVSZ pointed out that the change of supplier was due to the fact that CAF refused to supply the plant with equipment due to the workload of production lines. However, Metro refused to replace the supplier because it contradicted the terms of the tender.

As reported, in February 2021, the EBRD and Kyiv Metro signed a EUR 50 million loan agreement for the purchase of 50 new subway cars.

The subway trains are to be purchased for the Syretsko-Pecherska subway line towards the Vynohradar residential area, which will be resumed in 2024.

According to the Kyiv Metro, its inventory fleet currently includes more than 830 cars. At the same time, about 100 railcars will soon reach the end of their service life.

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EXPO-2027: How upcoming exhibition and metro construction will affect real estate market in Belgrade

In 2027, Belgrade will host the World Expo 2027, a large-scale international event that will take place from May 15 to August 15. For this event, the municipality of Surcin has already begun building infrastructure, including a national stadium, an exhibition center, and new transportation interchanges. One of the key projects in preparation for the exhibition will be the opening of the first metro line, which will significantly change the transport map of the Serbian capital.

The importance of the metro for the city and the real estate market

The first metro line, which has already started construction, will connect key areas of Belgrade, including the exhibition center in Surcin. This project will not only improve transportation, but will also have a significant impact on the cost of housing and land along the route.

Traditionally, real estate prices near metro stations have been on the rise, making this factor one of the main ones for investors. In the case of Belgrade, the impact of the new infrastructure may be even more noticeable given the growing interest in the city ahead of EXPO-2027.

Surcin – the center of events

Surčin, where the bulk of the EXPO-2027 facilities will be concentrated, is becoming the center of attention for both the authorities and developers. The construction of a national stadium, a new railway station and an exhibition complex is already underway. According to official data, the area of the future exhibition center will be 113 hectares, and the total construction area, including the accompanying infrastructure, will reach 167 hectares.

Real estate prices in Surchyn have already started to rise. For example, the cost of apartments has increased several times over the past year. Land plots have also risen in price, especially those located near transportation hubs and future metro stations.

Impact of EXPO-2027 on the development of Belgrade

Preparations for the World Expo involve large-scale investments in the city’s infrastructure. In addition to Surcin, changes will affect other districts of the capital. Work is already underway on the construction of a new bus station, and the modernization of the Prokop railway station is nearing completion.

The subway will also be an important step in the development of Belgrade. The first line will connect key areas of the city, which will reduce the load on the road network and simplify the movement of residents and visitors to the capital.

Forecasts and prospects

Experts agree that EXPO-2027 will have a long-term impact on the real estate market in Belgrade. In addition to the price increase in Surcin, real estate is expected to rise in price along the routes of the future metro, as well as in the central and prestigious areas of the city.

The Serbian government states that EXPO-2027 will be a stimulus for economic growth, attracting foreign investment and improving infrastructure. These changes will make Belgrade even more attractive for tourists, residents and businessmen.

Thus, EXPO-2027 and related projects, including the metro, are opening a new chapter in Belgrade’s development, strengthening its position as one of the key centers of Southeast Europe.

Source: http://relocation.com.ua/expo-2027-iak-majbutnia-vystavka-i-budivnytstvo-metro-vplynut-na-rynok-nerukhomosti-v-belhradi/

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Serbia signs contract with Chinese company for construction of first metro line in Belgrade

Representatives of the Government of Serbia, the City of Belgrade and PowerChina today signed an agreement for the construction of the first phase of the Belgrade Metro Line 1 worth EUR 720 million.

The agreement for Lot 2 of the first phase of Line 1 of the Belgrade Metro covers the design and execution of works, including preparatory activities and the procurement of TBM machines for tunneling.

The preparatory and construction work is expected to last 45 months plus two years.

The document was signed in the Serbian government building by Minister of Public Investment Darko Glisic, Acting Minister of Construction, Transport and Infrastructure; Acting Deputy Head of the Belgrade City Administration – Secretary of the Public Transport Secretariat Radovan Kremić; Director of the Belgrade Metro and Train Company Andrej Mladenović, together with a representative of the Chinese company Power China Han Jiping.

As noted, the new agreement makes it possible to allocate a separate Lot 2, which will be financed from the Serbian budget and will enter into force immediately, which will facilitate the faster implementation of the construction of the first phase of Line 1 of the Belgrade Metro.

Source: https://novaekonomija.rs/vesti-iz-zemlje/potpisan-sporazum-o-izgradnji-prve-faze-linije-1-beogradskog-metroa

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“Avtostrada” wins tender for construction of metro to Vynohradar

Avtostrada Group of Companies has been recognized as the winner of the procurement procedure for the construction of the metro in Vynohradar, its founder Maxim Shkil said.
“We will start work without advances, at the expense of our own working capital. For us, the decision to enter the metro construction market is strategic, the company has been preparing for this for 3 years,” Shkil wrote on Facebook.
According to the public procurement platform Prozorro, the winner of the tender was determined on July 12 with a price of UAH 13 billion 785 million, which is slightly lower than the stated expected cost of the purchase of UAH 13 billion 956 million 843 thousand 711.13. The decision can be appealed until July 18.
The terms of the procurement stipulate the completion of construction (5th and 6th launch complex) of the Syretsko-Pecherska subway line to the Vynohradar residential area by December 30, 2026.
Shkil said that before the start of work, a detailed analysis of the status of work performed by previous contractors is required. Next, it is necessary to compare the actual amount of work performed and those that should be performed in accordance with the existing design solutions. After that, it is necessary to adjust the project in terms of the scope, type of work, and cost.
“For this purpose, Avtostrada has its own design institute with a separate underground construction unit, where employees have considerable experience in metro design. Accordingly, we will start this stage of work immediately,” said the founder of the group of companies.
In parallel with the documentary work, it is planned to start the construction of the metro to Vynohradar in the coming months.
He noted that there are difficulties with organizing the construction process at the highest possible pace, i.e. nine construction sites with round-the-clock operation.
“In today’s realities, it is impossible to ensure such an approach from the very first days, as the subway construction industry has been practically lost over the past ten years. From the very first days, Avtostrada will engage its employees, and in parallel, to reach the maximum construction schedule, we will recruit and train personnel, which will actually revive the metro construction industry,” said Shkil.
According to him, a significant factor that will affect the pace of construction is timely funding from the state for the work.
“We set ourselves the task of reaching the full pace of work around the clock in all construction sites in 2025, provided that we have adequate funding. In total, we plan to employ more than 4000 people. The total investment in this project will be more than $50 million. Next month, the company plans to contract the necessary equipment for the construction of the subway for more than $30 million. In addition, to avoid construction interruptions, we are counting on loans and our own working capital of up to UAH 1 billion. – These funds will be used in case the customer has a delay in financing. This will allow us to cover short cash gaps and continue to operate,” Shkil said.
As reported, on May 13, Kyiv Metro announced a tender for the continuation of the construction of the Syretsko-Pecherska line towards the Vynohradar residential area with a total cost of UAH 13,956 million.
In December 2023, Kyiv Metro terminated the contract with Kyivmetrobud JSC in court due to unsatisfactory terms of construction works performed by the contractor. The claim also seeks to recover a portion of the prepayment, the use of which was not confirmed by the relevant acts of completion. As of May 2024, the facility has constructed a right distillation tunnel with a length of almost 1,250 meters from Mostytska station to Syrets station, and completed the construction of the main structures of the distillation ventilation unit. Also, the wall-in-soil method of enclosing structures, monolithic and reinforced concrete support of the pit with metal structures – with excavation and removal of soil – were partially installed; the main structures of the combined traction substation were built; two-tier tunnels were partially constructed, etc.

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