Business news from Ukraine

ADVISOR TO SELL CENTRENERGO OPTIMISTIC IN TENDER OUTCOME

Most of potential buyers of a 78.3% stake in Centrenergo have showed their interest in the coming tender sell the company, Partner of EY Business Advisory Poland, which acts as an advisor for the privatization of the company, Piotr Piela has said.
“I am very optimistic. We meet the schedule and have to finish by the end of the year,” he said in Odesa on Friday at the Ukrainian Financial Forum organized by the ICU investment group.
He named the expected growth in consumption and export opportunities among the positive sides.
At the same time, Piela said that there is no complete clarity on how the electricity market will work after July 1, 2019. He welcomed the adoption of primary legislation, indicating that secondary legislation is still in the state of approval and there are questions about how it will be implemented.

, ,

KYIV ANNOUNCES REPEATED TENDER TO BUILD ANOTHER SUBWAY LINE

Municipal enterprise Kyiv Metropoliten, which ordered the contraction of the subway line running to the Vynohradar residential area in Kyiv, has announced the repeated tender. According to the information in the ProZorro e-procurement system, the expected cost of works is UAH 5.994 billion. Bids can be submitted before October 11 inclusively. The bids will be opened on November 16. The bid security is UAH 1 million (at the previous tender it was UAH 29.9 million). The minimum decrement is 0.5% (UAH 29.9 million).
In addition, during the new tender the only criterion for selecting the winner is the price, while at the previous tender the term of work delivery was taken into account by 25%.
As reported, on September 5, 2018, Kyiv Metropoliten cancelled a tender for constructing a new subway line to the Vynohradar residential area. One of the bidders, PJSC Kyivmetrobud failed to provide a bank guarantee in time for participating in the auction. Kyiv Metropoliten rejected the offer of another participant, LLC Adamant Construction Company (Adamant), citing the company’s failure to provide reliable tender documents. Adamant filed a complaint with the Antimonopoly Committee of Ukraine leading to the cancellation of the auction.
Kyiv Metropoliten in January 2018 announced a tender to build the Syretsko-Pecherska subway line from the Syrets station to the Vynohradar residential in Kyiv’s Podilsky District to the tune of UAH 6.3 billion. The date of the tender was repeatedly postponed. The expected cost of work at the last auction fell to UAH 5.99 billion.
Kyiv City State Administration approved the subway line construction blueprints in July 2018.
The new section of the subway line will consist of two stations – Mostytska and Prospekt Pravdy, as well as a section in the direction to the Vynohradar station. It is estimated that construction work will take 36 months.

, , , ,

KYIV STATE ADMINISTRATION ANNOUNCES TENDER FOR BUILDING WASTE TREATMENT PLANT

Kyivkomunservis has announced a tender to determine an executor of services for processing and burial of household waste in the capital, the press service of Kyiv City State Administration has said. According to the tender documentation on the website of the company, the minimum capacity of the processing enterprise should be 426,000 tonnes, while the annual volume of household waste produced in Kyiv is 1.2 million tonnes. The new waste processing plant should be located near the geographical center of the capital.
Participants in the tender should have experience in creating and operating waste recycling facilities. The winner of the tender will be obliged to provide waste treatment services for at least 25 years from the time the facility is put into operation. According to the administration, applications for participation in the competition will be accepted from August 28, 2018.
The first stage of the tender is the assessment of contestants’ complying with the qualifying conditions, it will begin in late September. The second stage involves evaluating proposals from participants in the competition. As reported, with reference to Kyiv Mayor Vitali Klitschko, the new waste processing plant in the capital is to be built within the next two or three years.

, ,

IBM WINS TENDER TO DEVELOP INFORMATION TECHNOLOGY STRATEGY FOR THE LARGEST OIL AND GAS PRODUCING COMPANY IN UKRAINE

IBM Ukraine LLC, which is wholly owned by IBM Central and Eastern Europe, has won a tender called by NJSC Naftogaz Ukrainy to have its strategy for information technology developed. IBM Ukraine, with a bid of UAH 3.748 million (VAT included), defeated other bidders, namely Ernst & Young (E&Y) and PwC Polska, Naftogaz announced in the ProZorro e-procurement system. The services must be provided by December 31, 2018.
The goal is to determine the level of IT maturity and ensure maximum efficiency from investments in IT. As a result, the target operating model of the company’s IT and the development roadmap should be developed, including a portfolio of projects, the necessary resources and portfolio management processes.
The IT analysis should be carried out for Naftogaz and its subsidiaries, namely Ukrtransgaz, Ukrgazvydobuvannya, Ukrtransnafta, Ukrspetstransgaz, Chornomornaftogaz, and Ukravtogaz.
Naftogaz Ukrainy unites the largest oil and gas producing enterprises of the country. It is a monopolist in transit and storage of natural gas in underground storage facilities, as well as transportation of crude oil by pipelines throughout the country.

, , , , ,

STATE-RUN UKRENERGO ACCEPTS FOUR BIDS FROM INSURERS FOR MEDICAL INSURANCE TENDER

State-run Enterprise Ukrenergo on June 26 ceased accepting bids for a tender to provide voluntary medical insurance services to its employees, according to the ProZorro electronic procurement system.
Four insurance companies – Krayina, Krona, NaftaGazStrakh, and Kniazha Vienna Insurance Group (all – Kyiv-based) – submitted their bids.
As reported, the expected bid was estimated at UAH 8.187 million.
The tender will be held on August 1.
Ukrenergo operates trunk and interstate power grids, as well as performs the centralized dispatching of the united energy system in the country. The company is a state-owned enterprise; it is subordinate to the Ministry of Energy and Coal Industry. It will be reorganized into a private joint-stock company.
Ukrenergo unites eight regional electric power grids: the Dniprovska, Donbaska, Zakhidna, Krymska, Pivdenna, Pivdenna-Zakhidna, Pivnichna, and Tsentralna.

, ,

ODESA PORT-SIDE PLANT ANNOUNCES TENDER TO SELECT PARTNER FOR TOLLING PRODUCTS

Public joint-stock company Odesa Port-Side Plant until July 12, 2018 accept applications for selecting a new partner for processing gas into mineral fertilizers on a tolling basis. “We invite interested companies to send their bids, meeting the mandatory conditions regarding the processing of tolling natural gas at the plant until 16:00 Kyiv time on July 12, 2018,” the enterprise said on its website.
First Deputy Director Mykola Schurikov said that if it is necessary to conduct preliminary negotiations, it is possible to organize working meetings with the management of the enterprise.
As reported, All-Ukrainian Energy Company won a tender to use the facilities of Odesa Port-Side Plant for processing gas into mineral fertilizers on a tolling basis in December 2017.
However, on April 30, 2018, the plant was stopped, as the company violated the contract with Ukrtransgaz.
Schurikov said that the plant in two months of cooperation with All-Ukrainian Energy Company received over UAH 140 million and saw no losses.
Odesa Port-Side Plant refers to work on a tolling basis as the only possible option for resuming its operation in the conditions of a failure of privatization attempts and accumulated debt for gas to Naftogaz Ukrainy, which exceed UAH 1.5 billion.
The State Property Fund this week announced a tender to select an adviser for another attempt to privatize the plant and solve the problem of its debts to Naftogaz and Ostchem belonged to Dmytro Firtash. The adviser is given up to six months to find a way out of the situation.

, , , ,