Ukrenergo saved UAH 5.3 bln on procurement in a year - acting head

Ukrenergo saved UAH 5.3 bln on procurement in a year - acting headNational energy company Ukrenergo since October 2015 as of today has saved UAH 5.3 billion during procurement, acting Director of Ukrenergo Vsevolod Kovalchuk said on Espreso TV.

"We have saved UAH 5.3 billion on procurement during a year of my work," he said, adding that over UAH 3 billion was saved at tenders held at the end of September 2016.

The top manager said that the key reason of saving funds is competition between bidders at tenders announced by the company.
"We save not only because the prices were set too high. We save because we attract dozens of executors of these tenders to the process. The only mechanism is competition. We recorded clear statistics: when there are two bidders in the tender – 3% is saved. They made an arrangement. When we bring 20 companies from all over the world with geography of 15 countries, they do not make arrangements between each other," Kovalchuk said.

As reported, late March 2016 Ukrenergo signed a contract with ZTR to supply 22 autotransformers and shunt reactors worth UAH 828.591 million (VAT included). The price of transformer equipment turned out to be UAH 1.1 billion lower than expected due to competition between ZTR, ABB and Siemens at the auction.

On September 27, September 28 and September 30 the company opened tender bids to reconstruct six high-voltage substations using funds of the World Bank. The company saved around UAH 3.3 billion ($125 million) or 47% of the sum estimated to reconstruct these substations in 2014.

Bids were filed by companies in Italy, Croatia, China, Germany, Slovenia, Sweden, Kazakhstan, Azerbaijan, Saudi Arabia, South Korea, the Czech Republic, Latvia and Ukraine.

Kovalchuk said that in 2014 reconstruction of the substations was assessed at $267 million, while after the tenders it would be carried out for $142 million. The 330 kV substations Zhytomyrska, Cherkaska, Novokyivska, Nyvky, Sumy and Kremenchuk will be reconstructed.
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