Repairs to the Okhmatdyt building following the shelling have been delayed by a year due to a tender scandal
The article in *Babel* covers the progress of the repairs, funding, tenders and legal proceedings surrounding the restoration of *Okhmatdyt*.
Renovation of the new treatment and diagnostic wing of “Okhmatdyt”, which was damaged during the Russian missile strike on Kyiv on 8 July 2024, is in its final stages.
At that time, a missile struck one of the hospital’s buildings. The explosion damaged three buildings at Okhmatdyt.
It was decided to restore the new treatment and diagnostic wing first, as this is where the hospital’s main work is concentrated.
The reconstruction is being funded by the “Okhmatdyt – Healthy Childhood” charitable foundation. In July 2024, it had 368 million hryvnias in its accounts. These funds were raised by Ukrainians for the hospital’s reconstruction and other needs.
Why did the repairs begin almost a year later?
A contractor for the full-scale renovation was found quickly, but the work itself only began on 9 June 2025.
The reason was public criticism surrounding the initial competition, the tender process, and the mechanism for collecting and accumulating funds.
To announce the competition, the hospital had to estimate the cost of the work in advance. But they did not have time to do this properly in just a few days. Therefore, the winner was selected not only on the basis of the lowest price, but also on the total score across various criteria.
Among the 14 participants, the company “Bud-Technolodzhi” won with a bid of 307 million hryvnias. Two other bids were more expensive, while the rest were significantly cheaper.
After the winner was announced, Yuriy Nikolov, editor of the publication “Nashi Hroshi”, analysed “Bud-Technolodzhi”’s cost estimate and compared it with the bids of other participants.
According to “Nashi Hroshi”, certain types of work in the winner’s bid were one and a half to two times more expensive than the average price, and the total estimate of 307 million hryvnias may have been inflated.
The publication also drew attention to the company “Riola-Modul Ltd”, which had previously built this block and submitted a bid of 179 million hryvnias. In its application, the company noted that following the missile strike, it had already partially replaced the walls, ceilings and linoleum in the operating theatres at its own expense.
Following the scandal, the results of the first tender were annulled.
Who won the repeat tender
The Ministry of Health promised to hold a full tender via “Prozorro” following the standard procedure.
The new tender was held on 23 May 2025. The winner was the company “Riole-Modul LTD”.
This time, it submitted a bid of almost 293 million hryvnias.
To ensure transparency in the reconstruction, a Council for the Restoration of “Okhmatdyt” was established.
Following this, a tripartite agreement was signed between Okhmatdyt Hospital as the client, the “Okhmatdyt – Healthy Childhood” Foundation as the payer, and “Riole-Modul Ltd” as the contractor.
The contract for the major refurbishment of the treatment and diagnostic wing was signed on 6 June 2025.
How payment for the works is monitored
Several parties are involved in the renovation of the new building.
The client is the Okhmatdyt Hospital, the payer is the Okhmatdyt – Healthy Childhood Foundation, and the contractor is Riola-Modul Ltd.
Eptisa acts as the technical consultant, “Akadembud” carries out technical supervision, and “Arkon” is the design firm.
Payment has been agreed on a phased basis. Each completed phase is documented in a certificate, which is checked by representatives of the hospital, the technical consultant Eptisa, and the technical supervisor Akadembud.
They must confirm that the work has been carried out to a high standard and complies with the project. Only then are the documents forwarded to the fund, which checks them again and transfers the funds to the contractor.
How much does the renovation cost
Renovation of the new building began on 9 June 2025.
Initially, it was planned to be completed by 31 December 2025, but the deadline was subsequently moved to 31 March 2026. The work was not completed by this date either.
The fund explains the delay by the fact that shortcomings in the original design were identified during the renovation work.
Some of the work had not been taken into account. In particular, regarding the façade: it was installed back in 2012 in accordance with the thermal conductivity standards of the time, but the requirements subsequently changed. Consequently, it was necessary to update some of the structures and revise the design documentation.
Also, some of the scope of work turned out to be overestimated. For example, the initial plan was to replace all the windows completely, but it was later decided that it would suffice to replace the glass and repair the fittings.
At the start of 2026, external factors came into play – power cuts and freezing temperatures. Due to the low temperatures, some of the façade work could not be carried out, as materials, particularly sealants, do not set properly in the cold.
According to the Okhmatdyt Restoration Council, a fixed price is stipulated in the tripartite agreement. This means that the contractor cannot increase it due to rising costs of electricity, lubricants or other expenses.
At the same time, due to changes in the project, the total cost may increase by approximately 2.5% of the initial approved amount – to around 300 million UAH.
As of the time of publication, the fund has already paid the contractor around 175–176 million UAH. This is approximately 60% of the total amount.
The remaining funds are planned to be transferred after the signing of the next certificates of completion, tentatively in June.
The largest portion of the funds went towards façade work – around 186 million UAH.
What about the fund’s money
In total, the “Okhmatdyt – Healthy Childhood” fund has raised 368 million UAH.
If the renovation costs come to around 300 million UAH, 68 million UAH will remain.
These funds have not yet been spent and are held in the fund’s accounts.
Roman Lobay, a member of the fund’s board, explained that the money wasn’t simply sitting in the accounts. One of the banks offered special terms, so the funds were invested in such a way that they generate interest every month.
Income from the funds placed in the bank for 2025 amounted to over 30 million UAH. This income is to be directed towards other projects of the fund.
How the court case regarding the collected funds ended
In 2024, the law firm “Aver Lex” took legal action against the “Okhmatdyt – Healthy Childhood” fund.
The firm sought to compel the fund to transfer the raised funds directly to the account of the “Okhmatdyt” hospital, as it doubted that the money would be used for its intended purpose.
In court, the foundation confirmed that it had entered into the necessary agreements and directed the funds towards the hospital’s renovation.
Following this, the claimant declined to continue the proceedings, and the court closed the case.
What about the other damaged buildings?
The toxicology building suffered the most damage from the shelling.
This building has the status of an architectural monument, so it is not simply a matter of repair, but of full-scale restoration.
A contract has now been signed with a contractor, and a technical survey of the building’s condition is underway ahead of the restoration design. The hospital is funding this itself. The source of funding for the restoration itself has not yet been determined.
The surgical wing has suffered serious internal damage. The most likely scenario is complete demolition and the construction of a new wing.
The design documentation has already been drawn up and is undergoing review by Ukrderzhbudekspertiza. The World Bank is provisionally planning to fund this work.
The facade and windows of the administrative block have been damaged. As this is also an architectural monument, a contract has been signed with a contractor and a technical survey is underway to prepare for restoration.
The survey is being funded by the hospital, but the source of funds for the restoration has not yet been determined.
The shelling also completely destroyed the transformer substation at Okhmatdyt. A tender has already been announced for the construction of a new substation from scratch. Proposals from bidders are currently being considered. The hospital plans to fund the work.
As reported by ThePublic, in the tender for the building’s renovation, Riola-Modul Ltd. emerged as the winner among construction companies, having submitted the most cost-effective bid — nearly 293 million UAH, whilst the estimated cost of the renovation was 367.4 million UAH. This will result in savings of over 70 million UAH. The ministry added that it was Riola-Modul Ltd that completed the construction of the modern Okhmatdyt building in 2020.
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