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The Accounting Chamber found shortcomings in the funds of the Kakhovka HPP

01 August 2025

However, on the recommendation of the department, control over pricing in the estimates of restoration projects was improved and work began on establishing a safe water supply in Mykolaiv

During the audit, the Accounting Chamber identified shortcomings in the process of using allocated funds and implementing urgent measures to eliminate the consequences of the destruction of the Kakhovka HPP, but the efficiency of using funds has improved.

This is reported by the Accounting Chamber.

"The performers did not use a significant part of the funds allocated for restoration within the specified period and, accordingly, the planned measures were not implemented. And the urgently adopted decisions on the allocation and use of funds were not always sufficiently substantiated and in some cases did not take into account regulatory requirements," the report says.

In addition, the Accounting Chamber believes that the simplified procedures for selecting performers introduced during the implementation of the pilot project, inadequate internal control over the use of funds and the fulfillment of contractual obligations "created risks of uneconomical and ineffective use of budget funds."

The Accounting Chamber reports that following its recommendations, approaches to controlling pricing in reconstruction project estimates have been improved.

"Such measures are being taken by the objects of control in order to implement the recommendations of the Accounting Chamber, provided based on the results of an audit of the effectiveness of measures to eliminate the consequences of the destruction of the Kakhovka HPP," the report says.

Thus, the Ministry of Development of Communities, Territories and Infrastructure of Ukraine reported that it has ensured the procedure for implementing experimental projects only if their financial and economic calculations are available. Although it did not specify the list of measures taken. The Ministry of Development also approved the draft of the Estimated Norms of Ukraine - guidelines for determining the current market price of construction resources.

In order to regulate the cost of restoration work, the State Agency for Infrastructure Restoration and Development of Ukraine created the information and analytical system "Price Database", which allows you to monitor prices for labor, material and technical resources and road works and avoid overestimating their cost.

In addition, the agency is developing a procedure for organizing and implementing internal control in institutions and organizations under its management, "in order to prevent the use of state budget funds in violation of the law."

Also, to properly provide Mykolaiv with water, the Recovery Agency has begun negotiations with the European Investment Bank to attract international assistance for the construction of a water intake from the Southern Bug River, a water main, and the reconstruction of the Zhovtnevy reservoir.

"In general, out of the 16 recommendations provided by the Accounting Chamber, the objects of control have implemented nine, three have started work, and four more are awaiting implementation. Therefore, control over the implementation of the recommendations is ongoing," the Accounting Chamber notes.

As "Ukrainian Energy" reported, according to the Ministry of Environment, the losses due to the explosion of the Kakhovka hydroelectric power station reached $14 billion. About 30% of the Kherson region's environmental protection fund was flooded and lost as a result of the explosion of the Kakhovka hydroelectric power station dam by Russian troops.

Kherson scientists have published the consequences of the destruction of the Kakhovka hydroelectric power station by the Russians. Among the findings are the degradation of 75% of the vegetation cover, large-scale fires and moisture shortage, pollution of the water area of 6,800 km², an agrarian crisis, and microclimatic changes.


Author: Надія Зінченко
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