Key Highlights
Contract Awarded to Ukrainian Demining Services: The Center for Humanitarian Demining signed its first contract with Ukrainian Demining Services, the winner of an open auction on the Prozorro electronic procurement system.
Demining Scope: The company will clear 86 hectares of agricultural land in the Shevchenkiv community of the Mykolaiv region.
Cost Savings Achieved: Competitive bidding reduced the initial price by over 1 million hryvnias, resulting in state savings and full compensation for the farmer.
Official Statement: Minister of Economy Yuliya Svyridenko emphasized:
"For the first time in Ukrainian history, we have signed an agreement on the demining of an agricultural area as a result of open bidding in the Prozorro system. Thanks to competition, the initial price has decreased by more than one million hryvnias. This way, the state will receive cost savings, and the farmer will receive full compensation for the cost of demining from the state."
Auction Success: So far, 11 auctions have been conducted via Prozorro, with 2 to 6 participants each, leading to a price reduction of more than 18% and saving the state budget over 44 million hryvnias.
Demining Challenges:
- The area consists of 12 zones with varying levels of difficulty.
- Presence of cluster munitions, anti-personnel and anti-vehicle mines, and small arms ammunition.
- Terrain includes grasslands, trees, and reeds.
Financial Details: The operator will be paid UAH 4.85 million for the demining operation.
Future Auctions:
- 20 auctions announced for demining services covering a total of 6,690 hectares.
- Next nine auctions scheduled for October 1.
- Upcoming demining projects cover 2,470 hectares with a starting price over UAH 172 million.
Economic Impact: Ukraine faces losses of $11.2 billion per year due to mines and explosive remnants, equating to 5.6% of the country's 2021 GDP.
Implications
Agricultural Revival: Demining paves the way for the safe cultivation of land, boosting agricultural output and supporting local economies.
Economic Efficiency: Utilizing the Prozorro system for open bidding enhances transparency and cost-effectiveness in state projects.
Safety Enhancement: Clearing mines reduces risks to farmers and local communities, facilitating resettlement and development.
Investment Opportunities: Restored lands may attract investment in agriculture, infrastructure, and related sectors.
