Without an investor «Azovinteks» will build a cottage for those from Donetsk, but not a stadium

On April 18, 2007 the head of UEFA Michel Platini in Cardiff (Wales) announced the winner to the right to host EURO-2012, the winner was Poland-Ukraine. December, 2008 – in L'viv to this date full fledged building of the stadium has not started. And the biggest problem – there is no investr, which means that under the conditions of the financial crisis – they will not build a stadium in L'viv.

ZIK tried to follow the chronicle of events of L'viv's preparation for EURO-2012 based on an example of the consortium of Implenia-Axon-Danapro. (In particular Ахоn – is a German Investment Fund, which in L'viv due to hand of the self confident Sadoviy banally «tossed overboard»). In particular, we had the opportunity to speak with the general director of Danapro Rostyslav Shtyn, who represented the interests of the consortium. Though first we will present the chronicle... of the failure of the «Euro» in L'viv!

The Chronicle of failure

November 1. A letter of request for support of searching for investors for the realization of the building of a stadium within the framework of holding the «Euro-2012» football championships which was signed by the Mayor of L'viv Andriy Sadoviy and addressed Rostyslav Shtyn general director of Danapro was received.

May 21. The German company Hochteif presented its project for the new arena-stadium for «Euro-2102». According to the plans of the German architects the stadium was to be for 32,000 spectators, it was planned to complete building it by 2010. The value of the stadium was Euro 70,400,000. This was a conceptual project, which «placed» the stadium on the territory of Striyska Street and the ring road. In a joint meeting of Andriy Sadoviy, the Mayor of L'viv, the head of the L'viv State Administration, Myroslav Senyk and a representative of Hochteif the necessary documentation was presented to the city authorities. The project was financed from the budget of L'viv oblast – close to 500,000 UAH. Afterwards, the city authorities refused Hochtief's services.

May 7. A agreement on cooperation for the «L'viv – Euro-2012» was signed between Danapro (Ukraine) and Axon Projektentwicklungs Gmbh & Co.KG (Germany).

August 2. A memorandum regarding the building of a stadium and infrastructure in L'viv was signed in Zurich between Danapro and Implenia Global Solutions (Switzerland). In accordance to the memorandum Danapro finances the architectural concept of the stadium and infrastructure, and correspondingly the architects of Implenia would ensure the development and its presentation. In addition Implenia confirmed that it would assist in the search for an investors.

August 18. A confidentiality agreement was signed between Danapro and the L'viv City Council regarding the Euro-2012 stadium project.

September 9. an agreement of cooperation was signed between Axon and Implenia GS was signed for participation in the competition of determining the investor for the building of a stadium and infrastructure, in which Axon came forth as a representative of an investment fund..

During the period of cooperation of Axon – Implenia – Danapro there were a number of presentations of their proposal, and the final note was the joint participation of Axon and Implenia in the official competition to determine the investor for the building of the stadium in L'viv.

October 4-5. The VII L'viv International Investment Forum «Euro-2012»: Ukraine, forward!». During the Forum an investor was not identified, who would build the football stadium in L'viv for Euro-2012. Three companies presented their projects, but the L'viv City Council was «still thinking». According to the Mayor Andiry Sadoviy, two other companies had appeared, which are ready to present their concept of building the stadium in L'viv. At the last session of the L'viv City Council before the Forum, the question regarding approval of the land plot upon which the stadium was to be built was taken off the agenda.

Then Andriy Sadoviy regarding the accomplishments of the VII L'viv International Investment Forum «Euro-2012: Ukraine, forward!» declared: «As a result of the work of the forum a project-communique was prepared, which outlined all the tasks for «Euro-2012», which lawmakers discussed, representatives of the municipal council and oblast authorities, and also international investors.»

November 30. A competition commission was created regarding the selection of the selection of a participant of an investment agreement for the building of the stadium for «Euro-2012» in L'viv.

The Commission was approved by a decision of the executive on November 30, 2007. I was chaired by the first Deputy Mayor of L'viv Oleh Synyutka.

December 4. The competition for determining the investor and building of the stadium for Euro-2012. «To this time the Euro-2012 Department of the L'viv City Council has had meetings with three construction companies: Implenia, Marazzi, and OHL. Some other companies, sooner than not, were not successful in submitting the necessary documents for participation in the competition (which is to last only two weeks),» – the Director of the Department for the Preparation to Euro-2012 of the L'viv City Council Oleh Zasadniy declared.

February 6. On the official site of the L'viv City Council an announcement appeared, that stated, «L'viv has selected the company, which will build the stadium for Euro-2012», but in particular the Austrian company Alpina Bau GmbH.

Synyutka stressed, that the work would be carried out at the investment costs of Alpina, including, the use of the assests – a land plot of 25 ha.

Implenia was not explained the official reason for its defeat. From Oleh Zasadniy Implenia only received an e-mail which stated that the winner of the competition for building the stadium for Euro-2012 from such a day was such a company.

February 13. On Alpina's site an official company press release came out, that the company is not an investor for the building of the stadium in L'viv. Instead, the head of the L'viv City Council Andriy Sadoviy only announced on October 9, that Alpina refused to build the stadium in L'viv. Given this we would like to stress that Alpina did not win a competition for the right to build, but an investment competition.

Thus, it turned out that Alpina does not have a bank guarantee and is not an investor in the stadium. In such a case, in the opinion of Rostyslav Shtyn, the competition competition should have turned to another one of he candidates or at least announced another competition immediately.

August 4. The L'viv City Council created a working group to control the preparation of L'viv for hosting the European Footlball Championships. The working group was composed of 10 municipal deputies and 4 representatives of executive bodies. He Chairman of the group became the deputy from «Our Ukraine» Bohdan Bedrylo.

August 4. 76 deputies of the L'viv City Council voted for the approval of «On the conclusion of the management of capital construction agreement with a general contractor for the building on Striyska Street and the ring road in the city of L'viv a stadium for not less than 33,000 spectators, which meets the current UEFA requirements for holding the matches of the final part of the European Championships». The essence of this decision – to start building the stadium in L'viv, spending 80 million UAH, which will taken from the municipal development budget of the city of L'viv as a separate budget line item.

September 4. The building of the stadium for Euro-2012 was put on hold, which was started on

September 1. Instead of at the place, provided for a sports arena, the L'viv «Geotechnical Institute» carried out some geological research – examining the ground and underground waters. The construction works were planned to have recommenced on September 20. We would like to add, that the L'viv authorities had planned to start consruction of he stadium in the spring.

October 2-3. The VІІІ L'viv International Economic Forum «European Partnership – Open Possibilities». The mayor of L'viv Andriy Sadoviy in summarizing the resuls of the VIII Internaional Economic Forum, express his opinion on three main accomplishments of this year's forum, however, he never mentioned a single figure. In Andriy Sadoviy's words, participants in the forum made 7 interesting proposals regarding the improvement of the transportation infrastructure of L'viv.

October 9. L'viv City Council announced that on October 8 it has received an letter from the management of ALPINE Bau GmbH, in which it was announced that the company refuses to sign the proposed agreements made by the city for general contractor for building he stadium in L'viv in accordance to the approval of the project and its budget.

In the middle of October 2009 Danapro sent a e-mail to deputy Volodymyr Hirnyak, a member of the working group in search of an investor for Euro-2012 which was signed by Rostyslav Shtyn – ensuring that, the consortium is prepared to participate in a repeat investment competition and has all the necessary resources and capabilities for the realization of such an ambitious project. The main condition – a quality proposal from a legal perspective.

October 16. L'viv City Council recognized the head of the city, Andriy Sadoviy's report on preparation to Euro-2012 as unsatisfactory. Seventy of the ninety deputies voted on this – all factions, except Pora.

October 16. The L'viv City Council terminates the Competition Commission for the selection of a participant in an investment agreement for the building of the stadium for Euro-2012. The work of the commission was recognized as proper. With the exception, that in the report,,it is noted that Competition Commission overstepped its authority: it did not identify an investor, but only a stadium project developer, presenting them as a potential investor.

«In November we must start building the stadium,» – noted the head of the department for preparation for Euro-2012 of the Lviv City Council Oleh Zasadniy.

October 23. Deputies of the L'viv City Council accepted the resolution «On the creation of a competitie commission which would give the right to the building on the territory for holding the final part of the European Football Championships in 2012». The decision was accepted by 70 deputies. The chair of the commission would be the First Deputy Mayor Oleh Synyutka – deputy chair Andriy Stetskiv, deputy of the city council, secretary – head of legal management of the City Council Helena Payonkevych.

October 24. UEFA sent representatives of the Ukrainian and Polish football federations Hryhoriy Surkis and Mikhail Listkevych letters, in which they gave a stern ultimatum – if Ukraine and Poland – if Ukraine and Poland do not fulfill all the obligation they took upon themselves by May 15, for Euro-2012.

November 4. The «Svoboda» Fraction of the Lviv State Legislature proposed to accept the appeal to the President, the Cabinet of Ministers, the NSDC regarding giving the appropriate authority to the head of the Lviv State Administration, Mykola Kmit regarding preparation of L'viv for Euro-2012. The deputies had this question included on the agenda for the daily session of the L'viv State Legislature.

Head of the L'viv Oblast State Administration Mykola Kmit, no his part declared: «I can always take that responsibility. But the legal department of the L'viv Oblast State Administration analyzed this and gave its explanation, that the legal possibility exists to hand over the project of to head of the LSA. For this to happen changes are necessary at the national level. At this moment the responsibility for everything that is being done regarding the stadium is on the shoulders of the Mayor of L'viv.»

November 7. A decision of the Ministry of Economy of L'viv was given the right to sign agreements for the right for a single executor for the building of the stadium with OSC «Projektno-budivelne company «Azovinteks» [OSC «Project-building company «Azovinteks»]. The agreement for the general contractor has already been signed.

November 14. Hryhoriy Surkis, the head of the Ukrainian Football Federaion, expressed his preparedness to change L'viv for another city in Ukraine, which will be ready to host Euro-2012. He announced this at a press-conference in Kyiv..

November 19. «The Commission of Finance and Budget Planning declared, that it did not receive any documents which related to the contract between the general contractor and client for the building of the euro-stadium in L'viv, from the L'viv City Council.» – announced deputy of the L'viv City Council, Yuriy Kuzhelyuk, member of the budgetary commission.

November 21. They were to open the envelopes with proposals from the company-applicants for the building of the stadium. Amongst the received applications, according to Bohdan Bedryla, a member of the commission, there is an application from the Donetsk-based company «Azovinteks», which with the head of the city of L'viv Andriy Sadoviy, apparently signed an agreement as a general contractor for the building of the stadium in L'viv at the cost of the L'viv City Council's budget. «Although we have been assured, that there is already an agreement with a general contractor, but all the same it is not legitimate, and the company decided to procede in a civilized and legal way. In general 5 applications were received.», – he noted. However, the envelopes with the proposals from he company-applicants for the building of the stadium were not opened. The decision regarding the opening of the envelopes did not acquire a majority of votes: 6 votes were for, 3 were against, and 3 abstained.. The deciding vote was from he head of the Pora fraction Petro Adamyk, who declared the position of the mayor. The Procurator of L'viv protested the creation of a competition commission: «The Procurator's protest – is not a court decision. The commission could function. The protest was to have been examined during the soonest session of the L'viv City Council and could be rejected. Sessions of the L'viv City Council rejects 95% of all procurator's protests,» said Bohdan Bedrylo.

November 24. Andriy Sadoviy declared to journalists that the question regarding the general contractor is no longer valid today: «He exists, we have an agreement with him, we went through the entire tender process, and we have the appropriate decision of the Minister of the Economy. Regarding the investment competition, which was announced corresponding to the decision of the session of he L'viv City Council, it requires certain reworking.»

November 24. The executive committee of the L'viv City Council examined the question on the execution of the agreement of the general contractor for the building of the stadium on Striyska Street and the Ring Road in the City of L'viv. Its essence was in that the preparation of the work site of the stadium would be taken on by the general contractor firm «Azovinteks» for the client, but for the management of the capital construction 3-6 million UAH are needed.

An investor was not found and they won't find one

Thus, were are giving the general director of Danapro Rostyslav Shtyn his say; «The city authorities right from the beginning never provided clear conditions for participation in the investment competition. Strictly speaking, in essence they never held a competition. In July of 2007 representatives of AXON had a meeting with the head of Foreign Economic Relations and Investments Taras Burhan and the city's head architect Yuri Kryvoruchko. At this meeting they said that there would be no real competition, in as much as the city doesn't have enough specialists and time for it. They informed us that there would be an investment agreement: the city provides the land, and interested companies are required to develop a concept and its buildings.»

In an interview for L'vivska gazeta (October 1, 2007), partner in AXON, Stefan Wennesz explained: «We proposed a nice concept, for which we took on all the problems and expenses. However, the reaction of Andriy Sadoviy was sufficiently interesting: neither positive, nor negative. One could say there wasn't one. They proposed that we participate in the investment forum. But I sent a letter to the city authorities in which I declared that we did not have an intention to participate in it and publicly present our concept if the city will not provide us with clear conditions under which they would determine the winner. This is natural self protectionism. Nevertheless, we do not understand, under which scheme everything will be decided, therefore we must protect the interest of our companies.»

The concept of building the stadium for Euro-2012 was developed by Mr. Läuppi, the head architect of Implenia. He coordinated all the work from Switzerland. Before that time, Implenia had built two stadiums for Euro-2008 in Zurich and Geneva. Axon has experience in financial and strategic management of such projects.

Rostyslav Shtyn noted, that the consortium of Axon – Implenia GS – Danapro was not interested in participating in the competition as a builder or designer: «We were interested in an investment competition. We wanted to show the general concept of development of that part of L'viv, and not only tying it to Euro-2012. And for cities it is always more convenient to work with an investment partner, in as much as they take the risk of increasing prices upon themselves.»

The general director of Danapro explained: «At first they proposed us with 50 ha, then 35, and then finally 25. On the territory of 25 ha, besides a stadium we were planning to build a business center, a hotel, in other words an entire complex. Then we wanted to sell it all. According to our calculations the project was to pay for itself in 5-10 years. The profit on the project was estimated at 25-30%. We also very well knew that a stadium without a club could not exist, therefore we tried to cooperate with «Karpaty FC».

Thus, it is clear, Sadoviy didn't like the concept of three firms, which were also ready to take on the role of an investor. They were also not given an official reason as to why they lost the investment competition.

At the same time Rostyslav Shtyn noted: «L'viv was not able to attract a serious investor then and will not be able to do it now. The reason is simple: in order to do so one needs clear and transparent conditions of cooperation, and the way which the mayor of the city carries out competitions, – they are rather dubious. And all this has led to, that L'viv has a general contractor, which doesn't have experience in building such stadiums, the Donetsk company «Asovintekst». As a result, it is scarce as to whether an investor will be found, and now this is the main problem, nevertheless, as far as I know, Azovintekst declared, that they were not ready to take on the role of investor. It is clear, that everything will wrap up under the familiar Ukrainian scenario: Azovintekst will bring in its own equipment, dig up a pit where the future stadium is to be, and when the city authorities don't find an investor they will demand their right to ownership of the land, which was earmarked for the stadium.»

The time for Euro-changes is lost

Beyond this, Rostyslav Shtyn deems that holding the Euro in a totally corrupt Ukraine will turn out that the wealthy will become wealthier, and the poor – poorer: Euro-2012 is part of the cultural life of Europe. It's a celebration. It's recreation. It's – entertainment. Terribly commercialized, but entertainment. The host country is pleased with the possibility of demonstrating to its guests its achievements in all aspects of life, to show themselves off as capable organizers with their own approach. It is a celebration for those who live in a balanced world and solidly knows, that the state is behind them, ready to protect its citizens in any life situation. For example, when Germany held the World Championships in 2006 which was an incredibly important event, the Germans carried it out ideally. They strived to show their openness, hospitality, their capability of precisely organizing large scale events, their capability of being commercially and ideologically successful. The Germans improved their sports and tourism infrastructures, and partially resolved their unemployment problem.

From this view, Euro-2012 – was a chance for Ukraine to lift itself up to a new level of development, to raise the status of Ukrainians in the eyes of Europe. There was a chance, but now it is lost. The reason was due to permanent political instability, which destroyed unity, and thus – the possibility of proper and clear coordination of the processes of preparing for the championships. This instability gave birth to deep corrupt processes, nevertheless the lost feeling of responsibility for the country, its prestige. Because the interests of two-three clans and the anarchical mercantile interests of public officials took precedence. Ukraine has not become a country of free business, where medium business flourishes. Why? Because the Soviet mentality has remained in the conciousness of the people, who today have primary influence in the country. Former Komsomol organizers, party functionaries, redressed in expensive suits, can not change their internal nature. They – are a product of Sovietism, a grey and humdrum territory, which everything is decided upon by phone calls from above. Initiative is smothered, the search for something new is strongly hidden behind the doors of fear of the system, which destroys independent people. There is no unity and solidarity in the desire to realize this project. So is it worth being surprised, that to this time not a single legal procedure during the preparation for Euro-2012 take place transparently, understandably and honestly.

Do Ukrainians need Euro-2012? People, who are chronically not paid their salaries, do not getting heating, prices raised for whatever reason, and who are not consulted about regarding their agreement to this, in a country, which can not ensure decent existence for its pensioners. A country, which doesn't have a program of development for the next 50 years. A country with dirty roads and trains, which travel 500 km in 7 hours, and the smell of yesterday's passengers permeates the air of the cabin.

What does the plain Ukrainian get from Euro-2012? Today it seems, nothing? All kinds of colossal state funds will be spent, buildings that will belong to some business groups will appear, in addition to the ideological force about the necessity of Euro-2012…

A year ago, I was convinced, that it was absolutely necessary for Ukraine and I was even filled with respect for functionaries, who put in their efforts for Ukraine and Poland's win. Now my thought has changed: for Ukraine, Euro-2012 – is expensive and is going nowhere, new holes of debt for the simple Ukrainian and enrichment, of those who still have not been able to change their mentality of a Soviet person. Euro-2012 in Ukraine – is an instrument to strengthen those, who will later do everything in order that the simple Ukrainian becomes simpler and less fortunate. The chance for change has been lost,» such is Rostyslav Shtyn's judgement.