Banker Kogan’s wife intends to construct judicial district in St. Petersburg

Banker Kogan’s wife intends to construct judicial district in St. Petersburg
Lyudmila Kogan

The Head of the Department of Presidential Affairs is selecting a contractor for the construction of the Supreme Court building complex worth about 30 billion rubles.

Three companies, namely, Zhilstroy PSB, Kredo MC, and SK-YUG-H, have participated in the tender for construction of the Supreme Court complex of buildings and Boris Eifman Dance Palace in St. Petersburg. The contract value is 29.5 billion rubles. 6.2 billion more is allocated for the construction of four houses per 600 apartments for judges and the Supreme Court administration. According to Kommersant, a separate tender will be announced for this project.

Stroitelnoe obyedinenie FSUE, controlled by the Department of Presidential Affairs, is the formal general contractor, however, as in most other projects, the state company is only engaged in the application of funds and construction control. At the same time, with the approval of the Department of Presidential Affairs, construction can be transferred to private contractors. It should be added that the rules for selection of contractors became tighter on January 1, 2017 – it is now required to place construction contracts on electronic auctions. Specifically in the implementation of this contract, applicants should have a FSB-granted license due to the presence of a state secret in the design documentation. Nevertheless, the Department of Presidential Affairs announced the tender at the very end of the year, enabling it to decide the winner based on a number of non-price criteria, independently set by the organizer. All companies that have applied are no strangers to the market and are familiar to the customer. Lyudmila Kogan, wife of banker Vladimir Kogan, who had previously headed the State Committee for Construction and the Federal Agency for Construction, is a co-owner of Zhilstroy PSB (40% stake). Among its major construction projects is the completion of long-term construction of the St. Petersburg dam, entrusted to it personally by Vladimir Putin. Lyudmila Kogan herself now actively implements large-scale commercial development projects in St. Petersburg, including some facilities of the above-mentioned Boris Eifman Dance Palace.

Zhilstroy’s main contender is Kredo MC, owned by Asya and Mikhail Borisov. Their main trump card is a long-standing business friendship with ex-Head of the Department of Presidential Affairs Vladimir Kozhin. Earlier, Kredo had been repeatedly selected as contractor by the department, and even received a State Prize for constructing the Presidential Palace of Congresses on the site of the Konstantinovsky Palace in Strelna. As the outlet notes, Kredo’s management has been able to retain links with the Department of Presidential Affairs; according to competent sources, last year the company was named the most likely developer of the ‘judicial district.’ 

But Zhilstroy has offered a better price. Initially, 36.65 billion rubles was allocated according to the contract as of November 2016. However, as a result of recalculation of the value of works in the prices for 2016-2019, the amount was reduced to 35.73 billion and divided into two sub contracts. The company affiliated with Kogans is ready to carry out the work for 27.76 billion rubles. Whereas Kredo evaluates the work at 28.94 billion rubles, but is ahead of its contender by other criteria, in particular, the amount of government contracts implemented.

SK-YUG-H, the company of Serbian businessman Adil Hamzich, is the third applicant. It is responsible for the construction of Olympic facilities in Sochi (the place of its registration). Nevertheless, the company’s chances of winning are minimal due to the failure to provide financial provision of the bid, the maximum price, and the minimum amount of contracts implemented.

Results of the tender are to be announced on January 12. January 25, applicants for the construction of the residential complex will be announced.

Due to changes to the project, 7.8 billion rubles allocated for the construction last year remained almost completely undrawn (construction permit was obtained as late as in December). Slightly more than 14 billion rubles is envisaged for the current year. At the same time, as promised by Head of the Department of Presidential Affairs Aleksandr Kolpakov, the Supreme Court building complex in St. Petersburg will be completed in 2019.

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