Lviv is terminating its contract with a Polish contractor for the construction of a waste-to-energy plant: here are the reasons
24 March 10:21
The Lviv City Council has announced the termination of its contract with the Polish contractor Control Process S.A. for the construction of the long-awaited waste-to-energy plant in Lviv.
This was reported by the press service of the Lviv City Council, according to "Komersant Ukrainian".
Under the terms of the agreement, the termination of the contract will take effect 14 days after the notice is sent—that is, on April 6, 2026.
Why the contract was terminated
“Due to Control Process S.A.’s systematic failure to fulfill its obligations, as well as its failure to comply with the FIDIC engineer’s instructions and its lack of response to these comments, we have decided to terminate the agreement with this contractor,” explained Oleksandr Yegorov, director of LKP “Green City.”
As noted, throughout 2025, the contractor was repeatedly sent official notices from the engineer regarding violations of the contract terms and demands to rectify them.
Specifically, the contractor:
- failed to complete the design documentation and refused to hand it over to the client—LKP “Green City”;
- failed to deliver part of the equipment financed by the Eastern European Energy Efficiency and Environment Partnership (E5P) Fund;
- refused to perform certain works specified in the contract;
- refused to allow another contractor onto the site, who was supposed to perform work on connecting the facility’s external power supply.
Despite being granted additional time to rectify the situation, Control Process S.A. failed to address any of these violations.
The contractor is also accused of attempting to obstruct the issuance of a bank guarantee requested by LKP “Green City.” This served as an additional ground for terminating the contract.
Furthermore, due to the contractor’s failure to fulfill the terms of the contract for the construction of a waste processing plant in Lviv, the client—LKP “Green City”—contacted the Polish guarantor bank regarding the payment of a €3.6 million bank guarantee.
“Control Process S.A. faces similar issues with the construction of facilities under its responsibility in Poland as well. The contract with this company was terminated due to delays and design errors in the city of Starachowice (Poland). The contract was also terminated due to unsatisfactory progress on the project in Łowicz, and another contract was terminated due to systematic failure to meet deadlines in Jarocin. So this is not a unique situation in Lviv,” the city council stated.
The Scandal Over the Waste Processing Plant in Lviv
Following an international tender, the waste processing plant is being built by Control Process S.A., one of Poland’s largest construction companies. Construction began back in 2021.
On September 12, 2024, the Lviv City Council granted permission to the Lviv Municipal Enterprise (LME) “Green City” to obtain a loan from Oschadbank in the amount of 718 million UAH to complete the construction of the waste processing plant.
Under the contract, the contractor, Control Process, was supposed to complete general construction work by June 30, equipment installation by August 30, and commissioning work by November 1. Currently, all these deadlines have been missed.
This situation resulted from the contractor’s breach of a material term of the contract. Members of the Lviv City Council even appealed to Polish Prime Minister Donald Tusk, asking him to assist in completing the construction of the waste processing plant.
Lviv Mayor Andriy Sadovyi also accused Control Process of delaying the construction of the waste processing plant.
However, despite this, an agreement was signed with the Polish contractor Control Process S.A. to continue work on the construction of the waste processing plant.
