Lviv Terminates Contract with Polish Firm Over Waste Plant Delays
Lwów Terminates Contract with Polish Firm Building Waste Processing Plant
Lwów city authorities have terminated a contract with Polish firm Control Process S.A. For the construction of a mechanical and biological waste processing complex, officials announced on March 25, 2026. The decision, made by Lwów’s municipal enterprise Zielone Miasto, stems from what the city claims is the Polish company’s “systematic failure to fulfill its obligations,” according to a statement released by the Lwów City Council.
Ołeksandr Jehorow, director of Lwów Municipal Enterprise Zielone Miasto, stated, “Due to the systematic failure of Control Process S.A. To fulfill its obligations, as well as the failure to comply with the recommendations of the engineer and the lack of response to these comments, we have decided to terminate the contract with this contractor.”
City officials assert that the grounds for the termination are well-documented. Control Process S.A. Allegedly received multiple official notifications throughout 2025 regarding breaches of contract terms and requests for remediation. According to the city, the Polish firm failed to complete the preparation of project documentation and refused to submit it to Lwów Municipal Enterprise Zielone Miasto. Authorities claim the company did not deliver a portion of equipment financed by the Eastern Europe Energy Efficiency and Environmental Partnership Fund.
Control Process S.A. Has disputed the termination, stating it has not yet received formal notification of the contract’s cancellation, as per contractual procedures. The company maintains that the actions taken by the Lwów authorities are part of an ongoing contractual dispute and contests the validity of the city’s claims.
According to Control Process S.A., the project faced significant challenges from the outset, including the full-scale war in Ukraine and a year-long suspension of work. The company also alleges ongoing payment delays from the city and a lack of complete infrastructure support necessary for the facility’s operation.
The city also alleges that the Polish firm refused to perform certain works stipulated in the contract and permitted another contractor onto the site to carry out work related to the external power supply connection. Lwów authorities claim Control Process S.A. Attempted to obstruct the provision of a bank guarantee requested by Zielone Miasto, further contributing to the decision to terminate the agreement.
Control Process S.A. Stated that despite these challenges, it continued to work on the project and has now completed over 90 percent of the contracted work. The company emphasized its willingness to complete the project, contingent upon adherence to contractual principles, including the fulfillment of payment obligations and the completion of work remaining on the part of the city.
The contract termination is set to take effect 14 days from the date of notification, on April 6, 2026.
In August 2025, Lwów authorities appealed to Polish Prime Minister Donald Tusk for intervention in the matter, citing delays in the construction of the waste processing facility. Control Process S.A. Won the international tender for the project in 2021, with a completion date originally set for October 4, 2025.
Control Process S.A. Indicated it would suspend signing any latest contracts in Ukraine until the situation surrounding the Lwów project is resolved, citing concerns about the practical application of international project standards within the country.