Waste processing plant in Lviv – why construction was stopped and the contract with the Poles was terminated

Main points

  • Lviv terminated the contract with a Polish company due to non-fulfillment of the conditions for the construction of a waste processing plant.
  • Contractors received warnings about violations, such as incomplete project documentation and refusal to perform certain works.

The contract for a processing plant was terminated in Lviv / Photo Unplash

Construction of a waste processing complex in Lviv, which was contracted by employees of a Polish company, has been halted due to non-compliance with the terms of the contract, but the plant is planned to be completed.

Why was the construction of the waste processing plant stopped?

The reason for the termination of the contract between Lviv and Polish contractors is stated in a statement from the Lviv City Council.

The city has suspended construction of a solid waste processing complex due to the contractors' long-term failure to fulfill their contractual obligations.

Thus, the Green City enterprise sent Control Process SA (the company that performed the work) a notice of termination of the contract on the appropriate grounds.

During 2025, the builders received more than one official warning about breach of contract. In particular, the company did not complete the production of design documentation.

The general plan was not presented to the customer, LKP “Green City”. They also violated the condition for the delivery of some equipment and machinery, which were financed by the Eastern European Partnership Fund for Energy Efficiency and Environment.

Among the violations are, in particular, refusals to perform certain types of work and denial of permission for another contractor to connect electricity to the facility.

It is known that the companies were given the opportunity to correct the situation and eliminate the violations. However, no changes occurred.

According to the terms of the contract, the termination of the contract will take effect 14 days from the date of sending the notice – that is, April 6, 2026,
– the city council noted.

At the same time, they reported that the completion of construction and operation of the plant will be announced in accordance with updated information.

How does Control Process comment on the completion of construction?

LVIV.MEDIA spoke with Krzysztof Haber, executive director of the company's representative office in Ukraine. In his opinion, this situation “harms the reputation of Lviv.”

He explained that the contract was signed in 2021, but the full-scale invasion had consequences for the construction, in particular. Despite the company's agreement to work in dangerous conditions, the problem was allegedly with the authorities. After all, there was not enough money for the construction, and only in 2024 did the city council decide on an additional loan of 17 million euros.

During this period, the contractor did not receive proper payments for the work performed for months. Formally, this gave the company the contractual right to withdraw from the contract due to the customer's fault. However, instead of terminating the contract, Control Process, at the request of the Lviv party, agreed to continue the project. Later, the disputes began to take on a more formal character, when the customer's actions began to directly affect the stability of the contract,
– says Krzysztof Haber.

At the same time, he noted that 3 main factors complicated the construction:

  • war;
  • insufficient funding;
  • failure to fulfill the terms of the contract by the customer.

And despite the fact that the company has completed 90% of the project cost, it is currently impossible to launch the plant because key infrastructure elements are not connected.

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What do you need to know about the work of Ukrainian companies abroad?

  • Operating a national business abroad is an opportunity not only for companies in terms of financial earnings, but also for the country of origin of the business. This will add brand recognition, which will be associated with the relevant country and culture in the market.

  • For example, the Ukrainian “Nova Poshta” is actively working on opening branches abroad. New points may soon appear in Canada and China, as well as in the USA.

  • The Rozetka marketplace, which is already operating in Poland, also has a corresponding development course.

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