Lviv has received back €947,000 of an outstanding advance for the construction of a mechanical and biological solid household waste processing complex. The funds were returned under a bank guarantee after the contract with the contractor Control Process S.A. was terminated.
Back in 2021, the Polish company Control Process S.A. received an advance of €3.6 million from the city for the construction of a waste processing complex in Lviv. The contractor was supposed to carry out the works and thereby “offset” this advance, but part of the funds remained outstanding due to non-fulfilment of its obligations.
As of April 2026, about €1 million of the advance had not been returned. In this regard, the municipal enterprise “Zelene Misto” applied to the guaranteeing bank ING Bank Slaski, demanding payment of the guaranteed amount in order to protect the funds of Lviv’s community.
After the appeal to the bank, the now former contractor Control Process S.A. threatened a deterioration in Ukrainian-Polish relations and filed a request for the appointment of an Emergency Arbitrator at the ICC in Paris. All the company’s claims were fully rejected, and on 3 June 2026 the guaranteeing bank transferred €947,000 of the advance to Lviv.
The director of the municipal enterprise “Zelene Misto” Oleksandr Yehorov stressed that the construction of the waste processing plant in Lviv is being financed from the city budget and external funding, and the contractor is paid only for works actually completed. Therefore, in the event that works are not carried out, the city, he said, has both the right and the obligation to demand the return of advance payments.
Due to systemic violations by the contractor, the contract with Control Process S.A. was terminated on 6 April 2026. Further disputes between the parties will be resolved at the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry.