Due to systemic violations by the contractor, the contract for the construction of the waste recycling plant in Lviv was officially terminated on 6 April 2026. Control Process S.A. will be required to vacate the construction site within a week. Disputes will be resolved in arbitration at the Chamber of Commerce and Industry of Ukraine.
This decision became inevitable due to the contractor’s consistent failure to fulfil its obligations. LK “Green City” repeatedly demanded proper execution of the contract over the course of the year, but to no avail. Following the termination, an assessment of the completed works will be conducted, and the tender process for a new contractor will commence.
LK “Green City” is acting within the contract and Ukrainian law, whereas the contractor refers to a non-existent “FIDIC arbitration decision”. In reality, FIDIC is an international set of rules, not a court. A Dispute Resolution Board, which could have assisted, was not actually established. Its appointee acted as a private expert for the contractor, contradicting the principle of impartiality.
The contractor’s documents, not signed by a tripartite agreement, hold no legal force. The city plans to challenge them in international arbitration.
Source: Lviv City Council