Polish company under the fire of Ukrainians. “We call on the premiere of Poland for intervention.” There is a second bottom
The interfax communication Ukraine stated that the appropriate appeal was delivered on August 7 by Nazari Berbeka, chairman of the Provisional Control Commission for the Landscape and Communal Enterprise, Zielone City, during the plenary session of the Lviv City Council.
In the document, the councilors emphasized that the Polish company Control Process, which in 2021 won the international tender for the construction of a mechanical and biological plant processing of permanent municipal waste, does not comply with the terms of the contract and disturbed the construction schedule. The company has already received EUR 29 million from the city. We asked Control Process for a comment.
Lost Lviv trial. Right on the side of the Polish company
“The plant construction project was started in May 2021 and is made in 75-80 percent of delays, which have been going on for several years, only result from the fault of the Lviv City Council and the municipal enterprise “Zielone Miasto”, which systematically violates the international contract FIDIC (Yellow Book, 1999). The Polish company Control Process SA, which won the tender, continues to work despite martial law, delays in payments and serious violations of the city's agreement ” – we read in response to Business Insider.
“In 2025, Fidic arbitration proceedings were initiated, in which the city of Lviv appears as the defendant. The arbiter is Robert Werth. The DAB decision of July 18, 2025 contains nine key points that the city lost,” writes Control Process.
Lists nine aspects of her arbitration:
- Responsibility for the cost of expertise – the city is to cover the costs of external expertise
- The right to extend the deadline – the contractor has obtained the right to extend the deadline for the waiting time for the expertise
- Suspension of calculation of contractual penalties – the city cannot charge penalties for delays resulting from the change of documentation
- Confirmation of the correct performance of the obligations – Control Process has performed its obligations in accordance with the contract
- Unauthorized changes in the BOQ (Bill of Quantities) – city demands regarding changes are contrary to the contract
- Payment for the BOQ items made – the contractor is entitled to 100 percent. payment for completed work and proportional payment for work in progress
- Payment for the BOQ positions that have not been made – although they were not made, the city must pay them under a fixed price contract
- Interest for delays in payments – the contractor may demand interest based on the 14.8 clause (“delayed payment”).
- Division of arbitration costs – the city must cover half of the costs
“In accordance with the decision of arbitration, the city must unconditionally within 28 days: to implement all nine decision points, pay out interest for the period from 2021, cover half of the costs of arbitration proceedings, abandon further violations of the contract (including payment delays and failure to comply with the fixed price formula)” – we read in response.
As indicated by the Polish company, Lviv did not perform key works that belonged to him: electrical work and connecting to the transformer station, road construction, parking lots, auxiliary facilities (bunker, sewage treatment plant, reservoirs, guard) and water and sewage works.
“Without these works, the plant (despite 80 percent of readiness) cannot start devices – Control Process SA company He faces a real risk of having to suspend technological starting, “it was indicated in response.
As emphasized by the Polish company, in war conditions, each delay causes multi -million losses, means an increase in the cost of materials and labor. He believes that the actions of the board of “Green City” generate additional financial burdens for Lviv, and the real threat is the complete suspension of work by the contractor within a few months.
The term moved many times
The city indicates that he has repeatedly met with the contractor, extending the dates of work. The agreement itself will expire on October 4, 2025 – Until that day, the Polish company is obliged to complete all start -up works and put the facility to use. However, it is obvious today that this will not happen – the deputies said.
The mayor of Lviv Andriy Sadowy emphasized that it is not only about business relations between the city and the contractor, but also about the image of Poland as a whole.
“At the construction site of the factory in Lviv, the white and red flag of the Republic of Poland flies next to Ukrainian. That is why it is not only about a contract, but also about the business reputation of the state. We call on the Prime Minister of Poland for intervention in this situation as part of national legislation. Lviv is ready to cooperate and expects Control Process to fulfill its obligations. This is a test for the further Ukrainian-Polish economic partnership, “said Andrij Sadowy.
“Green City” also talked about attempts to make it difficult by Control Processes of other contractors involved in the project.
“The largest contract of the Polish company in Ukraine”
“Is the largest contract of the Polish company in Ukraine – over 40 million euros, partly financed from the Ebor loan. This project attracted the attention of the international community and is of great importance for the city community, “said the company.
The deputies call on the Polish prime minister to react as part of their competence to the situation and influence the contractor. Also emphasize that The further development of Ukrainian-Polish economic relations will largely depend on a successful or unsuccessful experience of cooperation with Polish companies.
Control Process according to the data posted in the National Court Register there are no financial problems. Last year It had PLN 590 million of consolidated revenues (-31 percent of the yard) and PLN 5.7 million net profit (+55 % yaws). At the end of the year, it had PLN 23.4 million of liquid funds, which means a decrease by PLN 7.9 million year -on -year.
The company deals with the comprehensive implementation of services in the formula of general contracting in the fields of oil and gas, energy, environmental protection as well as industry and energy trade.
