Lviv is terminating the contract for the construction of a waste-to-energy plant due to breaches by the contractor
This has been reported by InVenture.
The contractor has been working on the construction of a mechanical-biological waste treatment plant since May 2021. The contract will expire on 6 April 2026.
The decision was prompted by systematic delays, as the facility was due to be commissioned as early as October 2025. Currently, the main building has not been completed, some of the utility networks have not been laid, and the project documentation has not been handed over to the client in full.
The financial scope of the project, which is being implemented with the support of the EBRD and the E5P fund, amounts to €35 million. Despite the contractor having already received €29 million, the city has identified numerous shortcomings, including the non-delivery of equipment and the obstruction of other specialists’ work on site.
In order to protect the interests of the community, Lviv has already drawn down over €3.6 million from the contractor’s bank guarantee via the Polish ING Bank Śląski.
Despite the breakdown of the current contract, the programme to modernise Lviv’s waste management system continues.
The city plans to engage a new contractor to complete the plant, whilst continuing to cooperate with international donors (in particular the EIB) on the reclamation of the Hrybovychi landfill.
