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Document 52021PC0431

Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for Czechia

COM/2021/431 final

Brussels, 19.7.2021

COM(2021) 431 final

2021/0245(NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for Czechia

{SWD(2021) 211 final}


2021/0245 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for Czechia

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility 1 and in particular Article 20 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The COVID-19 outbreak has had a disruptive impact on the economy of Czechia. In 2019, the gross domestic product per capita (GDP per capita) of Czechia was 68 % of the EU average. According to the Commission’s Interim Summer 2021 forecast, the real GDP of Czechia declined by 5,6% in 2020 and is expected to decline by 1,9% cumulatively in 2020 and 2021. Longer-standing aspects with an impact on medium-term economic performance include maintaining productivity growth, which requires sustained structural reforms of education, the innovation ecosystem and governance, and targeted investment into infrastructures and R&D. Czechia is not yet fully prepared for the green and digital transitions. Technological changes, such as the automation of production processes, are likely to have a significant impact on Czechia’s economy, given the exposure of its large manufacturing sector, including automotive production. In addition, the pension and healthcare systems pose long-term sustainability risks to public finances and the economy.

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Czechia in the context of the European Semester. In particular, the Council recommended to take measures to support the economic recovery while safeguarding long-term fiscal sustainability and enhancing investment; to ensure the resilience of the health system, strengthen the availability of health workers, primary care and the integration of care, and deployment of eHealth services; to support employment through active labour market policies, the provision of skills, including digital skills, and access to digital learning; to support small and medium-sized enterprises by making greater use of financial instruments to ensure liquidity support, reducing the administrative burden and improving eGovernment; to front-load mature public investment projects and promote private investment to foster the economic recovery; to focus investment on the green and digital transitions, in particular on high-capacity digital infrastructure and technologies, clean and efficient production and use of energy, and sustainable transport infrastructure, including in the coal regions; to remove the barriers hampering the development of a fully functioning innovation ecosystem; to ensure access to finance for innovative firms and to improve public-private cooperation in research and development. Having assessed progress in the implementation of those country-specific recommendations at the time of submission of the recovery and resilience plan, the Commission finds that substantial progress has been achieved with respect to the recommendation on taking all necessary measures to effectively address the pandemic, sustain the economy and support the ensuing recovery.

(3)On 1 June 2021, Czechia submitted its national recovery and resilience plan to the Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. That submission followed a consultation process, conducted in accordance with the national legal framework. The consultation included social partners, local and regional authorities and other relevant stakeholders. The national ownership of the recovery and resilience plans is underpinning their successful implementation and lasting impact at national level and credibility at Union level. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission has assessed the relevance, effectiveness, efficiency and coherence of recovery and resilience plan, in accordance with the assessment guidelines of Annex V to that Regulation.

(4)The recovery and resilience plans should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 and of the EU Recovery Instrument set up by Council Regulation (EU) 2020/2094 2 in order to support the recovery in the aftermath of the COVID-19 crisis. They should promote the Union's economic, social and territorial cohesion by contributing to the six pillars referred to in Article 3 of Regulation (EU) 2021/241.

(5)The implementation of the Member States’ recovery and resilience plans will constitute a coordinated effort of investment and reforms across the Union. Through the coordinated and simultaneous implementation of these reforms and investments and the implementation of cross-border projects, these reforms and investments will mutually reinforce each other and generate positive spillovers across the whole Union. Therefore, about one third of the impact of the Facility on Member States’ growth and job creation will come from spillovers from other Member States.

Balanced response contributing to the six pillars

(6)In accordance with Article 19(3) point (a) and section 2.1 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all six pillars referred to in Article 3 of Regulation (EU) 2021/241, taking the specific challenges and the financial allocation of the Member State concerned into account.

(7)The Czech recovery and resilience plan provides for a comprehensive and balanced response to the crisis caused by the pandemic. The plan includes measures that contribute to all six pillars as defined by Article 3 of Regulation (EU) 2021/241. The plan makes explicit references to the six pillars and how they are being addressed by the measures, and includes components contributing towards at least one or multiple pillars. The plan is composed of a set of investments and reforms focusing on key areas such as digitalisation, the green transition, education and training, access to financing, culture, research and innovation, and healthcare.

(8)The plan envisages forward-looking measures facilitating the digital transformation and green transition of the Czech economy. Such measures include the expansion of eGovernment, including open data and eHealth services, investments in the digitalisation of the country’s justice system, the expansion of very high-capacity and 5G networks, digital innovation and digital skills, and the digitalisation of industry. The plan aims to increase the share of sustainable modes of transport, save energy and reduce greenhouse gas emissions, while contributing to climate mitigation and adaptation objectives, to the preservation and restoration of nature, and to the implementation of circular economy solutions. The measures address the specific socio-economic challenges faced by Czechia, by supporting the innovation ecosystem and skills development in education and training, while taking into account social disparities.

Addressing all or a significant subset of challenges identified in Country Specific Recommendations

(9)In accordance with Article 19(3), point (b) and section 2.2 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations, including fiscal aspects thereof addressed to the Member State concerned or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

(10)The plan includes a set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Czechia by the Council in the European Semester in 2019 and in 2020 notably in the fields of healthcare, skills and education, green and digital transition, transport, supporting businesses and research and innovation. The plan contributes to addressing the structural challenges identified in the country-specific recommendations as it includes a number of investments and reforms which are expected to trigger progress for the Czech economy and society. It focuses strongly on investments in the aforementioned fields in particular in energy, digital infrastructure and sustainable transport. In the energy field, Czechia plans to modernise district heating distribution networks, increase renewable energy sources, improve energy efficiency in residential and public buildings and replace coal-fired boilers for households. Digital and transport infrastructure projects focus on very high-capacity digital and railway networks, which should contribute to building modern and green foundations for future productivity growth.

(11)Those investments are to be supported by a reform of the procedure for granting construction permits, including digitalisation of the process, significantly reducing its length. eGovernment and anti-corruption measures are expected to improve the business environment further. The growth potential and competitiveness of the Czech economy should also be supported by R&D investment, which should target public-private cooperation, access to finance and non-financial support for innovative firms, notably SMEs, improvement of the innovation ecosystem, and it should also focus on industrial, environmental, transport, cultural, digital and healthcare areas. The Council recommendations related to labour market, skills and education are expected to be addressed through requalification schemes, company-based training life-long-learning opportunities, new childcare facilities, digital competences for teachers, an updated curriculum fostering digital skills and literacy and IT equipment for schools, as well as measures focusing on inequalities in education. Healthcare recommendations are expected to be addressed through reinforced cancer prevention and rehabilitation care, development of an eHealth portal fostering integrated care practices and support to education in healthcare. Further complementary actions include measures to improve long-term care. 

(12)The Council recommendations related to the immediate fiscal policy response to the pandemic can be considered as falling outside the scope of Czechia’s recovery and resilience plan, notwithstanding the fact that Czechia has generally responded adequately and sufficiently to the immediate need to support the economy through fiscal means in 2020 and 2021, in line with the provisions of the General Escape Clause of the Stability and Growth Pact.

(13)Long-term sustainability of public finances is however not addressed in the plan. Given the medium- to long-term nature of the challenge, the urgency to address it in the current economic situation is less evident than for the other recommendations. However, Czechia should continue to face medium risks for fiscal sustainability of public finances in the long term, mainly due to the costs of ageing. Improving long-term fiscal sustainability of the pension and healthcare systems thus remains an important challenge to address in the coming years. In addition, the plan takes into account regional disparities when addressing the recommendations only to some extent.

Contribution to growth potential, job creation and economic, social and institutional resilience and implementation of European pillar of social rights

(14)In accordance with Article 19(3), point (c) and section 2.3 to Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of the Member State, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

(15)Simulations by the Commission services show that the plan has the potential to increase the GDP of Czechia by between 0.8% and 1.2% by 2026 3 . The recovery and resilience plan is expected to contribute to economic growth and job creation in Czechia. The plan coherently addresses several identified weaknesses of the economy, notably the industry’s exposure to the risks posed by automation and the green transition, the low levels of R&D funding for early-stage innovative firms, skill mismatch, low labour market participation of women and the low skilled and inefficiencies in public administration.

(16)The plan addresses those weaknesses and vulnerabilities in particular through channelling financial and non-financial support to SMEs, large enterprises and projects, enabling them to participate in green and digital transition, investments into transport, measures aiming at improving the research and innovation ecosystem, promoting science-business cooperation and financing digitalisation and research and innovation in strategic sectors in accordance with the Smart specialisation strategy and providing early-stage financing to start-ups. Measures addressing the adaptability of the workforce include the revision of curricula and upskilling and reskilling actions, whereas the low labour market participation of women with small children is addressed by increasing the capacity of childcare facilities. The plan envisages measures to foster the use of eGovernment services, to simplify construction permission procedures and to enhance corruption prevention through legislative action, which should contribute to improving the business environment for private investors.

(17)The recovery and resilience plan contributes to addressing several social challenges relevant for Czechia and supports the implementation of the European Pillar of Social Rights. The measures are expected to support social cohesion and address multiple challenges in that field. The provision of very-high-capacity networks to rural areas is expected to mitigate the urban/rural divide in access to connectivity. Reinforced support of schools with a higher share of pupils from a disadvantaged socio-economic background and IT equipment for disadvantaged pupils and students should help address inequalities in education. Increasing pre-school education and training capacities should reinforce equal opportunities and foster women’s labour market participation. Other important measures addressing the needs of children include curricular reforms to strengthen digital competences of pupils and the use of digital resources.

(18)The investment in public transport networks and digital connectivity infrastructure is particularly relevant for structurally disadvantaged regions and low-wage earners in urban areas. Measures are also expected to support the decarbonisation of district heating and energy savings of households. In addition, the investment in replacing polluting coal-fired heating systems by heat pumps and biomass boilers in residential buildings of low-income families should decrease energy poverty and reduce the costs of green investment. The social needs of the vulnerable should also be supported by easier access to health screening programmes and by increased capacity in social care and investment in social care infrastructure.

Do no significant harm

(19)In accordance with Article 19(3), point (d) and section 2.4 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in the recovery and resilience plan does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council 4 (the principle of ‘do no significant harm’). Czechia has conducted a ‘do no significant harm’ assessment of measures included in the plan. The potential harmful environmental impact of all relevant measures should be addressed through appropriate assurances, including relevant milestones and targets, ensuring that the applicable environmental criteria are met. Where needed, milestones should be established to ensure the implementation of mitigating measures to avoid significant harm. That is the case for measures supporting the modernisation of district heating distribution networks, replacement of coal-fired boilers by gas-condensing and biomass-based boilers in residential and public buildings, and flood protection.

Contribution to the green transition including biodiversity

(20)In accordance with Article 19(3), point (e) and section 2.5 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 41,6% of the plan’s total allocation, calculated in accordance with the methodology of Annex VI to Regulation (EU) 2021/241. In accordance with Article 17 of Regulation (EU) 2021/241, the recovery and resilience plan is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(21)Investments in renewable energy sources, modernisation of district heating distribution networks, replacement of coal-fired boilers and improving the energy efficiency of residential and public buildings are expected to help Czechia achieve its 2030 decarbonisation objectives and to support the transition to a circular economy. The investments in gas and biomass are subject to specific conditions and should be guided by the sustainability criteria for renewable energy sources to be adopted by Czechia. The investments in sustainable transport should improve railway infrastructure and clean mobility infrastructure, including electro-mobility. That is expected to boost the overall mobility ecosystem, which is key for the Czech economy.

(22)Reforms and investments related to nature protection and water management are expected to help address to some extent the challenges Czechia faces with respect to climate adaptation and to the protection of water sources, nature and biodiversity.

Contribution to the digital transition

(23)In accordance with Article 19(3), point (f) and section 2.6 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 22,1% of the plan’s total allocation calculated in accordance with the methodology of Annex VI to Regulation (EU) 2021/241.

(24)The plan puts forward ambitious measures for the digital transformation of the Czech economy taking a comprehensive approach, which contributes to the development of the national layer of the European digital ecosystem. The proposed measures combine investing in very high-capacity and 5G networks, technological demonstration projects, building quantum communication infrastructure, aiding companies in exploiting the opportunities of digital innovation, and facilitating the transfer of know-how with the help of digital innovation hubs and testing and experimentation centres. In order to respond to the changing needs of the labour market, the recovery and resilience plan also promotes digital skills through upskilling and reskilling programmes as well as a digital reform of education. Measures to provide teachers and pupils with digital skills are combined with the provision of IT equipment and connectivity to schools and pupils, while taking into account regional and social disparities.

(25)The reforms should ensure that changes of the digital transformation remain sustainable and effective. Under the Czech plan, the provision of eGovernment services and eHealth should be expanded, which is expected to increase the efficiency of public administration and improve the business environment. Changes to the construction permission procedure and its digitalisation should be implemented to speed up and simplify the relevant processes. Reforming the curricula in primary and secondary education should support the development of digital literacy of pupils in Czechia. The plan also introduces an improved governance model to oversee the digital transformation and digital innovation effectively and to support technology start-ups. Hence, the plan is expected to address important aspects of digital transformation and the digital ecosystem as a whole, and thereby improve the competitiveness of the Czech economy.

Lasting impact

(26)In accordance with Article 19(3), point (g) and section 2.7 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a lasting impact on Czechia to a large extent (Rating A).

(27)The recovery and resilience plan of Czechia presents a set of reforms and investments with a focus on the latter, which have the potential to have a lasting impact on Czechia. The plan introduces measures aiming to bring structural changes in public administration, transport, energy savings and energy resources of households, skills and education, anti-corruption, research and innovation and access to health and long-term care. The plan puts forward an ambitious agenda for the digitalisation of business and a supportive recovery agenda for strengthening the innovation ecosystem, which should foster sustainable growth and increase the competitiveness of Czechia.

(28)Sizeable investments are expected to bring lasting changes to the Czech economy. The investment in sustainable modes of transport, such as railways, and in energy efficient renovation of housing stock and public buildings, should reduce air pollution, aid the green transition and contribute to territorial cohesion. The investments in innovative start-ups, SMEs and large enterprises through various funding schemes, coupled with the strengthening of the innovation ecosystem and public-private cooperation and investment in very high-capacity networks, should foster innovation and the competitiveness of Czech businesses, whilst contributing to the green and digital transitions. The planned investments for the digital transition of Czechia’s justice system have a good potential to strengthen its efficiency and resilience and improve access to justice. Healthcare reforms are supported by investment in specialised care, eHealth, screening programmes and comprehensive rehabilitation care as well as in excellent research in selected healthcare fields, which may improve health outcomes. Investments in education, training and social care aid social cohesion and contribute to cushioning the potential impact of changing labour market trends and demographics. Those investments are complemented by further investment in project preparation, training, awareness raising, methodological and analytical support at the central, regional and local levels to foster the green and digital transitions and maximise the impact and the absorption of additional resources, including funds from the Recovery and Resilience Facility. The lasting impact of the plan may also be enhanced through synergies between the plan and other programmes financed by the cohesion policy funds, notably by addressing in a substantive manner the deeply rooted territorial challenges and promoting balanced development.

Monitoring and implementation

(29)In accordance with Article 19(3), point (h) and section 2.8 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan, to the extent they are complemented by the additional measures contained in this Decision as milestones, are minimum (Rating B) to ensure effective monitoring and implementation of the recovery and resilience plan, including the envisaged timetable, milestones and targets, and the related indicators.

(30)The national arrangement for the implementation of the recovery and resilience plan are set out in Government resolution No 467 of 17 May 2021. The Managing Council of the national recovery and resilience plan is the highest decision-making and approval body with the responsibility for the overall coordination and monitoring of the recovery and resilience plan. The Ministry of Industry and Trade, as the responsible authority for the recovery and resilience plan and its implementation, is responsible for coordination, monitoring and reporting of the recovery and resilience plan and is the main point of contact for the Commission. That body should draw up requests for payments to the Commission, once the component owners declare that the respective milestones have been fulfilled and the audit body at the Ministry of Finance carries out the system audit, which includes substantive testing of declared milestones and targets. Following a recent audit on other EU programmes, the Ministry of Industry and Trade has received a qualified audit opinion due to the absence of effective measures targeting the prevention, detection and correction of cases of conflict of interest. Dedicated milestones shall be established to ensure that those weaknesses will have been addressed before the first payment request.

(31)Member States should ensure that financial support under the Facility is communicated and acknowledged in line with Article 34 of Regulation (EU) 2021/241. Technical support may be requested under the Technical Support Instrument or other sector-specific tools such as the Horizon Policy Support Facility to assist Member States in the implementation of their plan. 

Costing

(32)In accordance with Article 19(3), point (i) and section 2.9 of Annex V to Regulation (EU) 2021/241, the justification provided in the plan on the amount of the estimated total costs of the recovery and resilience plan is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(33)Czechia has provided estimates relying on appropriate justification, evidence and methodology for the majority of the costs of the measures included in the plan. Costing information and supporting documents have been provided to a medium extent. In many cases, costs have been benchmarked with reference to past projects or tender data of similar investments carried out in Czechia or other Member States. Where this was not possible, cost estimates have mostly been provided using bottom-up approaches based on market prices of the large cost drivers. For several smaller measures, detailed explanations of the cost estimates or supporting documentation have been limited. According to that information, there are no indications that the overall reasonability, plausibility and additionality of the cost estimates would be impaired. Finally, the estimated total cost of the recovery and resilience plan is in line with the principle of cost-efficiency and is commensurate to the expected national economic and social impact.

Protection of financial interests

(34)In accordance with Article 19(3), point (j) and section 2.10 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan, to the extent they are complemented by the additional measures contained in this Decision as milestones are adequate (Rating A) to prevent, detect and correct corruption, fraud and conflicts of interests when using the funds provided under that Regulation, and the arrangements are expected to effectively avoid double funding under that Regulation and other Union programmes. This is without prejudice to the application of other instruments and tools to promote and enforce compliance with EU law, including for preventing, detecting and correcting corruption, fraud and conflict of interest, and for protecting the Union budget in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council.

(35)The internal control system described in the recovery and resilience plan, as complemented by the additional measures contained in this Decision as milestones, is based on robust processes and structures and clearly identifies actors and their roles and responsibilities for the performance of the internal control tasks. The internal control system consists of the levels: (i) management verifications carried out by component owners and coordinating body at the level of the Ministry of Industry and Trade; and (ii) audits carried out by the national audit body centralised at the Ministry of Finance. Altogether, the description of the internal control system and other relevant arrangements in the recovery and resilience plan, including for the collection and making available of data on final recipients are acceptable with respect to preventing, detecting and correcting corruption, fraud, conflict of interests when using the funds under Regulation (EU) 2021/241 and to avoid double funding under that Regulation and other Union programmes.

(36)Additional milestones are set requiring (i) a compliance review of the national procedures to ensure that the application of beneficial ownership in the context of the Facility’s internal control system is fully aligned with the definition of ‘beneficial owners’ as defined in Article 3, point 6 of Directive 2015/849, as amended by Directive 2018/843, (ii) the coordinating body to issue guidance on the avoidance and management of conflict of interests under the Financial Regulation and applicable national law for the component owners and other entities implementing reforms and investments under the recovery and resilience plan. This should further strengthen the measures to protect the EU budget against fraud and irregularities, (iii) the audit body to adopt an audit strategy ensuring the independent and effective audit of the RRF implementation, and (iv) the Managing Council of the national recovery and resilience plan to approve and implement procedures for the system to collect, store and process data in relation to all final recipients, including all beneficial owners as established by Article 3 of the Directive (EU) 2015/849. All these milestones shall be fulfilled before the first payment request is submitted to the Commission.

(37)Although the description of the internal control system and other arrangements to prevent, detect and correct conflict of interests is acceptable, taking into account the serious deficiencies in the Czech management and control system to avoid conflict of interests, as verified by a recent audit on other EU programmes, a dedicated audit on effectiveness of the internal control system shall be undertaken by the audit body. The report shall provide an unqualified audit opinion on the effectiveness of the internal control system to avoid conflict of interests at the level of the recovery and resilience plan, in particular that (i) collection, storage and processing data in relation to all final recipients, including all beneficial owners as established by Article 3(6) of the Directive (EU) 2015/849, (ii) internal control system to prevent, detect and correct conflict of interests situations is in accordance with Article 61 of the Financial Regulation, and (iii) national control procedures to avoid conflict of interests situations for all beneficial owners are effective. In accordance with Article 20(5)(e) of Regulation (EU) 2021/241, Czechia should implement these measures in order to comply with Article 22 of that Regulation, by confirming their implementation with the first payment request. The report should describe identified weaknesses and deficiencies and corrective actions taken.

(38)Czechia has indicated that an information system for the management and reporting of the milestones and targets is under discussion in order to meet specific management and reporting requirements described in the recovery and resilience plan. A milestone should ensure that a repository system for monitoring the implementation of the Facility should be put in place and be operational by the time of the first payment request. The system should include, as a minimum, the following functionalities: (a) ensure the collection of data and monitoring of the achievement of milestones and targets; and (b) collect, store and ensure access to the data required by Article 22(2)(d)(i) to (iii) of Regulation (EU) 2021/241, pursuant to its Article 22(2)(e). 

(39)A robust anti-corruption framework is indispensable in preventing, detecting and correcting irregularities like fraud, corruption, or conflict of interests when using the funds under Regulation (EU) 2021/241. For the prevention, detection and correction of fraud, corruption and conflicts of interests the strengthening of the legislative framework to better prevent corruption is required in the context of the Plan’s implementation.

Coherence of the plan

(40)In accordance with Article 19(3), point (k) and section 2.11 of Annex V to Regulation (EU) 2021/241, the plan includes to a medium extent (Rating B) measures for the implementation of reforms and public investment projects that represent coherent actions.

(41)The Czech recovery and resilience plan presents a comprehensive package of measures with a strong investment focus. The plan is built on six priorities, namely digital transformation, sustainable transport infrastructure, education and labour market, institutions and business support, research and innovation, and health and resilience of the population. Those priorities are implemented through twenty six components. Synergies are present across a number of components. The plan ensures an overall balance between reforms and investments. Yet, for some components, investment is not accompanied by relevant reforms. The need for establishing systematic complementarities with Cohesion Policy funding is evident and some examples are presented in the components. Demarcation lines are sufficiently developed but should also depend on the finalisation of the Partnership Agreement and Cohesion policy programmes.

Equality

(42)Czechia’s recovery and resilience plan contains a series of measures that are expected to address the country’s challenges in the area of gender equality and equal opportunities for all. As regards gender equality, the plan is designed to increase the labour market participation of women with young children through ample investment in pre-school facilities for children below the age of three. The plan also includes a legislative reform to better target active labour market policies at the most vulnerable groups. The part of the plan addressing inequalities in education includes reinforced support for schools with a high proportion of children from disadvantaged socio-economic backgrounds, training and mentoring of teachers dealing with heterogeneous groups of pupils, and additional tutoring for children at risk of failure due to prolonged school closures. The plan also envisages investment in digital equipment of schools to ensure access to learning for disadvantaged pupils and students. However, the plan does not mention explicitly how the measures are expected to tackle the challenges faced by the Roma community. The situation and needs of people with disabilities are addressed in several parts of the plan, including in relation to the new construction code, renovation of buildings and their improved accessibility, digitalisation, eHealth and social care. The challenges faced by older people are also addressed, in particular through improving the quality and accessibility of long-term care, social care and healthcare. Specific investment in energy efficiency for households of disadvantaged social groups is planned.

Security self-assessment

(43)The plan includes a security-self assessment for investments in digital capacities and connectivity in accordance with the Article 18(4), point (g) of the Regulation (EU) 2021/241. The plan foresees investments in digital infrastructure such as high-capacity and 5G networks, ICT infrastructure including cloud for eGovernment, cybersecurity developments and quantum communication infrastructure.

 Cross-border and multi-country projects

(44)The plan proposes several projects with a cross-border dimension, mostly with regard to the digital transition. It supports research and development in enterprises and European and national Digital Innovation Hubs to stimulate the digital transformation of SMEs, as well as the set-up of a European facility for testing and experimentation. The plan envisages several investments, which form part of cross-country initiatives or networks, including a new European AI excellence centre, a potential IPCEI on Microelectronics and Connectivity with a particular focus on microprocessors, the creation and capacity building of knowledge transfer for digital technologies, and the European Blockchain Service Infrastructure. The plan also supports the construction of Quantum Communication Infrastructure, the participation of Czechia in 5G networks and the application of 5G-ecosystems across the Member States.

Consultation process 

(45)The Czech authorities have conducted a consultation process prior to the submission of the plan, in accordance with the national legal framework, mainly through a tripartite forum with the representatives of social partners. The plan also underwent a standard inter-ministerial consultation and a parliamentary debate. To ensure ownership by the relevant actors, it is crucial to involve all local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the plan.

Positive assessment

(46)Following the positive assessment of the Commission concerning the Czech recovery and resilience plan with the finding that the plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of that Regulation, this Decision should set out the reforms and investment projects necessary for the implementation of the plan, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the plan in the form of non-repayable financial support.

Financial contribution

(47)The estimated total cost of the recovery and resilience plan of Czechia is CZK 179 142 931 000, which equals EUR 7 035 697 549 on the basis of the EUR CZK ECB reference rate of 1 June 2021. As the recovery and resilience plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241 and, furthermore, as the amount of the estimated total costs of the recovery and resilience plan is lower than the maximum financial contribution available for Czechia, the financial contribution allocated for Czechia’s recovery and resilience plan should be equal to the amount of the estimated total costs of the recovery and resilience plan.

(48)In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the maximum financial contribution for Czechia is to be updated by 30 June 2022. As such, in accordance with Article 23(1) of that Regulation, an amount for Czechia should be made available now for a legal commitment by 31 December 2022. Where necessary following the updated maximum financial contribution, the Council, on a proposal from the Commission, should amend this Decision to include the updated maximum financial contribution without undue delay.

(49)The support to be provided is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 2020/2053 5 . The support should be paid in instalments once Czechia has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan.

(50)Czechia has requested pre-financing of 13% of the financial contribution. That amount should be made available to Czechia subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241.

(51)This Decision should be without prejudice to the outcome of any procedures relating to the award of Union funds under any other Union programme than Regulation (EU) 2021/241 or to procedures relating to distortions of the operation of the internal market that may be undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override the requirement for Member States to notify instances of potential State aid to the Commission under Article 108 of the Treaty,

HAS ADOPTED THIS DECISION:

Article 1
Approval of the assessment of the recovery and resilience plan

The assessment of the recovery and resilience plan of Czechia on the basis of the criteria provided for by Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the recovery and resilience plan, the arrangements and timetable for monitoring and implementation of the recovery and resilience plan, including the relevant milestones and targets, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.

Article 2
Financial contribution

1.The Union shall make available to Czechia a financial contribution in the form of non-repayable support amounting to EUR 7 035 697 549. An amount of EUR 3 537 379 398 shall be available to be legally committed by 31 December 2022 6 . Subject to the update provided for in Article 11(2) of Regulation (EU) 2021/241 calculating an amount for Czechia equal to or more than this amount, a further amount of EUR 3 498 318 151 shall be available to be legally committed from 1 January 2023 until 31 December 2023.

2.The Union financial contribution shall be made available by the Commission to Czechia in instalments in accordance with the Annex. An amount of EUR 914 640 681 shall be made available as a pre-financing payment, equal to 13 per cent of the financial contribution. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

3.The pre-financing shall be released subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241. Pre-financing shall be cleared by being proportionally deducted against the payment of the instalments.

4.The release of instalments in accordance with the Financing Agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Czechia has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan. Subject to the entry into force of the legal commitments referred to in paragraph 1, to be eligible for payment, milestones and targets shall be completed no later than 31 August 2026.

Article 3
Addressee

This Decision is addressed to the Czech Republic.

Done at Brussels,

   For the Council

   The President

(1)    OJ L 57, 18.2.2021, p. 17.
(2)    Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L 433I , 22.12.2020, p. 23).
(3)    Such simulations reflect the overall impact of NGEU, which also includes funding for ReactEU, and increased funding for Horizon Europe, InvestEU, JTF, Rural Development and RescEU. Such simulation does not include the possible positive impact of structural reforms, which can be substantial
(4)    Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).
(5)    OJ L 424, 15.12.2020, p. 1.
(6)    This amount corresponds to the amount available for legal commitment by 31 December 2022 after deduction of Czechia’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation
Top

Brussels, 19.7.2021

COM(2021) 431 final

ANNEX

to the

Proposal for a Council Implementing Decision

on the approval of the assessment of the recovery and resilience plan for Czechia

{SWD(2021) 211 final}


ANNEX

A. COMPONENT 1.1: Digital Services to Citizens and Businesses

This component of the Czech plan shall support addressing the challenge of the incipient provision of digital public services, by increasing the number and user-friendliness of digital public services provided to citizens and businesses, and ensuring consistent, high-quality data management in the public administration. According to the results of the Digital Economy and Society Index (DESI 2020), Czechia presents a below average level of provision of digital public services to citizens and businesses.

The aim of this component is to create client orientated portals (Citizens, Justice, Entrepreneur, Healthcare) and promote the facilitation of data sharing and management within the administration to align with the once-only principle.

The implementation of the reforms under this component shall ensure the conditions for the sound management of databases and for controlled access to data. They shall also facilitate the provision of eHealth solutions, including the development of an eHealth portal, increased interconnectivity and interoperability of healthcare providers and central records, telemedicine and secondary use of health data.

The investments aim at implementing 22 projects improving eGovernment services provided to end-users and five projects increasing access to open data in public administration. The component shall also increase the digitalisation of the justice system by equipping courts with audio-visual recording and data production facilities and by creating a Justice Portal providing easy access and digital services to concerned parties.

The component supports addressing Country Specific Recommendation 3 2019, according to which Czechia shall focus investment-related economic policy on digital infrastructure, Country Specific Recommendation 1 2020, according to which Czechia shall strengthen the deployment of e-health services, and Country Specific Recommendation 3 2020, according to which Czechia shall support small and medium-sized enterprises by reducing the administrative burden and focus investment on the digital transition.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). 

A.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Conditions for quality data pool management and ensuring controlled data access

The reform shall establish a comprehensive legislative, standardisation and organisational framework for high-quality governance and public administration data management. The reform shall lead to the creation of a data-sharing (”managed access”) tool to allow other parts of the public administration, as well as qualified third entities, access to non-public government data in line with the FAIR principles (Findability, Accessibility, Interoperability, and Reusability). The reform shall incorporate into Czech law the principles of good data management.

The implementation of this measure shall be completed by 31 December 2025.

Reform 2: eHealth services

This reform shall increase the digitalisation of the health sector by implementing the following activities:

·definition of interoperability standards in accordance with the European Interoperability Framework for eHealth and definition of rules governing telemedicine;

·creation of a service catalogue, including the following new eHealth services: (i) Catalogue of standards; (ii) Catalogue of digital services; (iii) Reference register of health professionals; (iv) Patient reference register; (v) Identification/authentication services for patients and health care professionals; (vi) Patient Summary Services; (vii) eOrder services;

·extending the functionalities of the National Health Information Portal to include additional functionalities for the public, patients, health service providers and other authorised entities;

·connection of the most important health service providers to eHealth services according to interoperability rules and full operation of eHealth portal with increased functionality and service catalogue;

·strengthening the cybersecurity of the healthcare providers within the meaning of Act No 372/2011 in Prague and the cybersecurity of the government bodies under the Ministry of Health.

The reform shall be completed by 31 December 2025.

Investment 1: Digital services for end-users

The investment shall implement interconnected projects in order to increase the number of eGovernment services available through Citizens’ and Entrepreneurs’ portals and the number of forms pre-filled based on the information stored in the information system in the public administration. The investment shall lead to easier and simpler access for citizens and business to digital public services via a single platform of federated portals and to the connection of information systems including systems supporting sanitary measures in relation to the COVID-19 pandemic. As a result, an increased number of digital services shall become available to end-users via a single login surface and the number of pre-filled forms and electronic submission to public administration shall increase.

This investment shall be completed by 31 March 2026.

Investment 2: Development of open data and a public data fund

The investment shall include one programme with four interlinked projects aimed at fostering the publication of new open and public data sets. These projects shall consist of the publication of code lists used in public administration in public databases, the development of a national open data catalogue, the improvement of tools for accessing statistical information, and the creation of a modern meta-information system for the bodies of the State Statistical Service.

This investment shall be implemented by 31 December 2024.

Investment 3: Digital services for justice

The investment has the objective to increase transparency of the national justice system by creating an eJustice portal that meets cybersecurity requirements and provides online services and access to information to end-users. This portal shall be interconnected with the Citizen’s Portal. Moreover, transparency and efficiency shall be further increased by digitalising the records of court hearings and by equipping court hearing rooms with audio-visual data recorders.

This investment shall be implemented by 31 December 2023.

A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

1

Reform 1: Conditions for quality data pool management and ensuring controlled data access

Milestone

Finalisation of data audit at the levels of the central government, and adoption of the conceptual document “Strategy of controlled access to data to ensure conditions for quality management of the public administration data collection” by the Government, forming a basis for new data management legislation

Conclusion of data audit of central government bodies (a total of 32 institutions), and adoption of the strategy conceptual document by the government.

Q4

2023

The data audit and the consequent strategy shall serve as a basis for the preparation of legislative changes to incorporate good data management in public administration in line with the FAIR principles and in line with the envisaged European Data Governance Act

2

Reform 1: Conditions for quality data pool management and ensuring controlled data access

Target

Introduction of new data management methodologies in public administration

Number of public administration authorities

0

32

Q4

2025

Standards for good data management in line with the FAIR principle to be developed for application in public administration, which shall be adopted and implemented by the authorities.

3

Reform 2: eHealth

Milestone

Definition of interoperability standards in accordance with the European Interoperability Framework for eHealth and definition of rules governing telemedicine

Adoption of standards and rules by the Ministry of Health

Q1

2022

The measure shall lay down the standards, rules and requirements governing interoperability by healthcare providers and shall serve as a basis for adaptation of the health systems. Rules governing telemedicine services shall be laid down to define the conditions of providing such services.

4

Reform 2: eHealth

Target

Number of new telemedicine services introduced and made available to patients

Number

0

5

Q4

2025

New telemedicine services developed and made available to patients following the approval of project delivery by the Ministry of Health.

5

Reform 2: eHealth

Target

Completion of projects leading to the implementation of new digital health services.

Number

1

8

Q4

2025

Completed projects shall include Smart quarantine 2.0; promotion of digital health services; eHealth portal solutions and secondary use of health data. These projects shall lead to the introduction of the following services:
(1) Catalogue of standards, (2) Catalogue of digital services

(3) Reference register of health professionals (4) Patient reference register, (5) Identification/authentication services for patients and health care professionals, (6) Patient Summary Services, (7) eOrder services

6

Reform 2: eHealth

Target

Connection of health service providers / medical facilities to eHealth services according to interoperability rules and full operation of eHealth portal with increased functionality and service catalogue

0

15

Q4

2025

The measure should result in connecting healthcare providers in an interoperable system to e Health portal, which the providers shall be able to use for entry of information and communication with inter alia citizens, health service providers and health insurance companies.

7

Investment 1: Digital services for end users

Milestone

Full operation of the Single Digital Gateway

Entry into operation of the Single Digital Gateway providing the services to citizens and businesses

Q4

2022

A single platform for citizens and businesses enabling at least: submission of an initial application for admission to a public higher education institution; application for designation of applicable legislation in accordance with Title II of Regulation (EC) No 883/2004 on the coordination of social security systems; application for a pension and pre-retirement benefits from compulsory schemes; application for funding for higher education, for example in the form of a scholarship and loan from a public authority or institution.

8

Investment 1: Digital services for end users

Milestone

Connection of Sick Note system to Regional Hygiene Stations and the Smart Quarantine project developed to fight COVID-19 infection in the population and completion of development of 3 information systems

Successful connection of existing systems and development of new systems

Q4

2023

Connection of Sick Note, Regional Hygiene Station and Smart Quarantine completed aiming at reducing administrative complexity and improvement of systems developed during the COVID-19 pandemic and development and improvement of further 3 information systems: DIP – Information Obligations Database.:Global Distribution System in tourism; expansion of State Material Reserves Administration (SSHR).

9

Investment 1: Digital services for end users

Milestone

Full operation of 4 information systems

Entry into operation of the four developed information systems providing services to end-users

Q4

2024

The following projects shall be completed: Digital Registry development; Single Control Record Portal (JePEK); SIS_2 Tools for the Central Processing of Statistical Task; e-Tourism

10

Investment 1: Digital services for end users

 Target

Completion of the listed projects leading to an increase of the number of filled forms sent by natural and legal persons to state authorities in a digital way (through portals or digital mailboxes)

 

Number

 26 839 874

 

53 679 748

Q1 

2026 

The measures shall lead to a 100% increase in the number of electronic filled forms submitted through portals and data mailboxes between 1 January 2025 and 31 December 2025 against the reference basis of 2019.This shall be achieved by the completion of the following underlying projects: implementation of legislative changes in Real Estate Cadastre Information System (ISKN); new digital services for small organisations; Digital service under the Integrated Information System of the Czech Social Security Administration (IIS ČSSZ); Investment screening system; nDIS establishment new tax information system; Entrepreneur’s portal; Public Administration Portal 2.0 (Citizen’s Portal); SIS1_Single Point of Collection – Uniform Interface for data provision; Technical and patent information system services; electronic submission to the department of the environment; development of submissions to Czech Social Security Administration and the link to digital services to the public administration; further development of the Czech Social Security Administration – Information and communication interface – Unified portal solution for work and social affairs and its connection of the digital service to public administration; development of the new web presentations for the Ministry of Agriculture.

 11

Investment 2: Development of open data and public data

 Milestone

Extension of National Open Data Catalogue with advanced functionalities

Fully functional National Open Data Catalogue with advanced functionalities and services, including the completion of the listed projects.

 

 

 

 Q4

2022 

The National catalogue of open data shall register and publish open and public data and information from the whole public administration in one place. It shall have advanced functionalities for searching, increase in catalogued data and services including the publication of code lists in a public data fund; new tools for accessing statistical data and meta-system for State Statistical Services.

 12

Investment 2: Development of open data and public data

 Target

Increase in the number of open data producers in the public administration publishing open data in the National Open Data Catalogue

 

Number of new public entities

23 

 100

 Q4

 2024

 The investments shall lead to an increase of 77 new entities publishing open data in the public administration.

13

Investment 3: Digital service for justice

Milestone

Deployment of a new technology platform of the Justice Portal, which shall make digital services available to citizens and shall be connected to the central Citizen’s Portal

The update and full operation of the Justice Portal with extended functionalities

Q4

2023

The measure shall create a new Justice portal connected to the Citizen’s portal. Functionalities and design shall be defined following needs assessment and user surveys. The redesign of justice.cz portal shall be implemented in 8 packages of thematically similar sites. Each package will consist of a user-oriented survey phase and design phase of the content.

14

Investment 3: Digital service for justice

Target

Equipment of courtrooms with audio-visual data recorders

Number of courtrooms

370

1100

Q4

2023

The measure shall procure audio-visual equipment for courtrooms in order to enable digital recording of hearings and procedures for greater transparency.

B. COMPONENT 1.2: Digital Public Administration Systems

This component of the Czech recovery and resilience plan aims to address the challenge of stepping up the digital transformation in the Czech public administration and fostering collaboration and exchange between public institutions.

It aims at ensuring the development of interconnected data pool of the public administration’s IT systems, supporting and enabling component 1.1, which supports the expansion of eGovernment services provided to end-users. The component shall develop core registers, including health registers, and connect public administration databases and relevant IT systems in order to reduce the complexity of procedures for companies and citizens and ensure secure data-sharing within the public administration.

The implementation of the reforms under this component aims to ensure a standardised and coherent approach to the development of agenda information systems within the public administration. They shall provide expertise and consulting services via Competence Centres. They shall also develop and consolidate the fragmented health registries to prepare them for the provision of shared services and information exchange.

Investments shall focus on developing and connecting core registries, on fostering the interconnection and update of age-related agenda information systems, on investing in equipment and infrastructure for eJustice services, and on improving the cybersecurity of the public administration.

The component supports addressing Country Specific Recommendation 2019 3, according to which Czechia shall focus investment-related economic policy on digital infrastructure, Country Specific Recommendation 2020 1, according to which Czechia shall strengthen the deployment of e-health services, and Country Specific Recommendation 2020 3, according to which Czechia shall support small and medium-sized enterprises by reducing the administrative burden and focus investment on the digital transition.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). 

B.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Centers of competence for supporting eGovernment, Cybersecurity and eHealth

The reform shall establish eGovernment competence centres, which shall provide guidance, expertise, consulting services and common standards across the public administration, in order to ensure the coherent implementation of the measures for digitalisation and modernisation of information systems envisaged under both components 1.1 and 1.2. This shall be implemented through three competence centres (Cybersecurity-; eHealth-; eGovernment Competence Centres) anchored in the public administration, delivering support to public authorities in areas of analysis, system architecture, user experience and user interface design, cyber security or portal solutions, and project management.

This reform shall be implemented by 31 December 2025.

Reform 2: Developing systems supporting the digitalisation of health

The reform shall accelerate and facilitate the creation of a coherent e-health infrastructure, including the stabilisation and standardisation of the healthcare data pool. The measure is divided into several interlinked projects implementing reference registers of Health Service Providers, Health Professionals and Patients, interconnected with eGovernment reference registers; health registers of the hygienic service and health registers of oncological, cardiovascular and other diseases; project to build information system for management support of Hygienic service in Czechia; extension of the existing functionality of ePrescription include prescriptions for narcotic drugs and psychotropic substances and the introduction of the electronic voucher service, building infrastructure supporting the system of care for patients with rare diseases.

The measure also includes the provision of training programmes to expand the use of eHealth and digital services in the health sector, aimed primarily at healthcare staff.

The reform shall be implemented by 31 December 2025

Investment 1: Developing and improving individual information systems

The investment shall consist of projects aiming at updating, improving and connecting back-end age-related information systems, which shall enable the provision of new and enhanced services to citizens and businesses in the areas of employment policy, social security, medical assessment, statistics, passport and visa and services as foreseen under component 1.1. These projects shall lead to the improvement of ten information systems in total.

The investment shall be implemented by 31 December 2025.

Investment 2: Developing core registries and facilities for eGovernment

The investment shall create and upgrade core registers in Czechia, notably the Register of Individuals, Population Register, Register of Rights and Obligations, Register of Territorial Identifications, Addresses and Real Estate, ORG Information System, and shall include the development of a Shared Service Information System that connects data from different information systems into an interconnected datapool. This shall be achieved through twenty interconnected projects. Beyond the registries, the new facilities shall include a new data centre and the development of an eGovernment cloud for computing services and development of technological infrastructure of public administration.

This investment shall be implemented by 31 March 2026.

Investment 3: Cybersecurity

The investment shall aim at increasing the cybersecurity of the public administration and healthcare ICT infrastructure and information systems, under the Cybersecurity Act, in line with the National Cybersecurity Strategy. The measure shall include projects, which shall lead to i) the modernisation and expansion of police forces’ capacity in Czechia to detect, identify and respond to security and ICT incidents and to ii) the increased cybersecurity of at least ten information systems.

The investment shall be implemented by 31 December 2025

Investment 4: Creating the conditions for digital justice

The investment aims to modernise the working environment of the judicial system and enable the continuation of work in times of limited physical contacts, thereby increasing the resilience of the national justice system. The investment consists of three interconnected projects, which shall include i) the analysis of the use of data and mapping the needs of digitalisation in the justice sector, along with the deployment of a data warehouse and increased storage capacity, ii) the capacity increase of infrastructure enabling remote access and iii) increasing the number of equipped videoconferencing rooms for the judiciary.

The investment shall be implemented by 31 December 2024.

B.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

15

Investment 1:

Development of information systems

Milestone

Successful establishment and operation of universal contact point enabling clients to communicate with the public administration in one place.

Two key systems of the Czech public administration shall be operational, namely the CzechPOINT 2.0 system (in relation to citizens and officials) and the Central Authentication space of the public administration, the so called CAAIS (for officials)

Q4

2022

The milestone shall implement the CzechPOINT 2.0 system providing the public with the range of assisted services, extracts from public administration information systems and the possibility to submit filled forms to or communicate with the state administration. The milestone shall also include the Information system for Central Authentication (called CAAIS). The milestone is considered fulfilled when both parts are implemented and available to end users.

16

Investment 1:

Development of information systems

Milestone

Successful upgrade and operation of ePassport (ePasy) and EVC2 visa system

Upgraded ePasy system is linked to core registries, EVC2 has implemented functionality of short and long-term visa in accordance with Entry/Exit System (EES) and both systems are available to end users

Q4

2022

Linking ePasy to core registries and EVC2 visa system has implemented functionality of short and long-term visa in accordance with EES.

17

Investment 1: Development of information systems

Milestone

Successful operation of the Integrated Foreigners system reducing the administrative burden of foreigners and public servants

New integrated system for foreigners is operational and providing services to end users

Q4

2024

The measure milestone shall establish a new integrated system for foreigners system (ICAS), which shall enable foreigners registered in Czechia to manage heir residency related affairs via new digital services for public administration clients in the given section.

18

Investment 1:

Development of information systems

Target

Contracting the execution of the listed information system projects forming the back-end basis of the information systems’ development for public administration

Number

0

8

Q2

2024

The target is being achieved upon contracting the following projects:

1. Centralisation of system for self-employed persons

2. Electronic Exchange of Social Security Information

3. Grant Information System

4. Medical Assessment Service

5. Optimising data repository for social security administration

6. Branch system of e-filing services

7. Central Authentication Point for Czech Statistical Office and the integration of statistical registries into connected data pool

8. Museum Collections information system

19

Investment 1:

Development of information systems

 Target

Successful operation of new or upgraded information systems of public administration, which shall include the completion of the projects contracted under target 16

 Number

0

8

Q4

2025

Under this measure the number of new or modernised information systems and projects implemented as part of this investment shall be counted in the target. All these systems the new or modernised information systems and projects implemented as part of the investment shall be operational and shall improve communication in public administration and improve the quality of services for public administration clients. The modernised information systems and completed projects shall include:

1. Centralisation of system for self-employed persons

2. Electronic Exchange of Social Security Information

3. Grant Information System

4. Medical Assessment Service

5. Optimising data repository for social security administration

6. Branch system of e-filing services

7. Central Authentication Point for Czech Statistical Office and the integration of statistical registries into connected data pool

8. Museum Collections information system

 20

Investment 2:

Development of core registers and facilities for eGovernment

 Milestone

Completion of a fully operational software-defined data centre including data containers.

Successful testing and adoption of the delivery of a new data centre by the Ministry of Labour and Social Affairs

 

Q4

2022

 The milestone shall be considered achieved once the new datacentre is fully operational and has been made available to end-users.

21

Investment 2:

Development of core registers and facilities for eGovernment

Milestone

Completion of listed projects increasing the transmission capacity of the Central Point of Services and modernising and optimising communication and information infrastructure and information systems.

The milestone is considered achieved when the Central Point of Services is upgraded, its capacity and security is increased and the projects to improve core registries communication and information systems have been concluded by the contracting/ implementing entities.

Q4

2023

The measure shall constitute the development of basic registers and the development of the public administration’s technological infrastructure, including an increase in its transmission capacity and the implementation of new customer services and high transmission capacity-intensive services. The milestone shall be considered as fulfilled upon the completion of the following projects:

1. Capacity and security development of central point of Services

2. Modernisation and optimisation of the Multi-Protocol Label Switching (MPLS) Communication and Information Infrastructure

3. National Certification Authority to provide certifications to public administration entities

4. Increasing the capacity of data centres and data storage products

5. Hardware and software replacements for central registries

6. Upgrade and improvement of core registries including: Register of Individuals, Population Register, Register of Rights and Obligations, Register of Territorial Identifications, Addresses and Real Estate, ORG Information System

7. Related development and improvement of Integrated system of core registers and Shared Service Information System

8. Improvement of National Identity and Authentication Point

9. Development of a consolidated interface for core registries

22

Investment 2:

Development of core registers and facilities for eGovernment

Milestone

Provision of cloud computing services to public authorities

eGovernment cloud becomes available to end-users and capable of providing cloud computing services to public administration

Q2

2026

The project shall establish a communication and ICT infrastructure and software applications for an extended Zeleneč Data Centre in Czechia and information systems of Cloud computing and Portal of eGovernment cloud to provide data services to the eGovernment cloud for enabling cloud computing services (IaaS, SaaS) to public administration authorities. The milestone shall be considered as achieved when cloud computing services can be performed.

23

Investment 3:

Cyber security

Milestone

Modernisation of the Security Information and Event Management System of the police of Czechia and extension of its use for cybersecurity protection of further five other information systems, which shall be selected based on risk and feasibility study

Entry into operation of the fully functional and upgraded Security Information and Event Management system and of additional five information services selected on the basis of a risk and feasibility study.

Q4

2022

The investment shall increase the availability of Security Information and Event Management security monitoring infrastructure capable of logging and evaluating security incidents and extend the capacities and abilities of the police and the Ministry of Interior in Czechia to identify and respond to security incidents and incidents in ICT even remotely when access to office infrastructure is limited.

24

Investment 3:

Cyber security

Target

Completion of projects leading to an increase of the number of information systems whose cyber security has been strengthened in line with Act No. 181/2014 Coll., on cyber security

Number

0

10

Q4

2025

The measure shall increase the cybersecurity of the selected information systems in accordance with the requirements of Act No. 181/2014 Coll., on cyber security.

The milestone shall be considered as achieved following the successful and documented testing and verification of compliance with cyber security requirements of the at least 10 selected information systems by the National Cyber and Information Security Office (NÚKIB) and the owner authorities of the respective systems have approved the delivery of the projects.

25

Reforms 1:

Centers of competence for supporting eGovernment, Cybersecurity and eHealth

Milestone

Full operation of three competence centres providing consulting services to authorities implementing the changes in information systems and eGovernment ecosystem foreseen under in the reforms and investments of A component 1.1 and B component 1.2 of the recovery plan

Competence centres shall be considered fully operational as soon as public authorities have submitted and competence centres have approved official requests for consulting services

Q4

2022

Three competence centres in eGovernment, cybersecurity and eHealth shall provide consulting and advisory services to authorities in implementing projects under component 1.1 and 1.2 reforms and investments of A component 1.1 and B component 1.2 of the recovery plan

26

Reform 1:

Centers of competence for supporting eGovernment, Cybersecurity and eHealth

Target

Consultations and assistance provided on topics related to the measures under component 1.1 and 1.2 reforms and investments of A component 1.1 and B component 1.2 of the recovery plan in the scope of at least 5 man-days, provided to specific public administration bodies

Number consultations provided in scope of at least 5 man-days

0

50

Q4

2025

The measure shall provide expertise for the implementation of investments and reforms under component 1.1 and 1.2 to public administration bodies. Only consultations requiring a minimum five man-days shall be counted towards in the target.

27

Reform 2:

Development of systems supporting eHealth

Milestone

Extension of Shared Drug Recording (ePrescreption) to narcotics and psychotropic substances and to electronic vouchers for medical devices

Functionalities of ePrescription are extended with prescriptions for narcotics and psychotropic substances and with the prescription of medical device vouchers

Q4

2023

The existing functionalities of the ePrescription shall be extended by this measure enabling the prescription of narcotics and psychotropic substances and vouchers for the purchase of medical devices.

28

Reform 2:

Development of systems supporting eHealth

Milestone

Completion of projects consolidating and developing the electronic healthcare infrastructure in order to create interlinked databases and improve digital healthcare services

The consolidated new services achieved by the projects are used by end users and registries are linked

Q4

2025

The projects included in this measure shall consolidate the departmental system of health registries including the Information systems of regional Hygienic stations, the Hygienic registers, the National health information system, and the integrated educational platform. The relevant healthcare registries shall be linked to eGovernment services. The achievement of the milestone shall be verified by the successful testing performed and documented by the developer and by the contracting authority’s approval of project delivery following a successful pilot phase. Projects shall include:

1. Optimisation of the healthcare system for rare disease patients

2. Development of hygiene registers by improving existing registers of the sanitary services and information systems related to the management of pandemic situations

3. Development of an integrated information system to support the management of sanitation services in fourteen regions of the Czechia

4. Development of the infrastructure of branch eHealth reference registers of health service providers, health professionals and patients and support systems

5. Modernisation and capacity improvement of the National Health Information System

6. Training programme for health professionals for the use of eHealth systems

29

Investment 4:

Creating the conditions for digital justice

Milestone

Analysis of data management and use of data in the justice sector and the deployment of a data warehouse

The analysis is approved by the Ministry of Justice and the data warehouse is deployed

Q2

2022

The milestone shall include an analysis mapping the data use and data management needs of the Justice sector and the Ministry of the Justice, which shall serve as a basis for the preparation of future projects aiming at the digitalisation of the sector and it shall also include the deployment of a data warehouse for the Ministry of Justice.

30

Investment 4:

Creating the conditions for digital justice

Target

Increase in the number of conferencing rooms in the Justice system newly equipped and connected to enable video conferencing.

Number of conference rooms

170

470

Q4

2022

The measure shall increase the number of conference rooms equipped with videoconferencing tools

31

Investment 4:

Creating the conditions for digital justice

Target

Increase of the data storage capacity

Petabyte

2

4

Q4

2024

The measure shall increase the data storage capacity of the Ministry of Justice strengthening the infrastructure for digital workplace and remote working.

C. COMPONENT 1.3: High Capacity Digital Networks

This component of the Czech recovery and resilience plan supports addressing the challenge of deploying very high capacity networks (VHCN) to maximise access to online services through internet connectivity for citizens, enterprises, public administrations and institutions, especially in rural areas. The component also aims at creating conditions supporting the development of 5G networks and services.

The component contributes to addressing country specific recommendation, according to which Czechia shall focus investment-related economic policy on digital infrastructure (Country Specific Recommendation 3 2019), and the country specific recommendation, according to which Czechia shall focus investment on the digital transition, in particular on high-capacity digital infrastructure and technologies (Country Specific Recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). For all infrastructure investments, at least 70 % of construction and demolition waste shall be reused or recycled in accordance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01). 1

C.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Improving the environment for the deployment of electronic communication networks 

This reform aims at improving the capacity to gather information on the active and passive infrastructure of electronic communication. The reform is aligned with the objectives of the Union sectoral legislation aiming at reducing the cost of network deployment, including Directive 2014/61/EU on measures to reduce the cost of deploying high-speed communication networks as well as to the aims of Directive 2018/1972 (the European Electronic Communications Code). 

The reform shall include, inter alia:    

The implementation of measures, including the entry into force of necessary legislative amendments and the completion of technical specifications, aimed at establishing databases of planned projects.

The completion of digital technical maps (DTM) objects, allowing access to precise information on the location and technical infrastructure owned by public and private entities. The measure aims at digitising at least 161 000 hectares of basic spatial situation and 55 000 km of transportation and technical infrastructure networks.

The completion of network quality measurements for all 76 districts of Czechia and the capital city, with the aim of providing better information on 5G and fixed network quality and reducing network coverage verification times. The measurements shall be in accordance with the quality-of-service parameters, definitions and measurement methods detailed in Annex X of Directive (EU) 2018/1972 and follow the BEREC Guidelines detailing Quality of Service Parameters.

The availability of information on existing physical infrastructure and publicly funded civil engineering works shall make the sharing of physical infrastructure more efficient for the deployment of high-speed electronic communications networks.

The measure shall be completed by 31 December 2025.

Reform 2: Supporting the development of the 5G ecosystem

This measure aims at drawing up the strategic framework to promote infrastructure sharing for 5G networks, especially in less commercially attractive areas, allowing for a reduction in energy consumption, radio emissions, as well as the costs of network construction and operation.

The measure shall support the completion of 25 studies, aimed at:

Reviewing the national radio spectrum plan and evaluating the existing processes of the spectrum rights allocation and award strategy plans, with the objective of exploiting harmonised frequency bands for commercial use as early as possible, following the criteria established in the Common Union Toolbox for Connectivity 2 .

Analysing the feasibility of allowing operators to pay radio spectrum award fees in instalments in order to facilitate investments in 5G infrastructure.

Identifying and formulating challenges arising from cybersecurity, the construction of electronic communications networks within municipalities and cities, and the development of towns and cities.

Based on these studies, proposals shall be developed by the 5G Alliance on possibilities to further develop the 5G ecosystem. These proposals shall form the basis for guidelines on sharing passive and active electronic communication infrastructure to facilitate the deployment of 5G networks, in line with the Common Union Toolbox for Connectivity and taking into account Directive 2014/61/EU on measures to reduce the cost of deploying high-speed electronic communications networks, the RSPG21-016 FINAL report on spectrum sharing and Act No 143/2001 on the protection of competition. The measure also foresees the completion of a pilot project on 5G/26 GHz, aimed at developing guidelines and algorithms on radio spectrum coordination procedures of 5G and spectrum sharing with other services within the 26 GHz band.

The reform shall be completed by 31 December 2025.



Investment 1: Building high-capacity connectivity

This measure aims at supporting the construction of very high capacity connectivity networks (VHCN) with a particular focus on rural areas, where market-based solutions are not profitable and there exists little commercial incentive to deploy such networks. These areas of intervention shall be determined in accordance with the State aid rules in force and shall be subject to public consultation.

At least one call for tenders for the construction of very high-capacity connectivity shall be launched for this measure, whose outcome shall be published by 31 December 2024. Through the implementation of the selected projects, the number of address points connected with the VHCN network as defined in the BEREC Guidelines on Very High Capacity Networks (connectivity of at least 1 Gb/s) shall increase by at least 23 000 units.

The investment shall be completed by 31 March 2026.

Investment 2: Covering 5G corridors and promoting the development of 5G

This measure aims at enhancing the 5G coverage of transport corridors via investments in equipment, as well as on research and development.

In pursuit of this objective, the following measures shall be completed:

Increasing the coverage of rail corridors with an improved 5G signal. Based on a mapping of 4G coverage carried out by the Czech Telecommunications Office, intervention areas shall be proposed by 30 September 2021, ensuring that these would not be covered by telecoms operators in the market within 3 years. The following rail corridors shall be covered: Prague – Česká Třebová – Ostrava, Prague – Ústí nad Labem, Prague – Plzeň, Prague – České Budějovice, and Česká Třebová – Brno.

Equipping at least 350 railway wagons with repeaters or passive walls for 5G signals. The contractors shall be selected following a call for tenders based on a study on the scope and feasibility of the project.

Building and testing a Cooperative Intelligent Transport System for rail corridors (C-ITS) in 5G networks. Quarterly reports on the tests and experience gained shall be made available to other carriers operating in the above-mentioned rail corridors.

This investment shall be completed by 31 December 2025.

Investment 3: Supporting the development of 5G mobile infrastructure in rural investment-intensive white areas 

This measure aims at enhancing the coverage of the 5G network in ‘white areas’, i.e. areas that have never been covered by any mobile signal higher than 3G and that can be assumed not to be covered by 5G base networks in the future due to the low expected profitability of the investment. This definition follows the State aid rules in force and the National plan for VHCN development. These areas shall be established based on an assessment of white basic settlement units to be carried out by the Czech Telecommunications Office and shall be subject to public consultation.

To achieve this objective, calls for tenders for the construction and operationalisation of base transceiver stations (BTS) for 5G signals shall be launched. The intervention areas shall be proposed by the Ministry of Industry and Trade by 30 September 2021, ensuring that the proposed intervention areas shall not be covered by market-based telecoms operators within the following three years. The outcome of the calls for tenders shall be published by 31 December 2024.

Through the implementation of the selected projects, the number of BTS shall be increased by 120.

The investment shall be completed by 31 March 2026.

Investment 4: Scientific research activities related to the development of 5G networks and services

This measure is aimed at supporting public and private entities in research, development and innovation related to 5G networks and services.

In pursuit of this objective, a call for tender for scientific research projects relating to the technological development of 5G networks and applications for the 5G ecosystem shall be launched. The projects shall focus on the use of 5G applications in industry and services, in particular the exploitation of new technologies in the production processes of the automotive and other key sectors, taking into account the principles of circular economy through the sourcing of secondary raw materials. Support shall also be targeted at projects fostering the development and dissemination of automation, robotisation, artificial intelligence and virtual or augmented reality. Potential beneficiaries include businesses or public research organisations. At least 20 projects shall be selected by 31 December 2024. During the subsequent implementation phase, at least 20 of the selected projects shall be completed.

The investment shall be completed by 31 December 2025.

C.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

32

Reform 1: Improving the environment for the deployment of electronic communications networks 

Milestone 

Entry into force of measures prepared by the Ministry of Industry and Trade aimed at establishing a database of investment project plans and increasing the number of network quality measurements 

Provision in the acts indicating the entry into force 

Q2 

2023 

Necessary legislative adaptations shall enter into force and technical specifications shall be completed, both aimed at establishing databases of investment project intentions in the meaning of Act No 194/2017 Coll., paragraph 11, 2 and increasing the number of quality measurements of electronic communications networks. The national regulator shall conduct tendering procedures and acquire the necessary equipment. Quality and usability of the provided information shall be in line with binding technical parameters.

33

Reform 1: Improving the environment for the deployment of electronic communications networks 

Target 

Completion of digital technical maps (DTM) objects for basic spatial situation

Hectares 

0

161 000

Q4 

2025 

Digital technical maps (DTM) objects shall be completed, allowing access to precise location information about the basic spatial situation objects owned by public and private bodies. 161 000 ha of basic spatial situation objects shall be digitised. The resulting DTM objects shall be publicly accessible.

34 

Reform 1: Improving the environment for the deployment of electronic communications networks 

Target 

Completion of digital technical maps (DTM) objects for transportation and technical infrastructure networks

Km 

0

55 000 

Q4 

2025 

Digital technical maps (DTM) objects shall be completed, allowing access to precise information about the location and technical specifications of physical infrastructure networks owned by public and private bodies. 55 000 km of transportation and technical infrastructure networks shall be digitised. The resulting DTM objects shall be publicly accessible.

35 

Reform 1: Improving the environment for the deployment of electronic communications networks

Target 

Completion of electronic communication quality measurements 

Number 

0

77

Q4 

2025 

Measurement of the network quality shall be completed for all 76 districts of Czechia and the capital city.

36 

Reform 2: Supporting the development of the 5G ecosystem

Target 

Publication of studies aimed at improving the deployment of 5G networks by the Ministry of Industry and Trade 

Number 

0

25

Q4 

2024 

The studies shall have the following objectives:

·Reviewing the national radio spectrum plan and evaluating the existing processes of spectrum rights granting and award strategy plans, with the objective of exploiting the harmonised bands for commercial use as early as possible. 

·Analysing the feasibility of allowing operators to pay radio spectrum award fees in instalments to facilitate investments in 5G infrastructure.

·Identifying challenges arising from cybersecurity.

·Construction of electronic communications networks within municipalities and cities, and the development of towns and cities.

In particular, the studies shall focus on the following issues:

·applicability of 5G features and standards in individual sectors and proposals for their technical implementation and regulatory measures.

·concept and usage of the digital twin of 5G network infrastructure.

·use of satellite communications for 5G coexistence and cooperation of terrestrial and satellite 5G networks.

·applicability of FeMBMS (Further evolved Multimedia Broadcast Multicast Service) in 5G networks for television broadcasting and audiovisual media services, including a strategy for the future use of the 600 MHz frequency band for television broadcasting.

·use of FRMCS (Future Railway Mobile Communication Systems) for railways with dedicated channels in the 900 MHz and 1900 MHz bands.

·use of quantum technology to increase the security of 5G networks and services.

·possibility of sharing spectrum usable for 5G networks.

·use of the 26 GHz frequency band for the 5G network.

·use of modern information systems, including sharing software through open sources or other forms of sharing, such as cloud servers, in 5G networks.

·use of a 5G network slicing system for public and private 5G networks.

·linking Internet of things (IoT) communications with 5G networks.

·use of 5G networks for Fixed Wireless Access

·impact of Open RAN (Radio Access Network) and Open Core access on the security of 5G networks.

·flying communication platforms (drones, UAVs, balloons) and their impact on the regulation of electronic communications.

·smart radio environments with application of online measurements of electromagnetic radiation and intelligent reflecting surfaces.

·development of 6G networks in the bands above 100 GHz.

37 

Reform 2: Supporting the development of the 5G ecosystem 

Milestone 

Publication of guidelines on the deployment of 5G networks by the Ministry of Industry and Trade 

Publication of the guidelines by the Ministry of Industry and Trade

Q4 

2025 

Guidelines shall be published on sharing passive and active infrastructure to facilitate deployment of 5G networks, corresponding to the Common Union Toolbox for Connectivity and taking into account Directive 2014/61/EU on measures to reduce the cost of deploying high-speed electronic communications networks, the RSPG21-016 FINAL report on spectrum sharing and Act No 143/2001 on the protection of competition. The guidelines shall be based on the studies published within the same measure. In particular, the measure foresees the development of guidelines and algorithms on radio spectrum coordination procedures of 5G, and spectrum sharing with other services within the 26 GHz band.

38 

Investment 1: Building high-capacity connections 

Milestone 

Award of all grant decisions for connecting address points with the very high capacity network (VHCN) by the Ministry of Industry and Trade 

Notification of the award of all grant decisions for connecting address points with the very high capacity network (VHCN) by the Ministry of Industry and Trade 

Q4 

2024 

Notification of the award of all grant decisions for connecting address points with the very high capacity network (VHCN) by the Ministry of Industry and Trade. Calls for tender shall include a definition of eligible expenditure, evaluation models and criteria for the selection and evaluation of projects, rules for applicants and beneficiaries, and guidelines on wholesale offers.

39 

Investment 1: Building high-capacity connections 

Target 

Completion of address points connected with the very high capacity network (VHCN)

Number 

0

23 000

Q1 

2026 

The infrastructure to increase the number of address points connected with the very high capacity network (VHCN) shall be constructed, increasing the number of address points connected by 23 000. The very high capacity network shall be in line with the BEREC Guidelines on Very High Capacity Networks.

40

Investment 2: Covering 5G corridors and promoting the development of 5G 

Target 

Completion of enhanced 5G signal coverage of selected rail corridors

Km 

0

210

Q4 

2025 

The measure shall enhance 5G coverage quality (beyond already imposed coverage criteria raised from spectrum auctions) over at distance of at least 210 km in the following rail corridors: Prague – Česká Třebová – Ostrava, Prague – Ústí nad Labem, Prague – Plzeň, Prague – České Budějovice, and Česká Třebová – Brno. 

41 

Investment 2: Covering 5G corridors and promoting the development of 5G 

Target 

Completion of equipping railway wagons with repeaters for passive walls mobile signal coverage 

Number 

0

350

Q4 

2025 

Current wagons shall be equipped with operational 5G repeaters or passive walls for the quality provision of mobile data services.

42 

Investment 2: Covering 5G corridors and promoting the development of 5G 

Milestone 

Installation and testing of the deployment of an intelligent transport system (C-ITS). 

Completion of the installation and testing of a C-ITS system

Q4 

2025 

Support of 5G ecosystem applications in corridors shall entail building and testing of an intelligent transport system for rail corridors (C-ITS). A report on the results of this project shall be published by the Ministry of Industry and Trade together with the Ministry of Transport

43 

Investment 3: Supporting the development of 5G mobile infrastructure in rural investment-intensive white areas 

Milestone 

Award of all grant decisions for connecting municipalities with high-capacity connection 

Notification of the award of all grant decisions for connecting municipalities with high-capacity connection by the Ministry of Industry and Trade 

 

Q4 

2024 

Notification of the award of all grant decisions for connecting municipalities with high-capacity connection by the Ministry of Industry and Trade. Calls for tender shall include a definition of eligible expenditure, evaluation models and criteria for the selection and evaluation of projects, rules for applicants and beneficiaries, and guidelines on wholesale offers. Inter alia, the selection criteria shall be in line with the BEREC Guidelines on Very High Capacity Networks.

The municipalities shall be exclusively located in areas that have never been covered by any mobile signal higher than 3G and that can be assumed not to be covered by 5G base networks in the future due to the low expected profitability of the investment. These areas shall be defined in accordance with the State aid rules in force and the National plan for VHCN development.

44 

Investment 3: Supporting the development of 5G mobile infrastructure in rural investment-intensive white areas 

Target 

Completion of base stations for 5G signals

Number 

0

120

Q1 

2026 

The infrastructure, including 120 base stations, shall be constructed and operational to cover by 5G signals the municipalities in investment-intensive rural areas identified in investment 3.

45

Investment 4: Scientific research activities related to the development of 5G networks and services 

Milestone 

Award of all grant decisions for scientific research projects related to 5G networks 

Notification of the award of all grant decisions for scientific research projects related to 5G networks by the Ministry of Industry and Trade 

Q4 

2024 

Notification of the award of all grant decisions for scientific research projects related to 5G networks by the Ministry of Industry and Trade. The projects shall focus on the use of 5G applications in industry and services, in particular the exploitation of new technologies in the production processes of the automotive and other key sectors, taking into account the principles of circular economy through the sourcing of secondary raw materials. Support shall also be targeted at projects fostering the development and dissemination of automation, robotisation, artificial intelligence and virtual or augmented reality. Potential beneficiaries include businesses or public research organisations.

46

Investment 4: Scientific research activities related to the development of 5G networks and services 

Target

Completion of scientific research projects related to 5G networks

Number of projects supported

0

20

Q4

2025

At least 20 among the previously selected scientific research projects on potential further developments of 5G networks and services.shall be completed. The resulting studies shall be published by the Ministry of Industry and Trade.

D. COMPONENT 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology

This component of the Czech recovery and resilience plan contributes to addressing the challenge of facilitating the digitalisation and adoption of new technologies by companies, including SMEs. It also aims at setting up a body coordinating the projects focusing on the economy’s digital transformation, supporting the development and uptake of selected strategic technologies, including artificial intelligence, and improving the innovation ecosystem in particular for start-ups, including through enhanced academia-business linkages. The planned investments are expected to foster access to finance for innovative start-ups and SMEs, inter alia through fintech and early-stage financing solutions, as well as access to training and to testing facilities in order to contribute to the uptake of new digital technologies. The component has synergies with components 1.3 [High-capacity digital networks] and 1.5 [Digital transformation of enterprises] of the Czech plan, which contribute to addressing the access to high-capacity networks and the digitalisation of business.

The component supports addressing Country Specific Recommendation 3 2019, according to which Czechia shall focus investment-related economic policy on digital infrastructure and remove the barriers hampering the development of a fully functioning innovation ecosystem, and Country Specific Recommendation 3 2020, according to which Czechia shall support small and medium-sized enterprises by making greater use of financial instruments to ensure liquidity support, to focus investment on digital transition, in particular on high-capacity digital infrastructure and technology, and to ensure access to finance for innovative firms and improve public-private R&D cooperation.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the results of the R&I process shall be technologically neutral at the level of their application (i.e. they shall be applied across all available technologies, including low-impact technologies), and the measure shall ex ante exclude R&I dedicated to the ‘brown R&I’ elements (i.e. coal, lignite, oil/petroleum, natural gas not covered by Annex III of the DNSH Technical Guidance, blue and grey hydrogen, incinerators and landfills).

D.1.    Description of the reforms and investments for non-repayable financial support

Reform 1: Institutional reform of the system of management for digital transformation including RIS 3 strategy

The institutional reform aims to simplify the organisation structure overseeing the digital transformation. The newly established Digital Transformation Committee (DTC) shall closely cooperate with National Innovation Strategy for Smart Specialisation governing entities that identify and disseminate key technologies and relevant fields of research and innovation. It shall ensure connectivity and coordination amongst actors across the entire digital ecosystem and shall include the representation of private and public stakeholders. To support this work, it shall commission analytical studies and procure expert support services and it shall also raise awareness among businesses and citizens on the opportunities to apply new digital technologies.

The further improvement of the digital and innovation ecosystem (including start-ups, spin-offs and strategic technologies) shall include the establishment of a coordinating body, under the Digital Transformation Committee, responsible for the implementation of support programmes for business under this component in line with EU Start-up Nations Standard and it is expected to commission legal analyses and proposals, impact assessments, and provide recommendations and advice on the implementation of the reform and the related investments. The reform shall lead to setting up cooperation between the public and private sectors and to supporting the three pilot co-investment funds, entepreneurship and business support schemes, activities to enhance internationalisation of start-ups and regulatory sandboxes testing innovative solutions in practice, as proposed under this component.

The reform shall be implemented by 31 December 2025.

Reform 2: Joint Strategic Technologies Support and Certification Group with the Strategic Technologies Board

The reform aims at creating accredited quality management and product certification authorities and providing a network of accredited laboratories with sufficient testing and certification capacities, which shall improve the quality of products and facilitate the management of production processes and competitiveness of Czech companies. This shall increase the necessary capacity and lower the costs of authorising institutions, hence making certification more accessible, particularly in strategic sectors such as aerospace and medical devices industry. The reform shall support activities such as the retrofitting of laboratories, facilitating accreditation processes and purchasing equipment with a focus on: advanced materials and technologies (composites, additive manufacturing, laser applications); green technologies (hybrid/electric propulsion, decarbonisation, noise reduction, biofuel, sustainability of air transport); automation and digitisation; Unmanned Aerial Vehicle (UAV)/Unmanned Aircraft Systems (UAS); Urban Air Mobility (UAM); software applications; Industry 4.0 in Aerospace (AI, IoT, Big Data). The component shall also include consultancy and advisory services to firms in preparation for obtaining certification and in dissemination of manufacturing practices.

The reform shall be implemented by 31 December 2024.

Investment 1: European Centre of Excellence in AI “for Citizens’ Safety and Security”

The purpose of the investment is to create an additional Network of European Centres of Excellence in Artificial Intelligence, which is expected to obtain the Seal of Excellence under Horizon Europe. The centre aims to ensure sufficient research capacity to enable the introduction and application of AI technologies in the designated area.

It shall focus its operation on safety-enhancing applications of AI and contribute to the scientific research in the field, with a particular focus on the segments where comparative advantage can be achieved through national and regional specialisation. The centre’s activity shall be in line with the Coordinated Plan on Artificial Intelligence 3 and the investment aims at following the recommendations of the High-Level Expert Group on AI of the European Commission.

The investment shall be implemented by 31 December 2022.

Investment 2: European Digital Media Observatory Hub (EDMO)

This investment shall establish the Central European Digital Media Observatory (CEDMO), a regional institution led by the Charles University in partnership with the Czech Technical University of Prague (ČVUT) and the fact-checking website demagog.cz. CEDMO shall be linked with the European Digital Media Observatory and follow the Action Plan against Disinformation issued by the European Commission and High Representative of the Union for Foreign Affairs and Security Policy. It shall provide AI tools and methodology to fight fake news in the digital space in an impartial manner in cooperation with European Centre of Excellence in AI, and it shall provide methodology to detect, analyse and publicise disinformation campaigns at national, transnational and European level and analyse the impact of disinformation campaigns on society and democracy; support media literacy and monitor the rules of online platforms and the digital media ecosystem in cooperation with national authorities. The investment shall also include long-term research providing monthly outputs based on a statistically relevant panel of minimum 2000 people of the population in Czechia leading to reports on digital and media literacy, the resilience of the population to disinformation and misinformation in Czechia.

The investment shall be implemented by the 31 of December 2025.

Investment 3: Transfer of foreign good practices and know-how for digital transformation, monitoring and research on the socio-economic effects of the crisis (Samuel Neaman Institute)

This investment shall lead to the creation and capacity-building of the Samuel Neaman Institute’s Strategic Think Tank in the Czech Republic, which shall be established as an independent organisation and shall be directly linked to the Digital Transformation Committee (established under Reform 1). Its objective is to bring together business federations, employers’ representatives, academia and other stakeholders, and the public administration, to patronage and coordinate the digital transformation of the Czech economy, while monitoring and evaluating its socio-economic impact. The Institute is expected to establish memorandums for international cooperation for the transfer of best practices in digital transformation with at least five global leading institutions.

The investment shall be completed by 31 December 2024.

Investment 4: SME Management Training Platform for post-COVID-19 Digital Transformation

This measure aims at creating a Digital Transformation Platform, which shall serve as a one-stop-shop for companies that seek information on the application of new digital technologies such as AI, blockchain, cloud computing, robotisation and automation, cybersecurity and high performance computing and shall also support policymakers for data and evidence-based decisions in the area of the digital transformation of the economy. In a second phase, a training platform shall be created to provide e-learning-based solutions for new digital technologies in line with the principles of life-long learning. The implementation shall be accompanied by data collection and analyses in order to identify the hurdles and barriers hindering companies to implement new digital solutions. The implementation shall be coordinated by the Digital Transformation Committee and shall be complementary to the other investments in digital transition coordinated by the Committee.

The investment shall be completed by 31 December 2024.

Investment 5: European Blockchain Services Infrastructure (EBSI)

The planned investment in the European Blockchain Services Infrastructure (EBSI) falls under the umbrella of the European Blockchain Partnership (EBP) and is expected to be co-financed by the Digital Europe Programme. The measure shall support the implementation of an EBSI/EBP use case focused on creation of pan-European (Distributed Ledger Technology) DLT bond platform for SME debt financing. The project shall contribute to enabling SMEs easier access to finance, to reducing costs and increasing transparency.

The investment shall be completed by 31 December 2023.

Investment 6: 5G Demonstrative application projects for cities and industrial areas

This measure shall finance the development of at least 52 projects demonstrating the application of digital infrastructure and 5G. The projects shall fall under two different initiatives, namely:

·Smart Cities, which aims to demonstrate the use of 5G in city networks including, among others, intelligent transport systems, street lighting, waste/circular management, public transport, parking space management, urban crime reduction concepts; and

·Industry 4.0 demonstration projects presenting the application of digitised production lines or robotised systems (built on the routine use of artificial intelligence) and direct communication of mobile equipment users with each other (Device-to-Device communication, D2D).

The investment shall be completed by 31 December 2025.

Investment 7: Czech Rise-Up Programmes

The Czech ‘Rise-Up’ programme shall tackle the economic and social impact of the pandemic and it shall include two separate calls for projects: the first call shall be open to project proposals aiming at COVID-related medical research and development projects, which have reached the maturity of near-completion, certification or legal protection. The second call shall be open to research projects aiming at medical and non-medical technological solutions to cope with the economic and social consequences of the COVID crisis, in particular in the fields of health, education, audio-visual sector, digital transformation of traditional businesses and sectors.

The investment shall be completed by 31 December 2023.

Investment 8: Fostering entrepreneurship and innovative firms

This measure aims at fostering entrepreneurship and at supporting the successful launch of new enterprises across Czechia. The measure shall include advisory, consultancy and mentoring services provided via regional innovation and business hubs to newly established business initiatives and start-ups. The measure shall also include-awareness raising campaigns to promote entrepreneurship.

The investment shall be completed by 31 December 2024.

Investment 9: Pilot co-investment funds for the development of pre-seed investments, strategic technologies and university spin-offs within the framework of European Centres of Excellence

The measure shall support the development of venture capital and the digital transformation of the economy by investing in the form of grants in innovative start-ups. It shall consist of three pilot co-investment funds: i) a pre-seed fund; ii) a strategic technologies fund; and iii) a spinoff AI fund. The three funds shall invest, respectively, in early-stage projects and technology start-up companies; in strategic technologies such as AI, blockchain, FinTech, 5G applications; and in projects of research organisations and universities to transfer and commercialise their research results in business practice.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the legal agreement between Czechia and the entrusted managing entity of the funds and the subsequent investment policy of the financial instrument shall require the application of the Commission’s technical guidance on sustainability proofing for the InvestEU Fund; and exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use 4 ; (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 5 ; (iii) activities and assets related to waste landfills, incinerators 6 and mechanical biological treatment plants 7 ; and (iv) activities and assets where the long-term disposal of waste may cause harm to the environment; and require the verification of legal compliance with the relevant EU and national environmental legislation of the projects by [the entrusted entity or financial intermediary] for all transactions, including those exempted from sustainability proofing.

The investment shall be completed by 31 December 2025.

Investment 10: Internationalisation of start-ups

The objective of this measure is to provide Czech SMEs and start-ups with training, advisory and consulting services by experts in management skills and transfer of best business practices, such as: negotiations; know-how of foreign markets; using new digital tools and adaptation to new digital trends; product validation for foreign markets; access to venture capital; accelerator programmes and mentoring. The programme shall be implemented by CzechInvest under the Innovation Strategy of the Czech Republic 2030 and the Country for the Future programme.

The investment shall be completed by 31 December 2023.

Investment 11: Regulatory sandboxes in line with EU priorities

This measure shall consist of the launch and initial operation of two regulatory sandboxes, notably one in the field of artificial intelligence and one in fintech. The sandboxes shall be established in cooperation with the relevant authorities, regulators and partners of the respective sector and shall aim at providing an adequate technical and technological environment for testing new technologies. They shall be accessible for SMEs and start-ups as well as for other companies and shall include regular calls for testing programmes for innovative companies.

The investment shall be completed by 31 December 2023.

Investment 12: Building quantum communication infrastructure

The investment aims at building an optical quantum communication network in Czechia in line with the priorities of the Digital Europe Programme. This shall include the creation of a backbone network and connected secondary branches, the connection of critical and security infrastructure, as well as testing and training of experts. The network shall be capable of fast data transmission and processing, which shall connect the most relevant stakeholders identified in the planning phase and be able to connect to similar infrastructure in neighbouring countries.

The investment shall be concluded with completed testing and a pilot operational phase by the 31 December 2025 and shall include at least connections between Prague, Brno and Ostrava, with a total optical length of 400 km, 6 Quantum Key Distribution (QKD) segments; implementation of two secondary metropolitan branches based on commercial QKD equipment and two additional ones based on experimental QKD and testing of their application.

The investment shall be completed by 31 December 2025.

Investment 13: Support to R & I in aviation industry

This investment consists of the creation of the necessary infrastructure for a fully digitalised testbed for the aviation industry. It shall include the use of quantum computing technology and shall aim at enabling the use of digital twin modelling and simulations, which shall lead to the development of high accuracy production methods, better data collection and know-how spillovers to other industries.

This investment shall include the completion of the engine core test bed enabling the acquisition of additional experimental aircraft engines equipped with a high number of sensors allowing for the development of new aerospace technologies and a testbed for an experimental aircraft to test the engines in flight. Such a facility shall be available for industry partners in the aeronautics sector including SMEs. The facility and the equipment acquired under this investment shall be used for research and innovation with a primary focus on the development of low-impact options and partly on efficiency increase. The biofuels used for testing shall be in compliance with RED II renewable energy directive 8 .

The investment shall be completed by 31 December 2022.

D.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

47

Reform 1: Institutional reform of the coordination and support system for digital transformation of economy (incl. RIS 3)

Milestone

Implementation of organisational changes to reform the structure of public bodies overseeing digital transformation of the economy

Setting up of the Committee (and of the related working group) responsible for the coordination of national stakeholders to prepare projects for digital transformation of Czech economy

Q1

2025

The Digital Transformation Committee, including the representation of public and private stakeholders, shall coordinate the implementation of the reforms and investments under component 1.4 and 1.5. This shall also include a special consultative/expert working group overseeing the implementation of the EU Start-up Nations Standards under this component and it shall provide legal analyses, impact studies and expert opinion on the selection of methods of implementation. This milestone shall be considered fulfilled once the Committee and the working group start to work.

48

Reform 2: Joint Strategic Technologies Support and Certification Group with the Strategic Technologies Board

Milestone

Establishment and appointment of certification authorities

Creation of a network of certification authorities for strategic sectors.

Q2

2024

Establishment of certification authorities with testing capacities for certification including laboratories, equipment and know-how to support the development and innovation in strategic sectors.

49

Reform 2: Joint Strategic Technologies Support and Certification Group with the Strategic Technologies Board

 Target

Number of companies provided with certification

 Number

0

50

Q4

2023

50 companies to be provided with certification by the established network of accredited certification authorities

50

Investment 1: European Centre of Excellence in AI “for Citizens’ Safety and Security”

Milestone

Launch of the European Centre of Excellence in Artificial Intelligence for Citizens Safety and Security

Launch of European Centre of Excellence in Artificial Intelligence for Citizens Safety and Security providing services as part of the European network

Q4

2022

European Centre of Excellence in Artificial Intelligence for Citizen Safety and Security is to support research, cooperation and introduction of new applications in the field of artificial intelligence.

51

Investment 2: European Digital Media Observatory Hub (EDMO)

Milestone

Launch of the European Digital Media Observatory hub for CEE in the Czech Republic (CEDMO)

Launch of the CEDMO hub built by the academic consortium with the Charles University in Prague as a leading partner

Q4

2021

The Digital Media Hub as part of the EDMO network shall focus on analysing and combating the spread of fake information such as misinformation related to COVID or 5G networks.

52

Investment 2: European Digital Media Observatory Hub (EDMO)

Target

Minimum number of statistically relevant panellists involved in the CEDMO Index

Number

0

2000

Q4

2025

CEDMO is to provide monthly research and monitoring activity with the involvement of a statistically relevant sample of at least 2000 persons.

53

Investment 3: Transfer of foreign best practices and know-how for digital transformation, monitoring and research on the socio-economic effects of the crisis (Samuel Neaman Institute)

Target

Establishment of the Czech Samuel Neaman Institute with international outreach including 5 international cooperation agreements in a form of memorandums in order to transfer best practices in the area of digital transformation

Number

0

5

Q4

2024

The Institute is to monitor recent developments and socio-economic impacts of digital transformation based on the memorandum with the Ministry of Industry and Trade. It is to conclude memorandums on cooperation and of transferring know-how to support digital transformation of the economy.

54

Investment 4: SME Management Training Platform for post-COVID-19 Digital Transformation

Target

Launch of SME management training platform and involvement of the management of at least 200 SMEs in reskilling and upskilling activities focusing on digital transformation

Number

0

200

Q4

2024

The platform is to serve as a basis for educating management of SMEs on the opportunities and risks posed by new digital technologies. It is to be a badge based education system. Its content is to be developed in cooperation with stakeholders.

55

Investment 5: European Blockchain Services Infrastructure (EBSI) – DLT bonds for SME financing

Milestone

Completion of the use-case EBSI technical implementation and launch of the SME pilot phase

Launch of SME bonds offer in pilot phase in order to provide financing

Q4

2022

Pilot programme to be launched to enable SMEs to offer bonds based on Distributed Ledger Technology under the regulatory sandbox within the frames of the EBSI

56

Investment 5: European Blockchain Services Infrastructure (EBSI) – DLT bonds for SME financing

Target

Number of SMEs supported following a successful pilot phase through offer of digital bonds on EBSI

Number

0

250

Q4

2023

Pilot programme to be launched to enable SMEs to offer bonds based on Distributed Ledger Technology under the regulatory sandbox within the frames of the EBSI

57

Investment 6: 5G Demonstrative application projects for cities and industrial areas

Target

Development and operation of reference applications for Smart Cities

Number

0

5

Q4

2022

Five reference application as part of the Smart Cities programme to be completed

58

Investment 6: 5G Demonstrative application projects for cities and industrial areas

Target

Expansion of applications of uses cases for Smart Cities and for Industry 4.0

Number

0

45 for Smart Cities; 35 for Industry 4.0

Q4

2025

Expansion of selected demonstrative 5G use-case applications to other location including regions and local municipalities within the frames of Smart Cities and Industry 4.0 programmes

59

Investment 7: Czech Rise-Up programme

Target

Support of projects aiming at innovation in medical and non-medical technological solutions to cope the effects of COVID-19 and with its economic and social consequences

Number

60

300

Q4

2023

Support of businesses in COVID related medical research and in developing projects, and research projects aiming at medical and non-medical technological solutions to cope with the economic and social consequences of the crisis in a form of de minimis grant support in a total value of minimum EUR 23 564 527,53. Award of the contracts to the projects selected under the competitive calls for proposals mentioned in this milestone shall be, in compliance with the ’Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.

60

Investment 8: Fostering entrepreneurship and innovative firms

Target

Number of start-ups supported via innovation hubs and partner organisations of the programme

Number

0

450

Q4

2024

Start-ups and other eligible entities to be provided with mentoring, consultant and advisory services or training to foster entrepreneurship and validation of business plans.

61

Investment 9: Pilot co-investment funds for the development of pre/seed investments, strategic technologies and university spin-offs within the framework of European Centres of Excellence

Milestone

Launch of Funds of funds and the investment of the three designated funds (pre-seed, strategic technologies and spin-off funds)

End of the pilot phase after exhaustion of investment capacity from funds provided by the RRF

Q4

2025

Three co-investment funds for existing and new venture-capital are to be launched to support innovative start-ups, strategic technologies and companies with seed/pre-seed investment. The pilot phase should verify the level of demand, targeted risk, absorption and areas of investment, not least the complementarity with other aid instruments. On the basis of the results of the pilot phase, further continuous investment rounds are to be set and further areas for investment shall be identified. The value of investment shall reach minimum amount of EUR 54 983 897,57. Investment policy for the financial instrument shall include selection criteria to ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported transactions under this measure through the use of sustainability proofing, an exclusion list, and the requirement of compliance with the relevant EU and national environmental legislation.

62

Investment 9: Pilot co-investment funds for the development of pre/seed investments, strategic technologies and university spin-offs within the framework of European Centres of Excellence

Target

Investments in pre-seed and technology start-ups and spin-offs

Number

0

185

Q4

2025

Projects and innovative start-ups to be selected and supported by the investment funds. Investment policy for the financial instrument shall include selection criteria to ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported transactions under this measure through the use of sustainability proofing, an exclusion list, and the requirement of compliance with the relevant EU and national environmental legislation.

63

Investment 10: Internationalisation of start-ups

Target

Support of start-ups international expansion via consulting, mentoring business advisory services, accelerator programmes

Number

0

100

Q4

2025

Start-ups to be supported via support programmes focusing on international expansion and adaptation to foreign markets. These programmes shall include: mentoring and consulting services, product validation acceleration programmes services related to foreign, best practice sharing, expansion, product / service adaptation.

64

Investment 11: Regulatory sandboxes in line with EU priorities

Milestone

Launch of two regulatory sandboxes in fintech and Artificial Intelligence

Set-up of the two sandboxes in the priority regulated areas, such as finance (based on Digital Finance Package) and AI (based on European legal framework for AI)

Q4

2023

Sandboxes in the field of fintech and AI shall be considered to be active and operating when innovative companies are able to submit their applications for testing programmes. The primary focus shall be on projects already under preparation.

65

Investment 11: Regulatory sandboxes in line with EU priorities

Target

Sandbox participants supported by the sandboxes

Number

0

20

Q4

2023

Number of companies within regulated sectors whose project and product has been tested through the sandboxes in the field of fintech and AI. The primary focus shall be on projects already under preparation. Both sandboxes should support at least 10 projects in each programme launched.

66

Investment 12: Building quantum communication infrastructure

Milestone

Completion of construction and pilot operation phase of an optical quantum network

Infrastructure is operational and testing has been documented and approved by the relevant authorities (Ministry of Industry and Trade, Ministry of Defence, National Cyber and Information Security Office (NÚKIB))

Q4

2025

The milestone shall include: the creation of optical connections between Prague, Brno and Ostrava, total optical length of 400 km, 6 Quantum Key Distribution (QKD) segments; implementation of two secondary metropolitan branches based on commercial QKD equipment and two secondary metropolitan branches based on experimental QKD Toolkit; purchase and planning of mobile secondary branches; testing the integration of quantum communications existing telecommunications technologies; and testing of 3 use-cases specific to the military areas.

67

Investment 13: Support to R & I in aviation industry

 Milestone

 Full operation of at least one testbed based on digital twin technology and digital transformation equipment in the aviation industry

Purchase and operation of the necessary equipment including experimental ones.

Q4

2022

The milestone shall include the completion of the engine core test bed enabling aircraft engine manufacturers to test digital aviation engine pairs; the acquisition of additional experimental aircraft engines equipped with a high number of sensors allowing for the development of new aerospace technologies and a testbed for an experimental aircraft to test the engines in flight.

The research activity shall have a primary focus on low-impact options and may include research activity focusing on efficiency increase of the existing ‘best in class’ technology only if it does not lead to technology lock-in effects or if results of the R&I process are technologically neutral at the level of their application.

E. COMPONENT 1.5: Digital Transformation of Enterprises

This component of the Czech recovery and resilience plan contributes to addressing the challenge of supporting the digitalisation of industry, the use of technologies and the emergence of an interconnected and sustainable national layer of the European digital ecosystem through the Digital innovation Hubs. It shall also support the creation of a Reference Testing and Experimentation Facility. Another objective is to enable support for companies participating in potential Important Projects of Common European Interest (IPCEI), especially in the areas of microelectronics, connectivity, and cloud infrastructure and services, including projects in the field of microprocessors linked to European High-Performance Computing. The component is expected to support the green transition, particularly of small and medium-size enterprises, through digital technologies, in line with the objectives of the European Green Deal.

The component supports addressing country-specific recommendation 3 2020, according to which Czechia shall focus investment on the digital transition, in particular on high-capacity digital infrastructure and technologies, including in the coal regions.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, procurement of ICT equipment shall ensure compliance with the relevant EU green public procurement criteria as well as the relevant EU energy and material efficiency requirements and recycling requirements set in accordance with Directive 2009/125/EC, Directive 2009/125/EC, Directive 2011/65/EU and Directive 2021/19/EU.

E.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Creation of a platform for the digitalisation of the economy

The measure aims at putting into operation a platform coordinating the interconnection of all actors in the national digital ecosystem such as the European and national Digital Innovation Hubs, the Centres of Excellence in Artificial Intelligence, the National Competence Centres in High-Performance Computing and Cybersecurity, the European Reference Testing and Experimentation facilities, the innovation centres, and clients of all these centres. It aims to boost the digital transformation, the use of technologies, and the recruitment of experts in digitalisation and new technologies, and make industry and services more resilient to potential further crises.

The reform shall be implemented by 31 December 2025.

Investment 1: Setting up European and national Digital Innovation Hubs 

The measure aims at supporting the digital transformation mainly of small and medium-sized enterprises and state administration, introducing new technologies, attracting experts in the field, and ensuring greater resilience of industry and services vis-à-vis potential further crises. Co-funding from the Digital Europe Programme is foreseen.

Six European and national Digital Innovation Hubs shall be set up and put into operation.

The investment shall be implemented by 31 December 2024.

Investment 2: Setting up a European Reference Testing and Experimentation facility

A European Reference Testing and Experimentation facility shall be set up and put into operation. The measure aims at establishing a connection between research sectors (such as the Centre of Excellence in Artificial Intelligence) and the wider economy (such as the European and national Digital Innovation Hubs) by allowing research centres and small and medium-sized enterprises to test the technologies and applications developed so that they can be used in their operations. Co-funding from the Digital Europe Programme is foreseen.

The investment shall be implemented by31 December 2024.

Investment 3: Direct support for the digital transformation of enterprises 

Direct support for the digital transformation (such as artificial intelligence, proces automation, robotics, high-performance computing and cyber-security) shall be provided to 377 enterprises. Two thirds of the funds shall be provided for small and medium-sized enterprises and mid-caps, and one third shall be provided for large enterprises. The measure aims at increasing digital processes particularly in small and medium-sized enterprises, but also in large enterprises(and potentially supporting major innovative large-scale IPCEI projects, in particular in the area of microprocessors and cloud infrastructure and services).

The investment shall be implemented by 31 December 2025.

E.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

68

Reform 1: Creation of Platform for the digitisation of the economy

Milestone

Creation of Platform for the digitisation of the economy

Launch of operation of the platform

Q1

2022

A platform for the digitisation of the economy shall be established and its operation launched. The platform shall coordinate the interconnection of all actors in the national digital ecosystem such as the European and national Digital Innovation Hubs, the Centres of Excellence in Artificial Intelligence, the National Competence Centres in High-Performance Computing and Cybersecurity, the European Reference Testing and Experimentation facilities, the innovation centres, and clients of all these centres. The platform shall operate as one of the working groups of the Digital Transformation Committee to be established as reform 1 under component 1.4.

69

Investment 1: European and national Digital Innovation Hubs

Target

Creation of functional and interconnected European and national Digital Innovation Hubs

Number of European and national Digital Innovation Hubs

0

6

Q4

2024

Six European and national Digital Innovation Hubs shall be established and their operation launched. These Digital Innovation Hubs shall support the digital transformation mainly of SMEs and state administration, introducing new technologies, attracting experts in the field, and ensuring greater resilience of industry and services vis-à-vis potential further crises.

70

Investment 2: European Reference Testing and Experimentation facility

Target

Creation of a European Reference Testing and Experimentation facility

Number of European Reference Testing and Experimentation facilities

0

1

Q2

2023

A European Reference Testing and Experimentation facility shall be established and its operation launched. This facility shall establish a connection between research sectors (such as the Centre of Excellence in Artificial Intelligence) and the wider economy (such as the European and national Digital Innovation Hubs) by allowing research centres and SMEs to test the technologies and applications developed so that they can be used in their operations.

71

Investment 3: Digital transformation of manufacturing and non-production companies and increase of their resilience

Target

Direct support to enterprises for digital transformation

Number of enterprises

0

377

Q4

2025

377 enterprises shall be digitally transformed. This digital transformation shall increase digital processes particularly in SMEs. Support shall be given to activities such as the introduction of digitalisation in enterprises, including the necessary process analysis, the introduction of digital solutions in areas related to artificial intelligence, process automation, robotics and cybersecurity of online and cyber-physical systems and the introduction of new technologies, the acquisition of new technological devices and equipment, including the necessary infrastructure, interconnection of acquired or existing technologies using state-of-the-art communication channels and protocols (autonomous two-way communication).

The total budget executed for this purpose shall amount to at least EUR 180 000 000, including at least EUR 120 000 000 for SMEs and mid-caps and at least EUR 60 000 000 for large enterprises.

F. COMPONENT 1.6: Acceleration and Digitalisation of the Building Process

This component of the Czech recovery and resilience plan contributes to addressing the challenge of the currently lengthy and administratively heavy procedures for obtaining construction permits.

The aim of the component is to simplify and streamline the process of granting construction permits. The significant acceleration of the construction permissions process is expected to considerably improve the business and investment environment in Czechia. The conditions for proper implementation of the digitalisation of building management and spatial planning shall also be addressed. Full streamlining of parallel processes into a single procedure, as well as the institutional reform, as foreseen in the draft Construction Code, may shorten the average issuance time of a permit from the current 5,4 years to an average of 1,25 years. The digitalisation of the process alone is expected to reduce the average time for the obtention of a construction licence by at least 2 years.

The component supports addressing country-specific recommendation 3 2019, according to which Czechia shall reduce the administrative burden on investment and support more quality-based competition in public procurement, and country-specific recommendation 3 2020, according to which Czechia shall support small and medium-sized enterprises by making greater use of financial instruments to ensure liquidity support, reducing the administrative burden and improving eGovernment.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

F.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Implementation of the new construction law and zoning law into practice

The reform consists of institutional and procedural changes and aims to bring a high degree of digitalisation to the construction permissions process. The new Construction Act shall enter into force by 30 September 2021. It shall bring the decentralised structure of the building authorities and their operating conditions under the responsibility of the State.

The reform shall speed up building procedures, make authorisation procedures more efficient and place them under the responsibility of a single authority – the Supreme Construction Office. Relevant actors shall receive adequate training to understand the new processes, be able to use the new information systems and work efficiently in the new organisational setting. The existing data shall be migrated to a new platform and the functioning of the existing individual information systems shall be ensured until the central information system (‘AIS’) is built. This includes the provision of the necessary IT equipment for the functioning of the Supreme Construction Office and local building offices.

This reform shall be implemented by 30 September 2023 and its impact shall be measured by 31 December 2025.

Investment 1: Central information system (‘AIS’)

The investment shall create a process management information system to be used by civil servants of the authorities involved in the construction permissions process. The system shall digitalise building management processes in such a way as to ensure the transparency, efficiency and effectiveness of the processes laid down by the legislation implemented through reform 1 of this component. The necessary hardware and software licences shall be purchased, together with technical support, the applications covering the necessary functional and non-functional requirements, proper system testing, servicing, operation and development of the application.

This investment shall be implemented by 30 September 2023.

Investment 2: Development and use of the public administration’s data in spatial planning

The objective of the investment is to implement a central database of spatial analytical documentation in the context of the spatial planning information system, which shall be used to provide data and services for town and country planning authorities, other public sector users, and providers of spatial planning documents. Data shall be provided in the form of open data. The centralisation shall enable the efficient sharing of data with other public administration systems (notably the register of territorial identification, addresses and real estate).

This investment shall be implemented by 31 December 2024.

Investment 3: Reaping the full benefits of digitising building control 

The investment shall create a series of information systems, standards and methodologies, necessary for the full digitalisation of the construction permissions process and spatial planning.

Three IT systems shall be put in place to allow for interlinking the key databases and facilitate the construction permit process and spatial planning:

A system linking technical norms with implementing regulations, which shall be integrated into the Building Developer Portal and made accessible to the public.

A system for structured requirements about buildings and procedures, validation and control of the permissions process.

A system for management of data standards of buildings.

This investment shall be implemented by 31 December 2025.

F.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

72

Reform 1: Implementation of the new construction law and zoning law into practice

Milestone

Entry into force of the new construction law

Provision in the law indicating the entry into force of the new construction law

Q3

2021

The new construction law that brings acceleration of the building permit process, digitalisation of the process, and a decrease in the number of regulatory authorities shall enter into force.

73

Reform 1: Implementation of the new construction law and zoning law into practice

Milestone

Start of the activity of the Supreme Construction Office

The Supreme Construction Office shall begin its functions. It shall have a legal existence and physical headquarters.

Q3

2023

Creation of new state structure of the Supreme Construction Office, including internal units. Securing financial and IT staffing as well as training of personnel, allowing for proper functioning of the new office.

74

Reform 1: Implementation of the new construction law and zoning law into practice

Target

Shortening of the construction permit process by at least two years

Years

5,5

3,5

Q4

2025

The average duration of the construction permissions process shall be shortened by at least two years, from 5.5 years to 3.5 years or less, to be confirmed by the national statistical office, based on a new statistic for the average length of the permissions process in 2024-2025.

75

Investment 1: Creation of a new central information system (“AIS”)

Milestone

Central Information System fully operational

Deployment of the system, start of use by the building offices.

Q3

2023

Creation of a new central information system to be used by civil servants of the authorities involved in the construction permissions process.

76

Investment 2: Development and use of public administration data in spatial planning

Milestone

Creation of a standardised database of spatial analytical documentation

Standardised database of Spatial Analytical documentation fully operational and used by public authorities

Q4

2024

Transfer of database of spatial analytical documentation and validation of the protocol. The validation tool shall be included inside the National Geoportal for Area Planning, where spatial analytical documentation shall be uploaded.

77

Investment 3: Reaping the Full Benefits of Digitising Building Control

Milestone

IT systems supporting digitalisation of the building permit process fully operational

IT systems fully operational, including end-user deployment.

Q4

2024

Three IT systems shall be put in operation which allow for interlinking all databases used in the construction permissions process:

·a system linking technical norms with implementing regulations, It shall be integrated into the Building Developer Portal and made accessible to the public.

·a system for structured requirements about buildings and procedures, validation and control of permit process including ontology

·a system for management of data standards of buildings.

G. COMPONENT 2.1: Sustainable Transport

This component of the Czech recovery and resilience plan addresses the challenges of digitalising transport, electro-mobility in rail transport, increasing the share of rail transport in freight and passenger transport, boosting the importance of active mobility in cities, improving traffic safety, and reducing the impact of traffic on the environment and public health. The component benefits from synergies with component 2.4, which addresses the issue of alternative propulsion in road transport and urban bus transport.

The component supports addressing the country-specific recommendation 3 2019, according to which Czechia shall focus investment-related economic policy on transport, notably on its sustainability, digital infrastructure, and low carbon and energy transition, including energy efficiency, taking into account regional disparities (Country Specific Recommendation 3, 2019), and Country Specific Recommendation 3 2020, according to which Czechia shall aim at investments in the green and digital transition, in particular on high-capacity digital infrastructure and technologies, clean and efficient production and use of energy, and sustainable transport infrastructure, including in the coal regions (Country Specific Recommendation 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, at least 70 % of construction and demolition waste shall be prepared for reuse or recycling.

G.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Development of alternatives to energy- and spatial-intensive road transport

The measure aims at promoting greater use of more energy-efficient modes of transport for regular and heavy transport flows. This shall be achieved through the following measures:

Individual cities above 40 000 inhabitants shall carry out the Sustainable Urban Mobility Plan (SUMP) process. All SUMPs shall be approved by the city representative bodies by 30 June 2023. Where a simplified SUMP already exists, a new version shall be prepared based on the Urban and Active Mobility Concept (UAMC) approved by the government. It shall contain all the required parts by the UAMC and shall be based on the required analyses by the UAMC such as traffic modelling and surveys.

The concept of freight transport, which will set the conditions for increasing the share of rail freight transport in the total volume of transport, for the period 2024-2030, shall be approved by a resolution of the Government of the Czech Republic by 31 December 2023. The concept shall focus on supporting multimodal transport, improving freight transport services and reducing the impact of freight transport on the environment, public health and global climate change.

All operators of public transport (state, regions and cities operating public transport) shall approve a five-year transport service plan by 31 December 2023, based on the government-approved Public Transport Concept.

The impact of the reform on modal share of public transport and modal share of cycling shall be measured by 31 December 2025.



Investment 1: Application of modern technologies to railway infrastructure 

The investment shall contribute to the digitalisation of rail transport in order to improve traffic safety and the quality of the services provided, optimise capacity of the railway infrastructure and ensure international interoperability. Investment 1 shall be achieved through the following measures:

Definition of a set of projects of 41 km of lines covered by Global System for Mobile Communications – Railway (GSM-R), 20 newly installed or more reliably powered base transceiver stations (BTS) and implementation of new technologies and equipment for railway traffic management by 30 June 2022.

Completion of two projects from the predefined set of projects in the bullet above by 30 June 2024.

Completion of six additional projects from the predefined set of projects in the bullet above, thus completing overall 41 km of lines covered by GSM-R, 20 newly installed or more reliably powered BTS and implementation of new technologies and equipment for railway traffic management by 31 December 2024.

Investment 2: Electrification of railways

The measure aims at increasing the share of non-fossil fuel transport through the electrification of lines and the provision of traction power at substations. The investment shall also create the conditions for energy savings in the transport system. This shall be achieved through the following measures:

Definition of a set of projects of 39,7 km of electrified lines and four traction feeder stations with increased power or newly built ones by 30 June 2022.

Completion of two projects from the predefined set of projects in the bullet above by 30 June 2023.

Completion of six additional projects from the predefined set of projects in the bullet above, thus completing overall 39,7 km of electrified lines and four traction feeder stations with increased power or newly built ones by 30 June 2024.

Investment 3: Support for railway infrastructure 

The measure aims at protecting the environment and climate by contributing to increasing the share of rail transport in freight and passenger transport and improving the energy efficiency of railway stations. This investment shall focus on rail infrastructure development projects, taking into account, inter alia, gender gaps and adequate access to services for disadvantaged and vulnerable persons. Projects shall focus on network sections important for suburban transport and projects to upgrade railway hubs and station buildings within multimodal passenger terminals. In addition, the heating of station buildings shall be supported. This shall be achieved through the following measures:

Definition of a set of projects of 121,88 km of modernised lines, nine modernised railway stations with reconstructed tracks and safe, barrier-free accessible platforms, and over 35 station buildings with reduced energy intensity to achieve, on average, at least a 30% reduction of direct and indirect greenhouse gas emissions compared to the ex-ante emissions, and increased comfort and better services for passengers by 30 June 2022.

Completion of 26 projects from the predefined set of projects in the bullet above by 31 December 2022.

Completion of additional 30 projects from the predefined set of projects in the bullet above, thus completing overall 121,88 km of modernised lines, nine modernised railway stations with reconstructed tracks and safe, barrier-free accessible platforms, and over 39 station buildings with reduced energy intensity to achieve, on average, at least a 30% reduction of direct and indirect greenhouse gas emissions compared to the ex-ante emissions, and increased comfort and better services for passengers by 31 December 2023.

Investment 4: Road and rail transport safety

The measure aims at improving traffic safety by taking concrete safety measures at railway crossings, and improving the condition of bridges and tunnel structures. In cities and agglomerations, investments shall be made to reduce the share of individual car journeys and increase the share of public transport and active modes of transport such as pedestrian and cycling. Building cycle paths and pedestrian barrier-free routes is also part of the investment, in order to improve the safety of vulnerable traffic participants as part of the promotion of active mobility, especially in cities. This shall be achieved through the following measures:

Completion of projects with 45 level crossings with increased safety (i.e. with newly installed or modernised flashlight warning system or mechanical safety installation), 25 km of built cycle paths, sidewalks and barrier-free routes, and 3 modernised railway bridges or tunnels by 30 June 2022.

Completion of projects involving 115 additional level crossings with an increased safety (i.e. with newly installed or modernised flashlight warning system or mechanical safety installation), 24 additional km of built cycle paths, sidewalks and barrier-free routes, and 3 additional modernised railway bridges or tunnels by 31 December 2022.

Completion of projects involving 131 additional level crossings with an increased safety (i.e. with newly installed or modernised flashlight warning system or mechanical safety installation) and 1 additional modernised railway bridge or tunnel by 31 December 2024.

Completion of projects involving 36 additional km of built cycle paths, sidewalks and barrier-free routes and 1 additional modernised railway bridge or tunnel by 31 December 2023.

   

G.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

78

Reform 1: Creating alternatives to energy and space-intensive road transport

Milestone

Approval of the mobility plans

Approval of the plan by the city representative bodies

Q2

2023

All statutory cities of the Czech Republic (cities with a population of over 40 000) shall have a Sustainable Urban Mobility Plan (SUMP) approved by the city representative bodies, based on the Urban and Active Mobility Concept approved by the government.

79

Reform 1: Creating alternatives to energy and space-intensive road transport

Milestone

Approval and entry into force of the new Freight Transport Concept

Approval by the government

Q4

2023

The government shall approve the new Freight Transport Concept, which will set the conditions for increasing the share of rail freight transport in the total volume of transport for the period 2024-2030. The concept will focus on supporting multimodal transport, improving freight transport services and reducing the impact of freight transport on the environment, public health and global climate change.

80

Reform 1: Creating alternatives to energy and space-intensive road transport

Milestone

Approval of the transport service plans.

Approval by the operators of public transport

Q4

2023

All operators of public transport (state, regions and cities operating public transport) shall approve a five-year transport service plan, based on the government-approved Public Transport Concept.

81

Reform 1: Creating alternatives to energy and space-intensive road transport

Target

Reaching an increased modal share of public transport in CZ cities bigger than 250 000 inhabitants and in CZ cities bigger than 75 000 inhabitants

% (modal share of public transport)

40 % in cities bigger than 250 000 inhabitants / 28 % in cities bigger than 75 000 inhabitants

45 % in cities bigger than 250 000 inhabitants / 35 % in cities bigger than 75000 inhabitants

Q4

2025

Modal share of public transport in CZ cities bigger than 250 000 inhabitants and in CZ cities bigger than 75 000 inhabitants shall increase by the % clarified in the goal column.

82

Reform 1: Creating alternatives to energy and space-intensive road transport

Target

Reaching an increased modal share of cycling in CZ cities bigger than 250 000 inhabitants and in CZ cities bigger than 75 000 inhabitants

% (modal share of cycling)

1 % in cities bigger than 250 000 inhabitants / 5 % in cities bigger than 75 000 inhabitants

5 % in cities bigger than 250 000 inhabitants / 10 % cities bigger than 250 000 inhabitants

Q4

2025

Modal share of cycling in CZ cities bigger than 250 000 inhabitants and in CZ cities bigger than 75 000 inhabitants shall increase by the % clarified in the goal column.

83

Investment 1: New technologies and digitisation on railway infrastructure

Milestone

Definition of the set of projects for Investment 1

Definition of the set of projects by the Ministry of Transport

Q2

2022

Definition of the set of projects of 41 km of lines covered by Global System for Mobile Communications – Railway (GSM-R), 20 newly installed or more reliably powered base transceiver stations (BTS) and implementation of new technologies and equipment for railway traffic management.

84

Investment 1: New technologies and digitisation on railway infrastructure

Target

Completion of two projects from a predefined set of projects.

Number of projects

0

2

Q2

2024

Completion of two projects from the predefined set of projects of 41 km of lines covered by Global System for Mobile Communications – Railway (GSM-R), 20 newly installed or more reliably powered base transceiver stations (BTS) and implementation of new technologies and equipment for railway traffic management.

85

Investment 1: New technologies and digitisation on railway infrastructure

Target

Completion of six additional projects from a predefined set of projects.

Number of projects

2

8

Q4

2024

Completion of six additional projects (8 in total) from the predefined set of projects of 41 km of lines covered by Global System for Mobile Communications – Railway (GSM-R), 20 newly installed or more reliably powered base transceiver stations (BTS) and implementation of new technologies and equipment for railway traffic management.

86

Investment 2: Electrification of railways

Milestone

Definition of the set of projects for Investment 2

Definition of the set of projects by the Ministry of Transport

Q2

2022

Definition of a set of projects comprising 39,7 km of electrified lines and 4 traction feeder stations with increased power or newly built.

87

Investment 2: Electrification of railways

Target

Completion of two projects from a predefined set of projects

Number of projects

0

2

Q2

2023

Completion of two projects from the predefined set of projects comprising 39,7 km of electrified lines and 4 traction feeder stations with increased power or newly built.

88

Investment 2: Electrification of railways

Target

Completion of six additional projects from a predefined set of projects

Number of projects

2

8

Q2

2024

Completion of five additional projects (8 in total) from the predefined set of projects comprising 39,7 km of electrified lines and 4 traction feeder stations with increased power or newly built.

89

Investment 3: Improving the environment (railway infrastructure support)

Milestone

Definition of the set of projects for Investment 3

Definition of the set of projects by the Ministry of Transport

Q2

2022

Definition of a set of projects comprising about 121,88 km of modernised lines,9 modernised railway stations with reconstructed track and safely and barrier-free accessible platforms and 35 station buildings with reduced energy intensity, increased comfort and better services for passengers.

90

Investment 3: Improving the environment (railway infrastructure support)

Target

Completion of 26 projects from a predefined set of projects

Number of projects

0

26

Q4

2022

Completion of 26 projects from the predefined set of projects comprising about 121,88 km of modernised lines, 9 modernised railway stations with reconstructed track and safely and barrier-free accessible platforms and 35 station buildings with reduced energy intensity, increased comfort and better services for passengers.

91

Investment 3: Improving the environment (railway infrastructure support)

Target

Completion of 30 additional projects from a predefined set of projects

Number of projects

26

56

Q4

2023

Completion of 30 additional projects from the predefined set of projects comprising 121,88 km of lines modernised, operationally improved or more resistant to natural influences, about 9 modernised railway stations with reconstructed track and safely and barrier-free accessible platforms and 39 station buildings with reduced energy intensity, increased comfort and better services for passengers.

92

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of level crossings with an increased safety

Number of level crossings with an increased safety

0

45

Q2

2022

Level crossings with an increased protection level, with newly installed or modernised flashlight warning system or mechanical safety installation.

93

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of built cycle paths, sidewalks and barrier-free routes

Length of built cycle paths, sidewalks, barrier-free routes - km

0

25

Q2

2022

Length of built cycle path / sidewalk / barrier-free routes.

94

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of modernised railway bridges or tunnels

Number of modernised railway artificial structures (bridges / tunnels)

0

3

Q2

2022

Modernised railway artificial structure for the operational phase.

95

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of modernised railway bridges or tunnels

Number of modernised railway artificial structures (bridges / tunnels)

3

6

Q4

2022

Modernised railway artificial structure for the operational phase.

96

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of level crossings with an increased safety

Number of level crossings with an increased safety

45

160

Q4

2022

Level crossings with an increased protection level, with newly installed or modernised flashlight warning system or mechanical safety installation.

97

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of built cycle paths, sidewalks and barrier-free routes

Length of built cycle paths, sidewalks, barrier-free routes - km

25

49

Q4

2022

Length of built cycle path / sidewalk / barrier-free route.

98

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of level crossings with an increased safety

Number of level crossings with an increased safety

160

291

Q4

2024

Level crossings with an increased protection level, with newly installed or modernised flashlight warning system or mechanical safety installation.

99

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of modernised railway bridges or tunnels

Number of modernised railway artificial structures (bridges / tunnels)

6

7

Q2

2023

Modernised railway artificial structure for the operational phase.

100

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of built cycle paths, sidewalks and barrier-free routes

Length of built cycle paths, sidewalks, barrier-free routes - km

49

85

Q4

2023

Length of built cycle path / sidewalk / barrier-free routes.

101

Investment 4: Road and rail safety (railway crossings, bridges and tunnels, cycle paths and barrier-free routes)

Target

Completion of modernised railway bridges or tunnels

Number of modernised railway artificial structures (bridges / tunnels)

7

8

Q4

2023

Modernised railway artificial structure for the operational phase.

H. COMPONENT 2.2: Reducing Energy Consumption in the Public Sector

This component of the Czech recovery and resilience plan addresses the challenge of energy efficiency in the public sector by means of renovation of state and public buildings and the modernisation of public lighting.

The component reflects Czechia’s commitments to improve energy efficiency of the national economy by 2030. It aims to reduce final energy consumption in the relevant state and public buildings, to increase the number of high-quality renovations in the public sector and to reduce the final energy consumption of public lighting.

The component supports addressing the country specific recommendation on low carbon and energy transition, including energy efficiency (country specific recommendation 3 2019) and on clean and efficient production and use of energy (country specific recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, when improving the energy performance of state and public buildings, at least 70 % of construction and demolition waste shall be prepared for reuse or recycling.

H.1. Description of the reforms and investments for non-repayable financial support

Investment 1: Improving the energy performance of state buildings

This investment aims at reducing the final energy consumption in the buildings of the state administration that do not meet the minimum energy performance requirements in the long term and at increasing the number of high-quality and moderately deep or deep renovations. Only projects that achieve, on average, a reduction of primary energy consumption of at least 30 % or a reduction in CO2 emissions of 30 % shall be financed.

The investment aims at supporting of up to 100 building renovation projects including insulation of a buildings, exchange and renovation of windows and doors, installation of systems based on renewable energy sources or implementation of improvements of the indoor environment measures having a demonstrable impact on the energy performance of the buildings.

75 % of projects shall be contracted by 31 December 2023.

In order to better prepare this investment, the Ministry of Industry and Trade shall adopt and publish a model contract for the Energy Performance Contracting method services with a guarantee by 31 December 2021. It shall aim at promoting the implementation of projects with an emphasis on maximising the yield of energy savings compared to the funds spent.

The implementation of the investment shall be completed by 31 March 2026.

Investment 2: Improving the energy efficiency of public lighting systems

This investment aims at enabling the renovation of public lighting across different municipalities in the Czech Republic and at enabling these renovations to be linked to other smart elements such as supporting the development of electromobility.

Only projects that achieve, on average, a reduction of primary energy consumption by at least 30 % or a reduction in CO2 emissions of 30 % shall be financed.

The investment includes supporting up to 2 000 projects of renovation of public lightning systems across different municipalities in Czechia, 80 % of which shall be contracted by 31 December 2024. The investment shall include renewal of lighting systems and the acquisition or optimisation of the management system.

In order to better prepare this investment, a programme documentation shall be adopted and published by the Ministry of Industry and Trade by 31 December 2021. It shall establish the timetable and the conditions for support of the measures to renovate public lightning systems, including the smart elements.

The implementation of the investment shall be completed by 31 March 2026.

Investment 3: Improving the energy performance of public buildings

This investment aims at reducing final energy consumption in the public buildings that do not meet the minimum energy performance requirements in the long term, and at increasing the number of high-quality and moderately deep or deep renovations. Only projects that achieve, on average, a reduction of primary energy consumption by at least 30 % or a reduction in CO2 emissions of 30 % shall be financed.

The investment aims at supporting up to 400 building renovation projects including insulation of a buildings, exchange and renovation of windows and doors, installation of systems based on renewable energy sources or implementation of improvements of the indoor environment measures having a demonstrable impact on the energy performance of the buildings.

75 % of projects shall be contracted by 31 December 2023.

The implementation of the investment shall be completed by 31 March 2026.

H.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

102

Investment 1: Improving the energy performance of state buildings

Milestone

Adoption of the model contract by the Ministry of Industry and Trade for the Energy Performance Contracting method services with a guarantee

Publication of the model contract on the Ministry’s website

Q4

2021

A model contract for the Energy Performance Contracting method services with a guarantee is adopted by the Ministry of Industry and Trade in order to promote the implementation of projects with an emphasis on maximizing the yield of energy savings compared to the funds spent.

The model contract shall be published on the Ministry’s website.

103

Investment 1: Improving the energy performance of state buildings

Target

Award of 75 % of all public contracts for building renovation projects achieving at least 30% primary energy savings

Percentage

0

75

Q4

2023

In total at least 100 building renovation projects shall be supported under this measure. The target shall be achieved upon contracting 75% of them. Projects shall be submitted to the MIT within continuous call and evaluated based on the established criteria, following a transparent selection procedure.

Only projects that achieve, on average, a reduction in primary energy consumption of at least 30 % or a reduction in CO2 emissions of 30 % shall be chosen for implementation. The 75 % target refers to projects with a grant agreement signed. Investments into boiler replacements including those with natural gas as an energy source shall be limited to maximum 20 % of the overall allocation.

104

Investment 1: Improving the energy performance of state buildings

Target

Reduction of energy consumption

Energy savings in tera joules per year

0

216

Q1

2026

The target shall be achieved upon reducing energy consumption in state buildings by 216 TJ/per year by 31 March 2026 as an outcome of the renovation of buildings, which shall be demonstrated through energy performance certificates. Energy consumption shall be reduced in comparison to the business-as-usual scenario (that is the absence of support under Regulation (EU) 2021/241). Amount of saved energy is to be determined by measuring and/or estimating consumption before and after implementation of an energy efficiency improvement measure, whilst ensuring normalisation for external conditions that affect energy consumption.

105

Investment 2: Improving the energy performance of public lighting systems

Milestone

Adoption of programme documentation by the Ministry of Industry and Trade regarding measures to renovate public lightning systems

Publication of the programme documentation on the Ministry’s website

Q4

2021

Programme documentation is prepared by the Ministry of Industry and Trade and published on the Ministry’s website. It shall establish the timetable and the conditions for support of the measures to renovate public lighting systems, including the smart elements, in view of the objective of achieving at least 30% primary energy savings.

106

Investment 2: Improving the energy performance of public lighting systems

Target

Award of 80 % of all public contracts for renovation of public lightning systems achieving at least 30 % primary energy savings

Percentage

0

80

Q4

2024

In total at least 2000 projects of renovation of public lightning systems shall be supported under this measure. The target shall be achieved upon contracting 80 % of them (namely 1600) by 31 December 2024. Projects shall be evaluated and selected every year, based on the established criteria, following a transparent selection procedure.

Only projects that achieve, on average, a reduction in primary energy consumption of at least 30 % or a reduction in CO2 emissions of 30% shall be chosen for implementation. The 80 % target refers to projects with a grant agreement signed.

107

Investment 2: Improving the energy performance of public lighting systems

Target

Reduction of energy consumption

Energy savings in tera joules per year

0

286

Q1

2026

The target shall be achieved upon reducing energy consumption by 286 TJ/per year by 31 March 2026 as an outcome of the reconstruction of public lighting, which shall be demonstrated through energy performance certificates. Energy consumption shall be reduced in comparison to the business-as-usual scenario (that is the absence of support under Regulation (EU) 2021/241). Amount of saved energy is to be determined by measuring and/or estimating consumption before and after implementation of an energy efficiency improvement measure, whilst ensuring normalisation for external conditions that affect energy consumption.

108

Investment 3: Improving the energy performance of public buildings

Target

Award of 75 % of all public contracts for building renovation projects achieving at least 30 % primary energy savings

Percentage

0

75

Q4

2023

In total at least 400 building renovation projects shall be supported under this measure. The target shall be achieved upon contracting 75 % of them. Projects shall be submitted to the MIT within continuous call and evaluated based on the established criteria, following a transparent selection procedure.

Only projects that achieve, on average, a reduction in primary energy consumption of at least 30 % or a reduction in CO2 emissions of 30% shall be chosen for implementation. The 75 % target refers to projects with a grant agreement signed. Investments into boiler replacements including those with natural gas as an energy source shall be limited to maximum 20 % of the overall allocation.

109

Investment 3: Improving the energy performance of public buildings

Target

Reduction of energy consumption

Energy savings in tera joules per year

0

390

Q1

2026

The target shall be achieved upon reducing energy consumption in state buildings by 390 TJ /per yearby 31 March 2026, as an outcome of the renovation of buildings, which shall be demonstrated through energy performance certificates. Energy consumption shall be reduced in comparison to the business-as-usual scenario (that is the absence of support under Regulation (EU) 2021/241). Amount of saved energy is to be determined by measuring and/or estimating consumption before and after implementation of an energy efficiency improvement measure, whilst ensuring normalisation for external conditions that affect energy consumption.

I. COMPONENT 2.3: Transition to Cleaner Energy Sources

This component of the Czech recovery and resilience plan contributes to addressing the challenge of moving from fossil fuels to low-emission and zero-emission energy sources such as photovoltaic energy. It aims at reducing the emission intensity of the Czech economy and emissions of pollutants, as well as at the modernisation of the distribution network of heat energy, in particular through the replacement of steam by hot water, leading to savings in primary energy sources.

The reforms and the investments support addressing country-specific recommendation 3 2019, according to which Czechia shall focus investment-related economic policy on low carbon and energy transition, including energy efficiency, taking into account regional disparities and country-specific recommendation 3 2020, according to which Czechia shall focus investment on the green and digital transition, in particular on clean and efficient production and use of energy, including in the coal regions.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

I.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Preparation of an assessment of decarbonisation of district heating in Czechia

This measure aims at decarbonising district heating, in particular by increasing energy efficiency, switching from coal combustion to renewable energy sources, the combustion of natural gas, biomass and waste, and decreasing greenhouse gas emissions and pollutants.

An assessment of the path towards decarbonisation of district heating in Czechia shall be carried out and published. This assessment shall guide the investments financed under this component of the Czech recovery and resilience plan.

The reform shall be implemented by 30 June 2022.

Reform 2: Preparation of an assessment of the trajectories of sustainable use of bioenergy and supply of biomass in Czechia and its impacts on the Land Use, Land-Use Change and Forestry sinks and biodiversity as well as impact on air quality for period 2020-2030

This measure aims at promoting biomass investment based on biomass waste and residues that can be extracted in a sustainable manner, with accompanying emission-reducing measures.

An assessment of the trajectories of sustainable use of bioenergy and supply of biomass in Czechia and its impacts on Land Use, Land-Use Change and Forestry sinks and biodiversity as well as its impact on air quality for the period 2020-2030 shall be published. This assessment shall guide bioenergy investments financed under components 2.2, 2.3 and 2.5 of the Czech recovery and resilience plan.

The reform shall be implemented by 31 December 2022. 



Investment 1: Increasing installed capacity of sources of photovoltaic energy 

This measure aims at replacing at least a part of the coal-fired energy sources by sources of photovoltaic energy.

New capacity of sources of photovoltaic energy of 270 MWp shall be installed and put into operation. Projects shall include the construction of photovoltaic power plants on the roofs of companies’ buildings including shelters (such as shelters for cars, construction machines or storage of material) as well as accumulation of energy aiming at optimizing the generation of electricity.

This investment shall be implemented by 31 March 2026.

Investment 2: Achieving primary energy savings resulting from the modernization of heat distribution

This measure aims at reducing coal combustion for heat production (and related electricity generation) by 2030, in compliance with the adopted assessment of decarbonisation of district heating in Czechia under reform 1 of this component, in particular by making the district heating highly efficient and decreasing greenhouse gas emissions and pollutants through the replacement of steam-based distribution networks by hot water distribution networks.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, refurbishment of the heat and power generation facility shall start within three years of the modernisation of the network, in order to comply with the definition of ‘efficient district heating and cooling’ in Article 2(41) of the Directive 2012/27/EU (“a district heating or cooling system using at least 50 % renewable energy, 50 % waste heat, 75 % cogenerated heat or 50 % of a combination of such energy and heat”). It shall be ensured that these heat generation facilities meet the requirements of the ‘Do no significant harm’ Technical Guidance (2021/C58/01) and not use solid fossil fuels as a heat source, except those compliant with the criteria for natural gas-based heat generation specified in Annex III of the ‘Do no significant harm’ Technical Guidance.

In case biomass is utilised as a fuel source, the investment shall be in line with the sustainability and the greenhouse gas saving criteria as set out in Article 29 of Directive 2018/2001 on the promotion of the use of energy from renewable sources (‘the Renewable Energy Directive’, ‘RED II’). Only biomass waste and residues that can be extracted in a sustainable manner shall be used and the investment shall be accompanied by emission-reducing measures. 

Compliance with the relevant EU and national environmental legislation shall be ensured so that emissions are within or lower than the emission levels associated with the Best Available Techniques Conclusions limits (under the Industrial Emission Directive).

The investment shall be implemented through the following measures:

By 30 June 2024, before the network investment is completed, Czechia shall provide a concrete plan for investment in heat and power generation facilities, including contractual obligations taken up by the Czech government to commission the relevant work.

Achieving primary energy savings of 245 327 GJ resulting from the modernization of heat distribution networks by 31 March 2026.

I.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

110

Reform 1: Modernisation of distribution of heat in district heating systems

Milestone

Assessment of decarbonisation of district heating in Czechia

Publication of the assessment

Q3

2022

Assessment of the path towards decarbonisation of district heating in Czechia compliant with EU legal requirements including the requirements contained in the Guidance ‘Do no significant harm’ Technical Guidance (2021/C58/01) shall be carried out and published by the Ministry of Industry and Trade.

This assessment shall guide investments financed under this component of the Czech recovery and resilience plan as well as investment in the field of decarbonisation of district heating financed by other EU funds or national sources in full compliance with the legal requirements including on do not significant harm.

111

Reform 2: Modernisation of distribution of heat in district heating systems

Milestone

Assessment of the trajectories of sustainable supply of biomass in Czechia

Publication of the assessment

Q4

2022

Assessment of the trajectories of sustainable use of bioenergy and supply of biomass in Czechia and its impacts on the Land Use, Land-Use Change and Forestry sinks and biodiversity as well as impact on air quality for period 2020-2030, compliant with EU legal requirements including the requirements included in the Guidance ‘Do no significant harm’ Technical Guidance (2021/C58/01), shall be carried out and published by the Ministry of Environment in cooperation with the Ministry of Industry and Trade and the Ministry of Agriculture.

This assessment shall guide bioenergy investments financed under components 2.2, 2.3 and 2.5 of the Czech recovery and resilience plan as well as bioenergy investment in the fields of energy, transport, environment, climate change, forestry or agriculture financed by other EU funds or national sources in full compliance with the legal requirements including on do not significant harm.

112

Investment 1: Development of new photovoltaic energy sources

Target

Increase of installed capacity of FVE sources

MWp

0

270

Q1

2026

New capacity of photovoltaic energy sources of 270 MWp shall be installed and put into operation.

113

Investment 2: Modernisation of distribution of heat in district heating systems

Milestone

Plan for investment in heat/power generation facilities

Submission to the Commission

Q2

2024

In accordance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), Czechia shall provide, before the network investment is completed, a concrete plan for investment in heat/power generation facilities compliant with the Guidance ‘Do no significant harm’ Technical Guidance (2021/C58/01), in particular the criteria for natural gas-based heat and power set out in Annex III of the Guidance, in case natural gas shall be utilised, including through contractual obligations taken up by the Czech government to commission the relevant work.

Refurbishment of the heat and power generation facility shall start within three years of the modernisation of the network, in order to comply with the definition of ‘efficient district heating and cooling’ in Article 2(41) of the Directive 2012/27/EU (“a district heating or cooling system using at least 50 % renewable energy, 50 % waste heat, 75 % cogenerated heat or 50 % of a combination of such energy and heat”).

114

Investment 2: Modernisation of distribution of heat in district heating systems

Target

Primary energy savings resulting from the modernisation of heat distribution

Primary energy savings in gigajoules

0

245 327

Q1

2026

Primary energy savings of 245 327 GJ shall be achieved.

J. COMPONENT 2.4: Clean Mobility

This component of the Czech recovery and resilience plan aims at supporting the objectives of the Updated National Action Plan for Clean Mobility of Czech Republic based on the Directive 2014/94/EU. One of the main strategic goals of the Action Plan is to achieve the operation of between 220 000 and 500 000 electric vehicles in Czechia by 2030. This objective is to be reached by stimulating demand through subsidies, favouring electric vehicles on the road, supporting the construction of charging infrastructures and providing information to the public. In addition to the subsidy programme for businesses, the same initiative has been announced for municipalities, regions, and other public entities.

The component supports addressing country-specific recommendation 3, 2019, according to which Czechia shall focus investment on the green and digital transition, in particular on high-capacity digital infrastructure and technologies, clean and efficient production and use of energy, and sustainable transport infrastructure, including in the coal regions, and country-specific recommendation 3, 2020, according to which Czechia shall focus investment-related economic policy on transport, notably on its sustainability, digital infrastructure, and low carbon and energy transition, including energy efficiency, taking into account regional disparities.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). 

J.1. Description of the reforms and investments for non-repayable financial support

Investment 1: Building infrastructure for public transport in the city of Prague

Complemented by Investment 6 under this component, the objective of this measure is to renew and decarbonise the public transport fleet in Prague. Supporting zero emission electric buses and trolleybus fleets is expected to contribute to the decarbonisation efforts of both the transport and the energy sector. In addition, it is expected to improve the air quality and noise levels in the urban environment. This investment shall aim at increasing the number of charging points for electro buses and battery trolleybuses in Prague by 52 units and at increasing the section of dynamic charging roads (electrification of road) for battery trolleybuses by 40 km.

The investment shall be completed by 31 December 2025.

Investment 2: Building infrastructure – Recharging points for private companies

Together with Investment 4 under this component, this investment shall aim at stimulating demand for electric cars and at supporting the development of hydrogen technology in transport. It shall consist of increasing the number of recharging points for private companies by 1500 units. A non-discriminatory treatment amongst the E-Mobility Service Providers shall be ensured and access shall be granted to the public to the extent possible. Call for interest shall ensure adequate geographical distribution, including the analysis of future needs for such infrastructure and mapping of critical areas where there is a significant shortfall of such infrastructure.

The investment shall be completed by 31 December 2025.



Investment 3: Building infrastructure – Recharging points for residential buildings

With the objective to contribute to the development of electric vehicles, this investment shall consist of increasing the number of recharging points in residential buildings, both in private garage and parking spaces reserved for the residents of the building, by 2880 units.

The investment shall be completed by 31 December 2025.

Investment 4: Aid for purchase of vehicles – vehicles (electric, H2, cargo ebikes) for private companies

With the objective of stimulating demand for zero emission vehicle, this investment shall aim at increasing the number of alternative fuel vehicles (electric, H2) for business by 4555 units (3525 electric, 30 hydrogen cars, 1000 cargo ebikes).

The investment shall be completed by 31 December 2025.

Investment 5: Aid for purchase of vehicles (electric, H2) and infrastructure for municipalities, regions, state administration and other public entities and other organisations.

This investment shall aim at increasing the number of alternative fuel vehicles (electric, H2) for municipalities, regions, state administration by 1485 units and at increasing the number of recharging points for municipalities, regions and state administration by 200 units.

The investment shall be completed by 31 December 2025.

Investment 6: Aid for purchase of vehicles (battery trolleybuses and low-floor tramways) for public transport in the city of Prague

This investment shall aim at supporting the purchase of 20 battery powered trolleybuses and 20 low-floor trams for the city of Prague.

The investment shall be completed by 31 March 2026.

J.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

 

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

115

Investment 1: Building infrastructure for public transport in the city of Prague

Target

Number of recharging points for the city of Prague

 

Number

0

52

Q4

2025

At least 52 new recharging points shall be operational for the city of Prague.

116

Investment 1: Building infrastructure for public transport in the city of Prague

Target

Number of kilometre of dynamic charging road for the city of Prague

 

Km of

0

40

Q4

2025

At least 40 km of dynamic charging road for battery trolley bus for the city of Prague shall be ready to operate.

117

Investment 2: Building infrastructure – Recharging points for private companies

Target

Number of recharging points deployed for private companies

 

Number of

0

1500

Q4

2025

At least 1500 new recharging points shall be operational and open to third parties.

118

Investment 3: Building infrastructure – Recharging points for residential buildings

Target

Number of recharging points deployed for residential buildings

 

Number of

0

2 880

Q4

2025

At least 2880 new recharging points shall be operational.

119

Investment 4: Aid for purchase of vehicles – vehicles (electric, H2, bikes) for private companies

Target

Number of vehicles (electric, H2, bikes) for private companies

 

Number of

0

4 555

Q4

2025

At least 4 555 new zero emission vehicles (3525 electric, 30 H2 cars, 1000 cargo e-bikes) for business shall be purchased.

120

Investment 5: Aid for purchase of vehicles (electric, H2) and infrastructure for municipalities, regions, state administration

Target

Number of vehicles (electric, H2) for municipalities, regions, state administration

 

Number of

0

1 485

Q4

2025

At least 1 485 new zero emission vehicles (electric, H2) for municipalities, regions, state administration shall be purchased.

121

Investment 5: Aid for purchase of vehicles (electric, H2) and infrastructure for municipalities, regions, state administration and other public entities

Target

Number of charging stations for municipalities, regions, state administration and other public entities

 

Number of

0

200

Q4

2025

At least 200 new charging stations for municipalities, regions, state administration and other public entities and organisations shall be operational.

122

Investment 6: Aid for purchase of vehicles (battery trolleybuses and low-floor tramways) for public transport in the city of Prague

Target

Number of vehicles (battery trolleybuses and low-floor trams) for public transport in the city of Prague

 

Number of

0

40

Q1

2026

At least 40 new zero emission vehicles (20 battery trolleybuses and 20 low-floor trams) for public transport in the city of Prague shall be operational.

K. COMPONENT 2.5: Building Renovation and Air Protection

This component of the Czech recovery and resilience plan contributes to addressing the challenges of reducing energy and water consumption in residential buildings, improving quality of living in these buildings, reducing emissions of greenhouse gases and other pollutants by replacing solid fuel-fired boilers, adapting residential buildings to the effects of climate change, constructing new buildings, as well as awareness-raising regarding energy savings, the use of renewable energy sources and adaptation to climate change in the residential sector. The component shall be implemented under the New Green Savings (NGS) 2030 support programme.

The reforms and the investments included in this component support addressing country-specific recommendation 3 2019, according to which Czechia shall focus investment-related economic policy on low carbon and energy transition, including energy efficiency, taking into account regional disparities, and country-specific recommendation 3 2020, according to which Czechia shall focus investment on the green transition, in particular on clean and efficient production and use of energy, including in the coal regions.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the investments shall be in line with the sustainability and the greenhouse gas (GHG) saving criteria as set out in Article 29 of Directive 2018/2001 on the promotion of the use of energy from renewable sources (‘the Renewable Energy Directive’, ‘RED II’). These requirements shall apply to all installations irrespective of thresholds included in RED II. The investments shall comply with the RRF Regulation requirement of at least 80 % greenhouse gas emission saving from the use of biomass in relation to the GHG saving methodology and the fossil fuel comparator set out in Annex VI to RED II. In residential environments, investments in biomass boilers should not jeopardise the attainment of Directive 2008/50/EU. The investments shall comply with eco-design requirements (i.e. the requirements of Directive 2009/125/EC of the European Parliament and of the Council) and be classified in one of the two highest significantly represented energy efficiency classes within the meaning of Article 7(2) of Regulation (EU) 2017/1369 of the European Parliament and of the Council. These requirements shall be met for all fuels and all loading methods. The investments shall be guided and be consistent with the assessment of the trajectories of sustainable use of bioenergy and supply of biomass in Czechia and its impacts on the Land Use, Land-Use Change and Forestry sinks and biodiversity as well as impact on air quality for period 2020-2030, which is part of reform 2 under component 2.3.

The energy renovation of buildings, the use of RES in the residential sector and the exchange of solid fuel boilers shall increase the efficiency of domestic heating and is a key measure to meet the national reduction targets under Directive EU 2016/2284 and to achieve air quality standards under air quality improvement programmes. Emission reductions shall also have a positive impact on water quality, especially the reduction of benzo(a)pyrene emissions.

K.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Renovation wave in the household sector

This measure aims at supporting the implementation of energy efficiency improvements in residential buildings, including the optimisation of such support and the introduction of a qualitatively new level of project preparation. The measure shall also raise awareness of the possibilities to reduce energy needs and gradually change the behaviour of energy consumers.

The reform shall be achieved through the following actions:

·The New Green Savings 2030 programme shall be upgraded by optimising the setting of support conditions, by increasing the requirements for medium-scale renovations (saving 30 % of primary energy consumption), by increasing the emphasis on complex energy renovations, by reinforcing support for the construction of new houses with higher energy efficiency standards, and by supporting efficient water management.

·A two-stage pre-project preparation shall be introduced for households: a basic assessment of renovation options, alternatives, investment intensity, energy cost savings, the possible level of subsidy from the New Green Savings (first stage) and an overview of possible measures to renovate houses and use renewable energy sources in them, including an assessment of the economic efficiency and feasibility of these measures (second stage). The two-stage pre-project support shall significantly improve investment support, especially for lower income households.

·The energy consultation centres of the National Network of Local Action Groups shall be integrated in the network of local energy agencies.

·The support for training and retraining of workers deploying green construction, green technologies or materials under the State programme for supporting energy savings (EFEKT) shall be strengthened and expanded to foster the quality preparation and implementation of energy-saving projects.

·The existing system of environmental education and awareness-raising in eco-centres targeted at children and young people shall be extended to the entire general public and shall have a significant new focus on energy saving, use of renewable energy sources, climate change and adaptation to climate change.

The reform shall be implemented by 31 December 2025.

Reform 2: Support for energy communities

This measure aims at establishing ‘energy communities’ involving residential and entrepreneurial sector actively in renewable energy use as well as awareness-raising and training focused on developing community-based energy.

The reform shall be achieved through the following actions:

·The New Green Savings 2030 programme shall support the installation of new renewable energy sources in a way that eliminates obstacles to their future integration in the wider energy community. The New Green Savings 2030 programme shall also support smaller common multi-home energy storage sites or the creation of energy communities within individual multi-family buildings and other investment measures linked to energy communities.

·The establishment of energy communities as well as awareness-raising and education focused on developing energy communities shall be supported by non-investment measures.

The reform shall be implemented by 31 December 2025.

Investment 1: Support for the renovation and revitalisation of buildings in the housing sector

This measure aims at saving energy in residential buildings, constructing new residential buildings that exceed mandatory energy standards, replacing non-compliant combustion sources in households using solid fuels with gas condensing boilers of energy class A, using renewable energy sources as part of comprehensive energy renovation of buildings, and adapting to climate change, including water management. Smart energy solutions at the level of individual households, houses or small groups of houses such as smart meters, common energy storage sites and demand aggregation shall be promoted.

The cost of installing gas-condensing boilers shall represent a maximum of 20 % of the overall renovation programme cost and be installed in order to replace solid-fuel-based boilers. The energy efficiency scheme shall incentivise beneficiaries to install new gas-fired boilers and to adopt other energy efficiency measures as well.

The renovation programme shall lead, on average, to a 30% reduction in the Primary Energy Demand of the buildings renovated.

A maximum of 10 % of the total allocation of this measure shall support the construction of new buildings. The new buildings supported shall have a Primary Energy Demand hat is at least 20 % lower than the Near Zero Energy Buildings requirement.

At least 70 % of non-hazardous construction and demolition waste shall be prepared for reuse or recycling. EU Level(s) indicators shall be used to assess and report on the sustainability performance of buildings, throughout the full life cycle of buildings.

Vulnerable energy consumers shall be also supported.

The investment shall be implemented through the following projects:

·Projects for reduction of energy consumption by 1 200 TJ/year contracted between 1 February 2020 and 30 September 2021.

·Reduction of energy consumption by 4 021 TJ/year and reduction of CO2 emissions by 631 kt/year between 1 February 2020 and 31 December 2025.

Investment 2: Support exchanges of non-compliant heat generators and installing renewable energy sources

This measure aims at replacing non-compliant combustion sources in households using solid fuels with low-emission heating sources (heat pumps, biomass boilers), and installing renewable energy sources suitable for the housing sector, in particular photovoltaic and photothermal systems.

The investment shall be implemented through the following projects:

·Projects for reduction of energy consumption by 186 TJ/year and reduction of CO2 emissions by 91 kt/year contracted between 1 February 2020 and 30 September 2021.

·Reduction of energy consumption by 396 TJ/year and reduction of CO2 emissions by 158 kt CO2/year by 30 September 2023.

·Reduction of energy consumption by 1132 TJ/year and reduction of CO2 emissions by 450 kt CO2/year by 31 December 2025.

·Reduction of energy consumption by 360 TJ/year and reduction of CO2 emissions by 118 kt/year reached through the support of socially disadvantaged groups of the population by 31 December 2025.

Investment 3: Pre-project preparation and awareness-raising

This measure aims at supporting the pre-project preparation of energy-saving renovations, heat exchanges for more energy-efficient energy and in particular, automation in the management of energy consumption in the housing sector, including education and training in these areas. 120 community energy project preparation projects, 3 600 project preparation studies for family houses, 1 200 project preparation studies for apartment buildings and 50 projects of Energy Consultation and Information Centres shall be completed.

The investment shall be implemented by 31 December 2025.

K.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

123

Reform 1: Renovation and revitalisation of buildings for energy savings

Milestone

Consultation and training services for renovation wave in the household sector and timetable for implementing measures included in air quality plans

Entry into operation of consultation and training services and submission to the Commission of timetable for implementing measures included in air quality plans

Q4

2025

A two-stage pre-project preparation shall be introduced for households.

The energy consultation centres of the National Network of Local Action Groups shall be integrated in the network of local energy agencies, an energy advisory system composed of the Energy Consultation and Information Centres and individual Local Action Groups.

The focus of the State programme for supporting energy savings (EFEKT) shall be expanded to cover the demand for training and retraining of workers deploying green construction, green technologies or materials, and enhancing the quality preparation and implementation of energy-saving projects.

The existing system of environmental education and awareness-raising targeted at children and young people shall be extended to the entire general public and shall have a new focus on energy saving, use of renewable energy sources, climate change and adaptation to climate change.

A timetable for the implementation of measures included in the approved air quality plans focused on the agglomerations with the highest levels of exceedances shall be elaborated and their implementation shall start by 30 June 2022.

124

Reform 2: Support for pre-project preparation and support of community energy projects

Target

Advisory services on energy communities

Number of energy communities supported

0

120

Q4

2025

Advisory services on the installation of new renewable energy sources in a way as to eliminate obstacles to their future integration in the wider energy community, smaller common multi-home energy storage sites, the creation of energy communities within individual multi-family buildings and other investment measures linked to energy communities shall be introduced in each region of Czechia by the regional office of the State Environment Fund.

The establishment of 120 energy communities as well as awareness-raising and education focused on developing energy communities shall be supported by advisory services of the State Environment Fund.

125

Investment 1: Renovation and revitalisation of buildings for energy savings

Milestone

Projects contracted for reduction of energy consumption (in the period 02/2022 - 07/2021)

Energy savings in terra joules per year

0

1 200

Q3

2024

Projects for reduction of energy consumption by 1 200 TJ/year shall be contracted by the State Environment Fund between 1 February 2020 and 30 September 2021.

Only projects that, on average, achieve a reduction in primary energy consumption of at least 30 % shall be chosen for implementation. Investments into gas-condensing boiler replacements shall be limited to maximum 20 % of the overall allocation of measure 2.5.1. 

126

Investment 1: Renovation and revitalisation of buildings for energy savings

Target

Reduction of energy consumption and reduction of CO2 emissions

Energy savings in terra joules per year

1 200

4 021

Q4

2025

Energy consumption and CO2 emissions shall be reduced by 4 021 TJ/year and by 631 kt/year, respectively, between 1 February 2020 and 31 December 2025, which shall be demonstrated through energy performance certificates.

Only projects that, on average, achieve a reduction in primary energy consumption of at least 30 % shall be chosen for implementation. Investments into gas-condensing boiler replacements shall be limited to maximum 20 % of the overall allocation of measure 2.5.1.

127

Investment 2: Replacement of stationary sources of pollution in households with renewable energy sources

Milestone

Projects contracted for reduction of energy consumption and reduction of CO2 emissions (between Q1 2020 and Q3 2021)

Energy savings in terra joules per year

0

186

Q3

2023

Projects for reduction of energy consumption and CO2 emissions by 186 TJ/year and by 91 kt/year, respectively, shall be contracted by the State Environment Fund by 30 September 2021.

As regards biomass, at least 80 % greenhouse gas (GHG) emission savings shall be achieved from the use of biomass in relation to the GHG saving methodology and the relative fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001.

128

Investment 2: Replacement of stationary sources of pollution in households with renewable energy sources

Target

Reduction of energy consumption and CO2 emissions (35% implemented)

Energy savings in terra joules per year

186

396

Q3

2023

Energy consumption and CO2 emissions shall be reduced by 396 TJ/year and 158 kt/year, respectively, by 30 September 2023, which shall be demonstrated through energy performance certificates.

As regards biomass, at least 80 % greenhouse gas (GHG) emission savings shall be achieved from the use of biomass in relation to the GHG saving methodology and the relative fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001.

129

Investment 2: Replacement of stationary sources of pollution in households with renewable energy sources

Target

Reduction of energy consumption and reduction of CO2 emissions

Energy savings in terra joules per year 

396

1 132

Q4

2025

Energy consumption and CO2 emissions shall be reduced by 1 132 TJ/year and by 450 kt/year, respectively, by 31 December 2025, which shall be demonstrated through energy performance certificates.

Energy consumption and CO2 emissions shall be reduced by 360 TJ/year and by 118 kt/year, respectively, through the support of socially disadvantaged groups of the population by 31 December 2025. Reductions shall be demonstrated through energy performance certificates.

As regards biomass, at least 80 % greenhouse gas (GHG) emission savings shall be achieved from the use of biomass in relation to the GHG saving methodology and the relative fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001.

130

Investment 3: Support for pre-project preparation and awareness raising, education, training and information in the field of energy saving and reduction of emissions of greenhouse gases and other air pollutants

Target

Pre-project preparation projects, studies, trainings and community energy projects

Number of projects

0

4 970

Q4

2025

4 970 projects, including 120 community energy project preparation projects, 3 600 project preparation studies for family houses, 1 200 project preparation studies for apartment buildings and 50 projects of Energy Consultation and Information Centres, shall be completed.

L. COMPONENT 2.6: Nature Protection and Adaptation to Climate Change

This component of the Czech recovery and resilience plan contributes to addressing, in line with the “Strategy on adaptation to climate change in Czech Republic”, the challenges arising from climate change in the following priority areas: forest management, agriculture, water regime in the landscape, Water management and biodiversity.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in the terms of reference for upcoming calls for projects shall require that only activities that comply with relevant EU and national environmental legislation can be selected, namely the Water Framework Directive, Floods Directive, Habitats and Birds Directive, Environmental Impact Assessment and Strategic Environmental Assessment Directives

Procurement procedures shall be launched in accordance with the EU and national public procurement law. The Ministry of Agriculture shall ensure that selected projects comply with the relevant EU and national environmental legislation, namely the Water Framework Directive, Floods Directive, Habitats and Birds Directives, Environmental Impact Assessment and Strategic Environmental Assessment Directives, and the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

L.1. Description of the reforms and investments for non-repayable financial support

Investment 1: Flood protection

This measure shall aim at protecting populated areas against the negative effects of flood, at improving water retention in the landscape, and at facilitating the natural treatment of existing water structures in built-up areas. The investment shall consist of: the identification of water retention potential; the establishment, treatment and reconstruction of polders and absorbing grass strips; the construction and reconstruction of natural water reservoirs; and of other measures to achieve a retardation of surface run-off and a reduction in flood wave speed.

The investment shall be completed by 31 December 2023.

Investment 2: Small watercourses and small water reservoirs

The measure shall aim at a significant improvement in the morphological condition of existing small watercourses and small water reservoirs, in the revitalisation of small water courses, and in the construction of new close-to-nature small ponds. It contributes to water retention, and it increases the development of coastal vegetation and water retention in water courses. It also leads to increased safety in the event of flows in towns and municipalities.

The investment shall be completed by 31 December 2023.

Investment 3: Land consolidation

The measure shall aim at increasing the ecological stability of the landscape and its resilience to climate change, at promoting biodiversity and non-productive functions of the landscape and at protecting agricultural lands and water resources. The measures shall be based on an assessment of water retention potential in the landscape and shall focus primarily on protecting the quality and quantity of soil and water, dividing large plots of agricultural land by landscape features, implementing nature-based anti-erosion measures (balks, diagonals, trenches, grass strips) in the landscape to eliminate the adverse effects of surface runoff. Water retention measures shall focus mainly on projects such as restoration of wetlands, revitalisation of watercourses and creation of ponds. This investment shall also include the implementation of green infrastructure measures supporting biodiversity such as bio centres and bio corridors.

The investment shall be completed by 31 December 2023.

Investment 4: Building forests resilient to climate change

This measure shall aim at restoring a stable forest by planting native and heterogeneous species, while aiming for multigenerational and spatial composition of the forest to be resilient to climate change, and consistent with the National Action Plan for Climate Change Adaptation. This investment will be complemented by an amendment to the ministerial decree on forest management planning, which shall specifically pave the way for multigenerational, multispecies and resilient forests.

The investment shall be completed by 30 September 2024.

Investment 5: Water retention in forest

This measure shall aim at strengthening water retention capacity in forests through the implementation of projects improving soil, water and microclimatic conditions such as (treatment of forest watercourses, small water reservoirs in forests, and natural water retention measures aimed at slowing down the runoff), and through the monitoring of accelerated erosion and the protection of the shedding basins.

The investment shall be completed by 31 March 2024.

L.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

131

Investment 1: Flood protection

Milestone

Notification of award of flood protection contracts

Notification of awarded projects and contracted tenderers by [name of managing authority]

 

 

 

Q1

2022

Notification of awarded flood protection projects (total number of projects: 40). For each project, full compliance with the requirements of the Water Framework Directive shall be ensured and demonstrated before the commencement of any construction works.

132

Investment 1: Flood Protection

Target

T1: Completion of 20 projects aiming at establishing resilient flood protection.

Number of projects

0

20

Q4

2022

First completion report by independent engineer certified by the Ministry of Agriculture for 20 listed projects. In line with the National Action plan for Climate Change Adaptation and State Policy of the Environment in the Czech Republic 2030 with a view to 2050, nature-based solutions shall be given a preference, while constructing and/or refurbishing of artificial concrete-based flood protection infrastructure shall be avoided.

The listed projects shall be implemented only once permits are granted by the relevant water authority based on an environmental impact assessment and relevant assessments in the context of Directive 2000/60/EC. These permits shall assess all potential impacts on the status of water bodies within the same river basin and on protected habitats and species directly dependent on water, considering in particular migration corridors, free-flowing rivers or ecosystems close to undisturbed conditions, as well as current pressures related to water abstraction The impact assessment shall establish that the project (i) does not significantly or irreversibly impact affected water bodies, nor prevent the specific water body to which it relates nor other water bodies in the same river basin to achieve good status or potential, and (ii) does not significantly negatively impact on protected habitats and species directly dependent on water. Good ecological status/potential of the relevant water bodies in accordance with the requirements of the Water Framework Directive 2000/60/EC has been achieved and evidenced by latest relevant supporting data.

Similarly, all the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU, shall be respected (in particular stakeholders’ consultation) as well as relevant assessments under the Habitats Directive as included in the conditions stipulated by the nature protection authorities.

Regarding the projects aiming at reconstruction or modernization of dams (and in particular the Orlik dam project) : the project’s design shall incorporate the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU as well as relevant assessments in the context of Directive 2000/60/EC, including the implementation of required mitigation measures, ensuring compliance with the DNSH Technical Guidance (2021/C58/01). Any measures identified in the framework of the EIA and the assessment under Directive 2000/60/EC as necessary to ensure compliance with the DNSH principle shall be integrated into the project and strictly complied with at the stages of construction, operation and decommissioning of the infrastructure. The completion report shall confirm the full respect of the outcome of the EIA including the implementation of required mitigation measures, ensuring compliance with the DNSH Technical Guidance (2021/C58/01). A risk analysis of the project shall be conducted. This risk analysis shall also address future climatic conditions. Any reconstruction or modernization shall not lead to an increase of the dam capacity

133

Investment 1: Flood Protection

Target

T2: Completion of additional 20 projects aiming at establishing resilient flood protection.

Number of projects

20

40

Q4

2023

Second completion report by an independent engineer for an additional 20 listed projects. In line with the National Action plan for Climate Change Adaptation and State Policy of the Environment in the Czech Republic 2030 with a view to 2050, nature-based solutions shall be given a preference, while constructing and/or refurbishing of artificial concrete-based flood protection infrastructure shall be avoided.

The listed projects shall be implemented only once permits are granted by the relevant water authority based on an environmental impact assessment and relevant assessments in the context of Directive 2000/60/EC. These permits shall assess all potential impacts on the status of water bodies within the same river basin and on protected habitats and species directly dependent on water, considering in particular migration corridors, free-flowing rivers or ecosystems close to undisturbed conditions, as well as current pressures related to water abstraction The impact assessment shall establish that the project (i) does not significantly or irreversibly impact affected water bodies, nor prevent the specific water body to which it relates nor other water bodies in the same river basin to achieve good status or potential, and (ii) does not significantly negatively impact on protected habitats and species directly dependent on water. Good ecological status/potential of the relevant water bodies in accordance with the requirements of the Water Framework Directive 2000/60/EC has been achieved and evidenced by latest relevant supporting data.

Similarly, all the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU shall be respected (in particular stakeholders’ consultation) as well as relevant assessments under the Habitats Directive as included in the conditions stipulated by the nature protection authorities.

Regarding the projects aiming at reconstruction or modernization of dams (and in particular the Orlik dam project) : the project’s design shall incorporate the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU as well as relevant assessments in the context of Directive 2000/60/EC, including the implementation of required mitigation measures, ensuring compliance with the DNSH Technical Guidance (2021/C58/01). Any measures identified in the framework of the EIA and the assessment under Directive 2000/60/EC as necessary to ensure compliance with the DNSH principle shall be integrated into the project and strictly complied with at the stages of construction, operation and decommissioning of the infrastructure. The completion report shall confirm the full respect of the outcome of the EIA including the implementation of required mitigation measures, ensuring compliance with the DNSH Technical Guidance (2021/C58/01). A risk analysis of the project shall be conducted. This risk analysis shall also address future climatic conditions. Any reconstruction or modernization shall not lead to an increase of the dam capacity

134

Investment 2: Small watercourses and water reservoirs

Milestone

Submission by the Ministry of Agriculture of the list of projects to be supported under investment 2

Submission of the list of projects to be supported under investment 2

 

 

 

Q3

2021

The Ministry of Agriculture shall submit to the Commission a database including identification of the projects, a short description and timeline for completion. The projects shall consist of construction and reconstruction of small water reservoirs throughout the Czech Republic. The projects’ designs shall incorporate the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU as well as relevant assessments in the context of Directive 2000/60/EC and Council Directive 92/43/EE.

135

Investment 2: Small watercourses and water reservoirs

Target

T1: Completion of 50% of the small watercourses and water reservoirs projects

Number of projects

0

450

Q2

2022

Completion report by an independent engineer for 50% of the projects. In line with the National Action plan for Climate Change Adaptation and State Policy of the Environment in the Czech Republic 2030 with a view to 2050, nature-based solutions shall be given a preference, while constructing and/or refurbishing of artificial concrete-based flood protection infrastructure shall be avoided as much as possible.

The projects shall be implemented only once permits are granted by the relevant water authority based on an environmental impact assessment and relevant assessments in the context of Directive 2000/60/EC. These permits shall assess all potential impacts on the status of water bodies within the same river basin and on protected habitats and species directly dependent on water, considering in particular migration corridors, free-flowing rivers or ecosystems close to undisturbed conditions, as well as current pressures related to water abstraction The impact assessment shall establish that the project (i) does not significantly or irreversibly impact affected water bodies, nor prevent the specific water body to which it relates nor other water bodies in the same river basin to achieve good status or potential, and (ii) does not significantly negatively impact on protected habitats and species directly dependent on water. Good ecological status/potential of the relevant water bodies in accordance with the requirements of the Water Framework Directive 2000/60/EC has been achieved and evidenced by latest relevant supporting data.

Similarly, all the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU shall be respected (in particular stakeholders’ consultation) as well as relevant assessments under the Habitats Directive as included in the conditions stipulated by the nature protection authorities.

In case water reservoirs are intended for irrigation, any expansion of existing irrigation system (including through increased use of water, i.e. not only physical expansion), even via more efficient methods, is not supported where concerned water bodies (surface or ground waters) are, or projected (in the context of intensifying climate change) to be in less than good status or potential.

136

Investment 2: Small watercourses and water reservoirs

Target

T2: Completion of 50% additional small watercourses and water reservoirs

 

Number of projects

450

900

Q4

2023

Completion report by an independent engineer certified by the Ministry of Agriculture for the remaining 50% of the projects. In line with the National Action plan for Climate Change Adaptation and State Policy of the Environment in the Czech Republic 2030 with a view to 2050, nature-based solutions shall be given a preference, while constructing and/or refurbishing of artificial concrete-based flood protection infrastructure shall be avoided.

The projects shall be implemented only once permits are granted by the relevant water authority based on an environmental impact assessment and relevant assessments in the context of Directive 2000/60/EC. These permits shall assess all potential impacts on the status of water bodies within the same river basin and on protected habitats and species directly dependent on water, considering in particular migration corridors, free-flowing rivers or ecosystems close to undisturbed conditions, as well as current pressures related to water abstraction The impact assessment shall establish that the project (i) does not significantly or irreversibly impact affected water bodies, nor prevent the specific water body to which it relates nor other water bodies in the same river basin to achieve good status or potential, and (ii) does not significantly negatively impact on protected habitats and species directly dependent on water. Good ecological status/potential of the relevant water bodies in accordance with the requirements of the Water Framework Directive 2000/60/EC has been achieved and evidenced by latest relevant supporting data.

Similarly, all the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU shall be respected (in particular stakeholders’ consultation) as well as relevant assessments under the Habitats Directive as included in the conditions stipulated by the nature protection authorities.

In case water reservoirs are intended for irrigation, any expansion of existing irrigation system (including through increased use of water, i.e. not only physical expansion), even via more efficient methods, is not supported where concerned water bodies (surface or ground waters) are, or projected (in the context of intensifying climate change) to be in less than good status or potential.

137

 

Investment 3: Land consolidation

Target

Completion of green infrastructure projects promoting biodiversity including bio centres, bio corridors and planting of locally typical greenery in the agriculture landscape (in ha of land served by the investment).

 

Hectares of green infrastructure projects

 

0

90

Q4

2023

At least 90ha of green infrastructures projects shall be completed. These projects shall be based on an assessment of water retention in the landscape by the local authority of the State administration for environmental protection and shall be in line with the National Action Plan for Climate Change Adaptation and the Strategy of Biodiversity Protection of the Czech Republic, River Basin Management Plans and Floods Risk Management Plans.

138

Investment 3: Land consolidation

Target

Completion of environmental protection activities and adaptation to climate change (in ha of land served by the investment).

 

Hectares of land

0

150

Q4

2023

At least 150ha of environmental protection activities and adaptation to climate change projects are completed. These activities shall focus primarily on the protection of soil and water, both quantity and quality. Individual projects shall implement anti-erosion actions in the landscape (ditches, overhangs, borders, grass strips and other retardation elements) to eliminate the adverse effects, especially of torrential rains. These actions, which help retain water in the landscape, mainly from the increasingly frequent torrential rainfall, shall support the infiltration of water into the underground, decrease water evaporation in the agricultural landscape and shall provide support for a small water cycle, reduce water pollution and soil removal. Investments in infrastructure (like local roads) shall be excluded.

139

Investment 4: Building forests resilient to climate change

Milestone

Amendment to the ministerial decree on forest management planning (amendment to Decree No. 84/1996 Coll. on forest management planning)

Entry into force of the Amendment to ministerial decree on forest management planning (amendment to Decree No. 84/1996 Coll. on forest management planning)

 

 

 

Q1

2023

Amendment to the ministerial decree on forest management planning, which shall specifically pave the way for multigenerational, multispecies and resilient forests shall be adopted. The amendment to Forest Management Decree shall aim at the creation of genuine multigenerational forest, introduce innovative methods of forest managements planning for the forests with rich age structure. The Decree shall assure that the tree species composition of newly planted forests will be close-to-nature composition with significant increase of broadleaved species (so-called "recommended composition" by the research).

140

Investment 4: Building forests resilient to climate change

Target

T1: Reforestation of 12000 ha of areas by ameliorative and stabilising tree species

 

Hectares of reforestation

0

12000

Q3

2022

Completion report by an independent body for 12000 ha reforestation projects. The reforestation shalll aim to ensure multigenerational, multispecies forest with regard to spatial composition which are managed according to a continuous cover forestry approach. Even-aged monospecific forests shall be replaced by more biodiverse ecosystems, restricting the use of clear-cutting to cases where it is needed to ensure forest health and effective regeneration, and limiting the size of the clear cut area as much as possible. 

Native tree species shall be used, unless it can be demonstrated that they are no longer adapted to projected climatic and pedo-hydrological conditions. Also, admixtures of not more than 25% of Douglas fir in mixed stands shall be accepted

•    where allowed by national legislation 

•    excluding Natura 2000 and other protected areas

•    and if the suitability of Douglas fir for the projected climatic conditions of the site of reforestation can be demonstrated.

141

Investment 4: Building forests resilient to climate change

Target

T2: Reforestation of additional 24000ha of areas by ameliorative and stabilising tree species

Hectares of reforestation

12000

36000

Q3

2024

Completion report by an independent body for an additional 24000ha. The reforestation shalld aim to ensure multigenerational, multispecies forest with regard to spatial composition which are managed according to a continuous cover forestry approach. Even-aged monospecific forests shall be replaced by more biodiverse ecosystems, restricting the use of clear-cutting to cases where it is needed to ensure forest health and effective regeneration, and limiting the size of the clear cut area as much as possible. 

Native tree species shall be used, unless it can be demonstrated that they are no longer adapted to projected climatic and pedo-hydrological conditions. Also, admixtures of not more than 25% of Douglas fir in mixed stands shall be accepted

•    where allowed by national legislation 

•    excluding Natura 2000 and other protected areas

•    and if the suitability of Douglas fir for the projected climatic conditions of the site of reforestation can be demonstrated.

142

Investment 5: Water retention in forest

Milestone

T1: Completion of 40 projects of torrent control (small scale wooden and natural stone dams) to slow down surface runoff and water retention projects in forests (retention and small reservoirs).

Number of projects

0

40

Q1

2023

Completion report by an independent body for 40 projects. The projects shall be nature-based solutions (in line with the National Action Plan for Climate Change Adaptation as well as the National Policy of the Czech Republic to combat droughts). The projects’ designs shall incorporate the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU as well as relevant assessments in the context of Directive 2000/60/EC and Council Directive 92/43/EE.

143

Investment 5: Water retention in forest

Milestone

T2: Completion of 20 additional projects of torrent control (small scale wooden and natural stone dams) to slow down surface runoff and water retention projects in forests (retention and small reservoirs).

 

Number of projects

40

60

Q1

2024

Completion report by an independent body certified for 20 additional projects. The projects shall be nature-based solutions (in line with the National Action Plan for Climate Change Adaptation as well as the National Policy of the Czech Republic to combat droughts). The projects’ designs shall incorporate the necessary results and conditions from the Environmental Impact Assessment, which shall be completed in accordance with Directive 2011/92/EU as well as relevant assessments in the context of Directive 2000/60/EC and Council Directive 92/43/EE.

M. COMPONENT 2.7: Circular Economy, Recycling and Industrial Water

This component of the Czech recovery and resilience plan supports addressing the challenge of waste generation and raw material dependency, with the objective of supporting the transition to a circular economy in Czechia. This shall be achieved through measures preventing waste, increasing recycling infrastructure, reducing secondary raw material wastage, increasing the share of recycled materials in products, and increasing the raw material security of Czechia through the reduced dependency on imported raw materials due to the continuous and uninterrupted availability of raw materials. Moreover, the component focuses on sustainable water management, including measures aimed at saving and recycling water and optimising the use of water in businesses. The transition to the circular economy shall help increase the resilience of Czechia against both environmental and economic threats.

The component supports addressing the country specific recommendation, according to which Czechia shall focus investment-related economic policy on low carbon and energy transition, including energy efficiency (Country Specific Recommendation 3 2019), and the country specific recommendation, according to which Czechia shall aim at focus investment on the green and digital transition, in particular on clean and efficient production and use of energy (Country Specific Recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the measures on waste management and recycling infrastructure shall be in conformity with Article 28 of Directive 2008/98/EC as amended by Directive (EU) 2018/851.

M.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Implementation of new legislation on waste management in the Czech Republic 

The reform aims at increasing the prevention, recycling, recovery and sorting of waste and reducing landfilling, with the objective of strengthening the principles of producer responsibility and eco-modulation. By 2035, at least 65 % of the municipal waste shall be recycled 9 and a maximum of 10 % shall be landfilled 10 . The new legislation on waste management in the Czech Republic has been in force since 1 January 2021. Following the newly adopted waste legislation, the following implementing acts on waste management shall be finalised and enter into force by 30 September 2023, in accordance with the elements specified in Article 28 of Directive 2008/98/EC as amended by Directive (EU) 2018/851:

Decree on the Waste Catalogue No 8/2021 Coll., establishing the new Waste Catalogue and setting rules for evaluation of hazardous properties of waste

Ordinance on the management of packaging No 30/2021 Coll., providing for rules on packaging registry and notification of the records from such registry, and a methodology of the accounting of use of packaging.

Decree on the details of waste management, in preparation, implementing the amended Waste Act and setting rules for management of all waste streams

Decree on by-products and waste conversion (asphalt decree), in preparation, setting out conditions under which the asphalt mixture is a by-product or ceases to be waste

Decree on details of the management of end-of-life vehicles, in preparation, setting rules for the collection and processing of end-of-life vehicles, and the method of calculating the level of re-use and recycling or other recovery of end-of-life vehicles

Decree on the management of end-of-life products, in preparation, setting out the requirements for holding information campaigns to increase the public awareness of end-of-life products treatment, and setting out technical requirements for storage and use of the electric and electronic waste such as waste batteries and accumulators, waste electrical equipment and waste tires

National and regional waste management plans, aimed at improving the environmentally sound preparation for the re-use, recycling, recovery and disposal of waste shall be finalised and enter into force.

The reform shall be completed by 31 December 2023.

Reform 2: Finalisation and implementation of the circular Czechia strategy 2040 

The reform aims at establishing and starting the implementation of a strategy for transforming the Czech society into a circular economy. This envisaged circular economic system shall be achieved through minimising waste generation and the use of resource inputs, in line with the EU’s new Circular Economy Action Plan.

The reform consists of the finalisation and implementation of the circular Czechia strategy 2040, which shall promote circular economy principles and further define the necessary priorities and steps ensuring that Czechia becomes resilient in the long term to future environmental threats, including climate change and biodiversity loss, and develops an overall sustainable social system. Through shortened and diversified supply chains and lower dependency on primary resources, a circular economy shall contribute to enhanced strategic autonomy and resilience of Czechia. Inter alia, the strategy shall incentivise enterprises, consumers, cities and municipalities to support circular solutions through product design and manufacturing, innovation, research, digitalisation and education. The strategy shall be finalised by 31 March 2022, followed by the Action Plan.

The reform shall be completed by 30 September 2025.

Investment 1: Building recycling infrastructure 

The measure aims at supporting investments leading to an increase in the capacity of recycling infrastructure by supporting projects that will contribute to the development of a circular economy in the field of biodegradable waste management. Innovative and advanced solutions for separate collection, sorting, preparing for reuse and recycling shall be supported.

The measure shall support projects enhancing the reintroduction of compost and the waste from biogas digesters back to the soil on agricultural land, increasing the proportion of organic matter in the soil. Inter alia, support shall be channelled directly to agricultural operators in order to increase their capacity and encourage the incorporation of compost from waste compost plants. Support for 300 projects is expected, increasing the capacity of the recycling infrastructure by at least 250 000 tonnes.

The investment shall be completed by 31 December 2025.



Investment 2: Circular solutions in businesses

The measure aims at contributing to the green transition and the sustainable use of primary raw material resources. To this end, the measure shall support projects that promote the development of circular economy solutions among businesses. This entails investments in innovative technologies that i) enable new or increased use of secondary raw materials as a substitute for primary resources, and ii) reduce the input intensity of production and substitute primary feedstocks through secondary ones.

The measure shall also focus on the optimisation of material eco-design of products to facilitate recycling and re-use, alongside industrial symbiosis projects and other investment business projects contributing to the transition to a circular economy. Lastly, the investment shall support projects addressing the targeted application of recycled materials in products. Support is expected for at least 60 businesses.

The investment shall be completed by 31 December 2025.

Investment 3: Water saving in industry

The measure aims at contributing to a circular economy by improving water management in the industry.

The measure shall focus on projects addressing the following issues:

·optimising water consumption through the installation of new water-saving technologies and equipment,

·water recycling in production sectors and other business activities with high water consumption,

·reusing polluted or used operating water in other processes,

·optimising water use in utility plants,

·reducing water losses in closed circuits water systems and water distribution systems,

·exploiting the potential of waste steam,

·other projects aimed at improving water management in industry.

Support is expected for at least 40 businesses.

The investment shall be completed by 31 December 2025.

M.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

144

Reform 1: Implementation of new legislation on waste management in the Czech Republic

Milestone

Entry into force of the implementing decisions following the legislation on waste management prepared by the Ministry of Environment

Provision in the implementing decisions indicating the entry into force of the respective implementing decisions

Q3

2023

These implementing decisions shall include the Decree on the waste catalogue No 8/2021 Coll., the Decree on the handling of packaging No. 30/2021 Coll., the Decree on the details of waste management, the Decree on by-products and waste transfer waste (asphalt decree), the Decree on the details of the handling of end-of-life vehicles, and the Decree on the details of handling of end-of-life products (tires, electrical, batteries).

145

Reform 1: Implementation of new legislation on waste management in the Czech Republic

Milestone

Entry into force of a national and regional waste management plan

Provision in the law indicating the entry into force of a national and regional waste management plan

Q4

2023

Providing a new national and regional waste management plan, aimed at improving the environmentally sound preparation for the re-use, recycling, recovery and disposal of waste.

146

Reform 2: Finalisation and implementation of the circular Czechia strategy 2040

Milestone

Completion and adoption of the circular Czechia strategy 2040 by the Ministry of Environment

Publication of the circular Czechia strategy 2040 in the database of the Czech Republic’s strategic documents

Q1

2022

Completion and adoption of the Circular Czechia 2040 strategy. The strategy shall formulate the vision, global and strategic goals, priority areas and principles necessary to achieve a circular economy in the Czech Republic.

147

Reform 2: Finalisation and implementation of the circular Czechia strategy 2040

Milestone

Completion of a monitoring report evaluating the state of implementation of the Circular Czechia 2040 strategy t

Publication of a monitoring report evaluating the state of implementation of the circular Czechia strategy 2040

Q3

2025

A monitoring report shall be completed and published by the Ministry of Environment, evaluating the development of the circular economy in Czechia and the progress made in implementing the elements of the Circular Czechia 2040 strategy.

148

Investment 1: Building recycling infrastructure

Milestone

Award of all public contracts for projects investing in recycling infrastructure by the Ministry of Environment

Notification of the award of all public contracts for projects investing in recycling infrastructure by the Ministry of Environment

Q3

2022

Notification of the award of all public contracts for projects enhancing recycling infrastructure by the Ministry of Environment. Projects shall be selected that invest in energy recovery infrastructure fit for the long-term vision of the waste management and recycling industry by prioritising the higher levels of the waste hierarchy. The projects shall aim at converting at least 50 %, in terms of weight, of the processed separately collected non-hazardous waste into secondary raw materials.

Innovative and advanced solutions for separate collection, sorting, preparing for reuse and recycling shall be only supported. The projects shall be evaluated according to the established criteria in line with the national and regional waste management plans which are in conformity with Article 28 of Directive 2008/98/EC, as amended by Directive (EU) 2018/851.

149

Investment 1: Building recycling infrastructure

Target

Completion of projects investing in recycling infrastructure

Tonnes

0

250 000

Q4

2025

Investment support shall be provided for investments in the construction of recycling infrastructure in the field of biodegradable waste management. As a priority, anaerobic digestion plants shall be supported. The projects shall aim at converting at least 50 %, in terms of weight, of the processed separately collected non-hazardous waste into secondary raw materials.

Support for 300 projects is expected, that shallthe capacity of the recycling infrastructure by at least 250 000 tonnes.

150

Investment 2: Circular solutions in businesses

Milestone

Award of all public contracts for projects investing in circular solutions in businesses by the Ministry of Industry and Trade

Notification of the award of all public contracts for projects investing in circular solutions in businesses by the Ministry of Industry and Trade

Q4

2022

Notification of the award of all public contracts for projects investing in circular solutions in businesses by the Ministry of Industry and Trade. Projects shall be selected that enhance the industrial transformation towards a low-carbon, circular and digital society, reducing the material intensity of production and the consumption of primary resources.

151

Investment 2: Circular solutions in businesses

Target

Completion of projects investing in circular solutions in businesses

Number of projects

0

60

Q4

2025

Projects shall be completed that support the development of circular solutions in industrial enterprises, increasing the use of secondary raw materials as a substitute for primary resources, reducing the material intensity of production, optimising material eco-design to facilitate recycling and re-use, implementing industrial symbiosis and encouraging the transition to a circular economy. The total budget executed for this purpose over the duration of the measure shall amount to at least EUR 39 000 000

152

Investment 3: Water saving in industry

Milestone

Award of all public contracts for projects to save and optimise water in the industry by the Ministry of Industry and Trade

Notification of the award of all public contracts for projects to save and optimise water in the industry by the Ministry of Industry and Trade

Q4

2022

Notification of the award of all public contracts for projects to save and optimise water in the industry by the Ministry of Industry and Trade. Projects shall be selected that optimise water consumption in the production process by installing new technologies and equipment to save water, direct water recycling in water-intensive industries, reuse polluted/used operating water in other processes, optimise water use in utility plants, reduce water losses in closed circuits, or optimise the use of steam or its distribution potential.

153

Investment 3: Water saving in industry

Target

Completion of projects to save and optimise water in the industry

Number of projects

0

40

Q4

2025

Projects shall be completed that optimise water consumption in the production process by installing new technologies and equipment to save water, direct water recycling in water-intensive industries, reuse polluted/used operating water in other processes, optimise water use in utility plants, reduce water losses in closed circuits, or optimise the use of steam or its distribution potential. The total budget executed for this purpose over the duration of the measure shall amount to at least EUR 39 000 000.

N. COMPONENT 2.8: Brownfields Revitalisation

This component of the Czech recovery and resilience plan contributes to addressing the challenge of supporting revitalisation of former industrial or unused sites in urban areas (henceforth brownfield sites) with the ultimate goals to:

·improve energy efficiency of renovated or reconstructed buildings;

·construct new energy-efficient buildings, where renovation would neither be possible nor efficient;

·create natural carbon sinks.

The component shall initiate comprehensive site conversions and enhance the ecological stability of the landscape by creating new green areas without affecting agricultural land. The revitalisation of the territory is expected to contribute to a more efficient use of technical and transport infrastructure, reduced energy consumption and increased energy efficiency.

The component supports addressing the country-specific recommendation, according to which Czechia shall focus on low carbon and energy transition, including energy efficiency (Country Specific Recommendation 3 2019), and the country-specific recommendation, according to which Czechia shall support clean and efficient production and use of energy (Country Specific Recommendation 3 2020). 

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, at least 70% of construction and demolition waste shall be prepared for reuse and recycling.

N.1. Description of the reforms and investments for non-repayable financial support

Investment 1: Investment aid for regeneration of specific brownfield sites

The investment shall support brownfield regeneration projects aimed at preparing areas for further multifunctional use (including refurbishment and construction of infrastructure or demolition of buildings). Specific brownfield sites have been identified by the Ministry of Regional Development in cooperation with CzechInvest, the investment and business development agency of Czechia subordinate to the Ministry of Industry and Trade, based on the size of the site, the expected size of the investment and the alignment of the project with Europe’s green transition ambitions. The measure shall consist of the establishment of a subsidy programme which shall provide support for the preparation of land for future investments and for the investment projects themselves. The investment shall support 14 brownfield regeneration projects.

The investment shall be completed by 31 December 2025.

Investment 2: Investment aid for the regeneration of brownfield sites owned by municipalities and regions for non-business use

The investment shall support the regeneration of brownfield sites owned by local and regional authorities that shall be turned into an amenity or a public institution, such as a school, a cultural centre, a sports ground, a municipal authority or a publicly accessible park. Support shall exclusively be given to projects that commit either to energy-efficient renovation or the creation of natural carbon sinks, including the creation of permanent grassland or the planting of trees. The investment shall support 45 non-business brownfield regeneration projects.

The investment shall be completed by 31 December 2025.

Investment 3: Investment aid for the regeneration of brownfield sites owned by municipalities and regions for business use

The investment shall help revitalise brownfield degraded sites, including the removal of small-scale obstacles on the surface, owned by municipalities in particular for business use and, to a limited extent, for non-business use. These obstacles refer to parts of constructions marked as hazardous waste, such as asbestos-containing materials, or small oil leaks. A particular emphasis shall be placed on strict adherence to the principles of blue-green infrastructure and energy efficiency, implying that preference shall be given to projects implementing rainwater management pursuant to Act 254/2001 (“Water Act”) and, in case of new buildings, energy savings measures beyond the legislative requirements of Act 406/2000 (“Energy Management Act”). Regenerated sites shall be used prefereably by small- and medium sized enterprises and local firms. The investment shall support projects to revitalise brownfield sites for business use corresponding to the target of at least 76000 m3 of built-up space.

The investment shall be completed by 31 December 2025.

N.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

unit of measure

Baseline

Goal

Quarter

Year

154

Investment 1: Support for revitalisation of specific areas

Milestone

Award of all public contracts for projects revitalising specific brownfields

Notification of the award of all public contracts for projects revitalising specific brownfields by the Ministry of Regional Development

Q4

2023

Announcement of a subsidy program for specific brownfield site regeneration (project preparation, land preparation, investment projects) following the preparation of a subsidy program, which requires formal approval by the Ministry of Finance. The projects shall both be aimed at supporting demolition and energy-efficient construction as well as energy-efficient renovation. Concerning energy-efficient construction, the calls shall specify that the new buildings supported by the projects shall have a Primary Energy Demand (PED) that is at least 20 % lower than the NZEB requirement.

After evaluating the call, there shall be a list of recommended projects for support. Projects shall be pre-selected and recommended by regional permanent conferences. Every region shall recommend at least one project to be supported. At least one industrial site shall be supported in each region of Czechia, with the list of supported brownfields including the sites of Terezin and Josefov. Formal control of the projects shall be taken by the State Investment Fund.

155

Investment 1: Support for revitalisation of specific areas

Target

Completion of energy-efficient revitalisation projects of specific brownfields

Number of projects

0

14

Q4

2025

30 % of the investment under this measure shall be aimed at supporting demolition and energy-efficient construction, and 70 % shall be aimed at supporting energy-efficient renovation of buildings on brownfield sites.

As to the funding of demolition and energy-efficient construction, it shall be ensured that the supported projects are such that (i) new buildings shall have a Primary Energy Demand (PED) that is at least 20 % lower than the NZEB requirement; (ii) deep renovation is not possible due to technical, health/safety or fit-for-purpose reasons; (iii) a maximum of 5 % new land shall be used at the place where the former building was located. This excludes the possibility of demolishing buildings in one place and constructing a building on another site instead.

Concerning the support of renovation activities, it shall be ensured that at least 90% of the costs shall support energy-efficiency renovations.

The total budget executed for this purpose over the duration of the measure shall amount to at least EUR 79 000 000.

156

Investment 2: Support for the revitalisation of areas in public ownership for non-business use

Milestone

Award of all public contracts for the regeneration of publicly owned brownfields for non-business use

Notification of the award of all public contracts by the Ministry of Regional Development

Q4

2023

Announcement of calls for regeneration of publicly owned brownfields following the preparation of a subsidy program, which requires formal approval by the Ministry of Finance. The projects shall both support energy-efficient renovation and measures aimed at turning industrial sites and contaminated land into a natural carbon sink.

Projects shall be contracted in two phases: first, by 31 December 2022, at least 35 projects shall be contracted. Second, by 31 December 2023, at least 10 additional projects shall be contracted.

157

Investment 2: Support for the revitalisation of areas in public ownership for non-business use

Target

Completion of energy efficient revitalisation projects of brownfields owned by municipalities and regions for non-business use

Number of m2 of revitalised buildings footprint

0

94 000

Q4

2025

80 % of the investment shall support energy-efficient renovation, and 20 % shall be aimed at measures aimed at turning industrial sites and contaminated land into a natural carbon sink. Overall, at least 45 projects shall be completed.

Concerning the support of renovation activities, it shall be ensured that at least 90 % of the costs shall support energy-efficiency renovations.

158

Investment 3: Support for the revitalisation of areas in public ownership for business use

Milestone

Award of all public contracts for the regeneration of publicly owned brownfields for business use

Notification of the award of all public contracts by the Ministry of Industry and Trade

Q4

2023

Announcement of calls for regeneration of publicly owned brownfields following the preparation of a subsidy program. The projects shall both be aimed at supporting demolition and energy-efficient construction as well as energy-efficient renovation. Concerning energy-efficient construction, the calls shall specify that the supported projects are such that new buildings shall have a Primary Energy Demand (PED) that is at least 20 % lower than the NZEB requirement.

Projects shall be contracted in two phases: first, by 31 December 2022, at least 15 projects shall be contracted. Second, by 31 December 2023, at least 5 additional projects shall be contracted.

159

Investment 3: Support for the revitalisation of areas in public ownership for business use

Target

Completion of energy efficient revitalisation projects of brownfields owned by municipalities and regions for business use

Number of m3 of built-up space

0

76 000

Q4

2025

30 % of the investment under this measure shall be aimed at supporting demolition and energy-efficient construction, and 70 % shall be aimed at supporting energy-efficient renovation of buildings on brownfield sites. Overall, at least 20 projects shall be completed.

As to the funding of demolition and energy-efficient construction, it shall be ensured that the supported projects are such that (i) new buildings shall have a Primary Energy Demand (PED) that is at least 20 % lower than the NZEB requirement; (ii) deep renovation is not possible due to technical, health/safety or fit-for-purpose reasons; (iii) a maximum of 5 % new land shall be used at the place where the former building was located. This excludes the possibility of demolishing buildings in one place and constructing another building on another site instead.

Concerning the support of renovation activities, it shall be ensured that at least 90 % of the costs shall support energy-efficiency renovations.

The supervisory company of the grant provider (Ministry of Industry and Trade) shall carry out an on-site inspection of the work performed and compliance with project documentation and the calls for tender.

O. COMPONENT 2.9: Promotion of Biodiversity and Fight against Drought

This component of the Czech recovery and resilience plan contributes to addressing the challenges arising from low water retention and the impact of climate change in Czechia. The component aims at improving the protection against drought and floods by increasing water retention in the landscape and in urban areas. Investments in the protection of Natura 2000 network sites and Specifically Protected Areas (SPAs) are also planned.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall require that only activities that comply with relevant EU and national environmental legislation can be selected, namely the Water Framework Directive, Floods Directive, Habitats and Birds Directive, Environmental Impact Assessment and Strategic Environmental Assessment Directives.

O.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Amendment to the Water Management Act

The objective of the reform shall be to amend the Water Management Act, in order to tackle droughts and water scarcity in a more systematic way. The amendment shall define the framework for prevention and monitoring of droughts, the responsibilities of relevant authorities and control mechanisms. It shall aim at the establishment of regional commissions with a mandate to issue a declaration of “state of water scarcity” and apply corresponding limitations on the use of water in the region, pursuant to droughts management plans.

The implementation of the reform shall be completed by 31 December 2024.

Investment 1: Protection against droughts and floods of the city of Brno

This investment shall aim at strengthening Brno city’s flood defences and at revitalising the River Svratka. The realisation of the project shall consist of nature-based solutions such as natural spill of the increased water-level of the basins in meadows, establishment of natural pools, meadows, floodplains, and creation of wetlands. Nature-based solutions shall be implemented on the Svratka river, mostly upstream of Brno city.

The realisation of the investment shall be completed by 31 December 2025.

Investment 2: Rainwater Management in urban agglomerations

This investment shall aim at slowing-down run-offs and at retention and accumulation of water in urban agglomerations through surface twisting, absorption strips and reservoirs, rain gardens, underground traps, drainage, storage underground reservoirs and green roofs.

The realisation of the investment shall be completed by 31 December 2025.

Investment 3: Management of Natura 2000 sites and protected species of plants and animals

This investment shall aim at enhancing the ecological stability of landscapes and biodiversity in Czechia. It shall consist of the elaboration and adoption of management plans for restoration and revitalisation of Natura sites 2000 (Special Protection Areas and Sites of Community Importance) as well as nationally protected sites. The investment shall achieve the favourable conservation status by implementing conservation measures set in the nature management plans.

The realisation of the investment shall be completed by 31 December 2025.

Investment 4: Adaptation of aquatic, non-forest and forest ecosystems to climate change

This investment shall aim at enabling systemic water retention in the landscape (based on a water retention potential assessment). It shall consist of the implementation of actions such as improving the species and spatial composition of forests; at protecting non-forest habitats; at the creation or restoration of wetlands and ponds; at the revitalisation of watercourses, restoration of landscape elements (besides others to divide large plots of agricultural land), planting of trees outside forested areas and other related actions.

The realisation of the investment shall be completed by 31 December 2025.

 

O.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

160

Reform 1: Amendment to the Water Management Act

Milestone

Amendment to the Water Management Act (Act No. 254/2001 Coll.) aiming at a systemic approach to management of drought and water scarcity.

Entry into force of the Amendment to the Water Management Act (Act No. 254/2001 Coll.)

Q4

2024

The amendment to the Water Act defining the framework for the prevention of droughts and water scarcity by the monitoring of droughts, the establishment of control mechanisms and definition of responsibilities of competent authorities shall be adopted. A regional and a central commission for the prevention, monitoring and management of drought and water scarcity shall be established. Regional and national drought plans shall be developed and approved. Amendment to the Act shall be in compliance with the applicable EU acquis, namely Directive 2000/60/EC.

161

Investment 1: Protection against droughts and floods of the city of Brno

Milestone

Notification of award of contracts for projects aiming at the protection against droughts and floods of the city of Brno.

Notification of award of all contracts.

Q4

2022

Notification of all contracts awarded for projects aiming at the protection against droughts and floods of the city of Brno.

162

Investment 1: Protection against droughts and floods of the city of Brno

Target

Completion of nature-based flood protection measures to protect the city of Brno

Number of project

0

1

Q4

2025

The implementation of the project shall lead to the creation of a set of close to nature flood protection measures in the section of the river Svratka.

The flood protection measures shall include:

·Improvement of the morphology of the water course bed

·Adjustment of land banks to milder and more variable slopes and their eventual stabilization.

·Planting of accompanying trees together with grassing of the banks and the surroundings of the watercourse.

·Opening of floodplains for floods and their modifications (eg construction of a wetland). The flood protection measure shall consist mostly of nature-based solutions conducted upstream of the city of Brno and shall be in line with the National Action Plan for Climate Change Adaptation and State Policy of the Environment in the Czech Republic 2030 with a view to 2050.

·Accompanying measures, which cannot be avoided by any means, and which are strictly necessary for the implementation of the measures above.

163

Investment 2: Rainwater management in urban agglomerations

 Target

Increase of the volume of rainwater retained by rainwater management measures in urban areas

 

Volume of m3 of rainwater retained

0

40 000

Q4

2025

Completion report submitted by an independent body. This measure shall include surface absorption and retention green measures, rain gardens, underground rainwater retention devices, surface and underground retention storages.

164

Investment 3: Protected areas including Natura 2000 sites and protected species of plants and animals

 Target

Completion of projects aiming at the conservation of protected areas including Natura 2000 sites and of protected species of plants and animals.

 

Hectares

0

2 625

Q4

2025

Completion report submitted by the Ministry of Environment. The investment shall achieve the favourable conservation status by implementing conservation measures set in the nature management documents. It shall complete the designation of protected areas including Natura 2000 sites and elaboration of management documents containing conservation objectives and measures for protected areas including Natura 2000 sites.

165

Investment 4: Adaptation of aquatic, non-forest and forest ecosystems to climate change

Milestone

Completion of projects aiming at adapting aquatic, non-forest and forest ecosystems to climate change

Completion report by independent engineer certified by the Ministry of Environment

Q4

2025

Submission of completion report by independent engineer certified by the Ministry of Environment. Projects shall contribute to improve the species and spatial composition of the forest on an area of 200 ha; shall provide care for valuable non-forest terrestrial habitats in a total area of 1250 ha; shall create and restore wetlands, ponds and small reservoirs in the total area of 48 ha; revitalize watercourses in the total area of 4 ha and shall implement the planting of 32 thousand pieces of woody plants outside the forest.

166

Investment 4: Adaptation of aquatic, non-forest and forest ecosystems to climate change

Target

Assessment of water retention potential and proposal of concrete measures

Km2

0

5000

Q4

2025

Territories of small river basins shall be assessed in terms of their water retention potential, pre-feasibility studies shall be carried out, discussed with stakeholders and agreed with landowners.

Detailed project documentation shall be elaborated only for selected water retention measures, based on a binding declaration of interest by landowners.

167

Investment 4: Adaptation of aquatic, non-forest and forest ecosystems to climate change

Target

Implementation of proposed selected water retention measures

% of the selected territory used for water retention measures

0

10

Q4

2025

Selected proposed measures shall be implemented based on the assessment of water retention potential, pre-feasibility studies and detailed projects

P. COMPONENT 3.1: Innovation in Education in the Context of Digitalisation

This component of the Czech recovery and resilience plan contributes to addressing the challenges related to the digital transition of the education system, in particular strengthening digital literacy and computational thinking of pupils and fostering the use of digital technologies by teachers. This shall be achieved by revising the curricula for primary and secondary education in order to reinforce IT education, extend its scope to advanced digital technologies and foster digital skills across the educational areas. It shall also promote digital skills of teachers and improve the level of digital equipment in schools. The component also aims at addressing the digital divide, exacerbated by the prolonged school lockdown, by setting up a fund for mobile digital devices at the disposal of disadvantaged pupils and students. The ultimate objective of the component is to adapt education to the changing needs of the labour market, address the lack of IT specialists and advanced digital skills across the labour force, and ensure long-term employability.

The reforms under the component support addressing country-specific recommendation 2, 2019, according to which Czechia shall increase the quality and inclusiveness of the education and training systems, including by fostering technical and digital skills and promoting the teaching profession, and country-specific recommendation 2, 2020, according to which Czechia shall support employment through active labour market policies, the provision of skills, including digital skills, and access to digital learning.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

P.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Curricula reform and strengthening of IT education

The reform includes a revision of the curricula of primary, lower-secondary schools and upper-secondary (gymnázium) schools with a view to promote digital literacy and IT skills. Teaching of informatics shall be reinforced in terms of hours taught. It shall also be extended to new areas such as data processing and modelling, coding and programming, robotics and advanced digital technologies (augmented reality, virtual reality, 3D printing). In addition, the new curricula foresee that those digital skills shall be developed as a key competence across all educational areas, including non-IT subjects. The revision of the curricula for primary and lower-secondary schools and gymnázia shall be approved by 30 September 2021. Schools are expected to phase in the new curricula gradually. The deadline for full compliance with the new curricula shall be set at 1 September 2023 for primary schools, 1 September 2024 for lower-secondary schools and 1 September 2025 for gymnázia.

The reform shall therefore be fully completed by 1 September 2025.

Investment 1: Implementation of the revised curriculum and digital skills of teachers

The measure aims at supporting the implementation of the revised curricula and the Framework of Teacher’s Digital Skills (DigCompEdu) in schools. The support shall be demand-driven and reach at least 4000 schools. It shall consist of:

·financial support for training of teachers in digital skills and IT literacy as required by the revised curricula;

·guidance (workshops, webinars, individual counselling) for headmasters, school ICT coordinators, curricula coordinators and IT teachers with a view to help effectively implement the curricula reform;

·creation by 31 December 2024 of a digital platform providing teachers with access to existing databases with education content (such as online teaching material, webinars, e-learning courses).

The investment shall be completed by 31 March 2026.

Investment 2: Digital equipment for schools

The first aim of the investment is to prevent digital exclusion by ensuring that digital equipment is accessible to all pupils. The investment shall address the growing inequalities in education, which have been further aggravated by the prolonged school lockdown. As a first step, funding of ICT equipment for distance learning was to be provided to schools by 31 December 2020 in order to allow for distance learning during the school lockdown, including for pupils from disadvantaged socio-economic backgrounds. As a second step, further funding shall be provided to schools to set up a fund for mobile digital devices for disadvantaged pupils by 31 December 2025. The funds shall be allocated to schools based on criteria reflecting whether the school is located in a socially excluded area and the estimated number of pupils who need digital mobile devices to borrow. Schools shall acquire 70 000 devices supporting 70 000 pupils in need.

The second aim of the investment is to ensure that schools are adequately equipped with both basic and advanced digital technologies to support digital literacy and implement the revised curricula under reform 1 of this component. Of the total of approx. 10 000 kindergartens, primary and secondary schools, at least 9 260 shall be equipped by 31 March 2024 with basic and advanced digital technologies (such as augmented reality, virtual reality, robotics and 3D printing). Provision of funding shall be accompanied by technical assistance for schools in order to ensure efficient spending of funds. This technical assistance shall be delivered to schools either through centrally-provided guidance (a dedicated website, webinars, online evaluation tools, examples of good practices), or through a new network of IT counsellors (“IT gurus”) at the regional level who shall provide targeted mentoring to schools on the purchase of IT equipment, setup of IT administration, connectivity and internal school networks. The IT guru network shall support at least 1120 schools in the period between 1 January 2022 and 31 December 2025, that is about one fifth of schools, with a particular focus on smaller rural schools, which have the greatest IT diffusion challenges.

The investment shall be completed by 31 March 2026.

P.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

168

Reform 1: Curricula reform and strengthening of IT education

Milestone

Approval of new curricula strengthening digital literacy and computational thinking

Approval of new curricula for primary, lower-secondary schools and gymnázia by the Ministry of Education, Youth and Sports

Q3

2021

The new curricula shall

·reinforce education of Informatics in terms of teaching hours

·extend the coverage of informatics to new areas, such as data processing and modelling, coding and programming, robotics, augmented reality, virtual reality and digital technology.

·Introduce the digital competence as one of the key competences

·promote the use of digital technologies across educational areas, including non-IT subjects.

169

Reform 1: Curricula reform and strengthening of IT education

Milestone

Implementation by schools of new curricula strengthening digital literacy and computational thinking

Implementation of the new curricula by primary, lower-secondary schools and gymnázia

Q3

2025

Implementation of the new curricula by schools will be gradual. Full compliance with the new curricula shall be achieved by 1 September 2023 by primary schools, by 1 September 2024 by lower-secondary schools and by 1 September 2025 by gymnázia.

170

Investment 1: Implementation of the revised curriculum and digital skills of teachers

Milestone

Creation of a digital platform for effective sharing of educational resources

A digital platform fully operational

Q4

2024

The digital platform under the responsibility of the Ministry of Education, Youth and Sports shall provide teachers with access to existing education content (e.g. digital educational resources, webinars, e-learning courses). It shall establish links to existing databases of digital education materials.

171

Investment 1: Implementation of the revised curriculum and digital skills of teachers

Target

Number of schools which received support to imúplement new IT curricula (digital skills of teachers and guidance)

Number

0

4 000

Q1

2026

The support to implement the new curricula shall target primary and lower secondary schools. It shall consist of

·training of teachers in digital skills and IT literacy

·guidance (workshops, webinars, individual counselling) for headmasters, school ICT coordinators, curricula coordinators and IT teachers

172

Investment 2: Digital equipment for schools

Target

Number of digital devices purchased by schools for distance learning

Number

0

74000

Q4

2020

At least 74 000 digital devices (tablets, laptops, mobile phones, etc.) are purchased by schools for distance learning. At least 4102 primary and secondary schools received funding for IT equipment for distance learning.

173

Investment 2: Digital equipment for schools

Milestone

Number of IT devices purchased for the school fund of mobile digital devices for disadvantaged pupils

Number

0

70 000

Q4

2025

The purchase of 70 000 devices shall support 70 000 pupils in need. At least 80% of schools set up a fund for mobile digital devices for disadvantaged pupils. This IT equipment is additional to equipment referred to in Target 159.

174

Investment 2: Digital equipment for schools

Target

Number of schools supported with digital technologies and equipment to promote digital literacy and implement the new IT curricula

Number

0

9 260

Q1

2024

Of the total of approximately 10 000 schools, at least 9 260 schools are equipped with both basic and advanced digital technologies necessary for promoting digital literacy and teaching new informatics according to the revised curricula.

175

Investment 2: Digital equipment for schools

Target

Number of schools supported in counselling and mentoring on IT equipment and internal IT systems

Number

0

1 120

Q1

2026

At the regional level, a network of regional IT counsellors shall provide targeted mentoring and counselling to at least 1120 schools on the purchase of IT equipment, connectivity, setup of IT administration, and internal school networks.

Counselling through the regional IT counsellors shall be complemented by centrally-provided, methodological guidance, such as a dedicated website, webinars, good practice sharing, and online evaluation tools.

Q. COMPONENT 3.2: Adaptation of School Programmes

This component of the Czech recovery and resilience plan contributes to addressing challenges in the fields of tertiary and primary and lower-secondary education, respectively. At the level of tertiary education, the component aims at increasing the capacities of universities and adapting the study programmes to new forms of learning and new fields, in particular digital expertise, in line with changing needs of the labour market. Also, new university facilities shall be supported to expand and modernise tertiary education in the area of medical and pharmaceutical science. At the level of primary and lower-secondary education, the component aims at addressing growing inequalities in education by providing a multi-layered support to disadvantaged schools, additional tuition to pupils at risk of failure and by strengthening the abilities of teachers and professionals to teach heterogeneous classes.

The component supports addressing the country-specific recommendation 2, 2019, according to which Czechia shall increase the quality and inclusiveness of the education and training systems, including by fostering technical and digital skills and promoting the teaching profession, and country-specific recommendation 2, 2020, according to which Czechia shall support employment through active labour market policies, the provision of skills, including digital skills, and access to digital learning.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

Q.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Transformation of universities to adapt to new forms of learning and changing needs of the labour market

The objective of the reform is to initiate and accelerate transformation of universities as regards both the content and forms of learning. Regarding the content, the range of study programmes shall be adjusted to new trends and changing needs in the labour market, in particular to the digital transformation. The identification of priority sectors shall be made at the national level, in consultation with the social partners. The academic focus of the existing study programmes shall also be adjusted to include a significant share of work-based learning to better match the needs of the labour market. The reform shall also facilitate transition to new, mainly digital forms of learning, such as blended learning and distance learning. This shall require investment in digital equipment and technologies and training of university staff in digital skills and modern teaching methods. The measure shall also focus on development of those capacities, which would allow universities to provide reskilling and upskilling courses, in particular for workers in knowledge-intensive areas.

The support shall be channelled to universities through an open call administered by the Ministry of Education, Youth and Sports. It is expected that at least 20 universities shall be supported. At least 35 new study programmes shall receive accreditation, including:

-at least 15 study programmes in the priority fast-growing, high value-added sectors, suffering from a lack of highly-skilled specialists, such as cybersecurity, artificial intelligence, Industry 4.0, e-government services.

-at least 20 additional study programmes (Bachelor or Master) with a professional profile.

In addition, at least 20 new life-long learning courses (including micr-credentials) shall be offered by universities.

The reform and the accompanying investment shall be completed by 31 March 2026.

Investment 1: Development of selected key academic sites 

The investment consists of expanding the facilities of universities in the area of medicine, biomedicine and pharmaceutical science. The new facilities shall allow for innovation of academic programmes, expansion of practical teaching, development of interdisciplinary research and increased internationalisation. The ultimate aim is to increase the share of students of medicine and pharmacy, thereby addressing the lack of healthcare professionals in Czechia. The investment includes construction and equipment of new academic facilities in three university campuses:

·MEPHARED 2 – merger of fragmented academic sites of the Faculty of Medicine and the Faculty of Pharmacy of Charles University in Hradec Králové

·Biocentrum – new facilities for medical, biomedical natural studies and science in the Alberov Campus of Charles University in Prague

·Biopharma Hub – new facilities for pharmaceutical and biomedical studies allowing to link the Faculty of Pharmacy with the single academic site of the Masaryk University in Brno.

The investments shall be completed by 30 June 2026.

Reform 2: Support of disadvantaged schools

The aim of the reform is to tackle growing disparities between educational results of schools and to ensure equal access to quality education. This shall be achieved through comprehensive support of the most vulnerable schools with an above-average proportion of pupils with disadvantaged socio-economic backgrounds. A programme of targeted support shall be developed and implemented for schools in socially excluded areas and segregated schools, as well as schools with a higher proportion of pupils with a different mother tongue. The support shall focus on training for teachers to work with heterogeneous groups and disadvantaged pupils, as well as on effective cooperation with school psychologists, teachers’ assistants and school social workers.

Based on the outcomes of the support programme, a reform of financing of schools shall be presented introducing index funding to reflect the level of socio-economic disadvantage. This shall allow for reinforced funding of the most vulnerable schools on a systematic basis, thereby increasing the quality of their education and narrowing disparities between schools.

The reform shall be completed by 31 December 2025.

Investment 2: Tutoring of pupils

The investment aims at providing catch-up classes for pupils with a disadvantaged socio-economic background, whose educational outcomes deteriorated due to the prolonged school lockdown. Based on reports by the Czech School Inspection, it is estimated that 500 000 pupils lag behind and need tutoring due to insufficient participation in online learning during the ten-month school lockdown. The investment shall thus prevent further widening of inequalities between pupils and schools driven by social or other disadvantages. The support to pupils at risk of failure shall be temporary, limited to the recovery phase following return of pupils to full-time education. It shall help restore the learning habits and acquire the knowledge prescribed by the curricula in mathematics, the Czech and foreign languages.

The investment shall be completed by 31 December 2023.

Q.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

176

Reform 1: Transformation of universities to adapt to new forms of learning and changing needs of the labour market

Milestone

Launch of a programme to support transformation of universities

Launch of the programme by the Ministry of Education

Q2

2022

The programme shall support adaptation of universities to new forms of learning and introduction of new study programmes. The sectors to be supported from the programme shall be identified on the basis of an analysis of economic data, in consultation with the social partners. Focus shall be on fast-growing, high value-added sectors suffering from a lack of highly-skilled specialists, such as cybersecurity, artificial intelligence, Industry 4.0 or e-government services. The objective is to support at least 20 universities.

177

Reform 1: Transformation of universities to adapt to new forms of learning and changing needs of the labour market

Target

Number of new accredited study programmes

Number

0

35

Q1

2026

At least 35 new study programmes shall receive accreditation, of which:

-at least 15 study programmes shall fall under the sectors identified as fast-growing, high value-added sectors suffering from a lack of highly-skilled specialists;

-at least 20 new study programmes (Bachelor or Master) shall have a professional profile.  

178

Reform 1: Transformation of universities to adapt to new forms of learning and changing needs of the labour market

Target

Number of new reskilling and upskilling courses

Number

0

20

Q1

2026

At least 20 new courses focused on upskilling os reskilling (including micro-credential forms) shall be cerated and offered by universities.

179

Investment 1: Development of selected key academic sites

Milestone

Award of contracts for the construction of new university facilities

Notification of the award for the construction of new university facilities

Q2

2024

Notification of the award of the public contracts for construction of new university facilities with the objective of 100 000 m2 of new university area including material equipment, broken down:

1.Mephared 2 (Charles University, Hradec Králové) – 58 092 m²

2.Biocentrum (Charles University, Prague-Albertov) – 33 934 m²

3.BiopharmaHub (Masaryk University, Brno) – 19 035 m²

180

Investment 1: Development of selected key academic sites

Target

Number of square metres of new university area

number

0

100 000

Q2

2026

Of the overall objective to construct 111 000 m², at least 100 000 m² of new university areas shall be constructed.

181

Reform 2: Support of disadvantaged schools

Target

Number of disadvantaged schools supported

Number

0

400

Q4

2025

The programme shall provide support to at least 400 schools with a high proportion of disadvantaged pupils. The support shall focus on training for teachers to work with heterogeneous groups and disadvantaged pupils. The selection of schools shall be carried out by the National Institute of Pedagogy in cooperation with the Czech School Inspection, based on a set of criteria, such as the proportion of disadvantaged pupils, the proportion of pupils with different mother tongues and the educational outcomes of the school.

182

Reform 2: Support of disadvantaged schools

Milestone

Proposal of a new system of financing of schools according to socio-economic disadvantage

Approval by the Ministry of Education, Youth and Sports of the proposal for index funding

Q4

2025

The proposal for index funding shall be based on the results of the support programme for disadvantaged schools under Reform 2 (Support of disadvantaged schools). The index shall take into account several indicators of the socio-economic advantage of schools, such as educational outcomes, proportion of pupils with a social or other disadvantage and proportion of pupils with different mother tongue.

183

Investment 2: Tutoring of pupils

Target

Number of pupils who received tutoring

Number

0

500 000

Q4

2023

Tutoring shall be provided to at least 500 000 pupils at risk of school failure. Tutoring shall help pupils restore learning habits and acquire the knowledge prescribed by the curricula in mathematics, the Czech and foreign language.

R. COMPONENT 3.3: Modernisation of Employment Services and Labour Market Development

This component of the Czech recovery and resilience plan contributes to addressing several challenges in the area of labour market and social care. First, it aims at increasing the adaptability of the labour force by developing its skills, in particular in the digital field. Second, it aims at tackling persistent gender inequalities in the labour market, in particular the low labour market participation of women with small children. Third, the component aims at modernising and expanding social services in compliance with the principles of deinstitutionalisation and independent living, as described in the UN Convention on the Rights of Persons with Disabilities.

The component supports addressing country-specific Recommendation 2, 2019, according to which Czechia shall foster the employment of women with young children, including by improving access to affordable childcare, and of disadvantaged groups, and country-specific Recommendation 2 2020, according to which Czechia shall support employment through active labour market policies, the provision of skills, including digital skills, and access to digital learning.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

R.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Development of labour market policies

The objective if this reform is to promote life-long learning in Czechia. The reform consists of a number of systemic measures:

setting up a tripartite mechanism, by 31 March 2022, involving the Ministry of Labour, the Ministry of Education, employers and trade union representatives, to coordinate development of life-long learning programmes in line with the actual and anticipated demand for skills;

creating by 31 December 2023 a database of reskilling and upskilling courses which shall increase the offer of retraining courses and improve matching of supply and demand; the database shall comprise both reskilling programmes certified according to the Employment Act, but also courses offered by vocational schools and higher education institutions;

expanding the target groups that can participate in retraining organised by the Labour Office to employed people at risk of outplacement and employed people seeking upskilling; this is expected to increase the demand for and uptake of further education;

establishment, by 31 December 2025, of at least 14 regional training centres (under the responsibility of the Labour Office) sufficiently equipped to provide life-long learning in the area of digital technologies and Industry 4.0; this shall allow for reinforced cooperation with regional vocational schools and a more flexible provision of reskilling courses according to the actual needs of the regional labour market (without the need to tender requalification programmes);

a legislative amendment, by 31 December 2025, to increase the flexibility and effectiveness of retraining courses organised by the Labour Office and to better target support to the most vulnerable groups.

The reform measures shall be completed by 31 December 2025.

Reform 2: Ensuring sustainable financing of childcare facilities

The objective of this measure is to foster the availability of affordable childcare for children below three in order to facilitate return of parents, in particular mothers, to work after parental leave. The reform shall consist of an amendment of the law on pre-school care, which shall ensure stable financing of facilities for children below three years of age. The legislative amendment shall also aim at ensuring access to affordable childcare for children below three in all regions of Czechia.

The reform shall be completed by 31 December 2023.

Reform 3: Reform of long-term care

The reform aims at addressing the challenge of fragmented governance and financing of long-term care and a low proportion of community-based and home-based services in Czechia. The measure consists of a legislative reform, which shall aim at integrating health and social long-term care, ensure a stable system of adequate financing of quality long-term services, provide incentives for community-based and home-based care, allow access of private providers and improve supervision of social care. By 31 December 2022, a system for mapping social and long-term needs is expected to be established and an action plan for deinstitutionalisation is expected to be adopted.

The reform shall be completed by 31 December 2023.

Investment 1: Development of labour market policies

The measure aims at increasing the adaptability of the labour force to the changing needs of the labour market. The measure comprises mainly projects in reskilling and upskilling, with a focus on people with reduced capacity to adapt to changing labour market conditions.

Provision of skills shall, on the one hand, ensure the supply of skilled labour, which is a prerequisite for competitiveness, and on the other hand prevent unemployment and foster social cohesion. Upskilling or reskilling shall be provided by 31 December 2025 to 130,000 people in digital skills or other skills required by the digital transition and Industry 4.0. Out of this number, 65,000 people are expected to receive support through the Czech Labour Office and further 65,000 shall be supported through professional training provided directly by employers (preference shall be given to the SMEs and the self-employed).

The investment shall be completed by 31 December 2025.

Investment 2: Increasing the capacity of childcare facilities

The investment aims at increasing the availability of childcare services for children under the age of three. This shall help address the low labour market participation of women with small children and reduce the persistent gender inequalities in the labour market, which translate into a high gender employment gap, pay gap and pension gap. The investment also aims at increasing access to childcare for families with lower incomes who cannot afford the existing childcare services, which further exacerbates the risk of social exclusion and weak educational outcomes of their children. It is expected that the investment shall increase the number of child groups and nurseries by 40%. The investment shall include:

investment into new nurseries. Of the overall objective to establish 435 new nurseries, at least 391 shall be created;

refurbishment of existing facilities to comply with the new technical standards (hygiene and fire safety) set by the amendment of the Child Group Act or to expand capacity. Of the overall objective to refurbish 370 facilities, at least 333 shall be refurbished.

Investment in new capacities shall contribute to climate objectives by increasing energy efficiency as follows:

25% shall be allocated to new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement.

45% shall be allocated to energy efficiency renovations, achieving on average either at least 30% primary energy savings or at least a 30% reduction of direct and indirect greenhouse gas emissions.

30% shall be allocated to other energy efficiency renovations.

The investment shall be completed by 31 December 2025.

Investment 3: Development and modernisation of social care infrastructure

This measure aims at addressing the lack of social care infrastructure and the need to support the transition towards community-based social and long-term care in the Czech Republic.

Investments shall support the establishment of additional social care facilities infrastructure, either by reconstruction of existing building or by new constructions. These investment projects shall be implemented by the autonomous municipalities based on the assessment of territorial needs; ensuring that new and refurbished residential places are aligned to the UN Convention on the Rights of Persons with Disabilities. Investment into home-based and community-based care settings shall be favoured and the principle of freedom of choice and independent living shall be respected for all investment projects. Investment in new capacities shall contribute to climate objectives by increasing energy efficiency as follows:

one third of the allocation shall support new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement.

one third of the allocation shall be earmarked for renovations achieving on average either at least 30% primary energy savings or at least 30% reduction of direct and indirect greenhouse gas emissions;

one third of the allocation shall be earmarked for renovations achieving on average neither at least 30% primary energy savings nor at least 30% reduction of direct and indirect greenhouse gas emissions.

At least 100 electric vehicles and at least 151 plug-in hybrids shall be purchased for social prevention, counselling and home-care services.

The investment shall be completed by 31 December 2025.

R.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

184

Reform 1: Development of labour market policies

Milestone

Establishment of the tripartite Re-skilling and Upskilling Committee

Entry into force of a decree establishing a permanent Reskilling and Upskilling Committee of the Council of Economic and Social Agreement (tripartite)

Q1

2022

The Reskilling and Upskilling Committee shall coordinate development of life-long learning in line with the actual and anticipated demand for skills. It shall consists of the representatives of the Ministry of Labour and Social Affairs, Ministry of Education, Youth and Sports, employers associations and trade unions

185

Reform 1: Development of labour market policies

Milestone

Entry into force of the amended Employment Act increasing efficiency of employment services and better targeting of most vulnerable groups

 

Provision in the amended Employment Act indicating the entry into force of the amended Employment Act

Q4

2025

The law shall

·Provide a definition of disadvantaged people in the labour market

·better target support to the most vulnerable groups (especially the low-skilled , excluded persons or at risk of social exclusion)

·increase the flexibility and effectiveness of retraining courses organised by the Labour Office

186

Reform 1: Development of labour market policies

Milestone

Database of reskilling and upskilling courses

Public database of upskilling and reskilling courses put in operation

Q4

2023

The database shall comprise upskilling and reskilling programmes certified according to the Employment Act (provided by the Labour Office) as well as courses offered by vocational schools, higher education institutions and other providers

187

Investment 1: Development of labour market policies

Target

Number of people who received reskilling and upskilling in digital skills and skills needed for Industry 4.0

Number

0

130 000

Q4

2025

At least 65 000 people shall receive upskilling or reskilling in digital skills. In addition, at least 65 000 people shall receive upskilling or reskilling in skills needed for Industry 4.0.

Support to upskilling and reskilling shall be provided through the Czech Labour Office or through company-based training provided by employers. Selection criteria shall ensure that preference shall be given to the SMEs and the self-employed.

188

Reform 1: Development of labour market policies

Target

Number of regional training centres established to promote Industry 4.0

Number

0

14

Q4

2025

At least 14 training centres shall be established, equipped and put in operation (one centre per region). The centres shall be established by the Labour Office. They shall be equipped to provide upskilling and reskilling courses in digital skills and skills needed for transition to Industry 4.0., in cooperation with regional vocational schools.

189

Investment 2: Increasing the capacity of pre-school facilities

Target

Number of refurbished existing pre-school facilities

Number

0

333 

Q4

2025

Of the overall objective to refurbish 370 facilities, at least 333 shall be refurbished, to comply with the new technical standards set by the amendment of ct No 247/2014 on the provision of childcare services in a child group (Child Group Act) or to expand capacity.

190

Investment 2: Increasing the capacity of pre-school facilities

Target

Number of new pre-school facilities

Number

0

391

Q4

2025

Of the overall objective to establish 435 new nurseries, at least 391 shall be created, by constructing new buildings and by renovating existing buildings. The investment includes the use of grant support as follows:

·At least 98 shall be new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement.

·At least 176 shall be renovations achieving on average either at least 30% primary energy savings or at least 30% reduction of direct and indirect greenhouse gas emissions.

·At least 117 shall be other energy efficiency renovations.

191

Investment 2: Increasing the capacity of pre-school facilities

Target

Number of new places in pre-school facilities

Number

0

7430

Q4

2025

Creation of at least 7430 new places in pre-school facilities for children below the age of three. These facilities shall be distinct from the facilities financed from other Union funding programmes.

192

Reform 2: Ensuring sustainability of financing of childcare facilities

Milestone

Entry into force of the lawon child care (amendment to Act No 247/2014 on the provision of childcare services in a child group)

Provision in the law on child care (amendment to Act No 247/2014 on the provision of childcare services in a child group) indicating the entry into force of the law

Q4

2023

The law on pre-school child care (amendment to Act No 247/2014 on the provision of childcare services in a child group) shall

·ensure stable financing of pre-school facilities for children below three years of age

·aim at ensuring access to affordable childcare for children below three years of age in all regions.

193

Reform 3: Reform of long-term care

Milestone

Entry into force of the law on long-term care

Provision in the law on long-term care indicating the entry into force of the law

Q4

2023

The law on long-term care shall

·aim at integrating health and social long-term care;

·ensure high quality standards for all types of long-term care services;

·promote community-based care and home care ensuring independent living in natural environment ;

·ensure a stable system of adequate financing of the long-term care services, including for community-based and home care;

·define rules on monitoring of quality of care, requirements for the staff (including qualifications) and equipment;

·allow for access of private LTC providers while applying the same rules and quality standards to all providers.

194

Investment 3: Development and modernisation of social care infrastructure

Target

T1: Number of community-based residential facilities constructed or reconstructed

Number of facilities

0

121

Q4

2024

At least 121 facilities shall be created, of which:

·69 facilities shall be new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement;

·26 facilities shall be renovated achieving on average either at least 30% primary energy savings or at least 30% reduction of direct and indirect greenhouse gas emissions.

·26 facilities shall be other energy efficiency renovations

The facilities shall be built/reconstructed in accordance with the conditions of the UN Convention on the Rights of Persons with Disabilities, in particular the principles of freedom of choice and independent living.

195

Investment 3: Development and modernisation of social care infrastructure

Target

T2: Number of community-based residential facilities constructed or reconstructed

Number of facilities

121

288

Q4

2025

At least 288 facilities shall be created, of which:

·116 facilities shall be new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement;

·106 facilities shall be renovated, achieving on average either at least 30% primary energy savings or at least 30% reduction of direct and indirect greenhouse gas emissions.

·66 facilities shall be other energy efficiency renovations achieving on average neither at least 30% primary energy The facilities shall be built/reconstructed in accordance with the conditions of the UN Convention on the Rights of Persons with Disabilities, in particular the principles of freedom of choice and independent living.

The measure is expected to create at least 5000 new beds in social care facilities.

196

Investment 3: Development and modernisation of social care infrastructure

Target

T1: Number of low-emission vehicles purchased for social prevention, counselling and home-care services

Number

0

120

Q4

2023

At least 120 low-emission vehicles shall be purchased, of which:

·40 electric cars

·80 plug-in hybrid cars

197

Investment 3: Development and modernisation of social care infrastructure

Target

T2: Number of low-emission vehicles purchased for social prevention, counseling and home-care services

Number

120

251

Q4

2024

At least 251 low-emission vehicles shall be purchased, of which:

·100 electric cars

·151 plug-in hybrid cars

S. COMPONENT 4.2: New Quasi-Equity Instruments for the Promotion of Entrepreneurship and Development of Czech-Moravian Guarantee and Development Bank (ČMZRB) as a National Development Bank

This component of the Czech recovery and resilience plan addresses the challenges concerning the access to finance by small and medium sized enterprises (SMEs).

The objectives of the component are extending the ČMZRB’s product line to include a new quasi-equity instrument and strengthening ČMZRB’s capacities for its implementation, including the design of internal regulatory procedures and IT systems. An integral part of the reform shall be to update the ČMZRB strategy to include principles for sustainable financing in line with EU environmental objectives with the full application of the ‘Do no significant harm principle’.

The component supports addressing the country specific recommendation on supporting small and medium sized enterprises by making greater use of financial instruments to ensure liquidity support (Country Specific Recommendation 3 2019).

S.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Development of the Czech-Moravian Guarantee and Development Bank as a National Development Bank

The purpose of the reform is to strengthen the ČMZRB position as a national development bank, its capacity to implement financial instruments, especially those supporting the objectives of green transition.

The reform shall aim at completing the following objectives:

·Updating of the ČMZRB strategy to include principles for sustainable financing in line with EU environmental objectives.

·Strengthening institutional and human resources to ensure the efficient management of the new type of financial instruments, including through adjustment of internal regulatory procedures of the IT systems for the new product.

·Development of a methodology for project evaluation and selection that complies with “Do no significant harm” (DNSH) Technical guidance (2021/C58/01) requirements and green tagging criteria as established under Annex VI to the RRF Regulation, allowing for support of activities with a climate coefficient of 40% or 100%.

The reform shall be completed by 31 December 2021.

Investment 1: Development of a new line of quasi-equity instruments supporting entrepreneurship

The purpose of the investment is to provide support in the combined amount of EUR 32 400 000 to at least 30 projects fulfilling the environmental and climate criteria on the basis of the new methodology, in line with the new mid-term strategy of the ČMZRB as developed under the Reform part and following a transparent and competitive selection procedure. Support provided under the Czech recovery and resilience plan is expected to mobilise private capital as private co-financing and, in the longer term, increase the core capital of the ČMZRB available for further financing of firms through the financial instruments.

Czechia shall complete the following measures:

·Concluding a funding agreement between the ČMZRB and the Ministry of Industry and Trade, which clearly sets that the projects supported by the ČMZRB under the recovery and resilience plan shall comply with the objectives of the Regulation (EU) 2021/241, including the DNSH and green tagging criteria, as well as that until 31 December 2026 the reflows from the new quasi-equity instrument shall be re-used only for the purposes of this instrument.

·The extension of the ČMZRB product lines to new quasi-equity instruments supporting SMEs (mezzanine loans). The new instrument shall be a quasi-equity instrument in the sense of subordination to its senior debt, but it shall provide for a project-specific financing.

·Providing aid amounting to a total of at least EUR 32 400 000 million (30 projects) through the financing of investments being in line with the “Do no significant harm” (DNSH) Technical guidance (2021/C58/01) and with a coefficient of climate of 40% or 100% by quasi-equity instruments, following a transparent and competitive procedure.

·In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the legal agreement between the Ministries of Industry and Trade, Finance and Local Development and the ČMZRB and the subsequent investment policy of the financial instrument shall:

I.require the application of the European Commission’s technical guidance on sustainability proofing for the InvestEU Fund; and

II.exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use 11 ; (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 12 ; (iii) activities and assets related to waste landfills, incinerators 13 and mechanical biological treatment plants 14 ; and (iv) activities and assets where the long-term disposal of waste may cause harm to the environment; and

III.require the verification of legal compliance with the relevant EU and national environmental legislation of the beneficiary by the entrusted entity or financial intermediary for all transactions, including those exempted from sustainability proofing.

In order to ensure that the activities are in line with Annex VI to Regulation (EU) 2021/241, the selection criteria shall require that the supported activities comply with the requirements of the applicable intervention fields of Annex VI of that Regulation (with a 40% or 100% coefficient).

The investment shall be completed by 31 December 2025.

S.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequ. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

198

Reform 1: Development of the Czech-Moravian Guarantee and Development Bank as a National Development Bank

Milestone

Adoption of the medium-term strategy of the Czech-Moravian Guarantee and Development Bank (ČMZRB) approved by the bank's shareholders (represented by the Ministries of Industry and Trade, Finance and Local Development)

Adoption of the medium-term strategy of the Czech-Moravian Guarantee and Development Bank (ČMZRB)

Q4

2021

The new strategy shall be approved by the bank's shareholders: Ministries of Industry and Trade, Finance and Local development). It shall include provisions on ensuring compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

199

Reform 1: Development of the Czech-Moravian Guarantee and Development Bank as a National Development Bank

Milestone

Delivery of a management model for the new quasi-equity instrument

Approval of the implementation plan and internal regulations for the management of the new type of financial instruments by the Board of Directors of the Czech-Moravian Guarantee and Development Bank (ČMZRB)

Q4

2021

The milestone shall be achieved through the approval of the implementation plan and internal regulations for the management of new type of financial instruments by the Board of Directors of the Czech-Moravian Guarantee and Development Bank (ČMZRB).

The new rules shall include conditions and methods of project evaluation ensuring compliance with the “Do no significant harm” (DNSH) Technical guidance (2021/C58/01) and with therequirements of the applicable intervention fields of Annex VI of Regulation (EU) 2021/241 (with a 40% or 100% coefficient). The new rules shall be consulted with market entities and professional advisers.

200

Investment 1: Development of a new line of quasi-equity instruments supporting entrepreneurship

Milestone

Funding agreement with the Czech-Moravian Guarantee and Development Bank as a National Development Bank (ČMZRB)

Signing of the Funding agreement,

Q4

2021

The milestone shall be achieved upon signing the funding agreement between the Czech-Moravian Guarantee and Development Bank as a National Development Bank (ČMZRB) and the Ministry of Industry and Trade. The agreement shall include: 1) investment policy, 2) eligibility criteria, 3) compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported beneficiaries under this measure through the use of sustainability proofing, an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.

The selection criteria shall require that the supported activities comply with are in line with the requirements of the applicable intervention fields of Annex VI to Regulation (EU) 2021/241 (with a 40% or 100% coefficient). The funding agreement shall specify that the use of reflows from the financial instrument for the Czech-Moravian Guarantee and Development Bank as a National Development Bank (ČMZRB) core capital shall take place only after 2026.

201

Investment 1: Development of a new line of quasi-equity instruments supporting entrepreneurship

Target

Investment of a total of 32 400 000 EUR in quasi-equity instruments supporting sustainable projects of SMEs

EUR

0

32 400 000

Q4

2025

The investment shall support with an amount of EUR 32 400 000 at least 30 projects by the end of 2025, in accordance with the investment policy, following a transparent and competitive selection procedure.

The projects shall be in line with the “Do no significant harm” (DNSH) Technical guidance (2021/C58/01) and with the relevant requirements of the the applicable intervention fields in Annex VI of Regulation (EU) 2021/241 (with a 40% or 100% coefficient.

T. COMPONENT 4.3: Anti-Corruption Reforms

This component of the Czech recovery and resilience plan contributes to addressing the challenge of strengthening the anti-corruption framework of the Czech Republic through the adoption of legislation on whistle-blower protection and lobbying regulation. The reform shall also aim at building analytical databases on corruption, which may subsequently be used in designing and implementing more effective and better targeted anti-corruption measures. The component also includes a reform of the judiciary aiming at strengthening the legislative framework and transparency in the areas of courts, judges, prosecutors and bailiffs.

The component supports addressing the country-specific recommendation 1, 2019, according to which Czechia shall adopt pending anti-corruption measures.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

T.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Protection of whistle-blowers

The measure aims at improving the legal safeguards for whistle-blowers and improving the perception of whistle-blowers within the public administration and in civil society. A new legislation is foreseen to ensure effective protection of whistle-blowers against retaliation at work, establishing internal reporting channels for whistle-blowing by public institutions, municipalities and large companies. An external notification system for whistle-blowing shall be set up at the Ministry of Justice. In order to improve the perception of whistle-blowers, an awareness-raising campaign shall be carried out targeting both public administration and judiciary, as well as the general public.

The reform shall be completed by 31 December 2025.

Reform 2: Strengthening the legislative framework and transparency in the areas of courts, judges, prosecutors and bailiffs

The aim of this reform is to establish a transparent and uniform system of recruitment and selection of judges and judicial office-holders based on precise, objective and uniform criteria. Furthermore, the reform aims at regulating in more detail the ancillary activities of judges and to streamline court proceedings involving assessors. It also seeks to strengthen the safeguards of disciplinary proceedings for judges, prosecutors and bailiffs by introducing an appeal review. The reform shall be achieved by the following measures:

Entry into force, by 31 December 2021, of the law on courts, judges, assessors and state administration of courts (Courts and Judges Act);

Entry into force by 31 December 2024 of the law on proceedings in cases of judges, prosecutors and bailiffs.

Reform 3: Collection and analysis of data on corruption

The reform aims at obtaining quantitative and qualitative data on the prevalence of corruption and broadening the range of tools to map and analyse the predominant types of corruption in different sectors. This shall be achieved by a research project, which shall identify the extent and forms of corruption in selected sectors in the Czech Republic. The analysis shall result in recommendations of measures to reduce corruption in the selected sectors and is expected to feed into the future anti-corruption strategies of the government. The final research report shall propose a methodology for the measurement of direct and indirect experience of corruption. The methodology shall be made available to government authorities, non-profit organisations and academic communities for further development and application.

The reform shall be completed by 31 March 2026.

Reform 4: Establishing rules for lobbying

Lobbying is currently not regulated in Czechia. The aim of this reform is to establish a legal framework for lobbying activities in the legislative process, to enable public scrutiny of lobbying and thereby to increase transparency of the entire legislative process. A new law on lobbying shall be adopted, which shall lay down rules for lobbying activities in order to distinguish between legitimate lobbying activities and undesirable, non-transparent lobbying.

The reform shall be completed by 31 March 2026.

Reform 5: Control and audit

The efficient protection of the financial interests of the Union when implementing the Recovery and Resilience Facility is subject to the establishement of appropriate measures to prevent, detect and correct fraud, corruption and conflict of interests as defined in Article 61 of the Financial Regulation. Therefore, the improvement of the control and audit environment is a pre-requisite for the efficient implementation of the plan in compliance with the applicable Union and national law. This reform includes several measures to protect the financial interests of the Union, in particular (i) improvements of the national control system to prevent, detect and correct situations of the conflict of interests, (ii) a compliance review of the national procedures to ensure that the application of beneficial ownership in the context of the Facility’s internal control system is fully aligned with the definition of ‘beneficial owners’ as defined in Article 3, point 6 of Directive 2015/849, as amended by Directive 2018/843, (iii) adoption of an audit strategy ensuring the independent and effective audit of the RRF implementation, (iv) approval of the procedures for the system to collect, store and process data in relation to all final recipients, including all beneficial owners as established by Article 3 of the Directive (EU) 2015/849, and (v) a repository system for monitoring the implementation of the RRF and for collection and storage of all the data referred to in Article 22(2)(d) of the Regulation (EU) 2021/241.

The reform shall be completed by 30 June 2022. All these milestones shall be fulfilled before the first payment request is submitted to the Commission.

T.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

202

Reform 1: Protection of whistle-blowers

Milestone

Entry into force of the law on the protection of whistle-blowers and the accompanying amending law

Provision in the law on the protection of whistle-blowers indicating the entry into force

Q4

2024

The law on protection of whistle-blowers shall:

·prohibit retaliatory measures against whistle-blowers

·require establishment of an external notification channel for whistleblowing at the Ministry of Justice

·require public institutions, large municipalities and large companies to set up internal notification systems for whistle-blowing

203

Reform 2: Judiciary reform aimed at strengthening the legislative framework and transparency in the areas of courts, judges, prosecutors and bailiffs

Milestone

Entry into force of the Courts and Judges Act

Provision in Courts and Judges Act indicating the entry into force

Q4

2021

The Courts and Judges Act shall:

·introduce objective rules for the selection of judges and court officials

·provide a more detailed regulation of secondary activity of judges

·streamline court proceedings in which lay judges participate

204

Reform 2: Judiciary reform aimed at strengthening the legislative framework and transparency in the areas of courts, judges, prosecutors and bailiffs

Milestone

Entry into force of the law on proceedings in cases of judges, prosecutors and bailiffs

Provision in the law on proceedings in cases of judges, prosecutors and bailiffs indicating the entry into force

Q4

2024

The law on proceedings in cases of judges, prosecutors and bailiffs shall:

·introduce an appeal-based instance review of decisions by the Disciplinary Board

·introduce measures to increase efficiency in proceedings of judges, prosecutors, and bailiffs, namely as regards the composition of the Disciplinary Boards, salaries for civil servants convicted for disciplinary misconduct and settlement of a disciplinary case by agreement

205

Reform 3: Collection and analysis of data on corruption

Milestone

Creation of methodology for measuring of corruption in the Czech Republic

Publication of the methodology by the Ministry of Justice

Q4

2023

The new methodology shall allow for replicable and efficient measurement of the direct and indirect experience of corruption in the Czech Republic. It shall be a part of the final research report which shall also:

·identify the extent and forms of corruption in selected social sectors in the Czech Republic.

·formulate recommendations of measures to reduce corruption in the selected sectors

206

Reform 4: Regulation of lobbying

Milestone

Entry into force of the law on lobbying

Provision in the law on lobbying indicating entry into force

Q1

2026

The law on lobbying shall:

·define lobbying

·require setting up a register of lobbyists and lobbied persons

·introduce an obligation to register lobbying and sanctions for non-compliance.

207

Reform 5: Control and audit

Milestone

The system to collect, store and make available data in relation to all final recipients including all beneficial owners (as established by article 3, point 6, of the Anti-money laundering directive.

Procedure approved and implemented by the delivery unit with the description of the system to collect and make available data on final recipients

Q2

2022

The procedure describing how the data on final recipients, contractors, sub-contractors, beneficial owners and the list of any measures for the implementation of reforms and investment projects is to be collected and stored is being successfully implemented. The system to collect and make available data on final recipients shall be in line with the requirements of Article 22(2)(d) of the RRF Regulation. This description shall explicitly cover all categories of data mentioned in Article 22(2)(d), including on ‘beneficial owners’ as defined in Article 3, point 6, of Directive 2015/849, as amended by Directive 2018/843.

The procedures shall be approved and implemented by the RRF Managing Council. The system of collecting data will be based on and follow the best practices gained of the MS2014+ system.

208

Reform 5: Control and audit

Milestone

Creation and implementation of an action plan on the administrative system of the coordinating body in particular as regards sufficient and systemic prevention of the conflict of interest in the context of the RRF.

Effective implementation of the action plan confirmed by updated procedures and processes of the coordinating body

Q4

2021

Effective implementation of the action plan will ensure an efficient internal administrative system of the coordinating body in particular as regards sufficient and systemic prevention of the conflict of interest.

The action plan shall include measures to ensure that payments to final recipients, contractors and subcontractors under the Plan would be subject to prior controls of conflict of interest verification down to the level of beneficial owners as defined in Article 3, point 6, of Directive (EU) 2015/849 of the European Parliament and of the Council.

209

Reform 5: Control and audit

Milestone

Measures preventing conflict of interest implemented by the Coordinating body.

Audit report confirming effective implementation of the action plan.

Q2

2022

Follow-up audit shall be carried out by the audit body to confirm the implementation of the action plan.

210

Reform 5: Control and audit

Milestone

Repository system

Audit report confirming repository system functionalities

Q2

2022

A repository system for monitoring the implementation of the RRF shall be in place and operational.

The system shall include, as a minimum, the following functionalities:

(a) collection of data and monitoring of the achievement of milestones and targets;

(b) collection, storage and ensuring access to the data required by Article 22(2)(d)(i) to (iii) of the RRF Regulation.

211

Reform 5: Control and audit

Milestone

Audit strategy ensuring independent and effective audit of the RRF implementation

Audit strategy approved by the head of the audit body

Q4

2021

Adoption and entry into force of an audit strategy for the audit body, ensuring the independent and effective audit of the RRF implementation in accordance with internationally accepted audit standards.

The strategy shall at least set out the methodology and approach to risk assessment, the frequency and type of audits (such as systems and project audits, desk-based and on-the-spot) to be carried out in the different implementation stages of the reforms and investment implemented under the Plan as well as the reliability of data supporting the achievement of milestones and targets.

212

Reform 5: Control and audit

Milestone

Review of the definition of beneficial ownership as it relates to the RRF control system

Report from a compliance review including suggestions on possible follow-up action.

Q4

2021

A compliance review of the national procedures shall be carried out to ensure that the application of beneficial ownership in the context of the RRF control system is fully aligned with the definition of ‘beneficial owners’ as defined in Article 3, point 6, of Directive 2015/849, as amended by Directive 2018/843. The review shall encompass both legislation and guidance, including manual for the registry of beneficial owners. The review shall also look at the effective, proportionate and dissuasive sanctions in case of breaches of the obligation to obtain and hold information on the beneficial ownership, as provided by Article 30(1) of Directive 2015/849, as amended by Directive 2018/843.

Following the review, potential deficiencies identified shall be corrected.

213

Reform 5: Control and audit

Milestone

Guidance on the avoidance and management of conflict of interests

Guidance on the avoidance and management of conflict of interests issued by the delivery unit of the coordinating body. Revision by the audit authority

Q2

2022

Adoption by the delivery unit of the coordinating body of guidance to ensure avoidance and management of conflict of interests by the component owners and other entities implementing reforms and investments under the recovery and resilience plan. The guidance shall reflect the full breadth of necessary measures to protect the EU budget against fraud and irregularities. This guidance shall be based on Commission Notice - Guidance on the avoidance and management of conflicts of interest under the Financial Regulation (OJ C 121, 9.4.2021, p. 1).

The guidance shall harmonize the measures to be taken by the component owners and other entities implementing reforms and investments under the recovery and resilience plan (ministries, other public bodies, state funds, etc.).

214

Reform 5: Control and audit

Milestone

Procedures to avoid conflict of interests in line with Article 61 of the Financial Regulation

Audit report with the unqualified audit opinion on the effectiveness of the RRF internal control system to prevent, detect and correct situations of conflict of interests

Q2

2022

The RRF internal control system to avoid conflict of interests shall be effective and shall ensure, in particular that:

(a) collection, storage and processing data in relation to all final recipients, including all beneficial owners as established by Article 3, point 6 of the Directive (EU) 2015/849;

(b) internal control system to prevent, detect and correct conflict of interests situations is in accordance with Article 61 of the Financial Regulation; and

(c) national control procedures to avoid conflict of interests situations for all beneficial owners are effective.

U. COMPONENT 4.4: Enhancing the Efficiency of Public Administration

This component of the Czech recovery and resilience plan addresses the challenge of strengthening the application of the evidence-based approach to public policymaking, while enhancing the coordination between different levels (central and regional) of the public administration. It aims to address the lack of sufficient analytical capacities in the public administration in Czechia.

The component supports addressing the Country Specific Recommendation, according to which Czechia shall aim at reducing the administrative burden and improving e-government (Country Specific Recommendation 3 2019).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

U.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Increased efficiency, pro-client orientation and the use of the principles of evidence-based decision-making in public administration. 

The following measures, aimed at enhancing the efficiency of public administration, shall be completed under this reform:

·Setting up a central analysis team to raise awareness of the importance of evidence-based policymaking principles among all relevant stakeholders in the public administration, while supporting the relevant departments in the correct application of qualitative and quantitative analytical methods.

·Developing a methodology for collecting data on the activities of the offices and sharing them across public administrations.

·Developing an electronic tool for collecting data on public administration activities.

·Creating a database of relevant data such as information on processes, performance, personnel capacities, in public administration, at central and local level.

·Implementing targeted pro-client training programmes for at least 1000 front-office officials.

The reform shall be completed by 31 December 2025.

U.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

215

Reform 1: Increase efficiency, pro-client orientation and use of the principles of evidence-based decision-making in public administration

Milestone

Completion of a database with relevant data on processes, performance, personnel capacities in public administration by the Ministry of Interior

Acceptance protocols for the operational database provided by the Ministry of Interior

Q4

2025

A specific, publicly accessible data warehouse shall be established and operational for the public administration, containing available individual data from selected information systems, open data and data obtained through a newly created electronic data-collection tool on authorities’ activities. The database shall be completed by the Ministry of Interior.

216

Reform 1: Increase efficiency, pro-client orientation and use of the principles of evidence-based decision-making in public administration

Target

Completion of training accredited by the Ministry of Interior on client-oriented approaches for front-office staff of central, regional or local authorities

Number

0

1000

Q4

2025

A targeted training program for front-office staff of central, regional or local authorities in client-oriented approach shall be completed. The training program shall be implemented at the level of districts in small groups of up to 20 officials, and shall be aimed at practicing skills in model situations. The training programme shall be accredited by the Ministry of the Interior and shall be free for all participants.

V. COMPONENT 4.5: Development of the Cultural and Creative Sector

This component of the Czech recovery and resilience plan addresses the need to support the recovery of the cultural and creative sectors, which were hard-hit by the COVID-19 pandemic, while making it a firm part of the overall economic and social recovery of the Czech Republic. The component shall also stimulate a digital shift in the cultural and creative sectors and their effective integration within the Czech innovation ecosystem. Furthermore, the aim is to strengthen the resilience of the cultural and creative sectors through introducing the status of ‘artist’ in legislation and investing in skills of artists and cultural professionals to foster their adaptability to new, in particular digital, working environments. The component includes measures aimed at relaunching culture and tourism-related activities in the regions, thereby contributing to regional cohesion.

The component supports addressing the country-specific recommendation 3, 2019, according to which Czechia shall remove the barriers hampering the development of a fully functioning innovation ecosystem, and country-specific recommendation 2, 2020, according to which Czechia shall support employment through active labour market policies, the provision of skills, including digital skills, and access to digital learning.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

V.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Status of the artist

The reform shall address the absence of an adequate regulatory environment of artists: this exacerbated the negative impact of the covid pandemics on cultural and creative professionals who operated under precarious working arrangements, outside the social safety net. A new legislation shall introduce the status of ‘artist’ with the aim to improve and stabilise the working conditions of artists and cultural professionals and increase the resilience of the sector. The legislation shall be complemented by methodological guidance focusing on the treatment of professionals with precarious working arrangements, fair use of intellectual property and support of artists in their early career.

The reform also includes setting up a comprehensive programme to support skills of cultural and creative professionals, in particular digital skills, financial literacy, management skills, linking culture and creativity with education, and the promotion of mobility. The programme is expected to increase the resilience of the cultural and creative sectors, foster the adaptability of culture and creative professionals to digital technologies and new working environments and help restore disrupted cooperation networks in the cultural and creative sectors.

The reform shall be completed by 31 December 2025.

Reform 2: Legislative reform introducing multi-fund financing of cultural institutions 

This reform aims at fostering financial stability and sustainability of cultural institutions. It consists of a legislative reform which shall introduce multi-source cooperative financing of cultural institutions, thereby increasing their financial resilience. The reform shall simplify cooperation between cities, regions and the state in funding of cultural institutions in Czechia, and specify conditions for involvement of private funding. The reform also includes regional and national mapping of the cultural and creative sectors.

The reform shall be completed by 31 December 2024.

Investment 1: Development of regional cultural and creative sectors

The main objective is to ensure equitable development of the cultural and creative sectors in the entire territory of the Czech Republic. The investment aims at creation of 15 cultural and creative centres, which shall promote links between culture, creative industries and regional innovation ecosystems. The investments shall benefit structurally disadvantaged regions and areas suffering from a lack of cultural infrastructure, thereby fostering territorial cohesion. Preference shall be given to projects that revitalise existing objects, contribute to the restoration of cultural heritage or extend the functions of existing cultural institutions. The investment shall include support to project preparation and development of regional strategic documents regarding cultural and creative sectors.

The investment shall be completed by 31 December 2025.

Investment 2: Digitalisation of cultural and creative sectors

The aim is to support digitalisation of cultural content in order to ensure its preservation and improve its accessibility. The investment shall address the low level of digitalisation of the cultural content in Czechia and a lack of a comprehensive methodology and good practice sharing in this area. This shall be achieved by:

a grant scheme to support at least 80 projects of digitalization of the cultural content, with preference given to projects allowing for equipment and capacity sharing;

developing a methodology to facilitate digitalisation of the cultural content in libraries, museums and other cultural institutions;

digitalisation of the grant system of the Ministry of Culture, which shall allow for an efficient administration of applications.

The investment shall be completed by 31 December 2025.

Investment 3: Creative vouchers

The investment aims at promoting innovation through links between the SMEs and the emerging creative sectors. External services of creative professionals may help SMEs innovate their post-production services and respond swiftly to market demands, thereby supporting their competitiveness. The investment shall be achieved through a voucher scheme to support soft innovations in SMEs, such as web design, product and service design, graphic design or marketing strategies. At least 3000 creative vouchers shall be allocated to SMEs in three consecutive calls (2022-24). In addition, at least 300 design credits shall be allocated to SMEs in a complementary scheme supporting export promotion and consultation activities in design. The allocation of vouchers to SMEs shall aim at equal distribution among the regions and creative professionals shall be limited to provide service to at most three SMEs in order to avoid concentration in large creative and advertising companies. The investment shall include setting up a creative gallery, which shall serve the implementation and administration of the voucher scheme and as a wider communication platform for the cultural and creative sectors. The voucher scheme shall be based on a successful local scheme organised in Southern Moravia.

The investment shall be completed by 31 December 2025.

V.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

217

Reform 1: Status of the Artist

Milestone

Entry into force of the law on the Status of the Artist

Provision in the law on the Status of the Artist indicating the entry into force

Q4

2025

The law on the Status of the Artist shall ensure stable working conditions of artists and creative professionals. The legislation shall be complemented by methodological materials on the treatment of professionals with precarious working arrangements, fair use of intellectual property and support of artists in the first stages of their careers.

218

Reform 1: Status of the Artist

Target

Number of cultural and creative professionals supported by skills provision

Number

0

2000

Q4

2024

Support shall be channelled through a grant scheme with a total allocation of EUR 27 100 000). Skills development shall focus on digital, financial and management skills, cultural innovations, internationalization and promoting linkages of art and culture with the educational sector.

219

Investment 1: Development of regional cultural and creative sectors

Target

Opening of new regional cultural and creative centres to public

Number

0

15

Q4

2025

At least 15 regional cultural and creative centres shall be supported and open to the public. Support shall be channelled through a grant scheme with a total allocation of EUR 125 677 000. Preference shall be given to projects that revitalise existing objects, contribute to restoration of cultural heritage and follow climate objectives. Selection of projects shall respect geographical balance. Within the individual regions, preference shall be given to structurally disadvantaged areas and areas suffering from a lack of cultural infrastructure.

220

Reform 2.: Legislative reform introducing multi-fund financing of cultural institutions

Milestone

Entry into force of a legislative amendment allowing for cooperative multi-source financing of culture

Provision in the legislative amendment allowing for cooperative multi-source financing of culture, indicating the entry into force

Q4

2024

The legislative amendment shall:

·allow for multi-source financing of culture

·simplify cooperation between cities, regions and the state

·strengthen financial sustainability of cultural institutions

221

Investment 2: Digitalisation of cultural and creative sector

Target

Number of completed projects of digitalisation of the cultural content

Number

0

80

Q4

2025

The grant scheme shall support at least 80 projects of digitalisation of the cultural content, with preference given to projects allowing for equipment and capacity sharing. A methodology for effective digitalisation of the cultural content shall be made available to cultural institutions, drawing on the best practice in the field. The total budget executed for this purpose shall amount to EUR 31 419 000.

222

Investment 3: Creative vouchers

Target

Number of creative vouchers allocated to SMEs

Number

0

3300

Q4

2025

The measure shall support soft innovations in SMEs, such as web design, product and service design, graphic design or marketing strategies and export promotion activities. Support shall be channelled through two grant schemes with a total allocation of EUR 20 800 000. At least 3000 creative vouchers and 300 design credits shall be allocated to SMEs. The distribution of vouchers shall respect geographical balance. Creative professionals may provide service to at most three SMEs.

A creative gallery shall be set up to serve the implementation and administration of the scheme and as a wider communication channel.

W. COMPONENT 5.1: Excellent Research and Development in the Health Sector

The component of the Czech recovery and resilience plan addresses the challenge of improving the excellence of research in medical sciences and related disciplines. This includes research in the areas of: infectious diseases, cancer, neurosciences, metabolic disorders or cardiovascular diseases and research on the socio-economic impact of health risks. The identification of these fields was conducted on the basis of three criteria: the existing data on fatality rates, the potential to achieve excellence and the current existence of cooperation structures.

The component aims at modernising and renovating Czechia’s scientific infrastructure to European standards, developing networking structures in the Research & Development sector and reducing fragmentation of the research sector in Czechia, thus improving its management.

This component provides support complementary to components 6.1 and 6.2 in the area of health system support.

The component supports addressing the country specific recommendation on public-private cooperation in research and development (country specific recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

W.1. Description of the reforms and investments for non-repayable financial support

Investment 1: Public Research & Development support for priority areas of medical sciences and related social sciences

This investment aims at supporting at least four research consortia each of them aimed at improving a systematic provision of necessary expertise in one of the selected disciplines: infectious diseases research, cancer research, neurosciences, metabolic disorders or cardiovascular diseases research and research on the socio-economic impact of health risks. This shall enhance scientific support to the public administration or faster and more transparent sharing of relevant and scientifically validated information and Research & Development & Innovation results.

The consortia are expected to be established between relevant universities, public research institutions and other public and private entities, ensuring the necessary knowledge transfer. These consortia shall form national research authorities aimed to bring about a qualitative change to the chosen Research & Development priority areas with impacts both in terms of scientific production and on the functioning of Czechia’s public administration in health crisis situations.

The investment is expected to include supporting basic and applied research activities, equipping research entities with scientific infrastructure of a new quality, establishing a single scientific platform for each supported priority area, and improving the capacities of the consortium’s researchers through upskilling activities.

The implementation of the investment shall be completed by 31 December 2025.

W.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

223

Investment 1: Public Research & Development support for priority areas of medical sciences and related social sciences

Milestone

Launch of a new Research & Development support program

Approval of the program by the Czech Government and launch of a tender

Q4

2021

The milestone shall be achieved upon launching of a new systemic programme instrument to support Research & Development in priority medical sciences and related social sciences, namely: infectious diseases research, cancer research, neurosciences, metabolic disorders or cardiovascular diseases research and research on the socio-economic impact of diseases, in accordance with the national rules established in the Act No 130/2002 on support for research, experimental development and innovation from public funds .

Adoption by the government shall follow consultation with all stakeholders and in internal and inter-ministerial consultation procedures, consultation with representatives of the academic and application communities and universities in the Research, Development and Innovation Council, verification of absorption capacity.

The open call for public tender in Research & Development & Innovation for the new Research & Development programme shall follow the national rules, especially established in the Act No 130/2002 on support for research, experimental development and innovation from public funds.

224

Investment 1: Public Research & Development support for priority areas of medical sciences and related social sciences

Target

Award of public contracts to at least four Research & Development consortia

Number of contracts

0

4

Q2

2022

The target shall be achieved upon notification of the award of public contracts to at least four Research & Development consortia in priority medical sciences and related social sciences, namely: infectious diseases research, cancer research, neurosciences, metabolic disorders or cardiovascular diseases research and research on the socio-economic impact of diseases.

The total budget allocated for this purpose shall amount to at least EUR 196 371 000.

225

Investment 1: Public Research & Development support for priority areas of medical sciences and related social sciences

Target

Validation of at least four national Research & Development consortia and their integration in the Czech Research & Development system as national research authorities

Number of consortia validated by the Ministry of Education, Youth and Sport

0

4

Q4

2025

The target will be achieved upon validating the functioning of at least four consortia in the areas of infectious diseases research, cancer research, neurosciences, metabolic disorders or cardiovascular diseases research and research on the socio-economic impact of diseases and their integration in the Czech Research & Development system as national research authorities by the Ministry of Education, Youth and Sport.

Validation process shall be conducted on the basis of the assessment and evaluation in accordance with the national rules established in the Act No 130/2002 on support for research, experimental development and innovation from public funds, peer review and expert site visits.

X. COMPONENT 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice

This component of the Czech recovery and resilience plan contributes to addressesing the challenge of boosting the innovation capacity of domestic businesses, and improving cooperation within Czechia’s innovation ecosystem. This shall be achieved through support to innovative enterprises, with particular regard to digitalisation, organisational innovation and to academia-business linkages. The support shall emphasise international cooperation and synergies with the research and innovation Framework Programme.

The component supports addressing country-specific recommendation 3 2019, according to which Czechia shall remove the barriers hampering the development of a fully functioning innovation ecosystem, and country-specific recommendation 3 2020, according to which Czechia shall ensure access to finance for innovative firms and improve public-private cooperation in research and development.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the results of the R&I process shall be technologically neutral at the level of their application (i.e. they shall be applied across all available technologies, including low-impact technologies), and the measure shall ex ante exclude R&I dedicated to the ‘brown R&I’ elements (i.e. coal, lignite, oil/petroleum, natural gas not covered by Annex III of the DNSH Technical Guidance, blue and grey hydrogen, incinerators and landfills).

X.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Creation of a National Coordination Group for Support for Industrial Research

The reform entails the establishment of a National Coordination Group for Support for Industrial Research, which shall harmonise the industrial R&D support policies between policy makers, existing RDI support providers and the Government Council for RDI.

The National Coordination Group shall ensure the establishment of a structure for supporting programmes compatible with the smart specialization strategy. It should harmonize the conditions for granting support and the concentration of all relevant programmes under a single implementing body – the Technology Agency of the Czech Republic.

The reform shall be implemented by 31 December 2021.

Investment 1: Support for the introduction of innovation into business practice

The measure aims at supporting innovation projects by SMEs, with a view to introducing product, process or organisational innovation into business practice.

90 individual innovation projects by SMEs (process, product, organization) shall be put into practice as a result of the supported project.

The investment shall be implemented by 31 March 2026. 

Investment 2: Support for R&D cooperation (in line with the National RIS3 Strategy)

The measure aims at supporting industrial research projects by providing long-term support for cooperation between research organisations and enterprises, especially SMEs, under the National Centres of Competence programme.

Cooperation of 30 SMEs with a public research organisation under four newly created National Centres of Competence shall be established.

The investment shall be implemented by 31 December 2022.

Investment 3: Aid for research and development in the field of the environment

The measure aims at supporting industrial RDI projects submitted by research organisations and enterprises, including collaborative projects, aimed at addressing challenges identified under the “State Environmental Policy of the Czech Republic 2030 with outlook to 2050” and the sectoral strategy of research support. The RDI projects shall focus on priority thematic areas such as protection and sustainable use of natural resources, climate protection and improvement of air quality, waste management and reuse, protection of nature and landscape or a safe and resilient environment, including prevention and reduction of the consequences of natural and anthropogenic hazards.

Ten RDI projects in the field of environment shall be supported.

The investment shall be implemented by 30 September 2022.

Investment 4: Support for research and development in synergy effects with the Framework Programme for Research and Innovation

The measure aims at funding Seal of Excellence projects, in particular the instruments of the European Innovation Council Accelerator, which supports SMEs with the highest potential for rapid growth, as well as supporting European Research Area NET Cofunds (European Partnerships) that address the most pressing research and development challenges in the international context.

At least 16 enterprises involved in European Research Area NET Cofunds and at least 8 enterprises presenting projects that received the Seal of Excellence shall be supported.

The investment shall be implemented by 30 September 2025.

X.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description and clear definition of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

226

Reform 1: Creation of National Coordination Group for Support for Industrial Research

Milestone

Establishment of National Coordination Group for Support for Industrial Research

Start of operation of the group

Q4

2021

A National Coordination Group for Support for Industrial Research shall be established and put in operation. The coordination group shall harmonize the industrial R&D support policies between policy makers, existing RDI support providers and the Government Council for RDI, the conditions for granting support, and concentrate all relevant programmes under the remit of the Technology Agency of the Czech Republic.

227

Investment 1: Supporting the uptake of innovation in business practice

Target

Introduction of product, process or organisational innovations

Number of individual innovations (process, product, organisation) put into practice as a result of the supported project

72

162

Q1

2026

90 individual innovations (process, product, organization) shall be put into practice as a result of the supported project. 

The total budget executed for this purpose shall amount to at least EUR 39 000 000.

228

Investment 2: Support for research and development cooperation (in line with Smart Specialization Strategy)

Target

Cooperation of SMEs with a public research organisation under National Centres of Competence

Number of supported projects

0

30

Q4

2022

Long-term cooperation projects of 30 SMEs with a public research organisation under four newly created National Centres of Competence shall be achieved. 

The total budget executed for this purpose shall amount to at least EUR 58 000 000.

229

Investment 3: Aid for research and development in the environmental field

Target

research and development in the environmental field

Number of supported projects in the environmental field

43

53

Q3

2022

Ten RDI projects in the environmental field shall be supported. The projects shall focus on priority thematic areas such as protection and sustainable use of natural resources, climate protection and improvement of air quality, waste management and reuse, protection of nature and landscape or a safe and resilient environment, including prevention and reduction of the consequences of natural and anthropogenic hazards.

The total budget executed for this purpose shall amount to at least EUR 7 000 000.

230

Investment 4: Aid for research and development in synergy effects with the Framework Programme for Research and Innovation

Target

Research and development in synergy effects with the Framework Programme for Research and Innovation

Number of projects participating in European Research Area NET Cofunds and projects that received the Seal of Excellence

53

79

Q3

2025

26 projects participating in European Research Area NET Cofunds and projects that received the Seal of Excellence, including 18 projects participating in European Research Area NET Cofunds and 8 projects that received the Seal of Excellence, shall be supported. 

The total budget executed for this purpose shall amount to at least EUR 19 000 000, including at least EUR 12 000 000 for projects participating in European Research Area NET Cofunds and at least EUR 7 000 000 for projects that received the Seal of Excellence.

Y. COMPONENT 6.1: Increasing Resilience of the Health System

This component of the Czech recovery and resilience plan addresses the challenge of strengthening the resilience of the health system by investing in healthcare infrastructure and improving the education of health workers in acute care. With respect to healthcare infrastructure, the objective is to increase availability and quality of rehabilitation care for patients recovering from critical conditions (acute medical conditions), which proved insufficient during the pandemic. Also, the component aims at addressing the lack of highly specialised diagnosis tools and treatment of serious cardiovascular diseases, including transplant medicine. With respect to the education of healthcare personnel, systemic measures and investment are foreseen to tackle the growing shortage of healthcare workers.

The component contributes to addressing the country-specific recommendation 1, 2020, according to which Czechia shall ensure the resilience of the health system, strengthen the availability of health workers, primary care and the integration of care, and deployment of e-health services.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01).

Y.1. Description of the reforms and investments for non-repayable financial support

Reform 1: Improvement of education of healthcare professionals

The training and education of healthcare workers shall be adapted with the aim to improve the availability of highly specialized healthcare professionals. Planning of healthcare staff at the national and regional level shall be improved thanks to creation of an electronic system (connecting existing databases of healthcare professionals) for management, administration and evaluation of training needs of healthcare professionals. The improvement of the organisation of post-graduate training of health professionals shall help reduce the duration of specialist training and allow younger doctors to start providing care earlier, thereby improving access to care.

The investment shall be completed by 30 June 2024.

Investment 1: Creation of the Intensive Medicine Simulation Centre