Upon the signing of the joint memorandum in May of this year, a full technical survey of the site was initiated, including a detailed review of the possibilities of connecting the site to technical and transport infrastructure, a biological assessment, an engineering geological survey and the preparation of an impact study. The overall feasibility study should be completed at the beginning of 2025 and will serve as the basis for further project preparation. “The interim results show that the location is suitable for a technologically advanced investor with higher demands on the capacity of utility networks. The site offers sufficient water capacity, the possibility of increasing the electricity capacity and very good transport connections, including the possibility of establishing a rail connection. We can build here a modern business park covering up to 123 hectares at a sustainable standard,” said David Petr, member of the board of directors and head of the development division at the State Investment and Development Company (SIDC), which is responsible for the technical preparation of the strategic business park project.

The project is currently being designed to be flexible so that it can subsequently be adapted to the needs of a particular strategic investor. “Investors mostly come with a requirement to start production within three years from the issuance of the decision on project implementation. Due to the lack of preparedness and the length of the permit process, most of the sites in Czechia are currently unable to fulfil that requirement. The SIDC was established for the purpose of effectively shortening this process for strategic investors. Through proactive pre-project preparation, we are able to shorten the period required for the placement of an investor by at least two to three years,” added David Petr, speaking on behalf of the SIDC.

The common goal of all of the memorandum’s signers is to bring in a high-quality strategic investor that will contribute to the modernisation of the local economy, offer attractive employment opportunities and ideally a connection to science and research. “Part of our effort involves bringing in an investor that will offer above-average wages. In order to do that, it is necessary to have not only a prepared location, but also an attractive investment environment and well-prepared ancillary infrastructure with the support of the city and region. This refers to both transport and education, for example. CzechInvest will present this investment opportunity at international trade fairs, as well as during meetings with potential investors,” said Jan Michal, CEO of CzechInvest.

All of the parties to the memorandum have therefore agreed that the determinative parameters for the placement of a potential investor in the strategic business park include not only the subject of such investor’s operations and the wage level, but also the requirement for skilled jobs. In this respect, a determinative factor is the approved typology of the investor, which should operate in one of the following sectors, for example: clean or autonomous mobility, the semiconductor industry, production of electronic or optical devices, technical equipment in the field of healthcare, the pharmaceutical industry, production of components for power generation from renewable energy sources or the defence industry. Commenting on this, Jan Michal added: “The state, the city and the region are in agreement that we want to place activities with higher technological intensity and skilled jobs in the strategic business park. We want to create better conditions so that qualified people will stay in the region or return here. The definition of the investor’s typology is based on an analysis of the region and on the strategic documents of the state, as well as on the Investment Incentives Act and the strategic aims of the region and the city.”

Petr Kulhánek, Governor of the Karlovy Vary Region, further added: “Fifty thousand people currently travel out of the Karlovy Vary Region for work. A significant number of them commute to the border areas of Germany, where they are often employed in lower-skilled positions. Our goal is to attract to the region an investor that will serve as a catalyst in terms of limiting the outward migration of young people by offering jobs with above-average wages, which will also be associated with the creation of new educational programmes.”

The construction of new housing, expansion of the capacities of schools and preschools and the development of other civic amenities are planned in conjunction with the preparation of the strategic business park. The impact study currently being prepared will be used in the formulation of the plan for developing these capacities. “The aim is to create an environment that will be comprehensively prepared in advance for the development associated with the use of the Cheb II industrial area and that will also benefit local residents. We appreciate the fact that the survey of the capacities of civic amenities and other public infrastructure is being carried out in advance and not ex-post, as was the case in the past, when the negative impacts of the development of industry with lower value added became apparent only later. We will insist that the development of these capacities goes hand in hand with the preparation of the strategic business park,” said Jan Vrba, Mayor of Cheb.

“I would like to follow up on what the mayor said by adding that, within the working group, we are focusing intently on the detailed formulation of the conditions and requirements for future investors so that we can help to improve the quality of life not only for the people in Cheb, but in the region as a whole. We are certainly taking into account the expansion of housing capacity not only for a potential investor at the strategic business park, but also for our fellow citizens. What I’m referring to is the new Špitálský vrch neighbourhood. According to the prepared study, approximately 500 housing units will be available in this location, together with other civic amenities such as shops and services. We are also planning on the implementation of specific projects, such as the renovation of a public swimming pool, modernisation of the Lokomotiva sports complex and construction of a parking garage,” added Michal Pospíšil, First Deputy Mayor of Cheb.

Jan Kuchař, Member of the Parliament of the Czech Republic for the Karlovy Vary Region, who initiated a project involving 5G connectivity in the Karlovy Vary Region, summarised the situation around the memorandum as follows: “I am pleased that we have managed to spur the interest of Minister of Industry and Trade Jozef Sikela, as well as his counterparts in the Saxon and Bavarian governments, with the autonomous technology project for our region. The fact that T-Mobile’s project in the value of nearly a quarter of a billion korunas is getting underway this year is also very pleasing. This project will bring high-quality data and telephone signal to the whole region, while also providing an interesting impetus for investors with value added. This will result in the creation of jobs with wages that are easily comparable to those in the border areas of Germany.”

The results of the impact study, like those of the feasibility study, should become available at the beginning of 2025. All parties have confirmed that they anticipate the subsequent incorporation of all findings into binding agreements.

Contact fot the media:
David Hořínek
PR Manager and Spokesperson
+420 724 591 667
david.horinek@czechinvest.org