The National Recovery Plan was approved by the European Commission for the Czech Republic on 19 July 2021. The Czech Republic can draw down approximately CZK 180bn from European sources for the period of 2021 to 2026.

The National Recovery Plan is divided into 6 main pillars of support:

• digital transformation
• education and the labour market
• physical infrastructure and green transition
• institutions, regulation and support of business in reaction to the COVID
• research, development and innovations
• health and resilience of the population

In the course of September, the Czech Republic received the first CZK 23bn from Brussels as an advance payment for projects from the National Recovery Plan, from which the first calls will be financed, which can be expected this November.

Finance will be directed into these areas:

• acquisition of photovoltaics, subsidies for projects up to 1 MW output and battery accumulation with the option of ground or roof installation for own consumption as well as for sale. Expected level of support up to 40 % of eligible costs.
• circular economy, subsidies for processing of own waste material and its further use in the production process.
• reduction of water consumption at the company, subsidies for companies that reduce water consumption or recycle it in the production process.
• transport and shipping, finance will be allocated for railroad transportation for electrification of Brno-Zastávka railway line and modernisation of the building of the train station in České Budějovice

The European Commission accentuates simplification and speed of drawing down financial resources. For example, there will be no obligation to tender for support for photovoltaic power plants. The entrepreneur will simply work on the basis of unit costs according to installed output.

Before the end of this year, we expect calls in the following areas to be announced:

• digital transformation of businesses
• development of digital and high-capacity networks
• support of the purchase of alternative fuel vehicles (electricity, hydrogen)

Conditions for the individual calls will be known after they have been discussed by the managing committee of the NRP on 11 October 2021.

Grant Thornton Advisory applies a complex and systemic approach in the area of subsidy consulting. We deal with management of the project portfolio from the perspective of possible subsidy opportunities.

Subsidy analysis

At the beginning, there is always a thorough subsidy screening, which will compare the portfolio of the client’s possible projects with the current as well as the expected options for financing. The analysis focuses on Czech as well as European subsidy programmes, as well as on other types of financing (such as for example loans). The analysis is addressed with an agile attitude, with workshops with the client being organised in the meantime, where the options and possible alternatives for how to approach the projects are discussed.

Consultation and monitoring

The subsidy analysis will specify potential projects, priorities and action steps. Subsequent consultations and monitoring according to the specified action steps will be resolved operatively by means of monthly reports according to the needs and schedule of the projects and the subsidy calls.

Submitting an application

At the time of the decision to submit applications for the given project, we will provide complete preparation of the application including supplements, communication with the provider and we will define the necessary cooperation on the part of the client (such as for example the preparation of project documentation, permits, energy assessments etc.)

 
Subsidy administration

In case of a successful application, we also offer services of subsidy administration in the course of the project. Preparation of requests for change, requests for payment, reports on realisation, communication with the provider, and after the completion of the project reports on maintainability as well.

All supported projects must also be addressed from a public procurement perspective. In case of need, it is possible to arrange support in this area as well.

In case you are interested in subsidies or preparing and submitting project applications, we are at your service. Please contact Jiří Dvořák, Senior Manager jiri.dvorak@cz.gt.com.