Source: EURLEX
Language: en
Format: md

![european flag](./../../../images/eclogo.jpg)EUROPEAN COMMISSION

Brussels, 26.9.2023

COM(2023) 567 final

2023/0343(NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 11047/21 INIT; ST 11047/21 ADD 1; ST 11047/21 COR 1) of 8 September 2021 on the approval of the assessment of the recovery and resilience plan for Czechia

{SWD(2023) 319 final}

2023/0343 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 11047/21 INIT; ST 11047/21 ADD 1; ST 11047/21 COR 1) of 8 September 2021 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](#footnote2)
, and in particular Article 20(1) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)Following the submission of the national recovery and resilience plan (‘RRP’) by Czechia on 1 June 2021, the Commission has proposed its positive assessment to the Council. The Council approved the positive assessment by means of the Council Implementing Decision of 8 September 2021
[2](#footnote3)
.

(2)Pursuant to Article 11(2) of Regulation (EU) 2021/241, the maximum financial contribution for non-repayable financial support of each Member State should be updated by 30 June 2022 in accordance with the methodology provided therein. On 30 June 2022, the Commission presented the results of that update to the European Parliament and the Council.

(3)On 30 June 2023, Czechia submitted a modified national RRP, including a REPowerEU chapter in accordance with Article 21c of Regulation (EU) 2021/241, to the Commission.

(4)The modified RRP also takes into account the updated maximum financial contribution in accordance with Article 18(2) of Regulation (EU) 2021/241 and includes a reasoned request to the Commission to propose to the Council to amend the Council Implementing Decision in accordance with Article 21(1) of Regulation (EU) 2021/241 considering the RRP to be partially no longer achievable due to objective circumstances. The modifications to the RRP submitted by Czechia concern 59 measures.

(5)On 14 July 2023, the Council addressed recommendations to Czechia in the context of the European Semester. In particular, the Council recommended Czechia to preserve nationally financed public investment and ensure the effective absorption of grants under the Facility and of other Union funds, in particular to foster the green and digital transitions. For the period beyond 2024, the Council also recommended to pursue a medium-term fiscal strategy of gradual and sustainable consolidation, combined with investments and reforms conducive to higher sustainable growth, to achieve a prudent medium-term fiscal position and to take measures to ensure the long-term fiscal sustainability of public finances, including the sustainability of the pension system. Furthermore, the Council recommended that Czechia accelerate the implementation of its recovery and resilience plan, also by ensuring an adequate administrative capacity, and swiftly finalise the addendum, including the REPowerEU chapter, with a view to rapidly starting its implementation. The Council also recommended Czechia to strengthen the provision of social and affordable housing, including by adopting a specific legislative framework for social housing and improved coordination between different public bodies as well as incentivising the construction of new housing units as well as the refurbishment of existing ones. Moreover, the Council recommended Czechia to reduce overall reliance on fossil fuels, increase the deployment of renewables, streamline permit procedures and make grid access easier. Additionally, the Council recommended Czechia to increase the energy efficiency of district heating systems and of the building stock by incentivising deep renovations and renewable heat sources, easing administrative access to subsidies for both households and industry, and capacity building and skills in public authorities. Finally, the Council recommended Czechia to promote the uptake of zero-emission vehicles and to boost the availability of high capacity charging and refuelling infrastructure through new reforms, as well as to step up policy efforts aimed at the provision and acquisition of the skills needed for the green transition. 

(6)The submission of the modified RRP followed a consultation process, conducted in accordance with the national legal framework, involving local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. The summary of the consultations was submitted together with the modified national RRP. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission assessed the relevance, effectiveness, efficiency and coherence of the modified RRP, in accordance with the assessment guidelines set out in Annex V to that Regulation.

Updates based on Article 18(2) of Regulation 2021/241

(7)The modified RRP submitted by Czechia, updates nine measures to take into account the updated maximum financial contribution. Czechia has explained that because the maximum financial contribution increased from EUR 7 070 103 059
[3](#footnote4)
 to EUR 7 673 717 943
[4](#footnote5)
, Czechia has requested to use the additional available resources to add new components, new measures to existing components and increase the level of required implementation of existing measures in order to increase the level of ambition or to compensate for inflation.

(8)The modified RRP contains new components: 1.7 (Digital Transformation of Public Administration), reform 1 under component 2.10 (Affordable Housing), 4.1 (Systemic support for public investment) and 5.3 (A strategically managed and internationally competitive R&D&I ecosystem). Component 1.7 (Digital Transformation of Public Administration) contains four measures: an investment to unify domains of public bodies and establish a learning platform; an investment to the management system of digitalised services; an investment to create a new public administration contact centre and an investment to create a central data infrastructure. Component 2.10 (Affordable Housing) contains one measure added on the basis of the increased allocation: a reform to increase the affordability of housing by adopting and implementing a modern and balanced legislative framework; Component 4.1 (Systemic support for public investment) contains four measures: a reform to provide methodological support for the preparation of projects in line with EU objectives; a reform to provide methodological support for and modernise public investment; a reform to financially support the preparation of projects in line with EU objectives; a reform to increase the effectiveness and enhance the implementation of the National Recovery and Resilience Plan. Component 5.3 (A strategically managed and internationally competitive R&D&I ecosystem) contains one measure: a reform including the strengthening of strategic intelligence capacities for R&D&I policy in Czechia, the creation of an excellence programme, and the adoption of a methodological guideline for granting R&D&I support.

(9)The modified RRP contains new measures under components 2.9 (Promotion of Biodiversity and Fight Against Drought), 3.3 (Modernisation of Employment Services and Labour Market Development), and 5.2 (Support for Research and Development in Companies and Introduction of Innovations into Business Practice). These measures concern a reform aiming at the development of an integrated landscape management and planning, a reform to improve social care facilities for children at risk and an investment to develop and modernise the infrastructure in the field of care for children at risk; an investment to support R&D in enterprises in line with the national RIS3 strategy, an investment to support R&D in the field of transport, and an investment to support R&D in the environmental field. 

(10)Furthermore, the modified RRP submitted by Czechia changes measures under components 1.2 (Digital Public Administration Systems), 2.2 (Reducing Energy Consumption in the Public Sector), 2.9 (Promotion of Biodiversity and Fight Against Drought), 3.2 (Adaptation of School Programmes), 3.3 (Modernisation of Employment Services and Labour Market Development) and 4.4 (Enhancing the Efficiency of Public Administration) to reflect the updated maximum financial contribution. Notably target 24 of investment 3 (Cybersecurity) under component 1.2 (Digital Public Administration Systems), target 109 of investment 3 (Improving the energy performance of public buildings) under component 2.2 (Reducing Energy Consumption in the Public Sector); milestone 179 and target 180 of investment 1 Development of selected key academic sites under component 3.2 (Adaptation of School Programmes); targets 189, 190 and 191 of investment 2 (Increasing the capacity of pre-school facilities) and targets 196 and 197 of Investment 3 (Development and modernisation of social care infrastructure) under component 3.3 (Modernisation of Employment Services and Labour Market Development), and the new target 289 of reform 1 (Increase efficiency, pro-client orientation and use of the principles of evidence-based decision-making in public administration) under component 4.4 (Enhancing the Efficiency of Public Administration) are changed to increase the level of required implementation compared to the original plan to reflect the increased allocation.

(11)The Council Implementing Decision of 8 September 2021 should be amended to take into account the above changes in the modified RRP.

Amendments based on Article 21 of Regulation 2021/241

(12)The amendments to the RRP submitted by Czechia because of objective circumstances concern 58 measures.

(13)Czechia has explained that seven measures are no longer totally achievable, because supply chain disruptions have led to problems in their implementation, with an impact on the related milestones and targets. This concerns the following reforms and investments. Delays on the contractors’ side have led to the need to postpone the implementation of milestone 21 of investment 2 (Developing core registries and facilities for eGovernment) under component 1.2 (Digital Public Administration Systems). Low interest from suppliers necessitates an extension of the deadline by one year of target 91 of investment 3 (Support for Railway infrastructure) under component 2.1 (Sustainable Transport). Supply chain issues caused by the high demand for electrification of public transport in Europe have required that the implementation of target 116 of investment 1 (Building infrastructure for public transport in the city of Prague) under component 2.4 (Clean Mobility) be postponed by half a year. Supply chain issues in the automotive industry have necessitated to change the priority from cargo e-bikes to e-bikes in and target 119 of investment 4 (Aid for purchase of vehicles – vehicles (electric, H2, bikes) for private companies) under component 2.4 (Clean Mobility). The worsening situation in the construction industry necessitates an extension of the deadline by one year of targets 137 and 138 of investment 3 (Land consolidation) under component 2.6 (Nature Protection and Adaptation to Climate Change). Disruptions in the value chains of the construction sector caused by the war in Ukraine have necessitated an extension of the implementation deadline of targets 189, 190 and 191 of investment 2 (Increasing the capacity of pre-school facilities) and targets 194, 195, 196 and 197 of investment 3 (Development and modernisation of social care infrastructure) under component 3.3 (Modernisation of Employment Services and Labour Market Development). On this basis Czechia has requested to extend the implementation timeline of the aforementioned milestones and targets, and to change the priority from cargo e-bikes to e-bikes in target 119. The Council Implementing Decision should be amended accordingly.

(14)Czechia has explained that 15 measures are no longer totally achievable in their original format because of high inflation. Due to price increase for mapping services and technical equipment Czechia has requested to reallocate resources for reform 1 (Improving the environment for the deployment of electronic communications networks) under component 1.3 (High-capacity digital networks). Due to the rapid increase in prices of IT assets, Czechia has requested to amend the description and reduce target 58 of investment 6 (5G Demonstrative application projects for cities and industrial areas) under component 1.4 (Digital Economy and Society, Innovative Start-ups and New Technology). Due to the increased cost of zero-emission vehicles, Czechia has requested to reduce target 119 of investment 4 (Aid for purchase of vehicles – vehicles (electric, H2, cargo e-bikes) for private companies) under component 2.4 (Clean Mobility). High energy prices have resulted in lower demand for deep renovations and higher demand for replacement of the heating source, and to respond to the shifting demand Czechia has requested to reduce targets 125 and 126 of investment 1 (Renovation and revitalisation of buildings for energy savings) under component 2.5 (Building renovation and air protection). Due to increased costs in the construction sector, Czechia has requested to reduce target 133 of investment 1 (Flood protection) under component 2.6 (Nature Protection and Adaptation to Climate Change). Czechia has explained that specifically the increased cost of construction has affected the implementation of a number of measures. This concerns, respectively, target 39 of investment 1 (Building high-capacity connectivity), target 40 of investment 2 (Covering 5G corridors and promoting the development of 5G) and target 44 of investment 3 (Supporting the development of 5G mobile infrastructure in rural investment-intensive white areas) under component 1.3 (High Capacity Digital Networks); targets 103 and 104 of investment 1 (Improving the energy performance of state buildings) and target 108 of investment 3 (Improving the energy performance of public buildings) under component 2.2 (Reducing Energy Consumption in the Public Sector); targets 154 and 155 of investment 1 (Support for revitalisation of specific areas), and targets 156 and 157 of investment 2 (Support for the revitalisation of areas in public ownership for non-business use) under component 2.8 (Brownfields Revitalisation); target 163 of investment 2 (Rainwater management in urban agglomerations) under component 2.9 (Promotion of Biodiversity and Fight against Drought); milestone 179 and target 180 of investment 1 (Development of selected key academic sites) under component 3.2 (Adaptation of School Programmes); and targets 194, 195 and 197 of investment 3 (Development and modernisation of social care infrastructure) under component 3.3 (Modernisation of Employment Services and Labour Market Development). On this basis, Czechia has requested to reduce ambition for milestones and targets 39, 40, 44, 103, 104, 108, 133, 154, 155, 156, 157, 163, 179, 180, 194, 195, 197. Czechia has also requested to extend the implementation deadline of targets 103 and 104. The Council Implementing Decision should be amended accordingly.

(15)Czechia has explained that 17 measures are no longer totally achievable because of unexpected legal or technical difficulties have led to the need to modify or abandon certain aspects of the measures in order to implement more adequate or efficient solutions. To align the measure with the updated legal act and due to technical difficulties related to the IT implementation of the projects, Czechia has requested to amend the description of targets 5 and 6 of reform 2 (eHealth services) under component 1.1 (Digital Services to Citizens and Businesses). Despite government’s ambition, there have been some delays in the adoption of the implementing act at EU level, which has caused delays in the implementation of milestone 7, while technical issues have led to severe delays in the implementation of milestone 8 and target 10 of investment 1 (Digital Services for end users) under component 1.1 (Digital Services to Citizens and Businesses). There have also been technical issues in the access of statistical data for milestone 11 of investment 2 (Development of open data and public data) under component 1.1 (Digital Services to Citizens and Businesses). Unforeseen technical difficulties in the implementation of the IT projects have led to the amendment of milestone 16 and the amendment and delay of target 19 of investment 1 (Developing and improving individual information systems) under component 1.2 (Digital Public Administration Systems). The project envisioned in milestone 50 of investment 1 (European Centre of Excellence in AI “for citizen’s safety and security”) under component 1.4 (Digital Economy and Society, Innovative Start-Ups and New Technology) has not been awarded the Seal of Excellence necessary for participating in the EU wide network, and therefore the milestone has been removed. Due to delays at the EU-level programme, the number of supported companies has to be reduced to meet the RRF implementation timeline of milestone 55 and target 56 of investment 5 (European Blockchain Services Infrastructure (EBSI) – DLT bonds for SME financing) under component 1.4 (Digital Economy and Society, Innovative Start-Ups and New Technology). Due to the delayed approval of EU legislation on AI, it is necessary to postpone the deadline and amend the scope of milestone 64 and target 65 of investment 11 (Regulatory sandboxes in line with EU priorities) under component 1.4 (Digital Economy and Society, Innovative Start-Ups and New Technology). No research centres were awarded for projects envisioned in target 70 of investment 2 (European Reference Testing and Experimentation facility) under component 1.5 (Digital Transformation of Enterprises), therefore, Czechia has requested to amend the description and remove research centres from the list of final beneficiaries. Unforeseen factual and legal developments related to the energy price crisis have led to the need to postpone the deadline of the studies and reports which will be used to plan the Czech transition to clean energy sources, and therefore Czechia has requested to postpone the timeline of milestone 110 of reform 1 (Modernisation of distribution of heat in district heating systems) and milestone 111 of reform 2 (Modernisation of distribution of heat in district heating systems) under component 2.3 (Transition to Cleaner Energy Source). Due to unexpected technical difficulties and clarification provided on the nature of the projects, Czechia has requested to amend the descriptions of the investment and of targets 132 and 133 of investment 1 (Flood protection), and of target 136 of investment 2 (Small watercourses and water reservoirs) under component 2.6 (Nature Protection and Adaptation to Climate Change). Target 183 of investment 2 (Tutoring of pupils) under component 3.2 (Adaptation of School Programmes) and target 187 of investment 3 (Development of labour market policies) under component 3.3 (Modernisation of Employment Services and Labour Market Development) have been modified due to tight labour market, a strong opposition to administrative burden and insufficient capacity of companies to train employees. Due to different absorption capacity than expected, Czechia has requested to change the allocation to different types of projects supported in target 230 of investment 4 (Aid for research and development in synergy effects with the Framework Programme for Research and Innovation) under component 5.2 (Support for Research and Development in Companies and Introduction of Innovations into Business Practice). The operator explicitly mentioned in target 233 of investment 1 (Creation of the Intensive Medicine Simulation Centre and optimisation of the education system) under component 6.1 (Increasing Resilience of the Health System) is no longer able to provide the required services, and therefore Czechia has requested to remove the name of the operator. On this basis, Czechia has requested to amend milestones and targets 5, 6, 8, 10, 16, 55, 56, 70, 132, 133, 136, 183, 187, 230, 233; to extend the implementation timeline of milestones or targets 7, 55, 56, 110, 111, 133, 230; to reduce target 133 and to remove milestones 50 and 67. The Council Implementing Decision should be amended accordingly.

(16)Czechia has explained that one measure is no longer totally achievable within their original timeline because the need to integrate Ukrainian refugees took priority for the Department for Asylum and Migration Policy, leading to significant delays in the implementation of the measure. This concerns target 17 of investment 1 (Developing and improving individual information systems) under component 1.2 (Digital Public Administration Systems). On this basis, Czechia has requested extend the implementation timeline of the aforementioned target, and the Council Implementing Decision should be amended accordingly.

(17)Czechia has explained that four measures have been modified because projects related to COVID-19 are no longer deemed as necessary. Due to the unforeseen end of the pandemic and swift economic rebound there is no longer demand for the measures in milestone 8 of investment 1 (Digital services for end-users) under component 1.1 (Digital services to citizens and businesses); target 53 of 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)), target 54 of investment 4 (SME Management Training Platform for post-COVID-19 Digital Transformation) and target 59 of investment 7 (Czech Rise-Up Programmes) under component 1.4 (Digital Economy and Society, Innovative Start-Ups and New Technology). On this basis, Czechia has requested to replace COVID-related projects under milestone 8 with better suited alternatives, to remove targets 53 and 54, and to reduce the ambition and amend the description of target 59. The Council Implementing Decision should be amended accordingly.

(18)Czechia has explained that 15 measures have been modified to implement better alternatives in order to achieve the original ambition of the measure. Target 12 of investment 2 (Development of open data and public data) under component 1.1 (Digital Services to Citizens and Businesses) can be implemented at an earlier stage. Milestone 28 of reform 2 (Development of systems supporting eHealth) under component 1.2 (Digital Public Administration Systems) has been amended to account for synergies in the implementation of the IT project which derives from the merging of regional sanitation offices into one. Target 41 of investment 2 (Covering 5G corridors and promoting the development of 5G) under component 1.3 (High Capacity Digital Networks) has been amended to reflect a more accurate technical term, which translates into the equipment of train sets rather than single wagons, thus leading to a more efficient solution. Under component 1.4 (Digital Economy and Society, Innovative Start-Ups and New Technology), milestone 47 of reform 1 (Institutional reform of the system of management for digital transformation including RIS 3 strategy) has been amended since the objective can be achieved more efficiently and with less resources by using the knowledge source of the group members, milestone 48 and target 49 of reform 2 (Joint Strategic Technologies Support and Certification Group with the Strategic Technologies Board) have been amended to achieve the same objective with better alternatives by better disseminating information and providing training on certification processes in line with market needs, and milestone 61 and target 62 of investment 9 (Funds for the development of pre-seed investments, strategic digital technologies and university spin-offs) have been amended to better align the aid intensity and the structure with the nature of the venture capital investments. Target 71 of investment 3 (Digital transformation of manufacturing and nonproduction companies and increase of their resilience) under component 1.5 (Digital Transformation of Enterprises) can be achieved with lower allocation as the requested aid intensity was lower than originally foreseen. Milestone 73 and target 74 of reform 1 (Implementation of the new construction law and zoning law into practice) and milestone 75 of investment 1 (Creation of a new central information system (“AIS”)) under component 1.6 (Acceleration and Digitalisation of the Building Process) have been amended to reflect the new structure of building authorities, which is better than just one Supreme Construction Office. Target 106 of investment 2 (Improving the energy performance of public lighting systems) under component 2.2 (Reducing Energy Consumption in the Public Sector) has been amended since the same amount of energy savings can be achieved more efficiently by prioritising bigger, more expensive projects. Milestone 148 and target 149 of investment 1 (Building recycling infrastructure) under component 2.7 (Circular economy, recycling and industrial water) have been amended to take into account the support to be provided to farmers to ensure incorporation of compost into the soil and to improve circular economy in the field of biodegradable waste management. Target 153 of investment 3 (Water saving in industry) under component 2.7 (Circular Economy, Recycling and Industrial Water) has been amended as the target has been reached in a more cost-effective way. Targets 158 and 159 of investment 3 (Support for the revitalisation of areas in public ownership for business) under component 2.8 (Brownfields Revitalisation) have been amended to clarify requirements and better respond to local needs. Target 228 of investment 2 (Support for research and development cooperation (in line with Smart Specialization Strategy)) and target 229 of investment 3 (Aid for research and development in the environmental field) under component 5.2 (Support for Research and Development in Companies and Introduction of Innovation into Business Practice) have been amended to support more projects and SMEs. On this basis, Czechia has requested to amend milestones and targets 12, 28, 40, 41, 47, 48, 49, 61, 62, 71, 73, 74, 117, 119, 148, 149, 153, 158, 159, 228, 229; to remove target 62; to extend the implementation timeline of milestones and targets 61, 73, 75, 148, 194, 195; to increase the ambition of targets 228 and 229, reduce the number of projects while increasing their relative size for target 106. Target 68 does not require any changes; however, its costing has been reduced. The Council Implementing Decision should be amended accordingly.

(19)Czechia has further requested to use the remaining resources freed up by the removal or revision of measures under Article 21 of Regulation 2021/241 to increase the ambition of existing measures and to add new measures to the original plan. The increased ambition concerns the following four measures. To match the high interest from applicants Czechia has requested to increase the allocation to target 46 of investment 4 (Scientific research activities related to the development of 5G networks and services) under component 1.3 (High Capacity Digital Networks). In order to maintain the ambition of the plan on the digital transformation of the economy, Czechia has requested to add a new milestone for investment 2 (European Digital Media Observatory Hub (EDMO)) under component 1.4 (Digital Economy and Society, Innovative Start-ups and New Technology). To compensate for the reduction in the number of buildings renovated under target 108 and to keep the ambition level on reduction in energy consumption, Czechia has requested to increase the ambition target 109 of investment 3 (Improving the energy performance of public buildings) under component 2.2 (Reducing Energy Consumption in the Public Sector). To match the increased demand from households for replacements of heating sources, Czechia has requested to increase the allocation and ambition of targets 127, 128 and 129 of investment 2 (Replacement of stationary sources of pollution in households with renewable) under component 2.5 (Building Renovation and Air Protection). The Council Implementing Decision should be amended accordingly.

(20)Czechia has brought to the Commission’s attention that the project envisioned in milestone 67 of investment 13 (Support to R & I in aviation industry) under component 1.4 (Digital Economy and Society, Innovative Start-Ups and New Technology) started before the eligibility period of the RRF. Therefore, the Commission proposes to remove the milestone. The Council Implementing Decision should be amended accordingly.

(21)The Commission considers that the reasons put forward by Czechia justify the update pursuant to Article 18(2) of Regulation (EU) 2021/241 and the amendment pursuant to Article 21(2) of that Regulation.

(22)The distribution of milestones and targets in instalments should be amended to take into account the new allocation, the amendments to the plan and the indicative timeline presented by Czechia.

Corrections of clerical errors

(23)Forty clerical errors have been identified in the text of the Council Implementing Decision, affecting 23 milestones/targets and 17 measures. The Council Implementing Decision should be amended to correct those clerical errors that do not reflect the content of the RRP submitted to the Commission on 9 June 2022, as agreed between the Commission and Czechia. Those clerical errors relate to the description of reform 1 (Conditions for quality data pool management and ensuring controlled data access), under component 1.1 (Digital services to citizens and businesses); description of reform 1 (Centres of competence for supporting eGovernment, Cybersecurity and eHealth), descriptions of investment 1 (Development of information systems) and investment 3 (Cybersecurity), target 19 of investment 1 (Development of information systems), unit of measure of target 31 of investment 5 (Creating the conditions for digital justice) under component 1.2 (Digital public administration systems); target 49 of reform 2 (Joint strategic technologies support and certification group with the Strategic Technologies Board), target 59 of investment 7 (Czech Rise-Up Programmes), target 65 of investment 11 (Digital regulatory sandboxes in line with EU priorities) under component 1.4 (Digital economy and society, innovative start-ups and new technology); target 70 of investment 2 (European Reference Testing and Experimentation facility) under component 1.5 (Digital transformation of enterprises); description of investment 2 and target 117 (Building infrastructure – Recharging points for private companies) under component 2.4 (Clean Mobility); description of investment 4 (Building forest resilient to climate change) under component 2.6 (Nature protection and adaptation to climate change) and related milestones 139, 140, 141 and the description of investment 5 (Water retention in forest) and of targets 142 and 143 under the same component 2.6 (Nature protection and adaptation to climate change); description of investment 1 (Protection against droughts and floods of the city of Brno), milestone 162 under component 2.9 (promotion of biodiversity and fight against drought), description of Investment 3 (Protected areas including Natura 2000 sites and protected species of plants and animals) and related milestone 164 under component 2.9 (Promotion of biodiversity and fight against drought); milestone 169 of reform 1 (Curricula reform and strengthening of IT education) under component 3.1 (Innovation in Education in the Context of Digitalisation); correction of typos in measure and milestone descriptions under component 4.3 (Anti-corruption reforms); target 225 of investment 1 (Public Research & Development support for priority areas of medical sciences and related social sciences) under component 5.1 (Excellent Research and Development in the Health Sector), investment 1 (Creation of the Intensive Medicine Simulation Centre), investment 2 (Rehabilitation care for patients recovering from critical condition) and investment 3 (Building a centre for cardiovascular and transplant medicine) under component 6.1 (Increasing Resilience in the Health System); measure and target descriptions of investment 1 (Establishment of the Czech Oncology Institute), investment 2 (Developing highly specialised oncological and hematooncological care) and investment 3 (Establishment and development of the Centre for Cancer Prevention and Infrastructure for Innovative and Supportive Care at the Masaryk Memorial Institute) under component 6.2 (The National Plan to Strengthen Oncological Prevention and care). These corrections do not affect the implementation of the measures concerned.

The REPowerEU chapter based on Article 21c of Regulation 2021/241

(24)The REPowerEU chapter includes 15 new reforms and seven new investments. The investments on grid modernisation (component 7.1) aim to reinforce the electricity distribution networks and make it ready for the increase development of renewable energy sources. Three reforms aim at streamlining and increasing transparency of the grid connection process for renewable generation assets, introducing new grid tariffs (component 7.1), and establishing a legal framework for energy communities, electricity sharing, data exchange, energy storage, aggregation and flexibility (component 7.2). Two reforms seek to simplify the decision-making process on renewables by designating RES acceleration areas and implementing a single environmental opinion for renewable energy projects (component 7.7). The reforms and investments in clean mobility support the decarbonisation of road transport (component 7.5) by introducing incentives for the uptake of zero-emissions vehicles and simplifying the permitting rules for the construction of charging stations and hydrogen refuelling stations. The comprehensive reform of the advisory services for the renovation wave (component 7.3) aims to increase the number and quality of residential renovation projects. It will support the fight against energy poverty by increasing the number and quality of residential energy-efficiency renovation projects, especially for low- and middle-income households. Czechia also reported to be using resources from its national budget and the Modernisation Fund to fund targeted programs addressing energy poverty and energy efficiency investments. The reforms and investments in promoting green skills and sustainability in universities (component 7.4) aim to modernise the learning offer in public universities by creating new study programmes, courses, and lifelong learning opportunities focused on green skills.

(25)The REPowerEU chapter also includes two scaled-up measures. The first one affects one measure under component 2.3.1 (Development of new photovoltaic energy sources). This scaled-up measure included in the REPowerEU chapter introduce a substantive improvement in the level of ambition of the measures already included in the national RRP. The second scaled-up measure affects one measure under component 2.4.4 Investment Aid for purchase of vehicles – vehicles (electric, H2, cargo e-bikes) for private companies. The scaled-up measure included in REPowerEU compensates for inflation reduction in the original measure and increases the number of zero-emission cars and vans supported by the investment.

(26)The Commission has assessed the modified RRP including the REPowerEU chapter against the assessment criteria laid down in Article 19(3) of Regulation 2021/241.

Loan request based on Article 14 of Regulation 2021/241

(27)The modified RRP submitted by Czechia includes a request for loan support to support eight new additional measures. 

(28)The modified RRP contains one new component: 2.10 (Affordable Housing). Component 2.10 contains an investment in loan facility for the provision of concessional loans to projects that contribute to increasing the availability of affordable and energy-efficient rental housing, an investment in a loan facility for the provision of subordinated loans to projects that contribute to increasing the availability of affordable and energy-efficient rental housing, and an investment in a public-private co-investment fund aiming to improve access to finance for affordable housing projects.

(29)Additionally, the modified RRP contains new measures under existing components: 1.1 (Digital Services to Citizens and Businesses), 1.2 (Digital Public Administration System), 1.4 (Digital Economy and Society, Innovative Start-ups and New Technology) and 1.5 (Digital Transformation of Enterprises). These measures concern an investment in digital services for end-users in social area, an investment in cybersecurity, and an investment to develop information systems in the social area; an investment in strategic technologies and an investment to provide support to companies participating in IPCEI Microelectronics and Communication Technologies.

(30)The Commission has assessed the modified RRP including the REPowerEU chapter against the assessment criteria laid down in Article 19(3) of Regulation 2021/241.

Balanced response contributing to the six pillars 

(31)In accordance with Article 19(3), point (a), of and Annex V, criterion 2.1, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all of the six pillars referred to in Article 3 of that Regulation, taking into account the specific challenges faced by and the financial allocation for the Member State concerned.

(32)The initial RRP provided a comprehensive and balanced response to the economic and social situation, thereby contributing to all of the six pillars referred to in Article 3 of Regulation (EU) 2021/241, taking the specific challenges and the financial allocation of Czechia into account. The initial RRP included a set of reforms and investments focusing on key areas such as digitalization, green transition, education and training, access to financing, culture, research and innovation, and healthcare.

(33)The update of the plan, including both modifications of existing components and newly added measures, comes to further strengthen the coverage of several pillars. In order to assure a heightened response to the economic and social situation, the updated plan makes use of both the additional grant allocation available and loans. The updated plan further addresses the green transition thanks to the addition of the REPowerEU chapter, including measures for improving the electricity distribution networks, energy renovation support or electrification of railways. The digital transformation is addressed with the update of components covering the digitalisation of public administration systems (Component 1.1 and 1.2), the development of high-capacity digital networks (Component 1.3) and the digital transformation of public administration (Component 1.7). The social and territorial cohesion is further covered by the new component addressing affordable housing (Component 2.10) . The pillar of smart, sustainable & inclusive growth is addressed in the update of the component providing support for research and development (Component 5.2) in companies. Policies for the next generation are addressed in a new measure supporting children at risk as well as a new component on affordable housing (Component 2.10). Finally, health and economic, social and institutional resilience are addressed in the new components targeting affordable housing (Component 2.10) and systemic support for public investment (Component 4.1).

Addressing all or a significant subset of challenges identified in country-specific recommendations

(34)In accordance with Article 19(3), point (b), of and Annex V, criterion 2.2, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations addressed to Czechia, including fiscal aspects thereof, or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

(35)In particular, the modified RRP takes into account country-specific recommendations formally adopted by the Council prior to the assessment of the modified plan by the Commission. As the maximum financial contribution for Czechia has been adjusted upwards and as the size of the plan increased following an additional loan request intended to be used not exclusively for REPowerEU objectives, all 2022 and 2023 structural recommendations are considered in the overall assessment.

(36)The modified RRP includes an extensive 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 context of the European Semester in 2022 and 2023. Notably the REPowerEU chapter with EUR 735.5 million of estimated costs is expected to contribute to preserving public investment for the green transition and for energy security (CSR 1.2, 2022 and CSR 1.3 2023). New measures proposed under Component 2.10 contribute in addition to improving the provision of social and affordable housing (CSR 3 2022 and CSR 3 2023) by introducing a reform through the Housing Act and an investment implemented via a financial instrument that is expected to boost the supply of rental housing units at affordable prices. Investments in grid modernisation and digitalisation (Component 7.1), legislative reforms (LEX RES 2 and LEX RES 3) under Component 7.2 establishing frameworks for energy communities, electricity sharing, data exchange, energy storage, aggregation and flexibility, the designation of acceleration areas for renewable energy generation and the reform on the simplification of the single environmental opinion, as well as investments for the construction of new photovoltaic installations under the existing Component 2.5 are expected to reduce overall reliance on, and consumption of fossil fuels by accelerating the deployment of renewables, including through further streamlining permit procedures and making grid access easier (CSR 4.2 2022, CSR 4.2 2023 and CSR 4.3 2023). Furthermore, the comprehensive reform of the advisory system for energy efficiency renovations is expected to contribute to increasing the energy efficiency of the building stock by increasing the quality and number of deep renovations projects and the installation of renewable heat sources (CSR 4.4 2023). Finally, 5 reforms and 1 investment in Component 7.5 are expected to contribute to incentivising the uptake of zero-emission road transport and sustainable transport infrastructure (CSR 4.5 2023).

(37)Many of the new measures are expected to further address those country specific recommendations that are already targeted by the initial RRP. Additional measures that focus on strengthening the R&D ecosystem and supporting research and development in companies and introduction of innovations into business practice are expected to address the CSR 3.8 2020 to ensure access to finance for innovative firms and improve public-private cooperation in research and development and CSR 3.6 2019 to remove the barriers hampering the development of a fully functioning innovation ecosystem. Moreover, a new Component 4.1 is expected to support the administrative capacity for the implementation of the RRP and address the CSR 3.3 2020 to front-load mature public investment projects and CSR 3.4 2019 to reduce the administrative burden on investment, as well as CSR 3.5 2019 to support more quality-based competition in public procurement. Finally, several new digital measures aim at extending online services for the implementation of social policies. They include digital services for end users in the social area, development information systems in social area, and an IPCEI Microelectronics and Communication Technologies. They are expected to address the CSR 3.2 2020 to improve e-government.

(38)Although Czechia has revised some of the measures in the original plan by reducing their ambition due to objective circumstances (digital economy and digital transformation of enterprises), this is counterbalanced by scaling up other measures supporting especially public administration information systems or digitalisation of enterprises. Therefore, taking into consideration the reforms and investments envisaged by Czechia, its modified recovery and resilience plan is expected to contribute to effectively addressing all or a significant subset of challenges identified in the country-specific recommendations.

Contribution to growth potential, job creation and economic, social and institutional resilience

(39)In accordance with Article 19(3), point (c), of and Annex V, criterion 2.3, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of Czechia, 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.

(40)The initial assessment of the RRP, in accordance with Article 19(3), point (c), of and Annex V, criterion 2.3, to Regulation (EU) 2021/241 found that the RRP is expected to have a high impact on strengthening the growth potential, job creation, and economic social and institutional resilience of Czechia, on 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 withing the Union. (Rating A).

(41)The updated recovery and resilience plan is expected to keep contributing to economic growth and job creation in Czechia and further boosting the capacity of the Czech economy to respond to the new economic challenges. The update plan comes to address several vulnerabilities of the economy among which the over-reliance on fossil fuels, the limited affordability of housing, the stretched public administration capacity, skills mismatches or the low levels of R&D funding in the economy.

(42)The updated plan provides further financial and non-financial support to SMEs, large enterprises and projects, enabling them to participate in green and digital transition, investments into transport and increases the support granted for improving the research and innovation ecosystem. It also provides further support for green transition, increases the support for renewables and the capacity of the power grid to connect the new renewable sources, thus helping in lowering the reliance on fossil fuels. A new component on affordable housing also aims to increase access to housing for the most vulnerable. The skill mismatches and shortages of the labour market are further addressed by measures targeting revision of curricula and upskilling and reskilling actions, whereas the low labour market participation of women with small children is continuously addressed by increasing the capacity of childcare facilities. Further support for the use of eGovernment services and addressing the challenges faced by the public administration in better responding to the new economic challenges and opportunities is also provided through expansion of existing measures targeting digital government services or a new component to support public investment.

(43)The RRP 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 support of affordable housing is expected to mitigate a wide variety of related societal issues, including the situation of children at risk. 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 is expected to help address inequalities in education. Increasing pre-school education and training capacities is expected to 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.

(44)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 is expected to decrease energy poverty and reduce the costs of green investment. The social needs of the vulnerable are also to be supported by easier access to health screening programmes and by increased capacity in social care and investment in social care infrastructure, in particular for children at risk.

Do no significant harm

(45)In accordance with Article 19(3), point (d), of and Annex V, criterion 2.4, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in this RRP 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
[5](#footnote6)
 (the principle of ‘do no significant harm’).

(46)Changes introduced in the new or updated measures through revision of the plan do not affect the positive assessment carried out for the initial version of the RPP.

(47)For each reform and investment included in the new REPowerEU chapter, Czechia provided a systematic assessment of each measure against the principle of ‘do no significant harm’ in line with the Do No Significant Harm Technical Guidance (2021/C58/01). The assessment concludes that for all modified measures, there is either no risk of significant harm or, where a risk is identified, a detailed assessment is conducted demonstrating the absence of significant harm.

Contribution to the REPowerEU objectives

(48)In accordance with Article 19(3), point (da), of and Annex V, criterion 2.12, to Regulation (EU) 2021/241, the REPowerEU chapter is expected to effectively contribute to a large extent (Rating A) to energy security, the diversification of the Union’s energy supply, an increase in the uptake of renewables and in energy efficiency, an increase of energy storage capacities or the necessary reduction of dependence on fossil fuels before 2030.

(49)The implementation of the measures included in the REPowerEU chapter is expected to contribute notably to supporting the objectives in Article 21c (3), points (b), (c), (d), (e) and (f) of Regulation (EU) 2021/241.

(50)The reform on renewable generation permitting (component 7.1) aims to accelerate the permit-granting procedures for wind and solar projects and remove administrative barriers by introducing digital procedures and a single digital one stop shop. The creation of acceleration areas for wind and solar energy (component 7.7) combined with the reform of the single environmental opinion (component 7.7) is expected to significantly facilitate the deployment of wind and solar generation installations across Czech Republic while providing needed visibility for project developers, municipalities, citizens engaged in renewable generation projects, thereby creating conditions for increasing the share of renewables in Czechia’s energy mix, in line with Article 21c(3), point (b).

(51)The new regulatory framework for energy storage and flexibility assets (component 7.2) aims to support the uptake of electricity storage capacities and the development of flexibility assets that will contribute to the stability of the network, thereby supporting immediate security of supply in line with Article 21c(3)e. The investment into the modernisation and digitalisation of the electricity distribution networks (component 7.1) aims to increase the capacity of distribution networks to enable the secure operation of the electricity system, while meeting the high demand for connecting renewable energy sources. This investment contributes to the REPowerEU objective of addressing internal electricity transmission distribution bottlenecks and accelerating the integration of renewable energy, in accordance with Article 21c (3), point (e) of Regulation (EU) 2021/241. It is combined with reforms (component 7.1) to lift barriers towards in grid connection process and to increase the transparency of the available grid capacity. This reform is expected to accelerate connection and more transparent connection schedule to the benefit to customers, renewable energy producers and individual consumers owning roof top solar installations, thereby incentivising the use of small-scale installations.

(52)The investment in rail electrification is expected to provide electrified line for track Brno-Zastavka u Brna (component 7.6), thereby supporting zero-emission transport and its infrastructure in line with Article 21 (3), point (e) of Regulation (EU) 2021/241. 

(53)The reforms in road transport decarbonisation (component 7.5) contribute to increasing the uptake of zero-emission road vehicles in Czechia. The reforms address the REPowerEU objective of supporting zero emission transport and its infrastructure, in line with Article 21c (3), point (e) of Regulation (EU) 2021/241. The reforms are expected to align Czechia with the Union’s Green Deal legislation, set out targets and trajectories for the deployment of zero-emission vehicles and relevant charging infrastructure and hydrogen refuelling infrastructure, provide enabling conditions for the growth of zero-emission mobility and renewable hydrogen economy such as tax measures and support schemes, and increase in the costs and structure of highway vignettes so as to provide greater cost benefit for operating zero-emission light-duty vehicles. The reforms are combined with a scale-up of existing measure under component 2.4, which aims to bring an increase of the number of zero-emission vehicles deployed by businesses in Czechia.

(54)The REPowerEU chapter addresses energy poverty in line with the objective set out in Article 21c(3) point (c) of Regulation (EU) 2021/241. The extensive reform of the advisory services for the renovation wave (component 7.3) aims to increase the number and quality of residential renovation projects, especially for vulnerable households. The improved advisory services aim to help households prepare their renovation projects and apply for available funding to implement the projects. The planned awareness-raising campaign aims to improve awareness of energy poverty and behavioural changes which can help increase energy efficiency. 

(55)The REPowerEU chapter contains measures which aim to increase energy efficiency in line with Article 21c(3) point (b) of Regulation (EU) 2021/241. The comprehensive reform of advisory services (component 7.3) is expected to contribute to improve the quality of renovations and target the most suitable investments in energy efficiency renovations of residential and public buildings. Other measures will provide investments for training professionals for the Renovation Wave, and set up one-stop-shops for energy communities. It aims to contribute to reducing the energy demand in the buildings sector.

(56)The reform on universities curriculum together with two investments (component 7.4), addresses the REPowerEU objective on the acceleration of workforce requalification towards green skills, in accordance with Article 21c, paragraph (3), point (f) of Regulation (EU) 2021/241. The reform aims to update the current education and training programmes to reflect the needs for green skills in the labour market. Investments aim to enable at least 20 public universities to adopt new Sustainable and Green Transition Strategies containing vision, priority areas, principles and expand their learning offer on green skill education by concluding strategic partnerships with third parties.

(57)The REPowerEU chapter is coherent with Czechia’s commitment to increase the deployment of renewable energy and to reduce reliance on fossil fuel. The measures reinforce those included in the original RRP on energy efficiency, deployment of renewable energy generation and decarbonisation of transport.

Measures having a cross-border or multi-country dimension or effect

(58)In accordance with Article 19(3), point (db), of and Annex V, criterion 2.13, to Regulation (EU) 2021/241, the measures included in the REPowerEU chapter are expected to a large extent (Rating A) to have a cross-border or multi-country dimension or effect.

(59)The reforms and investments in modernisation (7.1) and digitalisation of the electricity grid (7.2) and simplifying the decision-making process on renewables by designating renewable acceleration areas (7.7) and implementing a single environmental opinion for renewable projects aim to contribute to the production and integration of renewable energy into the network and therefore secure the energy supply in the Union as a whole.

(60)The reforms a in energy efficiency renovations advice s aim to indirectly contribute to reducing energy demand and to reducing the dependency on fossil fuels. 

(61)The total costs of the measures with a cross-border dimension account for 82.4% of the estimated costs of the REPowerEU chapter.

(62)The high share of estimated costs with a cross-border dimension together with the fact that the measures in the REPowerEU chapter contribute to both securing the energy supply and reducing energy demand and dependence on fossil fuels justify the choice of A rating.

Contribution to the green transition including biodiversity

(63)In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter, 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 42.9% of the RRP’s total allocation and 99 % of the total estimated costs of measures in the REPowerEU chapter calculated in accordance with the methodology set out in Annex VI to that Regulation. In accordance with Article 17 of Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(64)The revised measures maintain the overall ambition of the plan regarding the green transition, and the REPowerEU chapter brings significant effort to further supporting the green transition in Czechia as the new reforms and investments aim to hasten the modernisation of the electric grid, the decarbonisation of road transport, and the take-up of renewable energy sources. The chapter also includes measures aiming to improve the energy efficiency of the building stock (component 7.3) and develop new green skills opportunities at universities (component 7.4). 

(65)The modified Czech RRP, including the REPowerEU chapter, continues to significantly contribute to the green transition, including biodiversity, as well as to the achievement of the Union 2030 climate targets while complying with the objective of EU climate neutrality by 2050. In the REPowerEU chapter, Czechia puts an emphasis on supporting the development of renewable energy sources by designating RES acceleration areas (component 7.7), simplifying RES procedures (component 7.1), while also preparing the electric grid to increase its connectivity capacity. These measures jointly contribute to incentivise the take-up of renewables and strengthen energy security. The REPowerEU chapter also contributes to improving the energy efficiency of the building stock and decarbonisation road transport by lowering energy demand and reduce dependence on fossil fuels.

Contribution to the digital transition

(66)In accordance with Article 19(3), point (f), of and Annex V, criterion 2.6, to Regulation (EU) 2021/241, the modified RRP contains measures that contribute to a large extent to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 22.8% of the modified RRP’s total allocation calculated in accordance with the methodology set out in Annex VII to that Regulation.

(67)The modification of the plan maintains its ambition towards the digital transition. The modified RRP continues to significantly contribute to the digital transition of businesses, infrastructure, and public administration, and to fostering digital skills of the workforce, the pupils and the general population, with an expected lasting impact. The new reforms and investments will accelerate the digitalisation of public administration and provide financing for start-up technology companies and projects promoting research and innovation in microelectronics. In total, the modified plan includes 52 investments and reforms included in the calculation of the digital target, totalling EUR 1 936 122 562 of digital contribution.

Lasting impact

(68)In accordance with Article 19(3), point (g), of and Annex V, criterion 2.7, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to have a lasting impact on Czechia to a large extent (Rating A).

(69)The initial assessment of the RRP, in accordance with Article 19(3), point (g), of and Annex V, criterion 2.7, to Regulation (EU) 2021/241 found that the RRP was expected to have a lasting impact on Czechia to a large extent (Rating A). 

(70)The modified RRP does not reduce the ambition of the initial plan as a whole. It takes into account the prolonged impact of the COVID-19 crisis, inflation and supply chain disruptions, as well as some unexpected legal and technical difficulties or the availability of better alternatives for the implementation of some measures by modifying measures in accordance with Article 21(2) of Regulation (EU) 2021/241. The modified plan also includes new and scaled-up measures as a result of the increase of the financial contribution and the limited take up of loans and includes a new REPowerEU chapter. These additional measures, together with the existing measures, are expected to have lasting positive effects on the Czech economy and further boost its green and digital transitions. In particular, the REPowerEU reforms are expected to modernise and digitise the electricity grid, simplify permitting procedures and decision-making for renewable energy sources, decarbonise road transport, improve the energy efficiency of the building stock, and promote green skills in universities. Other new reforms in the modified plan aim to strengthen administrative capacity, improve the R&D ecosystem and support children’s development.

(71)These reforms are accompanied by investments that would ensure their lasting impact. The modified RRP introduces investments in cybersecurity and modernisation of public administration, supporting development of microelectronics under the IPCEI initiative, R&D projects in the environmental field and in the field of transport, as well as by stimulating private investments with a venture capital fund for strategic technologies. The REPowerEU chapter contains investments which aim to hasten the development and take-up of renewable energy.

Monitoring and implementation

(72)In accordance with Article 19(3), point (h), of and Annex V, criterion 2.8, to Regulation (EU) 2021/241, the arrangements proposed in the modified RRP including the REPowerEU chapter are adequate (Rating A) to ensure effective monitoring and implementation of the RRP, including the envisaged timetable, milestones and targets, and the related indicators.

(73)The arrangements proposed by Czechia in the initial RRP were considered the minimum (rating B) necessary to ensure effective monitoring and implementation of the RRP and complemented by reinforcing measures to address remaining weaknesses regarding the prevention, detection and correction of conflicts of interest through a set of dedicated milestones to be fulfilled before the first payment request. All these milestones were subsequently fulfilled and positively assessed by the Commission as part of the first payment request. Therefore, following the implementation of those arrangements, an A rating is warranted under this assessment criterion.

(74)The nature and extent of the proposed modifications to Czechia’s RRP have also an impact on the previous assessment of the effective monitoring and implementation of the RRP. The milestones and targets that accompany the modified measures, including those in the REPowerEU chapter, are clear and realistic and the proposed indicators for those milestones and targets are relevant, acceptable and robust. In addition, the introduction of dedicated support measures to strengthen the administrative capacity and, in particular, the staffing of the authorities responsible for implementing the RRF under the new Component 4.1 ‘Systemic support for public investment’ is expected to improve the effective monitoring and implementation of the RRP.

Costing

(75)In accordance with Article 19(3), point (i), of and Annex V, criterion 2.9, to Regulation (EU) 2021/241, the justification provided in the modified RRP including the REPowerEU chapter on the amount of the estimated total costs of the RRP 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.

(76)For the costing assessment of the original plan in 2021, Czechia provided estimates relying on appropriate justification, evidence and methodology for the majority of the costs of the measures included in the RRP. Costing information and supporting documents were provided to a medium extent. There were no indications that the overall reasonability, plausibility and additionality of the cost estimates would be impaired. The estimated total cost of the RRP was in line with the principle of cost-efficiency and was commensurate to the expected national economic and social impact.

(77)Czechia has provided individual cost estimates for most of the modified and new investments and reforms with an associated cost included in the updated RRP, relying on a number of sources to justify them. For the updated measures, the update is either based on adjustments of the unit costs due the effect of the high inflation in the sector, or on the results of tenders conducted for current similar projects or even of the results of the tenders for the exact same project where its implementation has already started. For the newly introduced measures, the costs have been calculated using bottom-up approaches, with reference to market prices or prices of similar units in past investments for the key cost drivers, or from costs estimates derived from the costing data of similar investments carried out. As a result, cost estimates for most of the measures in the RRP are deemed reasonable. The amount of the estimated total costs of the RRP is in line with the nature and type of the envisaged reforms and investments. As a result, cost estimates for most of the measures in the RRP are deemed plausible. Czechia has provided sufficient information and evidence that the amount of the estimated total costs is not covered by existing or planned Union financing. Finally, the estimated total cost of the RRP is in line with the principle of cost-efficiency and commensurate to the expected national economic and social impact. 

Protection of the financial interests of the Union

(78)In accordance with Article 19(3), point (j), of and Annex V, criterion 2.10, to Regulation (EU) 2021/241, the arrangements proposed in the modified RRP including the REPowerEU chapter and the additional measures contained in this Decision 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 Union law, including for preventing, detecting and correcting corruption, fraud and conflicts of interest, and for protecting the Union budget in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council
[6](#footnote7)
.

(79)Although the description of the internal control system and other arrangements to prevent, detect and correct conflict of interests was acceptable and the Commission proposed its positive assessment to the Council when the original plan was submitted, additional milestones were set requiring, inter alia, a dedicated audit on the effectiveness of the internal control system to be undertaken by the national audit body, 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 and the issuance of a guidance by the coordinating body on the avoidance and management of conflict of interests under Regulation (EU) 2018/1046 and applicable national law. All these milestones were fulfilled and positively assessed by the Commission as part of the first payment request. The nature and extent of the proposed modifications to Czechia’s recovery and resilience plan do not impact this positive assessment, as the new investments and reforms included in the plan are to be subject to the same audit and control procedures as the ones currently in place for the other measures of the plan.

Coherence of the RRP

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

(81)The Czech RRP originally obtained rating B for its coherence. This was notably due to the lower level of reform ambition of the original plan. The imbalance between reforms and investments lowered the mutually reinforcing and complementary effect of measures. 

(82)For the updated plan, Czechia added reforms and investments which mutually reinforce each other and support the implementation of new investments in targeted areas such as renewable energy and grid modernisation. However, the complementarity effect of measures remained limited in other parts of the plan such as the energy efficiency renovations and electrification of rail. The plan could have benefited from further reforms and investments aiming to boost energy efficiency renovations and electrification of railways. Such measures would have further complemented the measures included in the updated plan, thereby achieving a greater impact of RRF funding. Therefore, the plan warrants B rating for coherence. In addition, Czechia signalled intention to finance additional measures in these domains from other financing sources which are not included in the RRP. 

Any other assessment criteria

(83)The Commission considers that the modifications put forward by Czechia do not affect the positive assessment of the RRP set out in the Council Implementing Decision (ST 11047/21 INIT; ST 11047/21 ADD 1; ST 11047/21 COR 1) of 8 September 2021 on the approval of the assessment of the RRP for Czechia regarding the relevance, effectiveness, efficiency and coherence of the RRP against the assessment criteria laid down in Article 19(3), points (a), (c), (g), (i), (j) and (k).

Consultation process

(84)During the preparation of the modified RRP including the REPowerEU chapter, Czechia benefited from support through Regulation (EU) 2021/240 of the European Parliament and the Council of 10 February 2021 establishing a Technical Support Instrument (“Support to REPowerEU”). Stakeholders were involved in the preparation of the report between July 2022 and February 2023, which provided input for the design of the measures under the REPowerEU chapter. The Czech authorities consulted stakeholders through several consultation platforms, including a formal one-week consultation process in May 2023, where both government bodies and relevant stakeholders (e.g. industry associations and NGOs such as the Confederation of Industry, the Chamber of Commerce, the Union of Employers’ Associations, the Confederation of Employers’ and Entrepreneurs’ Associations, the Czech Banking Association and the Green Circle) commented the proposals. The Czech authorities took comments regarding the modified RRP including the REPowerEU chapter into account for instance by including support for affordable housing addressing energy efficiency in residential buildings of socially vulnerable households and by extending advisory services for the Renovation Wave.

(85)In the implementation of the modified plan including the REPowerEU chapter, stakeholders are consulted in the framework of the Committee for the RRP (established in May 2021) composed of key stakeholders. To ensure ownership by the relevant actors, it is crucial to involve regional and local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the modified RRP including the REPowerEU chapter. 

Positive assessment

(86)Following the positive assessment of the Commission concerning the modified RRP including the REPowerEU chapter, 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 and Annex V to that Regulation, the reforms and investment projects necessary for the implementation of the modified RRP including the REPowerEU chapter, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the modified RRP including the REPowerEU chapter in the form of non-repayable financial and loan support should be set out.

Financial contribution

(87)The estimated total costs of the modified RRP including the REPowerEU chapter of Czechia is EUR 9 231 951 405. As the amount of the estimated total costs of the modified RRP is higher than the updated maximum financial contribution available for Czechia, the financial contribution calculated in accordance with Article 11 allocated for Czechia’s modified RRP including the REPowerEU chapter should be equal to the total amount of the financial contribution available for Czechia’s modified RRP including the REPowerEU chapter. This amount is equal to EUR 7 673 717 943. 

(88)Pursuant to Article 21a(5) of Regulation (EU) 2021/241, on 30 June 2023 Czechia submitted a request for the allocation of the revenue referred to in Article 21a (1) of that Regulation, shared between Member States on the basis of the indicators set out in the methodology in Annex IVa to Regulation (EU) 2021/241. The estimated total costs of the measures referred to in Article 21c(3), points (b) to (f) included in the REPowerEU chapter is EUR 735 462 050. As this amount is higher than the allocation share available for Czechia, the additional non-repayable financial support available for Czechia should be equal to the allocation share. This amount is equal to EUR 680 543 170.

(89)Additionally, in accordance with Article 4a of Regulation (EU) 2021/1755
[7](#footnote8)
, on 18 February 2023 Czechia submitted a reasoned request to transfer all its remaining provisional allocation from the resources of the Brexit Adjustment Reserve to the Facility, amounting to EUR 54 918 029. That amount should be made available to support the reforms and investments in the REPowerEU chapter as additional non-repayable financial support.

(90)The total financial contribution available to Czechia should be EUR 8 409 179 142.

Loan

(91)Furthermore, in order to support additional reforms and investments, Czechia has requested a total loan support of EUR 818 136 635, in particular, to support new reforms and investments in the RRP. The maximum volume of the loan requested by Czechia is less than 6.8% of its 2019 gross national income in current prices. The amount of the estimated total costs of the RRP is higher than the combined financial contribution available for Czechia, including the REPowerEU chapter and the updated maximum financial contribution for non-repayable financial support, the revenue from the emission trading system under Directive 2003/87/EC of the European Parliament and of the Council
[8](#footnote9)
, and from of the Brexit Adjustment Reserve.

REPowerEU Pre-financing

(92)Czechia has requested the following funding for the implementation of its REPowerEU chapter: transfer of EUR 54 918 029 from the provisional allocation from the resources of the Brexit Adjustment Reserve, and EUR 680 543 170 from the revenue from the Emissions Trading System under Directive 2003/87/EC of the European Parliament and of the Council.

(93)For those amounts, pursuant to Article 21d of Regulation (EU) 2021/241, on 30 June 2023 Czechia has requested pre-financing of 20% of the funding requested. Subject to available resources, that pre-financing should be made available to Czechia subject to the entry into force of, and in accordance with, an agreement to be concluded between the Commission and Czechia pursuant to Article 23(1) of Regulation (EU) 2021/241 (the 'financing agreement')

(94)Council Implementing Decision ST 11047/21 INIT; ST 11047/21 ADD 1; ST 11047/21 COR 1 of 8 September 2021 on the approval of the assessment of the RRP for Czechia should therefore be amended accordingly. For the sake of clarity, the Annex to that Implementing Decision should be replaced entirely,

HAS ADOPTED THIS DECISION:

Article 1

Implementing Decision (EU) (ST 11047/21 INIT; ST 11047/21 ADD 1; ST 11047/21 COR 1) of 8 September 2021 is amended as follows:

(1) Article 1 is replaced by the following:

“Article 1

Approval of the assessment of the RRP

The assessment of the modified RRP of Czechia on the basis of the criteria provided for in Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the RRP, the arrangements and timetable for the monitoring and implementation of the RRP, including the relevant milestones and targets and the additional milestones and targets related to the payment of the loan, 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.”;

(2) In Article 2, paragraphs 1 and 2 are replaced by the following:

“1. The Union shall make available to Czechia a financial contribution in the form of non-repayable support amounting to EUR 8 409 179 142.
[9](#footnote10)
 That contribution includes:

(a)an amount of EUR 3 537 379 398 that shall be available to be legally committed by 31 December 2022;

(b)an amount of EUR 4 136 338 545 that shall be available to be legally committed from 1 January 2023 until 31 December 2023;

(c)an amount of EUR 680 543 170
[10](#footnote11)
, in accordance with Article 21a(6) of Regulation (EU) 2021/241, exclusively for measures referred to in Article 21c of that Regulation, with the exception of measures referred to in Article 21c (3), point (a);

(d)an amount of EUR 54 918 029, transferred from the Brexit Adjustment Reserve to the Facility.

2. The Union financial contribution shall be made available by the Commission to Czechia in instalments in accordance with the Annex to this Decision. An amount of EUR 914 640 681 shall be made available as pre-financing in accordance with Article 13 of Regulation (EU) 2021/241.

An amount of EUR 147 092 240 shall be made available as pre-financing in accordance with Article 21d of Regulation (EU) 2021/241. That pre-financing may be disbursed by the Commission in up to two payments.

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 following Article 2a is inserted:

“Article 2a
  
Loan support

1.The Union shall make available to Czechia a loan amounting to a maximum of EUR 818 136 635.

2.The loan support referred to in paragraph 1 shall be made available by the Commission to Czechia in instalments in accordance with the Annex to this Decision.

3.The release of instalments in accordance with the Loan 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 additional milestones and targets covered by the loan and identified in relation to the implementation of the modified RRP including the REPowerEU chapter. In order to be eligible for payment, Czechia shall complete the additional milestones and targets no later than 31 August 2026”;.

(4) The Annex is replaced by the text in the Annex to this Decision:

Article 2
  
Addressee

This Decision is addressed to the Czech Republic.

Done at Brussels,

For the Council

   The President

:   [(1)](#footnoteref2)
       OJ L 57, 18.2.2021, p. 17.
:   [(2)](#footnoteref3)
       ST 11047/21 INIT; ST 11047/21 ADD 1; ST 11047/21 COR 1 .
:   [(3)](#footnoteref4)
       This amount corresponds to the financial allocation 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.
:   [(4)](#footnoteref5)
       This amount corresponds to the financial allocation 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.
:   [(5)](#footnoteref6)
       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).
:   [(6)](#footnoteref7)

       Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (OJ L 433 I, 22.12.2020, p. 1).
:   [(7)](#footnoteref8)
       Regulation (EU) 2021/1755 of the European Parliament and of the Council of 6 October 2021 establishing the Brexit Adjustment Reserve (OJ L 357 8.10.2021, p. 1).
:   [(8)](#footnoteref9)
       Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32–46).
:   [(9)](#footnoteref10)
       This amount corresponds to the financial allocation after deduction of the 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.
:   [(10)](#footnoteref11)
       This amount corresponds to the financial allocation after deduction of the Czechia’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Annex IVa of that Regulation.

[Top](#document1)

![european flag](./../../../images/eclogo.jpg)EUROPEAN COMMISSION

Brussels, 26.9.2023

COM(2023) 567 final

ANNEX

to the

Proposal for a COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) ST 11047/21 INIT: ST 11047/21 ADD 1; ST 11047/21 COR 1) of 8 September 2021 on the approval of the assessment of the recovery and resilience plan for Czechia

{SWD(2023) 319 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 recovery and resilience 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 aims to 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”) methodologies 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 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) Activity Journal; (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 Information Services; (vii) Reference register of health service providers;

·connection of healthcare providers to the interoperability system according to interoperability rules for eHealth services;

·increase the number of telemedicine services available to patients.

The reform shall be completed by 31 December 2025.

Investment 1: Digital services for end-users

The investment implements 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 aims to simplify access for citizens and business to digital public services via a single platform of federated portals and to the connection of information systems. As a result, an increased number of digital services shall become available to end-users via a single login platform 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 finances projects aimed at improving the quality of the National Open Data Catalogue: the publication of code lists used in public administration in public databases, the development of a national open data catalogue and the improvement of tools for increasing the number of open data producers in the public administration publishing open data in the National Open Data Catalogue.

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) Activity Journal,  (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 Information Services,  (7) Reference register of health service providers. |
| 6 | Reform 2: eHealth | Target | Connection of healthcare providers to the interoperability system according to interoperability rules for eHealth services |  |  | 0 | 15 | Q4 | 2025 | The measure should result in connecting healthcare providers to an interoperable system according to interoperability rules for eHealth services. |
| 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 | 2023 | 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 | Completion of new information systems | Successful upgrade of existing systems and development of new systems |  |  |  | Q4 | 2023 | Completion of new information systems for the following projects: DIP – Information Obligations Database, List of forensic experts and interpreters, Client zone, Creation of registration authority at the Ministry of Interior. |
| 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 | 13 942 722 | 27 885 444 | Q1 | 2026 | The measures shall lead to a 100% increase in the number of electronic filled forms submitted through portals and data mailboxes over one year period 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; National Electronic Tool; Journal of Public Contracts; List of Qualified Suppliers; 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 Foreign Affairs. |
| 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, |  |  |  | Q4 | 2024 | 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. |
| 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 | 2022 | The target shall lead to an increase of 77 new entities publishing open data in the public administration. |
| 245 | Investment 2: Development of open data and public data | Target | Increase in the number of new or improved open data sets published in the National Open Data Catalogue |  | Number of data sets | 0 | 125 | Q4 | 2024 | 125 new or improved open data sets (code lists, data binding, statistical data) published in the National Open Data Catalogue. |
| 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 is expected to be composed 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. |

A.3. Description of the reforms and investments for the loan

Investment 4: Digital services for end-users in social area

The investment shall consist in the upgrade of the self-service portal for the Labour Office by establishing the Client Zone II, implementing new functionalities for the end users. In particular, it shall enable support online application for housing benefits, full electronic exchange of data with end users as well as selected processes in the employment agenda. 

This investment shall be implemented by 30 June 2026.

A.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

|  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 |  |
| 246 | Investment 4: Digital services for end-users in social area | Milestone | Upgraded self-service portal for the Labour Office – Client zone II | Entry into operation of the upgraded self-service portal for the Labour Office |  |  |  | Q2 | 2026 | The upgraded  self-service portal for the Labour Office shall be operational and support the following functionalities:   - Online application for housing benefits,   - Full electronic exchange of data with end users,   - Selected processes in the employment agenda. |

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 recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

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

Investment 1: Developing and improving individual information systems

The investment supports projects aiming at updating, improving and connecting back-end age-related information systems, to 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 development or improvement of at least ten information systems in total.

The investment shall be implemented by 31 March 2026.

Investment 2: Developing core registries and facilities for eGovernment

The investment aims to 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 data pool. This shall be achieved through twenty interconnected projects. Beyond the registries, supported projects 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 30 June 2026.

Investment 3: Cybersecurity

The investment aims 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 leading 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 87 information systems.

The investment shall be implemented by 31 December 2025.

Reform 1: Centres 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 by including 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 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 | Implementation and operation of the CzechPOINT 2.0 and the CAAIS systems | 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) are operational |  |  |  | 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 system) and EVC2 visa system | Modification of ePasy system according to the amended Travel Documents Act and upgrade of the EVC2 visa system |  |  |  | Q4 | 2022 | The agenda information system ePasy shall be modified according to the amendment of the Travel Documents Act No. 329/1999 Coll. and be available to the end users. The EVC2 visa system shall be upgraded with short- and long-term visa functionalities, in accordance with the entry/exit system (EES), and shall be available for testing according to the euINIS program. |
| 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 |  |  |  | Q1 | 2026 | This milestone shall establish a new integrated system for foreigners (ICAS), which shall enable foreigners registered in Czechia to manage their 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 (completion of the projects contracted under target 18) |  | Number | 0 | 8 | Q4 | 2025 | New or upgraded information systems shall be completed with reference to 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 |
| 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 data centre 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. |  |  |  | Q1 | 2025 | 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 five additional information systems | Entry into operation of the fully functional and upgraded Security Information and Event Management system and of additional five information systems 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 | Number of information systems whose cyber security has been strengthened in line with Act No. 181/2014 Coll., on cyber security |  | Number | 0 | 87 | 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 87 information systems and the owner authorities of the respective systems have approved the delivery of the systems. |
| 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 component 1.1 and 1.2 | 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 |
| 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 in the scope of at least 5 man-days, provided to specific public administration bodies |  | Number of 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 the target. |
| 27 | Reform 2:  Development of systems supporting eHealth | Milestone | Extension of Shared Drug Recording (ePrescription) 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 information system to support sanitation services of 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. |

B.3. Description of the reforms and investments for the loan

Investment 5: Top-up of cyber security investment

The investment aims to further strengthen the cyber security investment under the non-repayable financial support by increasing the number information systems whose cyber security has been strengthened in line with Cyber Security Act No. 181/2014 Coll. to 244 public information systems.

The investment shall be implemented by 31 December 2025.

Investment 6: Development of information systems in social area

The investment aims to modernise the information systems of the public administration in the area of social policy by upgrading at least six information systems, including the Electronic Exchange of Social Security Information (EESSI), the modernisation of software infrastructure at Ministry of Labour and Social Affairs, the digitalisation of retirement agenda (EDA) and the application support for decision making.

The investment shall be implemented by 30 June 2026.

B.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

|  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 |  |
| 247 | Investment 5: Top-up of cyber security investment | Milestone | Publication of the call related to the strengthening of information systems in accordance with Act No 181/2014 Coll. on cyber security | Publication of a call for projects |  |  |  | Q1 | 2024 | Publication of a call for projects supporting the strengthening of information systems according to Act No. 181/2014 Coll. on cyber security. |
| 248 | Investment 5: Top-up of cyber security investment | Target | Information systems whose cyber security has been strengthened in line with Act No. 181/2014 Coll., on cyber security |  | Number | 87 | 331 | Q4 | 2025 | The target shall increase the cybersecurity of the selected information systems in accordance with the requirements of Act No. 181/2014 Coll. on cyber security.   The target shall be considered as achieved following the successful testing and verification of compliance with cyber security requirements of the at least 244 information systems. The authorities in charge of the information systems shall approve the delivery of the respective systems. |
| 249 | Investment 6: Development of information systems in the social area | Target | Upgraded information systems of public administration in the area of social policy |  | Number | 0 | 6 | Q2 | 2026 | 6 information systems shall be upgraded and operational in the area of social policy.  These shall include at least:    1.Electronic Exchange of Social Security Information (EESSI),   2.Modernisation of SW infrastructure at Ministry of Labour and social affairs,   3.Digitalisation of retirement agenda (EDA),   4.Application support for decision making. |

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](#footnote2)
.

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](#footnote3)
.

●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:

●ensuring comprehensive coverage of the railway corridors with the 5G signal of the following two railway corridors: (i) Prague - Česká Třebová - Ostrava and (ii) Česká Třebová – Brno by increasing the density of Base Transceiver Stations (BTSs) on these two corridors, through the construction of new BTS in addition to those that mobile operators must build in accordance with the terms of the 5G frequency auction,

●Ensuring coverage of 350 railway wagons with a high-quality mobile signal repeaters or passive walls for 5G signal. 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 30 June 2026.

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. Projects shall be selected by 31 December 2024. During the subsequent implementation phase, at least 22 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 | 86 | Q2 | 2026 | The investment shall enhance 5G coverage quality (beyond already imposed coverage criteria raised from the terms of the 5G frequency auction) over at distance of at least 86 km in the following rail corridors: - Prague – Česká Třebová –Ostrava, - Česká Třebová – Brno |
| 41 | Investment 2: Covering 5G corridors and promoting the development of 5G | Target | Completion of ensuring mobile signal coverage of railway wagons |  | Number | 0 | 350 | Q4 | 2025 | The coverage of railway wagons shall be ensured with high-quality mobile signal repeaters or passive walls for 5G signals. |
| 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 | 55 | Q1 | 2026 | The infrastructure, including 55 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 | 22 | Q4 | 2025 | At least 22 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. 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 with the aim to 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, entrepreneurship 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 to develop accredited quality management and product certification authorities and provide a network of accredited laboratories with sufficient testing and certification capacities as well as sharing the best practices particularly in strategic sectors such as aerospace and medical devices industry, which shall improve the quality of products and competitiveness of Czech companies. The reform shall support activities such as: 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 also include the creation of educational courses available to stakeholders on certification process.

The reform shall be implemented by 31 December 2024.

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 tackle information manipulation including disinformation in the digital space in an impartial manner, 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 projects publishing outputs such as on digital and media literacy, on disinformation and misinformation in Czechia, on the impact of AI on media.

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

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). 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 30 June 2024.

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 projects aiming at digital 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: Funds for the development of pre-seed investments, strategic digital technologies and university spin-offs

The measure aims to support the development of venture capital and the digital transformation of the economy by investing in innovative start-ups. It shall consist of three pilot funds: i) a pre-seed co-investment fund; ii) a strategic digital technologies fund; and iii) a spinoff AI fund. The three funds aim to invest, respectively, for example in early-stage projects and technology start-up companies; in strategic digital 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. The support shall be delivered through funds, as part of a fund of funds managed by the European Investment Fund (EIF).

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 EIF 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
[3](#footnote4)
; (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks
[4](#footnote5)
; (iii) activities and assets related to waste landfills, incinerators
[5](#footnote6)
 and mechanical biological treatment plants
[6](#footnote7)
; 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 30 June 2026.

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 2025.

Investment 11: Digital Regulatory sandbox in line with EU priorities

This measure shall consist of the launch and initial operation of the umbrella digital regulatory sandbox. The sandbox 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 regulatory environment for testing new technologies such as fintech solutions. They shall be accessible for SMEs and start-ups as well as for other companies.

The investment shall be completed by 30 June 2025.

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.

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 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 network | Creation of a network of certification authorities, technical experts and involved companies for strategic sectors. |  |  |  | Q2 | 2023 | Creation of a one stop shop for sharing best practices, finding actual information on certification such as quality and availability of accredited laboratories or notified bodies, offers for technical support. |
| 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 | 2024 | 50 companies shall be supported to obtain certification through accredited certification authorities.    Educational courses on certification shall be created and made available. |
| 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. |
| 250 | Investment 2: European Digital Media Observatory Hub (EDMO) | Milestone | Launch of the extended CEDMO hub | Signature of grant agreement |  |  |  | Q2 | 2024 | Grant agreement for the expanded Digital Media Hub as part of the EDMO network shall be signed for the have three new supported activities |
| 52 | Investment 2: European Digital Media Observatory Hub (EDMO) | Target | Publication of research results by CEDMO |  | Number of studies |  | 5 | Q4 | 2025 | CEDMO shall publish results of its research activities focusing on:  - disinformation in Central and Eastern-Europe, based on statistically relevant sample  - applied research for developing AI tools  - generative AI  - AI supporting the transformation of media  - regulation of AI use in media |
| 55 | Investment 5: European Blockchain Services Infrastructure (EBSI) – DLT bonds for SME financing | Milestone | Grant agreement signed with the recipient for implementing the use-case for SMEs | Signature of grant agreement |  |  |  | Q4 | 2023 | Grant agreement shall be signed for the implementation of the SME use case. |
| 56 | Investment 5: European Blockchain Services Infrastructure (EBSI) – DLT bonds for SME financing | Target | Number of SMEs enabled to offer digital bonds on the basis of EBSI. |  | Number | 0 | 190 | Q2 | 2024 | The support shall enable SMEs to offer bonds based on Distributed Ledger Technology, without prejudice to the participating companies’ decision on bond issuance |
| 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 | Completion of use cases for Smart Cities and for Industry 4.0 |  | Number | 0 | 27 for Smart Cities; 20 for Industry 4.0 | Q4 | 2025 | Completion of demonstrative 5G use-cases 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 digital solutions to cope with the effects of COVID-19 and with its economic and social consequences |  | Number | 0 | 30 | Q4 | 2023 | Support of businesses in COVID related medical research and in developing projects, and projects aiming at digital solutions to cope with the economic and social consequences of the crisis in a form of de minimis grant support. 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: Funds for the development of pre/seed investments, strategic digital technologies and university spin-offs | Milestone | Launch of the Fund of funds and the investment of the three designated funds (pre-seed, strategic technologies and spin-off funds) | exhaustion of investment capacity from funds provided by the RRF |  |  |  | Q2 | 2026 | Three 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. 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. |
| 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: Digital regulatory sandbox in line with EU priorities | Milestone | Launch of the digital regulatory sandbox | Set-up of the sandbox in the priority regulated areas, such as fintech (based on Digital Finance Package) Distributed Ledger Technology (DLT) |  |  |  | Q2 | 2024 | Digital regulator sandbox with pilot focus in the field of fintech and DLT shall be considered to be active and operating when innovative companies are able to submit their applications for testing projects and products.. |
| 65 | Investment 11: Digital regulatory sandbox in line with EU priorities | Target | Sandbox participants supported by the sandbox |  | Number | 0 | 20 | Q2 | 2025 | Number of companies, within regulated sectors such as fintech, whose projects and products have been tested through the digital regulatory sandboxes. |
| 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. |

D.3. Description of the reforms and investments for the loan

Investment 13 – Fund for the development of strategic technologies

This measure shall consist of a public investment in a Facility in order to incentivise private investment and improve access to finance in Czechia’s strategic technologies sector to develop capital markets in this area. The Facility shall operate by providing financing through intermediaries to the private sector. On the basis of the RRF investment, the Facility aims at initially providing at least EUR 80 000 000 financing.

The Facility shall be managed by European Investment Fund (EIF) as the implementing partner. The Facility shall include the following product line :

·Financing through funds investing in companies active in various areas considered to be of strategic importance to Czechia in addition to digital technologies foreseen under Investment 9. These may include but not be limited to sectors such as energy, sustainability, cleantech, industrial technologies such as robotics, automation or advanced materials, semiconductors, life sciences, biotechnologies, and space or dual use technologies.

In order to implement the investment into the Facility, Czechia and the EIF shall sign an Implementing Agreement that shall include the following content:

1.Description of the decision-making process of the Facility: The final investment decision of the Facility shall be taken by an investment committee or other relevant equivalent governing body and approved by a majority of votes from members who are independent from the government.

2.Key requirements of the associated investment policy, which shall include:

a.The description of the financial product and eligible final beneficiaries.
[7](#footnote8)
.

b.The requirement that all investments supported are economically viable.

c.The requirement to comply with the ‘Do no significant harm’ (DNSH) principle as set out in the DNSH Technical Guidance (2021/C58/01). In particular, in the case of general support to corporates, the investment policy shall exclude companies with a substantial focus
[8](#footnote9)
 in the following sectors: (i) fossil fuel-based energy production and related activities
[9](#footnote10)
; (ii) energy-intensive and/or high CO2-emitting industries
[10](#footnote11)
; (iii) production, rental, or sale of polluting vehicles
[11](#footnote12)
; (iv) waste collection, waste treatment and disposal
[12](#footnote13)
, (v) processing of nuclear fuel, production of nuclear energy. Furthermore, the investment policy shall require compliance with the relevant EU and national environmental legislation of the final beneficiaries of the Facility.

d.The requirement that final beneficiaries of the Facility shall not receive support from other Union instruments to cover the same cost.

3.The amount covered by the Implementing Agreement, the fee structure for the Implementing Partner and the requirement to reinvest any reflows according to the investment policy of the Facility.

4.Monitoring, audit, and control requirements, including:

1.The obligation to verify the eligibility of every operation in accordance with the requirements laid out in the Implementing Agreement before committing to finance an operation.

2.The obligation of carrying out risk-based ex-post audits in accordance with an audit plan of the EIF. These audits shall verify i) that the control systems are effective, including the detection of fraud, corruption, and conflict of interests; ii) compliance with the DNSH principle and the State Aid rules; and iii) that the requirement that final beneficiaries of the Facility have not received support from other Union instruments to cover the same cost is respected. The audits shall also verify the legality of the transactions and that the conditions of the applicable Implementing Agreement and Funding Agreements are being respected.

3.The obligation of the EIF to provide to the Ministry of Finance of Czechia an annual audit report drawn up by their external auditors.

5.Requirements for selecting financial intermediaries: EIF shall select financial intermediaries in an open, transparent, and non-discriminatory manner. Controls for the absence of conflict of interests on financial intermediaries shall take place and be conducted ex-ante for all financial actors involved.

6.Requirement to sign Funding Agreements: EIF shall sign Funding Agreements with the financial intermediaries in line with key requirements that shall be provided in the Implementing Agreement. The key requirements of the Funding Agreement shall include all the requirements under which the Facility operates, including:

1.The obligation of the financial intermediary to take its decisions in compliance mutatis mutandis with the decision making and investment policy requirements specified above, including related to respect of the DNSH principle.

2.The description of the monitoring and audit and control framework that the financial intermediary shall put in place, which mutatis mutandis shall be subject to all the monitoring, audit and control requirements specified above.

The investment shall be completed by 30 June 2026.

D.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

|  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 |  |
| 251 | Investment 13: Funds for the development of strategic technologies | Milestone | Implementing agreement | Entry into force of the Implementing Agreement |  |  |  | Q4 | 2024 | Entry into force of the Implementing Agreement in line with the requirements specified in the description of the measure. |
| 252 | Investment 13: Funds for the development of strategic technologies | Target | Legal agreements signed with funds |  | Percentage (%) | 0 | 100 | Q2 | 2026 | The EIF shall have entered into legal financing agreements with funds for an amount necessary to use 100% of the RRF investment into the Facility (taking into account management fees). |
| 253 | Investment 13: Funds for the development of strategic technologies | Milestone | Ministry has completed the investment | Certificate of transfer |  |  |  | Q2 | 2026 | Czechia shall confirm the transfer of EUR 80 000 000 to the EIF for the Facility. |

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 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: 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: 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 and the wider economy (such as the European and national Digital Innovation Hubs) by allowing enterprises (e.g. 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 by 31 December 2024.

Investment 3: Digital transformation of manufacturing and nonproduction companies and increase of their resilience

Direct support for the digital transformation (such as artificial intelligence, process 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.

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 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 | Q4 | 2024 | A European Reference Testing and Experimentation facility shall be established and its operation launched. This facility shall establish a connection between research sectors and the wider economy (such as the European and national Digital Innovation Hubs) by allowing enterprises (e.g. small and medium enterprises) 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).  At least two third of the aid granted shall be directed to SMEs and mid-caps. |

E.3. Description of the reforms and investments for the loan

Investment 4 - IPCEI Microelectronics and Communication Technologies

The investment aims to provide support in the form of direct grant financing to selected companies participating in four projects, which are part of IPCEI Microelectronics and Communication Technologies. The objective of the measure is to contribute to the cross-border initiative supporting the research and development of and thereby boosting the strategic autonomy and the capacities of the EU in designing and deploying the next generation of microprocessors, semi-conductors and communication technologies.

The investment shall be implemented by 30 June 2026

E.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

|  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 |  |
| 254 | Investment 4: IPCEI Microelectronics and Communication Technologies | Milestone | Signature of grant agreements | Grant agreements signed |  |  |  | Q2 | 2024 | Grant agreement shall be signed with selected companies participating in IPCEI ME/CT projects. |
| 255 | Investment 4: IPCEI Microelectronics and Communication Technologies | Target | Development of pilot solutions |  | Number | 0 | 4 | Q2 | 2026 | One pilot solution per project shall be developed and at least 90% of the funding disbursed. |

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 recovery and resilience 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 and aims to make authorisation procedures more efficient. 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 new structure of building authorities.

This reform shall be implemented by 30 September 2024 and its first impacts 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 2024.

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 new structure of building authorities | New structure of building authorities shall begin its functions. |  |  |  | Q3 | 2024 | Creation of new state structure of building authorities, including internal units. Securing financial and IT staffing as well as training of personnel, allowing for proper functioning of the new structure. |
| 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 Ministry of Regional Development, 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 | 2024 | 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 1.7: Digital Transformation of Public Administration

This component of the Czech recovery and resilience plan addresses the challenges of digitalising the public administration system. It aims to achieve an increase in the number and level of automation of digital services, an increase in competences and inter-ministerial coordination as well as cooperation in the preparation and creation of new public systems and services. Finally, it aims to improve citizens’ trust and their usage of public services via online applications. The component benefits from synergies with component 1.1 and 1.2 which also address the issue of improved digitalisation of the public sphere.

The component supports addressing Country Specific Recommendation 1 2023, according to which Czechia shall expand public investment in 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 recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

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

Investment 1: Unification of domains and the creation of a learning platform

The objective of the investment is to improve the communication with the government and reduce cybersecurity risks by unifying government domains and emails as well as creating a learning platform on eGovernment services.

The investment shall be implemented by 30 June 2026.

Investment 2: Improvement of the management system for digitalised services

The objective of the investment is to optimise, reform and better manage the delivery of digitalised services, including their capacity planning and communication of information to public administration clients. The investment aims at improving the management of digitalised public administration services and shall be implemented by:

(I)Establishing two working groups overseeing the cloud computing projects and public procurement processes for digitalisation in public administration

(II)Creating two information systems for (1) the coordination and communication on the digitalisation of public administration services and for (2) long-term management system for ICT projects

(III)An optimisation project identifying best practices, points for improvement and further actions to take, based on analytical work and stakeholder consultation.

These activities aim at improving the management system of digitalised services, by identifying shortcomings of existing practices, putting new solutions in place, gathering more data and ensuring greater overview of information and improved coordination.

The investment shall be implemented by 30 June 2026.

Investment 3: Creation of a public administration contact centre

The objective of the investment is to set up and equip a contact centre for providing public administration services to clients including citizens and businesses. The contact centre shall provide information, advice and support with the electronic submission of documents for selected government services (“agendy”).

The investment shall be implemented by 30 June 2026.

Investment 4: Creation of a central data infrastructure

The objective of the investment is to support the efficient use of public administration information systems and the efforts to modernise and digitalise public administration services. The investment shall create a central data warehouse with selected information on selected other government systems and services to enable their management and optimisation.

The investment shall be implemented by 30 June 2026.

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 |  |
| 256 | Investment 2: Improvement of the management system for digitalised services | Milestone | Setting up the working groups | Working groups established |  |  |  | Q2 | 2024 | The following working groups shall be established within the Government Council for the Information Society  1.Cloud Computing Working Group  2.Public Procurement Working Group |
| 257 | Investment 1: Unification of domains and the creation of a learning platform | Milestone | Update of Design System | Actions implemented |  |  |  | Q2 | 2026 | The following actions shall be implemented:  1.All websites of central government authorities shall be at the \*.gov.cz domain.  2.All e-mails of central government authorities shall be migrated to the \*.gov.cz domain.  3.At least 3 tutorials on digital communication between citizens and the government shall be created and available online. |
| 258 | Investment 2: Improvement of the management system for digitalised services | Milestone | Update of ICT governance in public administration | Actions implemented |  |  |  | Q2 | 2026 | The following actions shall be implemented:  ·Two information systems shall be operational. These shall be the i) Communication, Coordination and Prioritisation Platform; and ii) an ICT Long-Term Management System.  ·A report on the activities, including the methodologies, analytical documents, action plans, consultations and supervisions supported through this measure, shall be available online. The report shall identify instances of process optimisation and include at least lessons learned, including good practices and prominent failures. |
| 259 | Investment 3: Creation of a public administration contact centre | Milestone | Public administration contact centre operational | Contact centre operational and available to clients |  |  |  | Q2 | 2026 | The public administration contact centre shall be providing services to the public. It shall be fully operational and shall be able to provide information, advice, as well as support with the electronic submission of documents for at least 10 government services (“agendy”). Clients shall be able to contact the centre.  An awareness-raising campaign about the availability of the contact centre and of the tutorials defined in Investment 1 shall take place. |
| 260 | Investment 4: Creation of a central data infrastructure | Milestone | Central data warehouse operational | Central data warehouse operational and providing information to users |  |  |  | Q2 | 2026 | The central data warehouse shall be operational. It shall collect and process data on the operation of at least 10 government IT systems and the performance of at least 25 government services (“agendy”). The data on the performance of government services shall be available as open data. |

H. 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.

H.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, 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 11 projects from the predefined set of projects in the bullet above by 31 December 2023.

●Completion of additional 19 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 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 31 December 2024.

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.

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 |  |
| 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 75 000 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 six 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 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 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 11 additional projects from a predefined set of projects |  | Number of projects | 26 | 37 | Q4 | 2023 | Completion of 11 additional projects from the predefined set of projects comprising 121,88 km of lines modernised, operationally improved or more resistant to natural influences, 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. |
| 261 | Investment 3: Improving the environment (railway infrastructure support) | Target | Completion of 19 additional projects from a predefined set of projects |  | Number of projects | 37 | 56 | Q4 | 2024 | Completion of 19 additional projects from the predefined set of projects comprising 121,88 km of lines modernised, operationally improved or more resistant to natural influences, 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. |
| 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. |

I. 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.

I.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 at least 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 2024.

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 at least 800 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 at least 220 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.

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 |  |
| 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 | 2024 | 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 | 140 | Q1 | 2026 | The target shall be achieved upon reducing energy consumption in state buildings by 140 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 800 projects of renovation of public lightning systems shall be supported under this measure. The target shall be achieved upon contracting 80 % of them (namely 640) 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 220 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 State Environmental Fund 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 | 410 | Q1 | 2026 | The target shall be achieved upon reducing energy consumption in state buildings by 410 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. |

J. 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).

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

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

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 31 December 2023.

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

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 2023. 

  

Investment 1: Development of new photovoltaic energy sources 

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: Modernisation of distribution of heat in district heating systems

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.

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 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 |  |  |  | Q4 | 2023 | 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 | 2023 | 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. |

K. 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).

K.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 30 June 2026.

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.

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 2670 units (2170 battery electric and hydrogen cars and vans, 500 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.

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 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 kilometres of dynamic charging road for the city of Prague |  | Km of | 0 | 40 | Q2 | 2026 | 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. |
| 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 | 2670 | Q4 | 2025 | At least 2670 new zero emission vehicles (2170 zero-emission cars and vans, 500 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. |

L. 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.

L.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: Renovation and revitalisation of buildings for energy savings

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 that 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, recycling, or other material recovery. 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 as of 1 February 2020.

·Reduction of energy consumption by 1 900 TJ/year and reduction of CO2 emissions by 100 kt/year by 31 December 2025.

Investment 2: Replacement of stationary sources of pollution in households with 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 720 TJ/year and reduction of CO2 emissions by 100 kt/year

·Reduction of energy consumption by 1 500 TJ/year and reduction of CO2 emissions by 170 kt CO2/year by 30 September 2023.

·Reduction of energy consumption by 4 500 TJ/year and reduction of CO2 emissions by 500 kt CO2/year by 31 December 2025.

·Reduction of energy consumption by  415 TJ/year and reduction of CO2 emissions by 66 kt/year reached through the support of socially disadvantaged groups of the population by 31 December 2025.

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

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. 40 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.

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 and clear definition of each milestone and target |
|  |  |  |  |  | Unit of measure | Baseline | Goal | Quarter | Year |  |
| 123 | Reform 1: Renovation wave in the household sector | 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 | 40 | 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 40 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 | Target | Projects contracted for reduction of energy consumption |  | 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 as of February 2020.  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 | 1 900 | Q4 | 2025 | Energy consumption and CO2 emissions shall be reduced by 1 900 TJ/year and by 100 kt/year, respectively by 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 | Target | Projects contracted for reduction of energy consumption and reduction of CO2 emissions |  | Energy savings in terra joules per year | 0 | 720 | Q3 | 2023 | Projects for reduction of energy consumption and CO2 emissions by 720 TJ/year and by 100 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 | 720 | 1 500 | Q3 | 2023 | Energy consumption and CO2 emissions shall be reduced by 1 500 TJ/year and 170 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 | 1 500 | 4 500 | Q4 | 2025 | Energy consumption and CO2 emissions shall be reduced by 14 500 TJ/year and by 500 kt/year, respectively, by 31 December 2025, which shall be demonstrated through energy performance certificates.  Energy consumption and CO2 emissions shall be reduced by 430 TJ/year and by 69 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 | 4 890 | Q4 | 2025 | 4 890 projects, including 40 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. |

M. 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).

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

Investment 1: Flood protection

This measure aims 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 support flood protection projects (e.g. identification of water retention potential; establishment, treatment and reconstruction of polders and absorbing grass strips; construction and reconstruction of natural water reservoirs; or 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 2024.

Investment 2: Small watercourses and small water reservoirs

The measure aims 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 aims 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 2024.

Investment 4: Building forests resilient to climate change

This measure aims 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 shall 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 aims 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.

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 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 15 projects aiming at establishing resilient flood protection. |  | Number of projects | 0 | 15 | Q4 | 2022 | First completion report by independent engineer for 15 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 as much as possible.  The listed projects shall be implemented only once permits are granted by the relevant water authority based on an environmental impact assessment, where this is required in accordance with Directive 2011/92/EU, 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. Projects shall contribute to the achievement of good ecological status or potential of the water bodies concerned in accordance with the requirements of the Water Framework Directive 2000/60/EC.  Similarly, all the necessary results and conditions from the Environmental Impact Assessment 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: 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 23 projects aiming at establishing resilient flood protection. |  | Number of projects | 15 | 38 | Q4 | 2024 | Second completion report by an independent engineer for an additional 23 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 as much as possible.  The listed projects shall be implemented only once permits are granted by the relevant water authority based on an environmental impact assessment, where required in accordance with Directive 2011/92/EU, 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. Projects shall contribute to the achievement of good ecological status or potential of the water bodies concerned in accordance with the requirements of the Water Framework Directive 2000/60/EC  Similarly, all the necessary results and conditions from the Environmental Impact Assessment, 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: 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 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. Projects shall contribute to the achievement of good ecological status or potential of the water bodies concerned in accordance with the requirements of the Water Framework Directive 2000/60/EC  Similarly, all the necessary results and conditions from the Environmental Impact Assessment, 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 | 2024 | 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 | 2024 | 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 aims for 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 shall 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 shall 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 | Target | 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. Projects shall be as far as possible nature-based (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 | Target | 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. Projects shall be as far as possible nature-based (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. |

N. 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 recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

N.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
[13](#footnote14)
 and a maximum of 10 % shall be landfilled
[14](#footnote15)
. 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 general objective of this measure is to support investments leading to the development of a circular economy in the field of biodegradable waste management. The measure shall support projects enhancing biodegradable waste recycling capacities and projects aiming at the reintroduction to the soil of compost and of the waste from biogas digesters.

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.

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 |  |
| 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 | 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 the contracts for projects investing in recycling infrastructure by the Ministry of Environment | Notification of the award of the contracts for projects investing in recycling infrastructure by the Ministry of Environment |  |  |  | Q3 | 2024 | Notification of award of the contracts for projects investing in recycling infrastructure by the Ministry of Environment.  The projects consist of construction and modernisation of composting facilities and community composting facilities.   The facilities supported under this investment shall ensure that at least 50 %, in terms of weight, of the processed separately collected non-hazardous waste shall be converted into secondary raw materials.      The investment shall also include support for acquisition of equipment for applying a total of at least 200.000 tonnes per year of compost (digestate or fugate) to Agricultural Land Fund (ALF) for agricultural entities, operators of composting plants and biogas stations.  Recipients of support for acquisition of equipment shall be required to incorporate a minimum of 40 tonnes of compost per hectare over a 5-year period. |
| 149 | Investment 1: Building recycling infrastructure | Milestone | Completion of projects investing in recycling infrastructure | Completion report |  |  |  | Q4 | 2025 | Completion of the projects investing in recycling infrastructures. .  As a result of the investment, the modernisation or construction of composting facilities shall ensure an increase of at least 70 000 tonnes/year of biodegradable municipal waste treated. |
| 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. |

O. 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). 

O.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 at least 10 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 at least 30 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 preferably 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.

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 and clear definition of each milestone and target |
|  |  |  |  |  | Unit of measure | Baseline | Goal | Quarter | Year |  |
| 154 | Investment 1: Support for revitalisation of specific areas | Target | Entry into force of all subsidy contracts between the State Investment Fund and selected brownfield project holders |  | Number of projects |  | 10 | Q4 | 2023 | Entry into force of all subsidy contracts between the State Investment Fund and selected project holders for specific brownfield site regeneration (project preparation, land preparation, investment projects) following the preparation of a subsidy programme. The projects supported by the subsidy programme shall be aimed at carrying out demolition and energy-efficient construction or energy-efficient renovation. A total of at least 10 projects shall be contracted and at least 60 % of the investment provided under this measure shall be devoted to energy-efficient renovation projects.  As to the funding of demolition and energy-efficient construction, it shall be ensured that the selected 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) the total built-up area of new buildings cannot exceed the total built-up area of all demolished former buildings of a brownfield site, with at least 80 % of the new buildings built-up area being placed directly on the built-up area of the former demolished buildings. The conversion of valuable green areas (of high biodiversity value) shall be excluded.  Concerning the support of renovation activities, the call shall specify that at least 90% of the costs shall support energy-efficiency renovations.  The requirements of the calls for projects shall ensure that at least 70% of the construction and demolition waste generated is prepared for reuse and recycling.  The management of the call, evaluation of project applications, selection and signing of a contract with project holders as well as payments during a project realization (construction) and final control shall be entrusted to 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 | 10 | Q4 | 2025 | At least 10 energy-efficiency revitalisation projects of specific brownfield sites shall be completed. At least 60 % of the investment shall be devoted to energy-efficient renovation projects. |
| 156 | Investment 2: Support for the revitalisation of areas in public ownership for non-business use | Target | Entry into force of all contracts between the State Investment Fund and selected brownfield project holders |  | Number of projects |  | 30 | Q4 | 2023 | Entry into force of all contracts for regeneration of publicly owned brownfields for non-business use following the preparation of a subsidy program. The projects supported by the subsidy programme shall be aimed at carrying out energy-efficient renovations or turning brownfield sites into natural carbon sinks.  Concerning the support of renovation activities, the call shall specify that at least 90 % of the costs shall support energy-efficiency renovations.  The requirements of the calls for projects shall ensure that at least 70% of the construction and demolition waste generated is prepared for reuse and recycling.  Overall, at least 30 projects shall be contracted and at least 20% of the investment shall be devoted to projects aimed at turning brownfields into natural carbon sinks. |
| 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 sqm of revitalised built-up area | 0 | 41 000 | Q4 | 2025 | At least 20 % of the investment shall be devoted to projects aimed at turning brownfields sites into natural carbon sinks. Overall, at least 30 projects shall be completed and 41 000 sqm of built-up area revitalised. |
| 158 | Investment 3: Support for the revitalisation of areas in public ownership for business use | Target | Entry into force of all public contracts for the regeneration of publicly owned brownfields for business use |  | Number of projects |  | 20 | Q4 | 2023 | Entry into force of all contracts for regeneration of publicly owned brownfields for business use following the preparation of a subsidy program. The selected projects shall be aimed at supporting demolition and energy-efficient construction or energy-efficient renovation.  As to the funding of demolition and energy-efficient construction, it shall be ensured that the selected 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 requirements of the calls for projects shall ensure that at least 70% of the construction and demolition waste generated is prepared for reuse and recycling.  Overall, at least 20 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 | At least 60 % of the investment shall be devoted to energy-efficient renovation projects of buildings on brownfield sites. Overall, at least 76 000 m3 of built-up space revitalised. |

P. 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).

P.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 include: 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. The solutions shall be implemented on the Svratka river.

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

The general objective of the investment is to enhance the ecological stability of landscape and biodiversity in Czechia. It shall consist of the implementation of measures defined in the 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.

Reform 2: Establishment of landscape policy and planning

The reform aims at the establishment of an integrated landscape management and planning, ensuring cross-sectorial coordination and multi-stakeholders’ involvement. Its ultimate objective is to promote the conservation and sustainable use of natural resources, such as forests, water bodies and biodiversity to ensure long-term ecological and socio-economic benefits.

The government shall adopt an integrated landscape policy document. The policy document shall create an enabling environment for sustainable land management by both public and private sectors. Based on this policy document, a methodology describing the approach to landscape conservation and landscape management at national, regional and local levels shall be published on a web platform accessible to the public and to public servants. Tools for the monitoring of the application of knowledge into practice shall be created and 3 pilot projects shall be completed.

The measure 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 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 | Milestone | Completion of nature-based flood protection measures to protect the city of Brno | Completion of the project |  |  |  | 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 (e.g. construction of a wetland). The flood protection measure shall include nature-based solutions 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 | 20.000 | 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 consist of implementation of measures defined in relevant management plans to improve the state of nature and landscape. Management documents for restoration or declaration of Natura sites 2000 as well as nationally protected sites are expected to be completed. The investment shall be realized both in Natura 2000 sites, especially protected areas and outside the aforementioned areas and shall cover at least 2 625 ha. |
| 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 68 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 | 5 000 | 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 |
| 262 | Reform 2: Establishment of landscape policy and planning | Milestone | Adoption of an integrated landscape policy and planning | Adoption of the landscape policy and publication of the landscape guidance |  |  |  | Q1 | 2026 | Adoption by the Government of an integrated landscape policy document. Stakeholder engagement shall be part of the design of the policy. The policy shall create an enabling environment for sustainable land management by both public and private sectors notably by overcoming administrative and sectoral barriers through collaborative governance mechanisms. It shall cover at least the following topics: biodiversity, water management, forestry and cultural heritage.  Based on this policy, a methodology describing the approach to landscape conservation and landscape management at national, regional and local levels shall be published on a web platform accessible to the public and to public servants.  Tools for the monitoring of the application of knowledge into practice shall be created and 3 pilot projects shall be completed. |

Q. Component 2.10 Affordable housing

This component of the Czech recovery and resilience plan contributes to addressing the current and escalating housing affordability crisis. It aims to increase the supply of affordable housing by providing concessional and subordinated loans to investors as well as establishing a public-private co-investment fund for the renovation and construction of affordable housing.

The component consists of a housing reform, a housing advisory hub and a network of regional housing advisory centres, and three financial instruments focusing on maximising access to finance and leveraging private capital:

·A concessional loans facility

·A subordinated loans facility

·A public-private co-investment fund

The component supports addressing the country specific recommendations on strengthening the provision of social and affordable housing, including through the adoption of a specific legislative framework for social housing and better coordination between different bodies (CSR 3 2022).

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).

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

Reform 1:

The reform aims to increase the affordability of housing by adopting and implementing a modern and balanced legislative framework. As part of the reform, the Affordable Housing Act shall enter into force.

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 of each milestone and target |
|  |  |  |  |  | Unit of measure | Baseline | Goal | Quarter | Year |  |
| 263 | Reform 1: Entry into force of the Affordable Housing Act | Milestone | Affordable Housing Act in force | Act |  |  |  | Q3 | 2025 | The Affordable Housing Act shall enter into force.      The Act shall:  1.Set up a mechanism helping applicants find housing.  2.Set up a mechanism incentivising the use of empty housing.  3.Set up a mechanism helping tenants fulfil their obligations towards landlords. |

Q.3. 
   Description of the reforms and investments for the loan

Investment 1: Concessional loan facility

This measure shall consist of a public investment in a Facility for the provision of concessional loans in order to incentivise private investment and improve access to finance in Czechia’s affordable housing sector. The Facility shall operate by providing concessional loans directly to the private sector as well as to public sector entities engaged in similar activities. On the basis of the RRF investment, the Facility aims at initially providing at least EUR 170 460 000 of financing.

The Facility shall be managed by the State Investment Support Fund as the implementing partner. The Facility shall include the following product line: concessional loans. This product aims to provide concessional loans to projects that contribute to increasing the availability of rental housing. The supported activities aim to be renovations of existing residential housing units, renovations of buildings into residential housing units, acquisitions of housing units and constructions of new housing units.

In order to implement the investment into the Facility, Czechia and the State Investment Support Fund shall sign an Implementing Agreement that shall include the following content:

1)Description of the decision-making process of the Facility: The final investment decision of the Facility shall be taken by an investment committee or other relevant equivalent governing body and approved by a majority of votes from members who are independent from the government.

2)Key requirements of the associated investment policy, which shall include:

a)The description of the financial product(s) and eligible final beneficiaries.

b)The requirement that all investments supported are economically viable.

c)The requirement to comply with the ‘Do no significant harm’ (DNSH) principle as set out in the DNSH Technical Guidance (2021/C58/01). In particular, the investment policy shall exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use
[15](#footnote16)
, (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks
[16](#footnote17)
, (iii) activities and assets related to waste landfills, incinerators and mechanical biological treatment plants. Furthermore, the investment policy shall require compliance with the relevant EU and national environmental legislation of the final beneficiaries of the Facility.

d)The requirement that final beneficiaries of the Facility shall not receive support from other Union instruments to cover the same cost.

e)The requirement that all renovations supported include energy efficiency renovations.

The requirements that future tenants of the supported housing shall not own housing and that they shall fall within at least one of the following categories: households with equivalised household income falling within the range from the first to eighth income deciles in Czechia; households with all members younger than 35 years old; households with at least one member working in one of the following services: education, health care, police, fire brigade, social services, public administration. Furthermore, the rent in the supported housing shall be lower than the estimated market rent for housing of comparable quality. These requirements shall be in place for at least 20 years following the receipt of the financial support.

3)The amount covered by the Implementing Agreement, the fee structure for the Implementing Partner and the requirement to reinvest any reflows according to the investment policy of the Facility.

4)Monitoring, audit, and control requirements, including:

a)The description of the implementing partner’s monitoring system to report on the investment mobilized.

b)The description of the implementing partner’s procedures that will ensure the prevention, detection and correction of fraud, corruption, and conflicts of interests.

c)The obligation to verify the eligibility of every operation in accordance with the requirements laid out in the Implementing Agreement before committing to finance an operation.

d)The obligation of carrying out risk-based ex-post audits in accordance with an audit plan of the State Investment Support Fund. These audits shall verify i) that the control systems are effective, including the detection of fraud, corruption, and conflict of interests; ii) compliance with the DNSH principle and the State Aid rules; and iii) that the requirement that final beneficiaries of the Facility have not received support from other Union instruments to cover the same cost is respected. The audits shall also verify the legality of the transactions and that the conditions of the applicable Implementing Agreement are being respected.

The implementation of the measure shall be completed by 31 August 2026.

Investment 2: Subordinated loans facility

This measure shall consist of a public investment in a Facility for the provision of subordinated loans in order to incentivise private investment and improve access to finance in Czechia’s affordable housing sector. The Facility shall operate by providing subordinated loans directly to the private sector as well as to public sector entities engaged in similar activities. On the basis of the RRF investment, the Facility aims at initially providing at least EUR 94 770 000 of financing.

The Facility shall be managed by the National Development Bank as the implementing partner. The Facility shall include the following product line: subordinated loans. This product aims to provide subordinated loans to projects that contribute to increasing the availability of rental housing. The supported activities aim to be renovations of existing residential housing units, renovations of buildings into residential housing units and constructions of new housing units.

In order to implement the investment into the Facility, Czechia and National Development Bank shall sign an Implementing Agreement that shall include the following content:

1)Description of the decision-making process of the Facility: The final investment decision of the Facility shall be taken by an investment committee or other relevant equivalent governing body and approved by a majority of votes from members who are independent from the government.

2)Key requirements of the associated investment policy, which shall include:

a)The description of the financial product(s) and eligible final beneficiaries.

b)The requirement that all investments supported are economically viable.

c)The requirement to comply with the ‘Do no significant harm’ (DNSH) principle as set out in the DNSH Technical Guidance (2021/C58/01). In particular, the investment policy shall exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use
[17](#footnote18)
, (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks
[18](#footnote19)
, (iii) activities and assets related to waste landfills, incinerators and mechanical biological treatment plants. Furthermore, the investment policy shall require compliance with the relevant EU and national environmental legislation of the final beneficiaries of the Facility.

d)The requirement that final beneficiaries of the Facility shall not receive support from other Union instruments to cover the same cost.

e)The requirement that all renovations supported include energy efficiency renovations.

f)The requirements that future tenants of the supported housing shall not own housing and that they shall fall within at least one of the following categories: households with equivalised household income falling within the range from the first to eighth income deciles in Czechia; households with all members younger than 35 years old; households with at least one member working in one of the following services: education, health care, police, fire brigade, social services, public administration. Furthermore, the rent in the supported housing shall be lower than the estimated market rent for housing of comparable quality. These requirements shall be in place for at least 20 years following the receipt of the financial support.

3)The amount covered by the Implementing Agreement, the fee structure for the Implementing Partner and the requirement to reinvest any reflows according to the investment policy of the Facility.

4)Monitoring, audit, and control requirements, including:

a)The description of the implementing partner’s monitoring system to report on the investment mobilized.

b)The description of the implementing partner’s procedures that will ensure the prevention, detection and correction of fraud, corruption, and conflicts of interests.

c)The obligation to verify the eligibility of every operation in accordance with the requirements laid out in the Implementing Agreement before committing to finance an operation.

d)The obligation of carrying out risk-based ex-post audits in accordance with an audit plan of the National Development Bank. These audits shall verify i) that the control systems are effective, including the detection of fraud, corruption, and conflict of interests; ii) compliance with the DNSH principle and the State Aid rules; and iii) that the requirement that final beneficiaries of the Facility have not received support from other Union instruments to cover the same cost is respected. The audits shall also verify the legality of the transactions and that the conditions of the applicable Implementing Agreement are being respected.

The implementation of the measure shall be completed by 31 August 2026.

Investment 3: Co-Investment Facility

This measure shall consist of a public investment in a public-private co-investment Facility aiming to improve access to affordable housing in Czechia. The Facility shall operate by investing directly into real estate. On the basis of the RRF investment, the Facility aims at initially investing at least EUR 39 574 000.

The Facility shall be managed by the National Development Fund as the implementing partner.

In order to implement the investment into the Facility, Czechia and the National Development Bank shall sign an Implementing Agreement that shall include the following content:

1)Description of the decision-making process of the Facility: The final investment decision of the Facility shall be taken by an investment committee or other relevant equivalent governing body and approved by a majority of votes from members who are independent from the government.

2)Key requirements of the associated investment policy, which shall include:

a)The requirement that all investments supported are economically viable.

b)The requirement to comply with the ‘Do no significant harm’ (DNSH) principle as set out in the DNSH Technical Guidance (2021/C58/01). In particular, the investment policy shall exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use
[19](#footnote20)
, (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks
[20](#footnote21)
, (iii) activities and assets related to waste landfills, incinerators and mechanical biological treatment plants. Furthermore, the investment policy shall require compliance with the relevant EU and national environmental legislation of the final beneficiaries of the Facility.

c)The requirement that final beneficiaries of the Facility shall not receive support from other Union instruments to cover the same cost.

d)The requirement that all renovations supported include energy efficiency renovations.

e)The requirements that future tenants of the supported housing shall not own housing and that they shall fall within at least one of the following categories: households with equivalised household income falling within the range from the first to eighth income deciles in Czechia; households with all members younger than 35 years old; households with at least one member working in one of the following services: education, health care, police, fire brigade, social services, public administration. Furthermore, the rent in the supported housing shall be lower than the estimated market rent for housing of comparable quality. These requirements shall be in place for at least 20 years following the receipt of the financial support.

3)The amount covered by the Implementing Agreement, the fee structure for the Implementing Partner and the requirement to reinvest any reflows according to the investment policy of the Facility.

4)Monitoring, audit, and control requirements, including:

a)The description of the implementing partner’s monitoring system to report on the investment mobilized.

b)The description of the implementing partner’s procedures that will ensure the prevention, detection and correction of fraud, corruption, and conflicts of interests.

c)The obligation to verify the eligibility of every operation in accordance with the requirements laid out in the Implementing Agreement before committing to finance an operation.

d)The obligation of carrying out risk-based ex-post audits in accordance with an audit plan of the National Development Bank. These audits shall verify i) that the control systems are effective, including the detection of fraud, corruption, and conflict of interests; ii) compliance with the DNSH principle and the State Aid rules; and iii) that the requirement that final beneficiaries of the Facility have not received support from other Union instruments to cover the same cost is respected. The audits shall also verify the legality of the transactions and that the conditions of the applicable Implementing Agreement are being respected.

The implementation of the measure shall be completed by 31 August 2026.

Q.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

|  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 |  |
| 264 | Investment 1:  Concessional loan facility | Milestone | Implementing Agreement | Entry into force of the Implementing Agreement |  |  |  | Q3 | 2024 | Entry into force of the Implementing Agreement. |
| 265 | Investment 1:  Concessional loan facility | Target | Legal agreements signed with final beneficiaries |  | % (Percentage) | 0 | 100 | Q2 | 2026 | The State Investment Support Fund shall have entered into legal financing agreements with final beneficiaries for an amount necessary to use 100% of the RRF investment into the Facility (taking into account management fees). |
| 266 | Investment 1:  Concessional loan facility | Milestone | Ministry has completed the investment | Certificate of transfer |  |  |  | Q2 | 2026 | Czechia shall transfer EUR 170 460 000 to the State Investment Support Fund for the Facility. |
| 267 | Investment 2:  Subordinated loan facility | Milestone | Implementing Agreement | Entry into force of the Implementing Agreement |  |  |  | Q3 | 2024 | Entry into force of the Implementing Agreement. |
| 268 | Investment 2:  Subordinated loan facility | Target | Legal agreements signed with final beneficiaries |  | % (Percentage) | 0 | 100 | Q2 | 2026 | The National Development Bank shall have entered into legal financing agreements with final beneficiaries for an amount necessary to use 100% of the RRF investment into the Facility (taking into account management fees). |
| 269 | Investment 2:  Subordinated loan facility | Milestone | Ministry has completed the investment | Certificate of transfer |  |  |  | Q2 | 2026 | Czechia shall transfer EUR 94 770 000 to the National Development Bank for the Facility. |
| 270 | Investment 3:  Co-investment facility | Milestone | Implementing Agreement | Entry into force of the Implementing Agreement |  |  |  | Q3 | 2024 | Entry into force of the Implementing Agreement. |
| 271 | Investment 3:  Co-investment facility | Target | Legal agreements signed with final beneficiaries |  | % (Percentage) | 0 | 100 | Q2 | 2026 | The National Development Bank shall have entered into legal financing agreement with the co-investment facility for an amount necessary to use 100% of the RRF investment into the Facility (taking into account management fees). |
| 272 | Investment 3:  Co-investment facility | Milestone | Ministry has completed the investment | Certificate of transfer |  |  |  | Q2 | 2026 | Czechia shall transfer EUR 39 574 000 to the National Development Bank for the Facility. |

R. 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).

R.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 aim 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.

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 |  |
| 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 aims to 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 implement 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 | Target | 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 172. |
| 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. |

S. 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).

S.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 micro-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 50 000 pupils lag behind and need tutoring due to insufficient participation in online learning during the ten-month school lockdown. The investment aims to prevent further widening of inequalities between pupils and schools driven by social or other disadvantages. Tutoring shall be provided via at least 500 000 individual enrolments for tutoring courses by pupils. This means the same pupil may benefit from tutoring courses in several subjects (e.g., mathematics, English). The aim of the measure is to tutor pupils at risk of school failure. Schools and teachers may autonomously determine which pupils are considered at risk of school failure.

An evaluation of the impacts of this measure shall be published (e.g. how the measure helped restore the learning habits and acquire the knowledge prescribed by the curricula in mathematics, Czech language and a foreign language.

The investment shall be completed by 31 December 2023.

S.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 or reskilling (including micro-credential forms) shall be created 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 individual enrolments for tutoring courses |  | Number | 0 | 500 000 | Q4 | 2023 | Tutoring shall be provided via at least 500 000 individual enrolments for tutoring courses by pupils Tutoring aims to help pupils at risk of school failure restore learning habits and acquire the knowledge prescribed by the curricula in mathematics, Czech language and a foreign language.  An evaluation of the impacts of this measure shall be published. |

T. 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).

T.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.

Reform 4: Reform in the care of the children at risk

The reform aims to improve social care services for children at risk, meaning children whose basic needs cannot be satisfied by their own families’ resources, by the Entry into force of the Amendment on the Act on Social and Legal Protection of Children and by restricting the placement of children below the age of four in institutional care.

The reform shall be completed by 31 December 2024.

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) or professional, business or municipal associations.

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 described in target 190.

The investment shall be completed by 31 August 2026.

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 and the development of the infrastructure of social services for prevention and consulting. These investment projects shall be implemented based on the assessment of territorial needs; ensuring that new and refurbished residential places ensure progress towards 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. Furthermore, to ensure progress towards the Convention, the Social Services Act shall be amended, in particular in areas linked to social service inspections and a complaint mechanism for the clients of social services.

Investment in new capacities shall contribute to climate objectives by increasing energy efficiency as described in targets 194 and 195.

Furthermore, at least 100 electric vehicles and at most 151 plug-in hybrids shall be purchased for social prevention, counselling and home-care services.

The investment shall be completed by 31 August 2026.

Investment 4: Development and modernisation of infrastructure in the field of care for children at risk

The investment aims at addressing the insufficient social care infrastructure for children at risk and to support the process of transition to community-based care in the Czech Republic. The investment supports the provision of social care infrastructure for children at risk through the renovation of existing buildings, building of new facilities and/or purchase of housing units.

The investment shall be completed by 31 August 2026.

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 |  |
| 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 consist 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 or professional, business or municipal associations. 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 | Q2 | 2026 | 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 act 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 | Q2 | 2026 | Of the overall objective to establish 435 new nurseries, at least 391 shall be created, by constructing new buildings and by renovating existing buildings. At least 176 nursery renovations shall achieve either at least 30% primary energy savings or at least 30% reduction of direct and indirect greenhouse gas emissions and at least 98 new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement.  ·Furthermore, the call(s) for projects fulfilling this target shall require one or more of the following: The investment includes the use of grant support as follows: Projects shall be new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement.  ·Projects 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.  ·Projects 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 | Q2 | 2026 | 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 law on childcare (amendment to Act No 247/2014 on the provision of childcare services in a child group) | Provision in the law on childcare (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 childcare (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, outpatient, outreach, prevention and counselling facilities constructed or reconstructed |  | Number of facilities | 0 | 94 | Q4 | 2025 | At least 94 facilities shall be created, of which at least 42 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 emission and at least 32 shall be new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement.  Furthermore, the call(s) for projects fulfilling this target shall require one or more of the following:  ·Projects shall be new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement.;   ·Projects 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.  ·Projects shall be other energy efficiency renovations.  The call(s) shall also require that the projects ensure progress towards deinstitutionalisation of persons with disabilities in line with the UN Convention on the Rights of Persons with Disabilities, in particular the principles of independent living and inclusion in the community, notably freedom of choice of where and with whom to live, control over daily activities and access to services in the community. |
| 273 | Investment 3: Development and modernisation of social care infrastructure | Milestone | Amendment of Social Services Act concerning inspections and complaints | Amended Social Services Act and inspection methodology |  |  |  | Q2 | 2025 | The Social Services Act shall be amended and the amendment shall enter into force. A binding methodology for social services inspection shall be adopted, The act or the methodology shall prescribe that inspections inspect the fulfilment of obligations under the UN Convention on the Rights of Persons with Disabilities in the provision of social services.  Furthermore, as pilot inspections under the new rules, social services provided in any facility with a capacity of more than 25 persons funded from the Recovery and Resilience Plan shall be inspected. Social services where inspections found any shortcomings shall commit to a plan correcting these shortcomings within one year.  Furthermore, the amended Social Services Act shall also establish a social service complaint mechanism ensuring at least that:  ·Clients, client’s legal guardians and family members have the right to submit complaints concerning social services to their provider.  ·Complainants have the right to be informed how the complaint was resolved.  ·Complainants have the right to appeal to a body independent of the service provider; and the body shall consider the appeals on both merit and process.  ·Service providers as well as the relevant appeal body or bodies shall keep a record of the complaints received.  The social services complaint mechanism aims to broadly correspond to the health service complaint mechanism.  The Social Services Act amendment(s) and the inspection methodology shall be discussed and agreed upon by relevant stakeholders. |
| 195 | Investment 3: Development and modernisation of social care infrastructure | Target | T2: Number of community-based residential, outpatient, outreach, prevention and counselling facilities constructed or reconstructed |  | Number of facilities | 94 | 228 | Q2 | 2026 | At least 228 facilities shall be created, of which: at least 100 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 and at least 76 shall be new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement.  Furthermore, the call(s) for projects fulfilling this target shall require one or more of the following:  ·Projects shall be new constructions with primary energy demand at least 20% below the nearly zero-energy buildings requirement    ·Projects 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.  ·Project shall be other energy efficiency renovations.   The call(s) shall also require that the projects ensure progress towards deinstitutionalisation of persons with disabilities in line with the UN Convention on the Rights of Persons with Disabilities, in particular the principles of independent living and inclusion in the community, notably freedom of choice of where and with whom to live, control over daily activities and access to services in the community.  The measure aims to increase the capacity of services to serve 3 958 more clients than would have been possible without the 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 | 2024 | At least 120 low-emission vehicles shall be purchased, of which:  ·at least 40 battery-electric cars  ·at most 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, counselling and home-care services |  | Number | 120 | 251 | Q2 | 2025 | At least 251 low-emission vehicles shall be purchased, of which:  ·at least 100 battery-electric cars  ·at most 151 plug-in hybrid cars |
| 274 | Investment 4: Development and modernisation of children social care infrastructure | Milestone | Call for projects published for housing for children at risk | Call |  |  |  | Q1 | 2024 | At least one call for projects shall be published for the acquisition of housing for children at risk.  The relevant call(s) shall require that:  1.Each housing unit shall not be larger than 200m2 and shall have bedrooms designed for at most two children.  2.Bedrooms designed for two children shall not be smaller than 12.25m2 and bedrooms designed for one child shall not be smaller than 8m2.  3.The housing units shall be used by children at risk within at most 12 months since their purchase.  4.The housing units shall be used for social purposes for at least 10 years. |
| 275 | Investment 4: Development and modernisation of children social care infrastructure | Milestone | Call for projects published for facilities for children at risk | Call for projects |  |  |  | Q1 | 2024 | At least one call for projects shall be published for renovating or building facilities for children at risk. The relevant call(s) shall require that:  1.Each facility shall consist of at most three apartments, each apartment shall be designed for at most six children and per each apartment, at most  2.Bedrooms designed for two children shall not be smaller than 12.25m2 and bedrooms designed for one child shall not be smaller than 8m2.  3.All renovations shall include at least other energy efficiency renovations.  4.All new constructions shall have a primary energy demand of at least 20% below the nearly zero-energy buildings requirement.  5.The facilities shall be used for social purposes for at least 10 years. |
| 276 | Reform 4: Reform of residential and social care for vulnerable children and families | Milestone | Entry into force of an Amendment to the Act on Social and Legal Protection of Children | Legal act |  |  |  | Q4 | 2024 | Amendments to the Act on Social and Legal Protection of Children shall enter into force, ensuring that:  1.the placement of children below 4 years of age in institutional care is banned, with at most two exceptions: i) stays no longer than (at most) two months; ii) children in the 3. or 4. intensity-of-care category.  2.Institutional care (“Dětské domovy pro děti do 3 let věku”)for children below 4 years of age are abolished |
| 277 | Investment 4: Development and modernisation of children social care infrastructure | Target | Housing area for children at risk acquired – 1st batch |  | Housing units | 0 | 1800 | Q1 | 2025 | At least 1800m2 of housing area shall be acquired as housing for children at risk in line with the call(s) for projects in milestone 274 or another call fulfilling the same requirements. |
| 278 | Investment 4: Development and modernisation of children social care infrastructure | Target | Housing area for children at risk acquired – 2nd batch |  | Housing units | 1800 | 5580 | Q4 | 2025 | At least 3780 m2 of additional housing area shall be acquired as housing for children at risk in line with the call(s) for projects in milestone 274 or another call fulfilling the same requirements. |
| 279 | Investment 4: Development and modernisation of children social care infrastructure | Target | Capacity of facilities for children at risk |  | Places | 0 | 237 | Q2 | 2026 | There shall be at least 237 places in the facilities for children at risk built or renovated in line with the call for projects in milestone 275 or another call fulfilling the same requirements.  Out of the 237 places, at least 35% shall be renovated and achieve either at least 30% primary energy savings or at least 30% reduction of direct and indirect greenhouse gas emissions. |

U. COMPONENT 4.1: Systemic support for public investment

This component of the Czech recovery and resilience plan contributes to addressing the challenge of strengthening the administrative capacity of public administration in Czechia. The aim of the component is to provide methodological support for the preparation of projects, to modernise the strategic framework and capacities in the area of public procurement, to support preparation of investment projects and to increase number of staff working on implementation of the Recovery and Resilience Plan in Czechia.

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 recovery and resilience 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: Methodological support for the preparation of projects in line with the EU objectives

The reform consists of institutional and procedural changes and aims to provide capacity building as well as methodological and information support to public investors e.g. municipalities, regions or corporations owned by public entities that are responsible for implementation of public investments. This methodological and information support shall be provided by the established Coordination and Competence Centre. The reform shall focus on adoption of the management plan of the Coordination and Competence Centre with a detailed description of supported activities and their timeline of implementation.

This reform shall be implemented by 31 December 2023.

Reform 2: Methodological support and modernisation of public investment

The reform consists of institutional and procedural changes and aims to support preparation and adoption of a new public procurement strategy and an action plan for its implementation. The strategy and the action plan shall focus at least on the following priorities: professionalisation of contracting authorities, sustainable purchasing, centralisation and joint purchases.

This reform shall be implemented by 31 March 2024.

Reform 3: Financial support for the preparation of projects in line with EU objectives

The reform consists of institutional and procedural changes and aims to prepare at least 90 projects, including at least 72 that shall be sufficiently final to be submitted in calls for proposals under different sources of funding.

This reform shall be implemented by 30 June 2026.

Reform 4: The increase of effectiveness and enhancing the implementation of the National Recovery and Resilience Plan

The reform consists of institutional and procedural changes and aims to strengthen the administrative capacity to coordinate and implement the Czech Recovery and Resilience Plan. New full-time equivalent people shall be hired to support the strategic, analytical, coordination, monitoring, control and communication activities of the bodies involved in the implementation ofthe Plan, including its coordination and audit. Communication and media campaign as well as new functionalities of the monitoring and reporting system shall also be supported.

This reform shall be implemented by 31 December 2024.

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 of each milestone and target |
|  |  |  |  |  | Unit of measure | Baseline | Goal | Quarter | Year |  |
| 280 | Reform 1:   Methodological support for the preparation of projects in line with the EU objectives | Milestone | Establishment of the Coordination and Competence Centre and adoption of its management plan. | The Coordination and Competence Centre is established and its management plan is adopted |  |  |  | Q4 | 2023 | The Coordination and Competence Centre shall be established to provide methodological support for the preparation of projects in line with the EU objectives.  The management plan shall include a description of planned activities of the Centre with the timeline of their preparation. The activities shall include at least the preparing of guidance documents, training, dissemination and support for other authorities. |
| 281 | Reform 2: Methodological support and modernisation of public investment | Milestone | Adoption by the Government of the Czech Republic a new public procurement strategy and an action plan for its implementation | The strategy and the action plan adopted |  |  |  | Q1 | 2024 | A new public procurement strategy and an action plan for its implementation shall be adopted. The strategy and the action plan shall focus at least on the following priorities: professionalisation of contracting authorities, sustainable purchasing, centralisation and joint purchases.  The action plan shall include a timeline and objectives for implementation of priority areas elaborated in the strategy. |
| 282 | Reform 3:   Financial support for the preparation of projects in line with EU objectives | Target | Number of projects prepared for implementation |  | Number | 0 | 30 | Q3 | 2024 | 30 projects shall be prepared for implementation. No less than 24 projects shall be submitted in calls for proposals.  Projects being prepared shall be in line with the DNSH principle as set out in the DNSH Technical Guidance (2021/C58/01). |
| 283 | Reform 3:    Financial support for the preparation of projects in line with EU objectives | Target | Number of projects prepared for implementation |  | Number | 30 | 90 | Q2 | 2026 | 90 projects shall be prepared for implementation. No less than 72 projects shall be submitted in calls for proposals.  Projects being prepared shall be in line with the DNSH principle as set out in the DNSH Technical Guidance (2021/C58/01). |
| 284 | Reform 4:  The increase of effectiveness and enhancing the implementation of the Recovery and Resilience Plan | Milestone | Approval of a government resolution on increasing the administrative capacity for the implementation of the National Recovery and Resilience Plan (systematisation decision) and approval of the related budget | Approved government decision on increasing the administrative capacity for implementation of the plan and of the related budget |  |  |  | Q3 | 2023 | Government resolution(s) directing the Minister of the Interior to increase the administrative capacity to support the implementation of the Recovery and Resilience Plan shall be approved. It shall  a)include systematisation(s) of positions in the relevant ministries (component owners) and in the implementation entities;  b)allocate funds for pre-financing from the state budget  c)increase the capacity for implementation of the NPO through the use of agreement to perform work.  Funding from the national budget for pre-financing of the positions allocated by the systematisation decision shall be approved by the government. |
| 285 | Reform 4:  The increase of effectiveness and enhancing the implementation of the Recovery and Resilience Plan | Target | Increasing the number of people working on the Recovery and Resilience Plan by 2023 |  | Full-time equivalent people | 217 | 338 | Q4 | 2023 | At least 338 full-time equivalent people shall work on the Recovery and Resilience Plan. |
| 286 | Reform 4:  The increase of effectiveness and enhancing the implementation of the Recovery and Resilience Plan | Milestone | Approved media and communications plan for the revised Recovery and Resilience Plan | Approved media and communication plan for the revised Recovery and Resilience Plan |  |  |  | Q1 | 2024 | Update of the media and communication plan for the revised Recovery and Resilience Plan shall be adopted. |
| 287 | Reform 4:  The increase of effectiveness and enhancing the implementation of the National Recovery and Resilience Plan | Milestone | Upgrade of the repository system (AIS) | The upgraded repository system (AIS) becomes available to the bodies implementing the RRP |  |  |  | Q3 | 2024 | The upgraded repository system shall be in place and operational. The system shall include, as a minimum, the following new elements:     a.New milestones and targets and modification of existing milestone/target data;  b.New functionalities linked to creation of statistical reports;  c.development of the system according to additional reporting requirements. |
| 288 | Reform 4:    The increase of effectiveness and enhancing the implementation of the National Recovery and Resilience Plan | Target | Increasing the number of people working on the Recovery and Resilience Plan by 2024 |  | Full-time equivalent people | 338 | 470 | Q4 | 2024 | At least 470 full-time equivalent people shall work on the Recovery and Resilience Plan |

V. 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).

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).

V.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 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
[21](#footnote22)
; (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks
[22](#footnote23)
; (iii) activities and assets related to waste landfills, incinerators
[23](#footnote24)
 and mechanical biological treatment plants
[24](#footnote25)
; 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.

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 |  |
| 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 the requirements 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 applicable intervention fields in Annex VI of Regulation (EU) 2021/241 (with a 40% or 100% coefficient. |

W. 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 recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

W.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 whistleblowing by public institutions, municipalities and large companies. An external notification system for whistleblowing 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 2023.

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 officeholders 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 2023.

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 30 June 2025.

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 establishment 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.

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 |  |
| 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 | 2023 | 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 whistleblowing |
| 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 |  |  |  | Q2 | 2025 | 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-interest situations is in accordance with Article 61 of the Financial Regulation; and  (c) national control procedures to avoid conflict-of-interest situations for all beneficial owners are effective. |

X. 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 recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

X.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 measure aims to increase efficiency, pro-client orientation and use of the principles of evidence-based decision-making in the public administration. It builds on the recommendations of the OECD Public Governance Review, in particular in areas of Chapter 2 (Improving policy co-ordination and strategic planning at the centre of government), Chapter 3 (Promoting evidence-informed decision making), Chapter 6 (Attracting and develop skills in the public service). The following actions correspond to these sections:

Improving policy co-ordination and strategic planning at the centre of government:

·Adopting a summary report on the policy coherence for sustainable development, identifying funding needs for the strategies as well as existing sources of funding.

·Entry into operation of an IT system for SDG-related monitoring indicators.

Promoting evidence-informed decision making:

·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.

·Adopting a new version of the Regulatory Impact Analysis methodology.

·Updating climate-energy model covering all important climate and energy processes for Czechia.

·Creating a database of relevant data from selected information sources, open data and data obtained through a newly created electronic data-collection tool on authorities’ activities.

Attracting and developing skills in the public service

·Establishing Entry into operation of an HR system allowing digital conduct of selected HR processes and  filling-out of forms for selected HR processes and an HR Action Plan for civil service offices.

·Implementing targeted pro-client training programmes for at least 1000 front-office officials.

The reform shall be completed by 31 December 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 |  |
| 215 | Reform 1: Increase efficiency, pro-client orientation and use of the principles of evidence-based decision-making in public administration | Target | Completion of five actions promoting evidence-informed decision making and improving policy co-ordination and strategic planning at the centre of government |  | Actions completed | 0 | 5 | Q4 | 2025 | The following actions shall be completed:  1.A specific data warehouse shall be established and operational for the public administration, containing available individual data from selected information sources, 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.  2. An updated climate-energy model simulating all important climate and energy processes, including the entire energy balance for Czechia, shall be completed and updated input data for the model shall be used. The model and the input data shall be assessed by a recognised international authority in the field of climate change and/or energy policy as in line with international best practice. The outputs of the model shall be used for the drafting of at least one national strategy.     3. The government shall approve a report reviewing existing strategies for meeting the Sustainable Development Goals. The aim of the report is to improve the policy coherence for sustainable development. The report shall identify strategies to abandon and propose specific steps to resolve identified overlaps and inconsistencies. Concrete actors and deadlines for resolving the identified issues shall be listed. Furthermore, the report shall identify funding needs for the strategies as well as existing sources of funding.     4. An IT system for Sustainable Development Goal-related monitoring indicators shall be established. The system shall at least consist of a data repository, a web application for importing datasets, and an interface for custodian agencies. The data from the system shall be available as open data.     5. The government shall approve a new version of the Regulatory Impact Analysis methodology, which shall be based on pilots for at least three legislative proposals. |
| 289 | Reform 1: Increase efficiency, pro-client orientation and use of the principles of evidence-based decision-making in public administration | Milestone | An IT system and action plan for better HR in the public administration | An IT system is established and use, an HR Action Plan is adopted by the government |  |  |  | Q2 | 2026 | An HR IT system shall be established and used at three or more central government authorities or subsidiary organisations of central government authorities, of which at least one shall be a central government authority. The system shall at least allow digital conduct of selected HR processes and allow to fill out forms for selected HR processes.  The government shall adopt an HR Action Plan for civil service offices (“služební úřady”), which shall be based at least on:   1) pilot projects, at least three central government authorities, of improved processes of hiring of and developing managers and specialists; and    2) an empirical assessment of the Czech civil service and modelling of possible scenarios for its reform and/or development. |
| 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. |

Y. 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).

Y.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-source 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.

Y.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-source 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. |

Z. 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 recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

Z.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.

Z.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 shall 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. |

AA. 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 addressing 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).

AA.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 providing support for cooperation between research organisations and SMEs under the National Centres of Competence programme.

Cooperation projects of at least 60 SMEs with a public research organisation under newly created National Centres of Competence shall be supported.

The investment shall be implemented by 31 March 2026.

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.

At least 15 RDI projects in the field of environment shall be supported.

The investment shall be implemented by 31 March 2026.

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 (including EIC Accelerator Pilot), 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 31 March 2026.

Investment 5: Aid for research and development in enterprises in line with the national RIS3 strategy

The measure aims at supporting industrial research and experimental development projects submitted by enterprises in line with the national RIS3 strategy.

The tender shall aim at supporting industrial research and experimental development projects aimed at putting results into practice, in particular in industrial production and in the supply of products on the market, projects developing new services, technologies and materials, increasing automation and robotisation and the use of digital technologies.

The projects selected for support shall be in line with one R&D&I specialisation domain of the national RIS3 strategy.

Grant agreements shall be signed for the support of at least 68 projects. The total budget committed in the grant agreements for all projects and the overall implementation period shall amount to at least 53.9 million EUR.

The investment shall be implemented by 31 March 2026.

Investment 6: Aid for research and development in the field of transport

The measure aims at supporting R&D&I projects in the field of transport.

The tender shall aim at supporting projects for applied research, experimental development and innovation in one of the following fields: (i) sustainable, accessible and safe transport, (ii) automation, digitalisation and technologically advanced transport, (iii) zero emission transport.

The projects selected for support shall also comply with one of the following two specialisation domains of the national RIS3 strategy: (i) green transport; and (ii) technologically advanced and safe transport.

Grant agreements shall be signed for the support of at least 16 projects. The total budget committed in the grant agreements for the overall implementation period of the projects shall amount to at least 8 million EUR.

The investment shall be implemented by 31 March 2026.

Investment 7: Aid for research and development in the environmental field

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 projects selected for support shall be in line with one R&D&I specialisation domain of the national RIS3 strategy.

Grant agreements shall be signed for the support of at least 35 projects in the environmental field. The total budget committed in the grant agreements for the overall implementation period of the projects shall amount to at least EUR 17.9 million.

The investment shall be implemented by 31 March 2026.

AA.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 SMEs involved in cooperation projects | 0 | 60 | Q4 | 2022 | Grant agreements shall be signed for the support of cooperation projects involving at least 60 SMEs with a public research organisation under newly created National Centres of Competence. |
| 290 | 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 |  | Million EUR | 0 | 58 | Q1 | 2026 | The total budget executed for the support of the cooperation projects under Target 228 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 | 58 | Q3 | 2022 | Grant agreements shall be signed for the support of at least fifteen RDI projects in the environmental field. 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. |
| 291 | Investment 3: Aid for research and development in the environmental field | Target | Research and development in the environmental field |  | Million EUR | 0 | 7 | Q1 | 2026 | The total budget executed for the support of projects under Target 229 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 | Q1 | 2026 | 26 projects participating in European Research Area NET Cofunds and projects that received the Seal of Excellence (including in the EIC Accelerator Pilot), 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. |
| 292 | Investment 5: Aid for research and development in enterprises in line with the national RIS3 strategy | Target | Research and development in line with the RIS3 strategy |  | Number of projects in line with the RIS3 strategy for which a grant agreement has been signed | 0 | 68 | Q2 | 2024 | Grant agreements shall be signed for the support of at least 68 projects in line with the national RIS3 strategy. The tender shall aim at supporting industrial research and experimental development projects aimed at putting results into practice, in particular in industrial production and in the supply of products on the market, projects developing new services, technologies and materials, increasing automation and robotisation and the use of digital technologies.  The projects selected for support shall be in line with one R&D&I specialisation domain of the national RIS3 strategy.  The total budget committed in the grant agreements for all projects and the overall implementation period shall amount to at least EUR 53.9 million. |
| 293 | Investment 5: Aid for research and development in enterprises in line with the national RIS3 strategy | Target | Research and development in line with the RIS3 strategy |  | % | 0 | 90 | Q1 | 2026 | At least 90% of the budget committed for the projects under Target 292 shall have been disbursed. |
| 294 | Investment 6: Aid for research and development in the field of transport | Target | Research and development in the field of transport |  | Number of projects in the field of transport for which a grant agreement has been signed | 0 | 16 | Q2 | 2024 | Grant agreements shall be signed for the support of at least 16 R&D projects in the field of transport. The tender shall aim at supporting projects for applied research, experimental development and innovation in one of the following fields: (i) sustainable, accessible and safe transport, (ii) automation, digitalisation and technologically advanced transport, (iii) zero emission transport.  The projects selected for support shall also be in line with one of the following two specialisation domains of the national RIS3 strategy: (i) green transport; and (ii) technologically advanced and safe transport.  The total budget committed in the grant agreements for all projects and the overall implementation period shall amount to at least EUR 8 million. |
| 295 | Investment 6: Aid for research and development in the field of transport | Target | Research and development in the field of transport |  | % | 0 | 90 | Q1 | 2026 | At least 90% of the budget committed for the projects under Target 294 shall have been disbursed. |
| 296 | Investment 7: Aid for research and development in the environmental field | Target | Research and development in the environmental field |  | Number of projects for which a grant agreement has been signed | 0 | 35 | Q2 | 2024 | Grant agreements shall be signed for the support of at least 35 R&D&I projects in the environmental field. The projects selected for support shall also be in line with one R&D&I specialisation domain of the national RIS3 strategy.  The total budget committed in the grant agreements for all projects and the overall implementation period shall amount to at least EUR 17.9 million. |
| 297 | Investment 7: Aid for research and development in the environmental field | Target | Research and development in the environmental field |  | % | 0 | 90 | Q1 | 2026 | At least 90% of the budget committed for the projects under Target [296] shall have been disbursed. |

BB. COMPONENT 5.3: A Strategically Managed And Internationally Competitive R&D&I Ecosystem

This component of the Czech recovery and resilience plan aims at increasing competitiveness and socio-economic benefits and impacts of R & D & I by promoting excellence, strengthening international cooperation and strategic development of human capital. This is achieved through improving the process of developing, implementing, monitoring and evaluating R & D & I policy, harmonising the methodological environment for public R&D&I support, and supporting internationally competitive teams delivering excellence in R&D&I.

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.

BB1. Description of the reforms and investments for non-repayable financial support

Reform 1: A strategically managed and internationally competitive R&D&I ecosystem

The reform entails the strengthening of strategic intelligence capacities for the R&D&I policy in Czechia, the creation of an excellence programme, and the harmonisation of procedural rules for granting public R&D&I support.

The reform shall be implemented by 30 June 2025.

BB.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 |  |
| 298 | Reform 1:  A strategically managed and internationally competitive R & D & I ecosystem | Milestone | Strengthening of strategic intelligence capacities, creation of an excellence programme, and adoption of a methodological guideline for support providers | Adoption of Government Resolutions and of a Methodological Guideline |  |  |  | Q2 | 2025 | The reform shall include the following actions:  a)Adoption of a Government Resolution, creating a new shared activities project to strengthen strategic intelligence capacities for R&D&I policy. The Government Resolution shall establish that the project enables the regular publishing of analysis outputs, and that the analytical scope of the project enables an analysis of the following:    (I)Czechia’s international cooperation in R&D&I;  (II)The role and socio-economic impact of large research infrastructure;  (III)National Research and Innovation Strategies for Smart Specialisation;  (IV)Human resources development in R&D, including the conditions for women’s participation in R&D;  (V)The system of granting of support to innovative enterprises.    The Government Resolution shall also establish that the capacities and analytical outputs are made available across all support providers.    b)Adoption of a Government Resolution creating a new excellence programme. This new excellence programme shall introduce an additional grant title for applicants who:  (I)have received financial support from international grants,   (II)have received national support after having applied for an international grant, or  (III)have received financial support under the national EXPRO grant.     Before the adoption of the programme, representatives of the research sector shall be consulted.    c)Adoption of a methodological guideline, which shall:  (I)Harmonise the procedural rules for the provision of R&D&I support across all support providers. It shall also include a timeline for the implementation of the relevant measures.  (II)Align the criteria for supporting projects from the national budget to the standard criteria for the participation in projects under the EU Framework Programme for Research and Innovation.     Support providers and representatives of the aid beneficiaries shall be involved in the development of the methodological guideline. |

CC. 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).

CC.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

The investment consists of building an Intensive Medicine Simulation Centre which shall expand the infrastructure for post-graduate training and life-long learning of healthcare professionals. The centre shall provide training with the state-of-the-art technologies and equipment, imitating real-life situations, including by using virtual reality. This shall enable training of complex clinical tasks in a safe environment without impacting on patient safety, effective transfer of acquired skills into clinical practice and improving cooperation between medical disciplines. Simulation training shall cover a wide range of activities, ranging from simple treatments to comprehensive patient care by specialised medical teams in pre-hospital care, intensive care units or operating rooms. Also, a system of training for medical personnel in intensive medicine shall be developed.

The investment shall be completed by 31 December 2025.

Investment 2: Rehabilitation care for patients recovering from critical condition

The aim of the investment is to address the need to strengthen rehabilitation care of patients recovering from critical conditions, which multiplied due to the covid pandemic. This shall be achieved by refurbishments and modernising the equipment in the rehabilitation departments and by improving the organisation of rehabilitation care. Acquiring state-of-the-art equipment for comprehensive rehabilitation care shall reduce the need for staffing, thereby increasing the availability of rehabilitation care for patients. Support shall be channelled through a grant scheme with a total allocation of 61 660 000 EUR. Support shall be provided to at least 19 public hospitals which provide acute inpatient care in intensive care units and follow-up rehabilitation care. The selection of projects shall reflect the increased needs for rehabilitation care after the covid pandemic. The aim is for the number of treatments of patients after critical conditions in the rehabilitation care units to increase by 10%.

The investment shall be completed by 31 December 2025.

Investment 3: Building a centre for cardiovascular and transplant medicine

The investment aims at increasing the accessibility of highly specialised care in cardiovascular and transplant medicine in the South Moravian region. Construction of new facilities of the Centre of Cardiovascular and Transplant Surgery in Brno is foreseen in order to expand the current capacity and modernise the equipment to reflect modern treatment methods, with a view to addressing the lack of adequate facilities in the Moravian region. The investment shall increase the number of beds in the current Centre of Cardiovascular and Transplant Surgery from the current 90 to at least 125 beds.

The investment shall be completed by 31 December 2025.

 

CC.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 |  |
| 231 | Reform 1: Improvement of education of healthcare professionals | Milestone | Electronic system for management, administration and evaluation of training of healthcare professionals | A basic platform for the electronic system of management, administration and evaluation of healthcare workers’ education put in operation |  |  |  | Q2 | 2024 | Creation of a basic platform by the Ministry of Health for the new electronic system of management, administration and evaluation of healthcare workers’ education. The electronic system shall be further developed and completed with modules according to education needs. |
| 232 | Investment 1: Creation of the Intensive Medicine Simulation Centre and optimisation of the education system | Milestone | Call for tender for the construction of the Intensive Medicine Simulation Centre | Notification of award of the open and public tender to the contractor |  |  |  | Q4 | 2022 | Notification of the award of the public contract to build the Intensive Medicine Simulation Centre which will provide training to healthcare professionals in a wide range of medical fields:  ·Anaesthesiology and resuscitation  ·Other medical and non-medical skills training related to emergencies  ·Pre-hospital care and ambulance  ·Urgent admission  ·Intensive Care Units and multipurpose operational room  ·Integrated Rescue System  ·Soft Skills – team communication, crisis communication, leadership.    The contractor shall be selected through open and public tender procedures. A needs assessment shall be carried out prior to the launch of the tender. |
| 233 | Investment 1: Creation of the Intensive Medicine Simulation Centre and optimisation of the education system | Milestone | Intensive Medicine Simulation Centre put in operation | Intensive Medicine Simulation Centre constructed, fully equipped and put in operation |  |  |  | Q4 | 2025 | The Intensive Medicine Simulation Centre shall be constructed, fully equipped and put in operation. The capacity should be sufficient to ensure that at least 1 500 healthcare professionals shall be trained in the centre per year. |
| 234 | Investment 2: Rehabilitation care for patients recovering from critical conditions | Target | Support of rehabilitation care |  | Number | 0 | 19 | Q4 | 2024 | Support shall be channelled through a grant scheme with a total allocation of 61 660 000 EUR. At least 19 projects shall be supported to increase the capacity of rehabilitation care for patients after critical conditions in public hospitals. |
| 235 | Investment 3: Building a centre for cardiovascular and transplant medicine | Milestone | Centre for Cardiovascular and Transplant Medicine fully operational | Centre for Cardiovascular and Transplant Medicine fully operational |  |  |  | Q4 | 2025 | New facilities of the Centre for Cardiovascular and Transplant Medicine fully operational. The construction of the new facility shall create at least 35 new beds at the Centre for Cardiovascular and Transplant Medicine. The construction shall be subject to open and public tender procedures. A needs assessment shall be carried out prior to the launch of the tender. |

DD. COMPONENT 6.2: The National Plan to Strengthen Oncological Prevention and Care

This component of the Czech recovery and resilience plan addresses the challenge of increasing the resilience of the cancer prevention and care system, which has been affected by the long-term negative effects of the COVID-19 pandemic.

With respect to reforms, a new National Oncological Programme for the Czech Republic for 2022-2030 shall be set up and the scope and quality of screening programmes for cancer prevention shall be enhanced.

With respect to healthcare infrastructure, the objective is to support the construction of the Czech Oncology Institute in Prague and the Centre for Oncological Prevention. Furthermore, oncological and hematooncological care facilities shall be also supported, as well as new facilities at the Masaryk Memorial Cancer Institute in Brno to strengthen cancer prevention.

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).

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

Reform 1: National Oncological Programme of the Czech Republic – NOP CZ 2030

The reform is aimed at establishing the Czech Republic’s National Oncological Programme for the period 2022-2030 (NOP CR 2030). The NOP 2022-2030 shall reflect the priorities set out in Europe’s Beating Cancer Plan, including the principles of the Patient-Centred Cancer Care Culture
[25](#footnote26)
. The preparation of the programme is under the responsibility of the Czech Oncological Society. The Ministry of Health shall set up a National Council for the Implementation of the NOP, which shall play a coordinating role in the preparation, implementation and evaluation phases.

The reform shall be completed by 31 December 2025.

Reform 2: Supporting and enhancing the quality of preventive screening programmes

The reform shall focus on enhancing the scope and quality of cancer prevention programmes with the aim to reduce morbidity and mortality of cancer cases, limit the costs of treatment at advanced stages of the disease and increase life expectancy and quality of life. The measures include:

·appointment of the National Screening Centre, by 30 June 2025, as the body responsible for coordination of cancer screening programs in the Czech Republic;

·enhancing the scope, accessibility, performance and impact of the existing screening programmes, in particular by increasing the coverage of the target population. For example, the coverage of the target population by the colorectal cancer screening programme shall increase to at least 40% by 30 June 2026;

·piloting of new screening programmes, including their verification through population and clinical studies. In particular, an early lung cancer detection programme shall be launched and at least 20 000 participants of the target population shall participate by 30 June 2026.

·setting up a system to plan new prevention programmes and estimate their cost-effectiveness and impact in the public health insurance system;

·creation of a database for across-the-board monitoring and evaluation of screening programmes, including a broad quality indicator panel and efficiency assessment.

The measure shall be completed by 30 June 2026.

Investment 1: Establishment of the Czech Oncology Institute

The investment focuses on building the Czech Oncology Institute in Prague with the aim to provide cancer prevention, diagnosis and all treatment modalities, in one single point-of-care. The investment shall include the construction of a new building and acquisition of equipment (including, among others clinical equipment and information and communications technology equipment and safety equipment). The objective is also to establish a cancer centre with an international outreach in the Central and Eastern Europe region. The aims is a capacity of 8500–11200 hospitalised patients per year.

The Ministry of Health shall submit by 15 March 2022 a set of necessary documents, including:

·Medical program/functional plan and draft design suitable for Design and Build procurement purposes,

·Feasibility study, including needs assessment in context of the wider health strategy, technical, operational and economic feasibility, sustainability in both of financial and staffing terms, and impact on provision of oncology care at regional and country level, including on the travelling time and professional proficiency.

These documents shall be validated by an independent authority by 31 December 2022.

The investment shall be completed by 30 June 2026.

Investment 2: Developing highly specialised oncological and hematooncological care

The investment aims at strengthening highly specialised cancer care in both Complex Oncology Centres and Centres of highly specialised hematooncology, by the acquisition of cutting-edge technologies and equipment. The investment shall enable the oncology centres to provide diagnosis and cancer treatment based on the principles of precision and personalised medicine, which would improve the diagnosis and treatment in particular of rare cancer types. The concept of precision medicine covers in particular theranostics, advanced visualisation methods, individualised cell and gene therapies and modern radiotherapy. At least ten Complex Oncology Centres and Centres for highly specialised hematooncology shall be supported.

The investment shall be completed by 30 June 2026.

Investment 3: Establishment and development of the Centre for Cancer Prevention and Infrastructure for Innovative and Supportive Care at the Masaryk Memorial Cancer Institute

The investment aims at increasing the capacity and developing innovative cancer prevention and care in the Masaryk Memorial Cancer Institute in Brno. First, the investment includes the construction of a new facility of the Centre for Cancer Prevention, which shall increase the number of cancer prevention programmes (primary, secondary and tertiary) and separate preventive care from care facilities (to cater for anti-epidemic and psychosocial aspects). The aim is that the annual number of interventions at the Cancer Prevention Centre increases by 30 % compared to 2019. Second, new facilities shall be created for innovative and supportive cancer care, namely the First Contact Centre, the Clinical Trial Centre, the Support Care Centre and the Education Centre. The Support Care Centre shall allow for piloting a new support programme for cancer survivors, the results of which may then be transferred to other cancer centres in the Czech Republic. The aim is that the annual number of clients of the Innovative and Supportive care at the Masaryk Memorial Cancer Institute increases by 20% compared to 2019.

The investment shall be completed by 31 December 2025.

DD.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 |  |
| 236 | Reform 1: National Oncological Programme | Milestone | National Oncological Programme of the Czech Republic 2022-2030 | Approval of the National Oncological Programme 2022-2030 by the government |  |  |  | Q4 | 2021 | The National Oncological Programme shall be prepared under the responsibility of the Czech Oncology Society in consultation with key actors and stakeholders, in particular the Ministry of Health, National Oncology Centres, Centres of highly specialised cancer and haematology care, Institute of Health Information and Statistics, representatives of healthcare providers, health insurance companies and patients associations. |
| 237 | Reform 2: Supporting and enhancing quality of preventive screening programmes | Milestone | Appointment of an institution responsible for coordination of oncological screening programs | National Screening Centre appointed by the government as the body responsible for coordination of cancer screening programmes |  |  |  | Q2 | 2025 | The National Screening Centre shall be responsible for:  ·coordination, planning, monitoring and evaluation of the screening programmes  ·setting-up a predictive system to plan new prevention programmes and estimate their cost-effectiveness and impact in the public health insurance system;  ·building a database for monitoring and evaluation of screening programmes, including setting up a scoreboard of quality indicators  ·piloting new screening programmes |
| 238 | Reform 2: Supporting and enhancing quality of preventive screening programmes | Target | Increase in the coverage of the target population by the colorectal cancer screening programme |  | % | 34 | 40 | Q2 | 2026 | The participation of the target population in the appropriate screening test (e.g. biennial Faecal Occult Blood Test) shall increase to at least 40%. |
| 239 | Reform 2: Supporting and enhancing quality of preventive screening programmes | Target | Number of participants in the new early lung cancer detection programme |  | Number | 0 | 20 000 | Q2 | 2026 | An early lung cancer detection programme shall be launched and at least 20 000 participants of the target population shall participate. |
| 240 | Investment 1: Building and establishment of the Czech Oncological Institute | Milestone | Feasibility study validated by an independent authority | Validation of a feasibility study by an independent authority |  |  |  | Q4 | 2022 | Validation by an independent authority of:  ·Medical program/functional plan and a draft design suitable for Design and Build procurement purposes,  ·Feasibility study, including needs assessment in context of the wider health strategy, technical, operational and economic feasibility, sustainability in both of financial and staffing terms, and impact on provision of oncology care at regional and country level, including on the travelling time and professional proficiency.  The feasibility study recommended guidelines have been presented by the EC in the “Guide to CBA of Investment Projects, December 2014. |
| 241 | Investment 1: Building and establishment of the Czech Oncological Institute | Milestone | The Czech Oncology Institute put in operation | An operating licence issued by the Ministry of Health to the Czech Oncology Institute |  |  |  | Q2 | 2026 | Construction works completed and an operating licence obtained.  The capacity shall be at least 300 beds for in-patient care (leading to an increase of the number of beds for cancer treatment by the healthcare provider concerned by at least 50 beds)  The construction shall be subject to open and public tender procedures. |
| 242 | Investment 2: Developing highly specialised oncological and hematooncological care | Target | Number of supported facilities providing oncological and hematooncological care |  | Number of supported health facilities | 0 | 10 | Q2 | 2026 | Support shall be provided to the Complex Oncology Centres and Centres of highly specialised oncology and hematooncology care through a grant scheme administered by the Ministry of Health, with a total allocation of EUR 64 920 000. At least ten centres shall be supported in acquisition of cutting-edge technologies and equipment allowing for personalised medicine. The selection of projects to be supported shall ensure balanced geographical coverage. Only public healthcare providers shall be supported. |
| 243 | Investment 3: Establishment and development of the Centre for Cancer Prevention and Infrastructure for Innovative and Supportive Care at the Masaryk Memorial Cancer Institute | Milestone | Cancer Prevention Centre at the Masaryk Memorial Cancer Institute | The new Cancer Prevention Centre at the Masaryk Memorial Cancer Institute put in operation |  |  |  | Q4 | 2025 | Entry into use of new facilities of the Cancer Prevention Centre at the Masaryk Memorial Cancer Institute. Transfer of existing capacities to new premises completed.  The construction shall be subject to open and public tender procedures. A needs assessment shall be carried out prior to the launch of the tender. |
| 244 | Investment 3: Establishment and development of the Centre for Cancer Prevention and Infrastructure for Innovative and Supportive Care at the Masaryk Memorial Cancer Institute | Milestone | Expansion of facilities for Innovative and Supportive Care at the Masaryk Memorial Cancer Institute | New facilities for Supportive and Innovative care put in operation |  |  |  | Q4 | 2025 | Entry into operation of the new facilities of the First Contact Centre, the Clinical Trial Centre, the Support Care Centre and the Education Centre.  The construction shall be subject to open and public tender procedures. A needs assessment shall be carried out prior to the launch of the tender.  The pilot project on the Programme of Cancer Survivors shall be completed. |

REPowerEU Chapter

The objective of the REPowerEU chapter of the Czech recovery and resilience plan is to support the development of renewable energy sources by designating RES acceleration areas, simplifying RES procedures, while also preparing the electric grid to increase its connectivity capacity. These measures jointly contribute to incentivise the take-up of renewables and strengthen energy security. The REPowerEU chapter also aims to improve the energy efficiency of the building stock, decarbonise road transport by lowering energy demand and reduce dependence on fossil fuels, and adapt university programmes to meet the demand for green skills.

Of the 20 measures in the Czech REPowerEU chapter, six have a cross-border dimension. The largest investment with a cross-border dimension concerns construction, strengthening, reconstruction and modernisation of the electricity distribution systems. Other notable measures are the development of photovoltaics and the comprehensive reform of the Renovation Wave advisory system.

The REPowerEU chapter contributes to addressing the country specific recommendations to reduce overall reliance on, and consumption of fossil fuels by accelerating the deployment of renewables and facilitating their integration into the electricity system, including through further streamlining permit procedures and making grid access easier and decreasing the use of fossil fuels in the Czech transport system, and to increase the energy efficiency of district heating systems and of the building stock by incentivising deep renovations and renewable heat sources.

It is expected that no measure in the REPowerEU chapter 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 mitigation steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

EE. COMPONENT 7.1: Renewable energy and electricity infrastructure (REPowerEU)

The purpose the component is to contribute to the achievement of the 2030 energy and climate targets for Czechia by facilitating the increase of renewable energy sources into the Czech energy mix and deploying the adapted electricity infrastructure.

The objective of the reforms is to support the deployment of renewable energy projects by streamlining permit granting and administrative procedures for renewable energy sources while simplifying and increasing the transparency of the grid connection procedures.

The objective of the investments is to upgrade and develop the electricity distribution grids to enable the electricity system to integrate small- and large-scale renewable energy sources into the grid.

The component supports addressing the country specific recommendation to reduce overall reliance on, and consumption of fossil fuels by accelerating the deployment of renewables, including through further streamlining permit procedures and making grid access easier (CSR 4, 2022).

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

Investment 1: Construction, refurbishment and upgrade of distribution networks

The objective of this measure is to accommodate the expected increase in demand for integrating the intermittent renewables into the distribution grid. At least 1777 MW of cumulative additional capacity for connection of renewable energy sources to the distribution networks in Czechia shall be achieved. The supported interventions– such as the construction of new or extensions of existing lines (low medium and high voltage), the construction of new electrical stations, the renewal and expansion of existing substations, including the deployment of a new generation control system increasing dimensioning or installation of new transformers – aim to contribute to removing bottlenecks in the grids in view of maximizing the additional technical capacity for integration of new renewables.

The investment shall be completed by 31 March 2026

Investment 2: Scaled up measure Component 2.3 (Transition to Cleaner Energy Sources) Deployment of Photovoltaics

The objective of this measure is to scale up Investment 1 : Deployment of Photovoltaics in Component 2.3 (Transition to Cleaner Energy Sources).

The scaled-up part of the measure shall increase the installed capacity of sources of photovoltaic powers plants on the roof of companies’ buildings.

The investment shall be completed by 31 March 2026.

Reform 1: Simplifying permitting procedures for renewables

The reform shall remove the requirement to obtain a construction permit, a license to produce electricity and a zoning consent decision for renewable power installations with a total installed capacity of up to 50 Kw, as well as remove the grid connection authorization for the installations up to 10kW.

The reform shall simplify the permitting procedure for renewable energy installations with an installed capacity above 1MW. Those installations shall be considered as of public interest and shall benefit from a preferential treatment as regards zoning permits and building permits.

The reform shall be completed by 31 March 2023

Reform 2: Accelerating and digitalizing permitting process for renewables

The reform shall set differentiated, binding maximum deadlines for all relevant stages of the procedure based on the capacity of the renewable energy installations. The duration of the entire permit granting process (including grid connection) shall not exceed 2 years for installations from 150 kW and one year for installations below 150 kW. For solar installations in artificial structures, the permit granting process shall not exceed 1 month.

The reform shall establish a digital one stop shop, acting as single point of contact to help applicants throughout the entire permitting procedure. The reform shall ensure that the different stages of the permitting procedure (e.g., construction permits, environmental permit, grid connection and licensing) are fully digitalized.

The reform shall be completed by 31 December 2024

Reform 3: Improving the predictability, transparency and availability of grid connection process

The objective of the reform is to improve the use of available electricity grid capacity and to facilitate the connection of renewable energy sources to the grid and self-consumption.

Sub-measure 1: Improve transparency of the grid connection procedure

The reform aims to remove barriers to grid connection process introducing binding time limits for the grid connection procedures, taking into account requirements on the duration of the permit-granting process under EU law; reducing the duration of the assessment and contract from 30 to 15 days for distribution system operators (DSO) (including low, medium and high voltage) and from 60 to 30 days for Transmission System Operator (TSO) (high voltage). 

The objective of the reform is also to address the challenges linked to the overbooking of available capacities while enhancing the accountability of the DSO. New rules shall include specification of the time limits for reservation of grid capacities, the adaptation of rules for the re-release of unused capacities, the financial incentives discouraging the non-utilization of allocated capacities and the conditions by which DSO can cancel the reservation of capacity.

The reform aims to increase the transparency of the grid connection procedure through actions to raise awareness and provide visibility for market participants and network customers.

Every month, the three regional DSOs shall publish a transparency map on their website including for each of their respective areas of operation, information on available grid connection capacities for new connections at all voltages levels, publish aggregated anonymized connection requirements of accepted and rejects requests.

The reform shall contribute to increase the additional cumulative connection capacity of at least at least 8000 MW of renewable energy sources to the distribution networks in Czechia by 31 August 2026.

Sub-measure 2: Regulatory incentives for electricity network operators to increase grid flexibility

The reform aims to the revise the regulatory framework governing DSO/TSO investments and tariffs, in view to ensuring smooth integration of additional renewable energy sources into the Czech energy mix.

The reform shall be implemented by 31 March 2026.

EE.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 |  |
| 299 | Investment 1 : Modernisation and digitalisation of the regional distribution systems – | Target | Completion of investments into modernisation of distribution networks in the Czech Republic |  | MW | 0 | [1777] | Q1 | 2026 | At least [1777] MW of cumulative additional capacity for connection of renewable energy sources to the distribution networks in Czechia shall be achieved. The projects shall contribute to removing bottlenecks in the grids and maximizing the additional technical capacity for integration of new renewables.    To show compliance with the capacity requirements mentioned above, a technical report prepared by an independent engineer shall be provided. |
| 300 | Investment 2: Scaled up measure : Development of new photovoltaic energy sources | Target | Completion of a further 224,7MW installed capacity of FVE sources |  | MW | 270 | 494,7 | Q1 | 2026 | New capacity of photovoltaic energy sources of 494,7 MW shall be installed and put into operation. |
| 301 | Reform 1 : Simplifying permitting procedures for renewables | Milestone | Entry into force of the amended legislation | Provision in the law indicating the entry into force |  |  |  | Q3 | 2023 | The legislation shall be amended to :  -remove the requirement to obtain a construction permit, a license to produce electricity, and a zoning consent / zoning permit for renewable power installations with a total installed capacity of up to 50 Kw as well as remove the grid connection authorization for the installations up to 10 kW.  -Accelerate and simplify the permitting procedure (building permit, zoning permit) and grid connection for installations above at least 1MW |
| 302 | Reform 2 : Accelerating and digitalizing permitting process for renewables | Milestone | Entry into force of the amended legislation | Provision in the law indicating the entry into force |  |  |  | Q3 | 2024 | The legislation shall be amended to :  Set differentiated, binding maximum deadlines for all relevant stages of the procedure based on the capacity. The duration of the entire permit granting process (including grid connection) shall not exceed 2 years for renewable installations from 150 kW and one year for renewable installations below 150 kW. For solar installations in artificial structures with a capacity equal or below 100 kW, the permit granting process shall not exceed 1 month.  -Introduce a monitoring from the energy regulator on the length of the different permitting process. |
| 303 | Reform 2 : Accelerating and digitalizing permitting process for renewables | Milestone | Digital one stop shop | Entry into operation of the web portal |  |  |  | Q4 | 2024 | A digital one stop shop (web portal) shall be operational and have started to offer services, information guiding the applicant through the different administrative permit application process. The one stop shop shall act as a single contact point for investors/applicants for the handling and delivery of permits and involve, where appropriate, other administrative authorities.  The web portal shall allow citizens and enterprises to introduce digitally demand for the different types of permits (construction, licensing, environmental permits) and grid connection procedures. The web portal shall integrate all stages of the procedures and also the functionality for applicants to follow-up online the status of the permits, exchange digitally the required documents, modify the request until the issuance of the permit.  The different stages of the permitting procedure (e.g., construction permits, environmental permit, grid connection and licensing) are fully digitalized. |
| 304 | Reform 3 – Sub measure 1  Improve transparency of the grid connection procedure | Milestone | Entry into force of legislative and procedural changes | Provision in the law and decrees indicating the entry into force of the law or decree |  |  |  | Q1 | 2024 | The legislation shall be amended to:  -Empower DSO to cancel the reservation of grid capacities only based on technical criteria and after demonstration of non-utilisation of the capacities.  -Obligation of the distribution system operator to provide a written justification to the connection applicant for the lack of connection capacity and to indicate the date and conditions for future connection  -Set rules for the re-release of unused capacities , financial incentives discouraging the non-utilization of allocated capacities in due time and the conditions by which DSO may  cancel the reservation of capacity.  -The Czech Energy Regulator shall review at least every sixth months , in each region the adequacy of a decision taken by the DSO to cancel the capacity.  -Introduce a maximum binding time for grid connection to be specified in the grid connection agreement contracts  -Reduce the deadlines for appeal in front of conciliation bodies between applicants and DSOs  -Enhance the transparency and accountability of the grid connection procedure.  -at least every month, DSOs (ČEZdi, PREdi, EG.D ) shall publish online information on available grid connection capacities for new connections in their respective areas of operation, as well as publish aggregated anonymized connection requirements of accepted and rejected requests.  DSO/TSO shall also provide clear and transparent information to system users about the status and treatment of their connection requests. |
| 305 | Reform 3 – Sub measure 1  Improve transparency of the grid connection procedure | Milestone | Publication of information on grid connection requests and capacities | Entry into operation of the interactive map |  |  |  | Q1 | 2024 | An interactive map shall be published on the websites of the three regional DSOs (E.GD, CEZ and PRE) and displays the following information :  -for each area of operation information on the available grid capacity at medium and high voltage levels.  -For low voltage level, information at the level of the transformer, station-aggregated anonymized information on the accepted and rejected requests (including the number of alternative connection agreements), and anonymized connection requirements the accepted and rejected requests |
| 306 | Reform 3 – Sub measure 1  Improve transparency of the grid connection procedure | Milestone | Publication of information on grid connection requests and capacities | Publication of information on grid capacity at all voltage levels |  |  |  | Q1 | 2025 | The digital map shall display information on available grid capacities at all voltage levels operated by DSOs, including at low voltage level. |
| 307 | Reform 3 – Sub measure 1  Improve transparency of the grid connection procedure | Target | Grid connection authorisation for renewable power plant capacity | Total connected renewable capacity | MW | 0 | 8000 | Q2 | 2026 | At least 8000 MW of cumulative additional grid capacity for connection of renewable energy sources has been achieved. The target covers all category of solar and wind power plants. A government database shall monitor progress towards corresponding targets. |
| 308 | Reform 3 – Sub measure 2: Regulatory incentives for electricity network operators to increase grid flexibility | Milestone | Publication of the new TSO and DSO tariff methodologies on the website of the energy regulator |  |  |  |  | Q1 | 2026 | The new Tariff methodology shall reflect the fixed and operational costs of TSO and DSOs and shall consider both capital and operational expenditure. It shall provide for incentives to TSO and DSOs to invest in energy efficiency, in the integration of renewable energy , in solutions to optimise the existing grid and facilitate demand response and energy storage. It shall provide incentives to support the use of flexibility services, and incentives to facilitate innovation in areas such as digitalisation, flexibility services and interconnection.  TSO and DSOs shall be incentivised via the tariff methodology towards higher return when investing in grid efficiency, flexibility enhancement, or connection of renewable energy. |

FF. COMPONENT 7.2 Supporting decentralisation and digitalisation of the energy sector (REPOWER EU)

The objective of the component is to support the transition towards a new energy system based on decentralized renewable energy generation, digitalisation and increased participation of citizens. The component contributes to facilitate the uptake of new activities in the electricity sector such as storage, aggregation, energy sharing and new uses that support the flexibility and the decarbonisation of the entire electricity system.

The component supports addressing the country specific recommendation to reduce overall reliance on, and consumption of fossil fuels by accelerating the deployment of renewables and facilitating their integration into the electricity system (Country Specific Recommendation 4, 2022).

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

Investment 1: Electricity Data Centre

The objective of the measure is to set up an Electricity Data Centre (EDC). The EDC shall manage a digital IT platform collecting data on generation, consumption and flexibility at one central location and providing technical services to enhance the security and reliability of the operation of the electricity system of the Czech Republic for the benefit of all market participants (including end customers). The creation of the EDC aims to support the creation of new market and activities and to enable energy sharing.

The EDC shall ensure the coordination, sharing and exchange of measured data as well as the matching and data processing related to the provision of flexibility, flexibility aggregation and electricity storage. It shall also provide services in the following areas: collection and provision of metering data, data evaluation for the purpose of energy storage, energy sharing, flexibility aggregation, balancing, grid scheduling, market registration, transmission of metering data, a network light traffic systems and master data registration. The access to technical functionalities provided by of the EDC information system shall be non-discriminatory and be open to all market participants. Customers, distribution system operator, electricity suppliers and electricity market operators shall be able to access data they are entitled to under the relevant applicable legislation.

The investment shall be completed by 31 March 2026.

Reform 1: Energy communities

The objective of the reform is to establish a regulatory framework in view of incentivizing and facilitation the development of citizens and renewable energy communities.

The reform aims to introduce incentives for the development of energy communities and encourage their engagement in activities such as collective production and consumption within the energy community framework.

The amended rules shall implement the open participation principle, it shall not unduly restrict the collective self-consumption and production or introduce any kind of restrictions based on the size or geography. Energy Communities should be allowed to operate also in renewable heating, not only on the electricity market.

The reform shall be completed by 31 December 2026.

Reform 2: Energy Storage and Non fossil flexibility framework

This measure aims at establishing a comprehension regulatory framework for flexibility services such as energy storage, demand response, aggregation. The objective is to promote the development of innovative technical, technological and software solutions for energy flows optimization to ensure integration of renewable energy sources to the grid and enable the electricity system to adjust to the variability of electricity generation and consumption across different time horizons.

Furthermore, the reform aims to ensure the participation of energy communities, aggregators, self-consumers, active customers, energy storage assets, industrial demand response participants to the electricity market, while increasing overall flexibility of electricity system and decreasing the use of fossil fuels.

The reform shall ensure the market for non-fossil flexibility solutions is open to all participants coming from other Member States and shall remove any obstacles to such participation. The reform should develop a conducive regulatory regime for the integration of non-fossil flexibility into energy, capacity and ancillary service markets. The reform shall introduce incentives for the development of energy communities and encourage demand aggregation, storage of electricity and the provision of flexibility within the energy community framework.

The legislation shall facilitate market-based commercial energy storage investments and aims to be accompanied by additional financial support schemes to increase energy storage facilities.

The reform shall be implemented by 30 September 2025.

FF.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 |  |
| 309 | Investment 1: Electricity Data Centre | Milestone | Entry into force of the legislation establishing the Electricity Data Centre | Provision in the law indicating the entry into force of Electricity Data Centre |  |  |  | Q1 | 2024 | The Electricity Data Centre is established by law and its functionalities and obligations are defined by the law. In particular, the EDC shall:  - register, at the request of the market participant, the flag or other identification of transfer points involved in electricity sharing and transfer points involved in off-take at another off-take point in the data centre and transmit the registration information to the market operator,  - allocate, at the request of the market participant, the share of electricity shared within the transfer points and allocate the share of own generated electricity at another market participant's point of consumption,  - process electricity metering data for inclusion of electricity sharing in the deviation assessment and in the amount of electricity for which regulated and unregulated prices are paid in the electricity market,  - provide traders with anonymised data recorded by the data centre with the transfer points of electricity consumption points and generation plants, including other data related to electricity sharing,  - provide the market operators and the distribution system operators with metering data taking into account shared electricity.  The access to technical functionalities provided by of the EDC shall be non-discriminatory and be open to all market participants. Customers, distribution system operator, electricity suppliers and electricity market operators shall be able to access data they are entitled to under the relevant applicable legislation. |
| 310 | Investment 1: Electricity Data Centre | Milestone | Entry into operation of the Energy Data Centre | Launch of the functionalities linked to energy sharing |  |  |  | Q3 | 2024 | The Electricity Data Centre shall start the operation of functionalities linked to energy sharing (measurement and data evaluation). |
| 311 | Investment 1: Electricity Data Centre | Milestone | Entry into operation of the Energy Data Centre | All functionalities are operational |  |  |  | Q1 | 2026 | In addition to the functionalities linked to energy sharing, the Electricity Data Centre shall provide services in the following areas:  -collection, provision and transmission of metering data  - registration and data evaluation for the purpose of electricity storage, electricity sharing, flexibility provision,  -collection and sharing data for balancing and grid scheduling  -market and master data registration  - publish information on the state of the grid and possibilities for the activation of flexibility  - provide information on available flexibility |
| 312 | Reform 1 : Energy communities | Milestone | Entry into force of the amended legislation on energy communities | Provision in the law indicating the entry into force of the law |  |  |  | Q1 | 2024 | Entry into force of legislation establishing a regulatory framework for citizens and renewable energy communities.  The reform shall introduce incentives for the development of energy communities and encourage collective production and consumption within the energy community framework.  The reform shall implement the open participation principle, it shall not unduly restrict the collective self-consumption and production or introduce any kind of unjustified restrictions based on the size or geography. Renewable and Citizen Energy Communities shall also be allowed to operate also in renewable heating, not only on the electricity market. The reform shall ensure every customer participating in energy sharing is entitled to receive a smart meter.  Renewable and Citizen Energy Communities shall have the right to receive metering data on electricity supplies , metering data taking into account electricity shared within the energy community and evaluated data. |
| 313 | Reform 1 : Energy communities | Milestone | Progress report on investment in IT infrastructure | Publication of the report |  |  |  | Q1 | 2025 | A report assessing the investments realized by DSOs in metering and billing systems, IT infrastructure as well as the gaps and future investment needs in view of ensuring energy sharing across a bidding zone is published by an independent third party. |
| 314 | Reform 1 : Energy communities | Milestone | Guidelines on energy communities | Publication on the website of the Ministry of Environment and Ministry of Industry of the database of template legal documents for the establishment of energy communities |  |  |  | Q1 | 2026 | Guidelines and templated documents for the legal establishment of energy communities (including technical and economical feasibility studies, contracts and legal documents related to the establishment of the energy communities, the contractual relationships of the energy communities and its members, shall be published to guide the public and facilitate the creation of energy communities. |
| 315 | Reform 2 :  Energy Storage and Non fossil flexibility framework | Milestone | Report on the need for non- fossil flexibility | Publication of the report on the website of the Ministry of Industry |  |  |  | Q3 | 2024 | Publication of a forward-looking report on system flexibility need assessment and potential, covering a 5-year period. The report shall evaluate and identify barriers for non-fossil flexibility in the market and propose relevant mitigation actions. The report shall also identify relevant financing instruments and sources to support the uptake of non-fossil flexibility via public or private sources.  The report shall be established by an independent third party. |
| 316 | Reform 2 :  Energy Storage and Non fossil flexibility framework | Milestone | Entry into force of the legislative changes | Provision in the law indicating the entry into force |  |  |  | Q4 | 2024 | Entry into force of legislation establishing a regulatory framework on energy storage, aggregation, active customers, participation of industrial demand response participants to the energy market.  The amended legislation shall include :  ·Definitions of flexibility services as storage, demand aggregation, demand response;  ·A new license to operate energy storage assets and provide aggregation services on the market;  ·Definition of the rights and obligations of the operator of the energy storage assets and the demand aggregator in relation with other market participants (right to connect the energy storage to the grid, the right to sell to the grid and buy electricity from the grid, the right to provide balancing services;  ·The right and rules for an active consumer to operate a storage asset;  ·Provisions of contracts on aggregation and operating the energy storage assets;  ·Exclusion of double charging (concerning the electricity from the grid, then delivered back to the grid and consumed by the final customer).The conditions for energy communities and collective self-consumers to participate to aggregation, storage, electricity distribution, electricity production activities.  ·The requirement for DSOs to include in their network development plans information on flexibility services, potential demand response, energy efficiency, energy storage facilities resources the DSO intend to use or invest in as an alternative to system expansion. |
| 317 | Reform 2 :  Energy Storage and Non fossil flexibility framework | Milestone | Publication of the Flexibility Action Plan | Adoption by the government of the Action Plan |  |  |  | Q2 | 2025 | The Action Plan shall define priorities of the developing of non-fossil flexibility and define a target for non-fossil flexibility, including demand response and energy storage for the next ten years.  The Action Plan shall provide an investment trajectory to reach the identified potential and set out public financing and identify suitable private financing sources for supporting flexibility and storage technologies including timelines. |

GG. COMPONENT 7.3: Comprehensive reform of the Renovation Wave Advice in the Czech Republic (REPOWER EU)

This component of the Czech plan aims to streamline the process of renovation project preparation, increase the expertise and capacity in the area of energy efficiency renovations, raise awareness of energy poverty and available solutions, and increase the number and quality of residential renovation projects.

The component supports addressing the country specific recommendation to increase the energy efficiency of district heating systems and of the building stock by incentivising deep renovations and renewable heat sources (Country Specific Recommendation 4 2022).

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

Reform 1: One-stop-shops for energy communities and energy efficiency renovations

The reform shall be implemented by conducting an evaluation of the pilot operation of three regional one-stop-shops which provide households, enterprises and the public sector with advice on energy efficiency renovations. The evaluation shall be formalised in a study which draws lessons learned and recommends actions for improvement in the operation of regional one-stop-shops.

The reform shall also include support measures towards the education and information of municipalities and citizens on the concept and advantages of energy communities, including the creation of one stop shop to provide technical support on regulatory, technical, financial and organisational aspects.

The reform shall be implemented by 31 December 2025.

Reform 2: Data and methodological guidance for the advisory system

The reform shall be implemented by preparing data and methodological guidance to be used in the provision of advisory services, and by conducting trainings for professionals for the renovation wave. The methodological guidance shall include a module on energy poverty and how to advise vulnerable households. The aim of the reform is to build capacity in the area of energy efficiency renovation that can be leveraged to improve the quality of renovation projects implemented by Czech households.

The reform shall be implemented by 30 June 2025.

Investment 1: Provision of advisory services to households

The investment shall be implemented by providing advisory services to at least 120,000 household, enterprise, and public sector energy efficiency renovation projects via the new energy advisory structure and services. The aim of the investment is to increase the number and quality of energy efficient renovation projects implemented by households.

The reform shall be implemented by 30 June 2026.

Investment 2: Awareness raising

The investment shall be implemented by conducting a public awareness-raising campaign on energy efficiency which shall where appropriate, include emphasis on the reduction of energy consumption, building renovation and energy poverty. The aim of the campaign is to inform the broader public about the behavioural changes that can reduce energy consumption and help alleviate energy poverty.

The reform shall be implemented by 30 March 2025.

GG.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 |  |
| 318 | Reform 1: One-stop-shops for energy communities and energy efficiency renovations | Milestone | One-stop shop for energy | Start of operation of the one stop shop authority |  |  |  | Q4 | 2024 | Set up of and entry into operation of one stop shop (OSS) that provides technical support, facilitates access to early on finance (to contract services or invest in equipment) and information to set up an energy community.  The OSS shall provide guidelines on legislative requirements and template documents to help with the licensing and permitting procedures.  The OSS shall provide support and advice on energy efficiency renovations to households, enterprises, and the public sector. |
| 319 | Reform 1: One-stop-shops for energy communities and energy efficiency renovations | Milestone | Evaluation of pilot operation of three One-stop-shops for energy | Evaluation study of the operation of three regional One-stop-shops |  |  |  | Q4 | 2025 | Conducting an evaluation of the pilot operation of three regional One-stop-shops which provide advice on energy communities and energy efficiency renovations to households, enterprises, and the public sector |
| 320 | Reform 2: Data, methodological guidance and trainings for advisory system | Milestone | Data, methodological guidance | Data, methodological guidance |  |  |  | Q2 | 2025 | Preparation of data and methodological guidance to be used in the provision of advisory services for households, enterprises, and the public sector. The methodological guidance shall include a module on energy poverty and how to advise vulnerable households. |
| 321 | Reform 2: Data, methodological guidance and trainings for advisory system | Target | Number of trainings provided |  | Number of trained professionals | 0 | 100 | Q2 | 2025 | Trainings for at least 100 professionals for the renovation wave have been completed |
| 322 | Investment 1: Provision of advisory services to households, enterprises, and the public sector | Target | Provision of advisory services to households, enterprises, and the public sector |  | Number | 0 | 60,000 | Q2 | 2025 | The newly set-up advisory system shall provide advisory services to at least 60,000 household, enterprise, or public sector projects by Q2 2025 |
| 323 | Investment 1: Provision of advisory services to households, enterprises, and the public sector | Target | Provision of advisory services to households, enterprises, and the public sector |  | Number | 60,000 | 120,000 | Q2 | 2026 | The newly set-up advisory system shall provide advisory services to at least 120,000 household, enterprise, or public sector projects by Q2 2026 |
| 324 | Investment 2: Awareness raising | Target | Completion of a nation-wide awareness-raising campaign |  | Number of nation-wide campaigns | 0 | 1 | Q2 | 2025 | Complete at least one nation-wide public awareness campaign on the reduction of energy consumption with elements of energy poverty related issues. |

HH. COMPONENT 7.4: School adaptation – Promoting green skills and sustainability in universities (REPOWEREU)

This component of the Czech recovery and resilience plan contributes to addressing the challenges related to the green transition of the education system, in particular by fostering the development of green skills among higher education students and the general population. The objective shall be achieved by revising the curricula of public universities, including by revising existing curricula and establishing new programmes, and by creating an offer of lifelong learning courses available to the general public. All programmes revised or created as part of this measure shall support green skills and have clearly defined learning outcomes in the areas of sustainability, climate change, environmental protection and biodiversity, with due regard to environmental, social and economic aspects. The component also aims at supporting public universities in the development of their medium- and long-term strategies in the area of green skills education, as well as in the establishment of strategic partnerships with third parties relevant to the new or adapted study programmes. The ultimate objective of this component is to adapt education to the changing needs of the labour market, address the lack of competent experts in the green and energy sectors, and ensure long-term employability.

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

Reform 1: Transformation of universities to adapt to changing needs of the labour market

The objective of this reform is to adapt the learning offer of public universities to the increasing need of the labour market for experts in the fields related to the green transition. The reform shall launch at least 90 study programmes, following a call for proposals targeted at public universities. The expanded learning offer shall consist of 20 new study programmes, 50 new courses added to existing study programmes, and 20 new lifelong learning courses, including lifelong learning courses leading to micro-credentials. All programmes launched as part of this measure shall foster green skills education and have defined learning outcomes in line with the European Skills, Competences, Qualifications and Occupations (ESCO) framework.

The reform shall be completed by 31 December 2025.

Investment 1: Sustainable and Green Transition Strategies

The measure aims at supporting public universities in the development of strategies for the sustainable and green transition. At least 20 public universities shall adopt a Sustainable and Green Transition strategy, which shall establish the vision, priorities and objectives of the universities in the medium- and long-term in the area of green transition, including green skills education.

The investment shall be completed by 31 December 2024.

Investment 2: Establishment of strategic partnerships

The aim of this investment is supporting public universities in the establishment of strategic partnerships with third parties relevant to the green skills education, for example businesses, research institutions or social organisations. It aims to increase the quality and relevance of the new or adapted study programmes under Reform 1, by allowing the universities to involve practitioners in the design of the new courses. At least 20 strategic partnerships shall be formed.

The investment shall be completed by 30 June 2025.

HH.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 |  |
| 325 | Reform 1: Transformation of universities to adapt to changing needs of the labour market | Milestone | Launch of a programme to support transformation of universities |  |  |  |  | Q4 | 2023 | The call for projects supporting the adaptation of universities to changing needs of the labour market by promoting green skills development in study curricula shall be launched. The objective shall be to establish at least 20 new study programmes, add at least 50 new courses to existing study programmes, and establish at least 20 lifelong learning courses. |
| 326 | Reform 1: Transformation of universities to adapt to changing needs of the labour market | Target | Launch of new study programmes, new courses in existing study programmes and lifelong learning courses |  | Study programmes and courses | 0 | 90 | Q4 | 2025 | The programme shall achieve the following:  -At least 20 new study programmes (Bachelor, Master and/or PhD-level) shall receive accreditation.  -At least 50 new courses (mandatory and/or optional) shall be added to the curricula of existing study programmes (Bachelor, Master and/or PhD-level).  -At least 20 new lifelong learning courses (including those leading to micro-credentials ) shall be created and offered by universities.  All programmes and courses shall develop green skills and define learning outcomes in accordance with the European Skills, Competences, Qualifications and Occupations (ESCO) framework. |
| 327 | Investment 1: Sustainable and Green Transition Strategies | Target | Adoption of new Sustainable and Green Transition Strategies by public universities |  | Strategies | 0 | 20 | Q4 | 2024 | At least 20 public universities shall adopt new Sustainable and Green Transition Strategies. The strategies shall formulate the vision, priority areas, principles and goals, necessary to support universities’ green transition in the short- and medium-term, including green skills education. |
| 328 | Investment 2: Establishment of strategic partnerships | Target | Establishment of strategic partnerships by public universities |  | Strategic partnerships | 0 | 20 | Q2 | 2025 | 20 strategic partnerships between public universities and a third party developing green skills education shall be established. |

II. COMPONENT 7.5 Decarbonisation of Road Transport (REPOWEREU)

This component of the Czech recovery and resilience plan addresses the need to decarbonise the transport sector by deploying zero-emission vehicles and infrastructure in Czechia, in order to prepare for a rapid phasing out of fossil fuels in road transport sector.

The component aims to increase the uptake of zero-emission vehicles of various types in Czechia, as well as to encourage the development of recharging and hydrogen refuelling infrastructure through investments and reforms.

The component is linked to the implementation of the 2022 CSR 4, which underscores the need to reduce use of fossil fuels and fossil fuel import dependency of the country. The component addresses the CSR notably by seeking to decrease the use of fossil fuels in Czech transport system. The component is equally linked to the implementation of the 2023 CSR 4, which underscores the need to promote the uptake of zero-emission vehicles and boost the availability of high-capacity charging and refuelling infrastructure through new reforms in order to create enabling conditions for and to remove existing barriers to the deployment of vehicles and infrastructure.

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

Reform 1: National Action Plan for Clean Mobility and deployment targets for zero-emission mobility

The objective of the reform is to set a pathway for transition towards clean transport and rapid deployment of zero-emission mobility. The reform aims to build on Sustainable Urban Mobility Frameworks of Czech cities, presenting a pathway for Czechia to accelerate the deployment of zero-emission mobility and the roll-out of relevant refuelling and recharging infrastructure.

In light of the ongoing transition towards a rapidly decarbonised transport sector, the reform shall result in a percentage increase of the registered zero-emission vehicles for each vehicle category for 2025 and 2030, compared to 2022 baseline. The revised National Action Plan shall also set out dedicated national targets for different categories of zero-emission vehicles to be met by 2025 and 2030, respectively. The revised National Action Plan shall also set clear deployment targets for charging infrastructure and hydrogen refuelling stations aligned with the Alternative Fuels Infrastructure Regulation.

For the purposes of the reform, Czechia shall reach a deployment target of an increase of at least 70% in the number of zero-emission vehicles registered in the respective vehicle categories compared to the 2022 baseline. The reform shall also result in launching of public calls for minimum overall value of EUR 120 million between February 2022 and June 2026 to support deployment of zero-emission alternative fuels infrastructure, namely charging station and hydrogen refuelling stations.

The reform shall include a list of measures aimed at providing financial and fiscal incentives to increase the deployment of zero-emission vehicles and infrastructure, as well as a list of measures to aimed at creating a conducive environment for the deployment and operation of charging points, high-capacity charging stations, and hydrogen refuelling stations.

The Action Plan aims to be based upon an open discussion with relevant local actors. Industry and non-government organisations shall be consulted on the draft Action Plan before its finalisation.

The reform shall be completed by 30 June 2026.

Reform 2: Tax measures in support of zero-emission mobility

The objective of the reform is to adjust the tax framework of Czechia to provide a facilitating environment for the uptake of zero-emission road vehicles by private companies. The reform complements Investment 4 of Component 2.4 and supports the need to further incentivise an increased level of deployment of zero-emission vehicles in line with Reform 1. The measure shall revise the Income Tax Act to amend the in-kind benefit for company cars provision by providing a higher level of taxation for both conventionally fuelled vehicles and low-emission vehicles (below 50gCO2/km), while setting out a lower level of taxation for zero-emission vehicles resulting in an advantage for zero-emission vehicles. The reform aims to result in a substantial advantage to both employers and employees choosing zero-emission vehicles.

The reform shall also provide a tax benefit in the form of an accelerated depreciation for all zero-emission vehicles (categories M1, N1, N2, N3) for private companies. The measures shall amend the Income Tax Act to ensure that the possibility of accelerated depreciation is provided solely for zero-emission vehicles until at least 2027. The reform aims to provide motivation for companies to acquire new zero-emission vehicles, thus accelerating the greening of corporate fleets.

The reform shall be completed by 31 December 2024.

Reform 3: Improving the regulatory framework for renewable hydrogen

The reform envisages the updating the Czech Hydrogen Strategy to better respond to current challenges, conditions, and level of economic and technological progress in the hydrogen sector and its alignment with relevant EU requirements.

The reform shall define dedicated targets for the production and utilisation of hydrogen, with a primary focus on renewable hydrogen. The aim of the reform is to explore production balance scenarios, consumption requirements and projections in various segments of the hydrogen ecosystem, and to identify the import and export balance of hydrogen through EU hydrogen transmission network, while identifying any infrastructure bottlenecks.

The update of the Czech Hydrogen Strategy shall include an action plan which defines public financing priorities for different segments of the hydrogen ecosystem and set out timelines for launching relevant funding calls.

The reform shall be completed by 31 December 2025.

Reform 4: Enabling conditions for zero-emission alternative fuels infrastructure

The reform aims to simplify and ease the construction, permitting process, and operation of electric charging infrastructure and hydrogen refuelling stations.

The reform shall include amendments to the Construction Act. The amendments shall simplify and ease permitting processes for construction and operation of electric charging infrastructure. In particular, the reform shall amend the Construction Act to provide preferential treatment for chargers of up to 22 kW by defining this type of infrastructure as a “minor construction” and defining chargers above 22kW as “simple construction” for the purposes of construction permit procedures.

The reform shall also result in the adoption of additional binding or non-binding measures or amendments to existing binding or non-binding measures for the purpose of simplifying and easing the construction, permitting and operation of the recharging and hydrogen refuelling infrastructure. Such additional measures may be legislative act, secondary legislation such as Government decrees, or technical measures and methodologies, and may be based on the list of measures prepared as part of Reform 1.

The reform shall be completed by 31 December 2025.

Reform 5: Incentivising zero-emission mobility through changes in highway vignette cost and structure

The reform aims to create a considerable incentive for the uptake of zero-emission road vehicles, namely of passenger cars and light commercial vehicles. The aim of this reform is to modify the highway vignette fees and cost structure to lead to an increase in the price of highway vignette fees for conventional vehicles while maintaining existing exemption for zero emission vehicles only. The reform shall result in an increase of the annual highway vignette for M1 and N1 conventionally fuelled vehicles by no less than 50% compared to the 2022 baseline.

The reform shall be completed by 31 December 2024.

Investment 1: Scaled up measure: Aid for purchase of vehicles – zero-emission vehicles and cargo e-bikes for private companies

The investment is intended to be a scale up of the existing measure of Component 2.4 (Investment 4) of the same name. Taking the two measures together, the overall investment from the Czech Plan shall result in 4555 vehicles, of which 4055 shall be zero-emission cars and zero-emission vans, and 500 e-bikes.

The investment shall be completed by 31 December 2025.

II.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 |  |
| 329 | Reform 1: National Action Plan for Clean Mobility and deployment targets for zero-emission mobility | Milestone | Revision of the National Action Plan for Clean Mobility | Adoption by the Government of the revision of the National Action Plan for Clean Mobility |  |  |  | Q2 | 2024 | The Government shall adopt a revision of the National Action Plan for Clean Mobility, defining a pathway for Czechia to accelerate the deployment of zero-emission mobility and the roll-out of relevant recharging and hydrogen refuelling infrastructure.  The Action Plan shall be consistent with relevant EU legal requirements (such as, the Alternative Fuel Infrastructure Regulation, Renewable Energy Directive, Clean Vehicles Directive, the Trans-European Transport Network Regulation) and with Czechia’s National Energy and Climate Plan and the National Air Pollution Control Programme.  The Action Plan shall define dedicated targets for the increase of number of zero-emission vehicles registered in Czechia in respective categories (M1-passenger cars, N1 - light commercial vehicles; N2 and N3 - heavy-duty vehicles, based on UNECE standards), to be met by 31 December 2025 and 31 December 2030. The dedicated targets for zero-emission vehicle registrations for 2025 shall reflect a requirement of reaching an increase of at least 70% in the number of zero-emission vehicles registered in the respective vehicle categories compared to the 2022 baseline.  The Action Plan shall define dedicated targets for charging infrastructure and hydrogen refuelling stations, in line with relevant legal requirements of the Alternative Fuels Infrastructure Regulation.  The Action Plan shall include a list of measures to provide financial and fiscal incentives to further incentivise deployment of zero-emission vehicles and infrastructure.  The Action Plan shall also present a list of additional measures aimed at creating a conducive environment for deployment and operation of recharging infrastructure and hydrogen refuelling station, notably easing the construction, permitting, and operation for the relevant infrastructure.  Relevant stakeholders, such as industry representatives and non-government organisations, shall be consulted on the draft Action Plan before its finalisation. |
| 330 | Reform 1: National Action Plan for Clean Mobility and deployment targets for zero-emission mobility | Target | Increasing the number of zero-emission vehicles registered |  | Percentage | 0 | 70% | Q2 | 2026 | The target refers to a minimum percentage increase in the number of zero-emission vehicles registered in respective vehicle categories (M1 -passenger cars, N1 - light commercial vehicles; N2 and N3 - heavy-duty vehicles, based on UNECE standards) by 31 December 2025 in Czechia compared to the 2022 baseline.    Official data shall be reported by the end of 31 March 2026 to the European Alternative Fuels Observatory for monitoring purposes. |
| 331 | Reform 1: National Action Plan for Clean Mobility and deployment targets for zero-emission mobility | Milestone | Support for accelerated deployment of alternative fuels infrastructure | Publication of funding calls by Ministry of Transport for the deployment of electric charging infrastructure and hydrogen refuelling stations |  |  |  | Q2 | 2026 | Czechia shall launch public calls under a funding scheme for a minimum overall value of EUR 120 million to support deployment of alternative fuels infrastructure, namely electric charging infrastructure and hydrogen refuelling stations in Czechia, aimed at recharging or refuelling zero-emission light-duty vehicles and heavy-duty vehicles.  For the purposes of fulfilment of the milestone, Czechia shall also provide the following information concerning the operation of the scheme between February 2022 and March 2026:  ·the overall actual level of committed funding for infrastructure supported under the scheme;  ·the number and type of infrastructure supported under the scheme;  ·the power output of charging stations, charging points, and capacity and pressure of dispensers of hydrogen refuelling supported under the scheme;   ·geographical location of the supported infrastructure. |
| 332 | Reform 2: Tax measures in support of zero-emission mobility | Milestone | Tax exemptions for promotion of deployment of zero-emission vehicles in the private companies | Entry into force of amendments of Income Tax Act |  |  |  | Q4 | 2024 | The amended Income Tax Act shall set out an accelerated depreciation for all zero emission vehicles of all vehicle categories (M1 -passenger cars, N1 - light commercial vehicles; N2 and N3 - heavy-duty vehicles, based on UNECE standards) for corporate fleets.  The Income Tax Act shall also be revised to change in-kind benefits for company car schemes based on CO2 emission performance of passenger cars. The amendment shall set out a differentiation in the in-kind benefits scheme between zero-emission vehicles and other types of vehicles, with zero-emission vehicles receiving the most advantageous treatment. The amendment shall ensure similar level of incentive for both employees and employers. |
| 333 | Reform 3: Improving the regulatory framework for renewable hydrogen | Milestone | Revision of the Czech Hydrogen Strategy | Adoption by the Government |  |  |  | Q2 | 2024 | The Czech Hydrogen Strategy shall be revised to define the priorities of developing primarily a renewable hydrogen-based ecosystem in Czechia. The revised strategy shall be based on an analysis of the various segments of the Czech hydrogen economy and take into account relevant EU requirements. The revision shall define dedicated targets for the production and utilisation of hydrogen, with a primary focus on renewable hydrogen.  The revised Hydrogen Strategy shall be accompanied by a list of primary legislation, secondary legislation, technical norms, and methodologies whose adoption or amendment is necessary to ensure alignment with the EU legal framework relating to hydrogen, especially the Renewable Energy Directive, as well as to provide enabling conditions for the development of the Czech hydrogen ecosystem. The list shall include expected indicative timelines for the adoption or amendments of such measures.  The revision shall also include an action plan which aims to define public funding priorities for different segments of the hydrogen ecosystem and set out timelines for launching relevant funding calls.  The revised Hydrogen Strategy shall also include an assessment and trajectory for suppliers of hydrogen and operators of hydrogen refuelling stations to supply renewable hydrogen at hydrogen refuelling stations in Czechia. Notably, the trajectory shall set a target for Czech hydrogen refuelling stations to cumulatively supply volumes of renewable hydrogen in line with the sub-targets of the Renewable Energy Directive and ensures that hydrogen refuelling stations which received support under General Block Exemption rules solely supply renewable hydrogen from 2035 onwards. |
| 334 | Reform 3: Improving the regulatory framework for renewable hydrogen | Milestone | Revision of the Czech Hydrogen Strategy – measures to promote uptake of hydrogen | Entry into force of amendments |  |  |  | Q4 | 2025 | Out of the measures included on the list of measures in the previous milestone number 333, Czechia shall at least ensure the revision of the following binding measures:  a)Energy Act (458/2000 Coll.) to define hydrogen as an energy carrier;  b)Decree No. 108/2011 Coll., on gas measurement and revision of Decree No. 488/2021 Coll., on requirements for connection to the gas system, and  c)Decree No. 345/2002 Coll., on determining measuring instruments for mandatory verification and measuring instruments that are subject to type approval in order to incentivise and ease the uptake of hydrogen, particularly pure hydrogen, in gas grids. |
| 335 | Reform 4: Enabling conditions for zero-emission alternative fuels infrastructure | Milestone | Simplification of permitting process for construction of electric charging stations and hydrogen refuelling stations | Entry into force of a set of amendments to the Construction Act |  |  |  | Q4 | 2024 | Entry into force of amendments to the Construction Act. The amendments shall provide preferential treatment for chargers of up to 22 kW by defining this type of infrastructure as a “minor construction” and defining chargers above 22kW as “simple construction” for the purposes of construction permit procedures. |
| 336 | Reform 4: Enabling conditions for zero-emission alternative fuels infrastructure | Milestone | Simplification of permitting process for construction of electric charging stations and hydrogen refuelling stations – additional measures | Adoption of measures and amendments to existing binding measures |  |  |  | Q4 | 2025 | For the purpose of this milestone, additional binding or non-binding measures or amendments to existing binding or non-binding measures shall be adopted, resulting in the simplification and easing of the construction, permitting and operation of the charging infrastructure and hydrogen refuelling stations. The additional measures and revised existing measures may include primary legislation, secondary legislation, or technical norms and methodologies. Such additional measured be based on the list of measures prepared as part of Reform 1. |
| 337 | Reform 5: Incentivising zero-emission mobility through changes highway vignette | Milestone | Revising the highway vignette costs | Entry into force of amendment of the Road Act |  |  |  | Q4 | 2024 | Entry into force of amendments to the Road Act to modify the highway vignette fees and the cost structure of the highway vignette for vehicle categories below 3.5 tonnes (M1- passenger cars, N1 - light commercial vehicles based on UNECE standards), based on their CO2 performance. The amendments shall ensure a tax differentiation between conventional and low-emission vehicles below 50gCO2/km, and zero-emission vehicles of type M1 and N1, with zero-emission vehicles of the said types being exempted from highway vignette fees. The amendment shall also ensure an increase of the annual highway vignette for M1 and N1 conventionally fuelled vehicles by no less than 50% compared to 2022 baseline. |
| 338 | Investment 1: Scaled up measure: Aid for purchase of vehicles – vehicles (electric, H2, bikes) for private companies | Target | Scale-up of target 119 of Component 2.4 |  | Increase in the number | 2670 | 4555 | Q4 | 2025 | An increase of 1885 additional units in the number of zero-emission vehicles, resulting in total 4,555 new vehicles, of which 4055 zero-emission vehicles (cars and vans) and 500 new cargo e-bikes. |

JJ. COMPONENT 7.6 Electrification of Rail TRANSPORT (REPowerEU)

This component of the Czech recovery and resilience plan addresses the ongoing need to transition European transport sector towards more sustainable modes of transport, particularly by promoting the modal shift to rail.

The component aims to increase the electrification of Czech rail networks and is meant to modernise the Czech rail networks.

The component is linked to the implementation of the 2022 CSR 4, notably by seeking to decrease the use of fossil fuels in Czech transport system.

JJ.1 Description of investments for non-repayable financial support

Investment 1: Electrification in Brno region

The investment aims to complete electrification of a specific project in the Brno region, thus reducing reliance on fossil fuels in the local transport system. The investment shall result in the completion of the "Electrification Brno-Zastávka u Brna, stage 2”, project at length of 9.98 km.

The implementation of the investment shall be completed by 30 June 2026.

JJ.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 |  |
| 339 | Investment 1: Electrification of Brno region | Target | Completion of rail electrification project “Electrification of Brno- Zastávka u Brna, stage 2” |  | Km | 0 | 9.98 | Q2 | 2026 | Completion of electrification project “Electrification of Brno Zastávka u Brna, stage 2”. The project shall altogether result in 9.98 kilometers of electrified rail line. |

KK. Component 7.7 Simplifying environmental permitting processes and defining areas for the development of renewable energy sources (REPOWER EU)

The component aims to simplify the environmental permitting process for renewable energy projects and accelerate the deployment of renewable energy sources through the creation of specific areas where administrative and permitting procedures are being streamlined and simplified.

The component supports addressing the country specific recommendation to reduce overall reliance on, and consumption of fossil fuels by accelerating the deployment of renewables, including through further streamlining permit procedures and making grid access easier (CSR 4, 2022).

KK.1. Description of the reforms and investments for the loan

Reform 1: Single environmental opinion

The objective of the measure is to introduce a single environmental opinion and support its implementation by the Czech administration. The reform on the Single Environmental opinion aims to simplify and streamline the environmental permitting process, including for renewable energy projects while taking into account the environmental interests of nature and landscape conservation and the requirements under EU law as well as other international legal on public participation and access to justice in environmental matters. 

The reform shall establish one single procedure covering different environmental statements issued under sectoral environmental legislation for the projects covered by the Construction Act and, if so requested by the project applicant, also for projects subject to an environmental impact assessment under the Environmental Impact Assessment Act (No. 100/2001 Coll.)    The reform is expected to result in shorter environmental assessment processes for renewable energy projects including those falling under a full mandatory assessment or screening process. 

The support to the implementation shall consists of the recruitment of additional staff to draft and implement binding methodological guidelines to support administrative bodies affected by the introduction of the Single Environmental Opinion (e.g., regional authorities, municipalities.  In addition, the Single Environmental Opinion for projects subject to the Environmental Impact Assessment shall be made available via the national EIA/SEA Information system.

The measure shall be implemented by December 2024. 

Reform 2: Renewable acceleration areas

The objective of the measure is to support the accelerated deployment of wind and solar in specific locations called renewables acceleration areas, with a total capacity of at least 2500 MW.

The reform shall create the possibility for regions and municipalities to designate renewables acceleration areas for solar and wind power technologies. Each area shall include targets installed capacity (MW) for wind and solar. The designation of renewables acceleration areas shall be implemented by Q3 2025 in regions and municipalities.

Renewables acceleration areas shall be selected according to a unified methodology, following objectives criteria such as wind energy density, wind speed, solar irradiance and low environmental impact. The reform shall establish specific permitting procedures applying to renewable energy projects within the acceleration areas, resulting in easier procedures and shorter deadlines. A strategic environmental assessment shall be carried out on the level of the area, exempting projects from carrying out individual environmental impact assessment, except in case where a specific project risks having negative impacts on the environment. Projects located in renewables acceleration areas shall benefit from accelerated permitting procedure. In view of ensuring the involvement of the impacted populations into renewable energy projects, the reform is expected to be accompanied by project acceptance measures such as local referenda, financial participation, sharing of economic benefits, conflict resolution mechanisms and early engagement measures. Assistance and communication outreach actions on acceleration areas shall be provided by the Ministry of Environment to the regions.

The administrative capacity shall be strengthened for the implementation of the reform for Ministry of the Environment of the Czech Republic (3,5 FTE) and Nature Conservation Agency of the Czech Republic (1 FTE) and shall be funded as part of the RRF.

The reform shall be completed by 30 September 2025.

  

KK.2. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

|  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 |  |
| 340 | Reform 1:  Single Environmental Opinion | Milestone | Entry into Force of the Single Environmental Opinion | Provision in the law indicating the entry into force of the law |  |  |  | Q3 | 2023 | Entry into force of legislation on the Single Environmental Opinion. The opinion shall merge environmental permits procedure into a binding single opinion for all projects authorised under the Construction Act and projects subject to an environmental impact assessment, if requested by the project applicant. The law shall apply as of 1 January 2024 for the special structure defined by the Building Act and as of J July 2024 for other types of building.       The legislation shall provide for the designation of the single authorities in charge of issuing the opinion, according to the different cases (e.g. regional authorities, municipal authority with extended competence or the Ministry of Environment).        It shall also provide that for projects subject to the EIA, Single environmental opinion shall be available electronically in the EIA/SEA national information system. |
| 341 | Reform 1:  Single Environmental Opinion | Target | Technical assistance to accelerate and improve the quality of environmental permitting procedures |  | Number of staff | 0 | 36 | Q4 | 2023 | 36 full-time staff shall be recruited for the implementation of the single environmental opinion reform. |
| 342 | Reform 1: Single Environmental Opinion | Milestone | Publication of methodologies and templates by the Ministry of Environment | Publication of the guidelines |  |  |  | Q4 | 2024 | The Ministry of Environment shall publish the following guidelines for the state administration:  1) Methodological instruction, templates for the procedure where binding opinion of EIA is combined with SEO  2) Methodological instruction for the procedure when the SEO is issued separately, i.e. when the EIA takes place first and the SEO is issued afterwards.  3) Methodological guidance describing the governance, structural changes, allocation of competences and guiding the work of different state authorities.  The methodologies shall include also document templates including the SEO application templates. |
| 343 | Reform 2: Renewable acceleration areas | Milestone | Methodology for designating renewables acceleration areas | Publication of the methodology |  |  |  | Q4 | 2023 | The methodology shall determine unified criteria for the selection and assessment of suitable areas for wind and solar energy development. This shall include the areas with the lesser environmental impact, none or low conflict with other interests, areas with sufficient potential of wind energy density, wind speed, solar irradiance and accessibility of transmission system. The financial incentives, mitigation measures and win-win solutions to improve ecosystem services in landscape shall be part of the documents attached to the methodology.    The methodology shall be established in cooperation with relevant stakeholders, including through communication with public and transparent dialogue.  Assistance and communication outreach actions on acceleration areas shall be provided by the Ministry of Environment to the regions and municipalities. |
| 344 | Reform 2:  Renewable acceleration areas | Milestone | Framework supporting the renewable acceleration areas | Entry into force of legislative amendment to the Building Act, the Energy Act, the Renewable Energy Sources Act, the Environmental Impact Assessment Act and the Nature and Landscape Act  Entry into force of new legislation on renewable acceleration areas  Adoption of the updated spatial development policies |  |  |  | Q4 | 2024 | The legislative amendments shall create the possibility for regions and municipalities to designate renewables acceleration areas for solar and wind power technologies, based on the principles of territorial development and on the methodology for establishing the go to areas. Each area shall include targets for space (km2) or installed capacity (MW) for wind and solar.    The legislative amendments shall introduce specific simplified permitting and grid connection procedures applying to renewable energy installation within such renewables acceleration areas, resulting in easier procedures and shorter deadlines. A single environmental assessment shall be carried out under the SEA Directive on the level of the area, exempting projects from carrying out individual impact assessment. If there is evidence from the screening by the relevant authority that an individual project is highly likely to have significant adverse effects on the environment, they have to such project will be subject to environmental assessments under the EIA and Habitats Directives (undertaken within 6 months). At planning level, the renewables acceleration areas shall be subject to the public participation.    Projects located in acceleration area shall benefit from accelerated permitting procedure. Mandatory binding deadlines for all permits granting shall be set in order to ensure that the permit granting process does not exceed one year for installations above 150kw and 6 months for renewable installations up to 150 kw.    The legislative amendments shall provide for the introduction of project acceptance measures such as, financial participation, sharing of economic benefits, conflict resolution mechanisms, early engagement measures as well as environmental mitigation measures. |
| 345 | Reform 2:  Renewables acceleration areas | Target | Designation of renewables acceleration areas for wind and solar energy development |  | Number of staff | 0 | 3,5 | Q4 | 2024 | Three full-time staff and one half time staff shall be recruited for the implementation of the renewable acceleration areas. |
| 346 | Reform 2:  Renewables acceleration areas | Target | Designation of renewables acceleration areas for wind and solar energy development |  | MW | 0 | 2500 | Q3 | 2025 | The set of renewables acceleration areas shall be designated with renewable energy capacity targets for most regions , the total combined capacity for wind and solar generation shall be at least 2 500 MW. |

SECTION 2: FINANCIAL SUPPORT

Financial contribution

The instalments referred to in Article 2(2) shall be organised in the following manner:

1.1.First Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 172 | C 3.1: Innovation in Education in the Context of Digitalisation - Investment 2: Digital equipment for schools | Target | Number of digital devices purchased by schools for distance learning |
| 72 | C 1.6: Acceleration and Digitalisation of the Building Process - Reform 1: Implementation of the new construction law and zoning law into practice | Milestone | Entry into force of the new construction law |
| 134 | C 2.6: Nature Protection and Adaptation to Climate Change - 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 |
| 168 | C 3.1: Innovation in Education in the Context of Digitalisation - Reform 1: Curricula reform and strengthening of IT education | Milestone | Approval of new curricula strengthening digital literacy and computational thinking |
| 51 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 2: European Digital Media Observatory Hub (EDMO) | Milestone | Launch of the European Digital Media Observatory hub for CEE in the Czech Republic (CEDMO) |
| 102 | C 2.2: Reducing Energy Consumption in the Public Sector - 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 |
| 105 | C 2.2: Reducing Energy Consumption in the Public Sector - 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 |
| 198 | C 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 - 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) |
| 199 | C 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 - 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 |
| 200 | C 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 - 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) |
| 203 | C 4.3: Anti-Corruption Reforms - 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 |
| 208 | C 4.3: Anti-Corruption Reforms - 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. |
| 211 | C 4.3: Anti-Corruption Reforms - Reform 5: Control and audit | Milestone | Audit strategy ensuring independent and effective audit of the RRF implementation |
| 212 | C 4.3: Anti-Corruption Reforms - Reform 5: Control and audit | Milestone | Review of the definition of beneficial ownership as it relates to the RRF control system |
| 223 | C 5.1: Excellent Research and Development in the Health Sector - 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 |
| 226 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Reform 1: Creation of National Coordination Group for Support for Industrial Research | Milestone | Establishment of National Coordination Group for Support for Industrial Research |
| 236 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Reform 1: National Oncological Programme | Milestone | National Oncological Programme of the Czech Republic 2022-2030 |
| 3 | C 1.1: Digital services to citizens and businesses - Reform 2: eHealth | Milestone | Definition of interoperability standards in accordance with the European Interoperability Framework for eHealth and definition of rules governing telemedicine |
| 68 | C 1.5: Digital Transformation of Enterprises - Reform 1: Creation of Platform for the digitisation of the economy | Milestone | Creation of Platform for the digitisation of the economy |
| 146 | C 2.7: Circular Economy, Recycling and Industrial Water - 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 |
| 184 | C 3.3: Modernisation of Employment Services and Labour Market Development - Reform 1: Development of labour market policies | Milestone | Establishment of the tripartite Re-skilling and Upskilling Committee |
| 29 | C 1.2: Digital Public Administration Systems - 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 |
| 83 | C 2.1: Sustainable Transport - Investment 1: New technologies and digitisation on railway infrastructure | Milestone | Definition of the set of projects for Investment 1 |
| 86 | C 2.1: Sustainable Transport - Investment 2: Electrification of railways | Milestone | Definition of the set of projects for Investment 2 |
| 89 | C 2.1: Sustainable Transport - Investment 3: Improving the environment (railway infrastructure support) | Milestone | Definition of the set of projects for Investment 3 |
| 92 | C 2.1: Sustainable Transport - 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 |
| 93 | C 2.1: Sustainable Transport - 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 |
| 94 | C 2.1: Sustainable Transport - 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 |
| 131 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 1: Flood protection | Milestone | Notification of award of flood protection contracts |
| 135 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 2: Small watercourses and water reservoirs | Target | T1: Completion of 50% of the small watercourses and water reservoirs projects |
| 176 | C 3.2: Adaptation of School Programmes - 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 |
| 207 | C 4.3: Anti-Corruption Reforms - 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. |
| 209 | C 4.3: Anti-Corruption Reforms - Reform 5: Control and audit | Milestone | Measures preventing conflict of interest implemented by the Coordinating body. |
| 210 | C 4.3: Anti-Corruption Reforms - Reform 5: Control and audit | Milestone | Repository system |
| 213 | C 4.3: Anti-Corruption Reforms - Reform 5: Control and audit | Milestone | Guidance on the avoidance and management of conflict of interests |
| 214 | C 4.3: Anti-Corruption Reforms - Reform 5: Control and audit | Milestone | Procedures to avoid conflict of interests in line with Article 61 of the Financial Regulation |
| 224 | C 5.1: Excellent Research and Development in the Health Sector - 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 |
|  |  | Instalment Amount | EUR 1 066 888 563 |

1.2.Second Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 12 | C 1.1: Digital Services to Citizens and Businesses -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 |
| 140 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 4: Building forests resilient to climate change | Target | T1: Reforestation of 12000 ha of areas by ameliorative and stabilising tree species |
| 229 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 3: Aid for research and development in the environmental field | Target | Research and development in the environmental field |
| 15 | C 1.2: Digital Public Administration Systems - Investment 1:  Development of information systems | Milestone | Implementation and operation of the CzechPOINT 2.0 and the CAAIS systems |
| 16 | C 1.2: Digital Public Administration Systems - Investment 1:  Development of information systems | Milestone | Successful upgrade and operation of ePassport (ePasy) and EVC2 visa system |
| 20 | C 1.2: Digital Public Administration Systems - Investment 2:  Development of core registers and facilities for eGovernment | Milestone | Completion of a fully operational software-defined data centre including data containers. |
| 23 | C 1.2: Digital Public Administration Systems - 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 five additional information systems |
| 25 | C 1.2: Digital Public Administration Systems - Reforms 1:   Centres 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 component 1.1 and 1.2 |
| 30 | C 1.2: Digital Public Administration Systems - 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. |
| 57 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 6: 5G Demonstrative application projects for cities and industrial areas | Target | Development and operation of reference applications for Smart Cities |
| 90 | C 2.1: Sustainable Transport - Investment 3: Improving the environment (railway infrastructure support) | Target | Completion of 26 projects from a predefined set of projects |
| 95 | C 2.1: Sustainable Transport - 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 |
| 96 | C 2.1: Sustainable Transport - 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 |
| 97 | C 2.1: Sustainable Transport - 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 |
| 132 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 1: Flood Protection | Target | T1: Completion of 15 projects aiming at establishing resilient flood protection. |
| 150 | C 2.7: Circular Economy, Recycling and Industrial Water - 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 |
| 152 | C 2.7: Circular Economy, Recycling and Industrial Water - 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 |
| 161 | C 2.9: Promotion of Biodiversity and Fight against Drought - 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. |
| 228 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - 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 |
| 232 | C 6.1: Increasing Resilience of the Health System - Investment 1: Creation of the Intensive Medicine Simulation Centre and optimisation of the education system | Milestone | Call for tender for the construction of the Intensive Medicine Simulation Centre |
| 240 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Investment 1: Building and establishment of the Czech Oncological Institute | Milestone | Feasibility study validated by an independent authority |
|  |  | Instalment Amount | EUR 660 565 003 |

1.3.Third Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 139 | C 2.6: Nature Protection and Adaptation to Climate Change - 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) |
| 78 | C 2.1: Sustainable Transport - Reform 1: Creating alternatives to energy and space-intensive road transport | Milestone | Approval of the mobility plans |
| 87 | C 2.1: Sustainable Transport - Investment 2: Electrification of railways | Target | Completion of two projects from a predefined set of projects |
| 142 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 5: Water retention in forest | Target | 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). |
| 48 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Reform 2: Joint Strategic Technologies Support and Certification Group with the Strategic Technologies Board | Milestone | Establishment and appointment of certification network |
| 32 | C 1.3: High-Capacity Digital Networks - 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 |
| 99 | C 2.1: Sustainable Transport - 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 |
|  |  | Instalment Amount | EUR 142 506 202 |

1.4.Fourth Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 110 | C 2.3: Transition to Cleaner Energy Sources-  Reform 1: Modernisation of distribution of heat in district heating systems | Milestone | Assessment of decarbonisation of district heating in Czechia |
| 111 | C 2.3: Transition to Cleaner Energy- Sources Reform 2: Modernisation of distribution of heat in district heating systems | Milestone | Assessment of the trajectories of sustainable supply of biomass in Czechia |
| 55 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology-Investment 5: European Blockchain Services Infrastructure (EBSI) – DLT bonds for SME financing | Milestone | Grant agreement signed with the recipient for implementing the use-case for SMEs |
| 127 | C 2.5: Building Renovation and Air Protection - Investment 2: Replacement of stationary sources of pollution in households with renewable energy sources | Target | Projects contracted for reduction of energy consumption and reduction of CO2 emissions |
| 128 | C 2.5: Building Renovation and Air Protection - Investment 2: Replacement of stationary sources of pollution in households with renewable energy sources | Target | Reduction of energy consumption and CO2 emissions (35% implemented) |
| 144 | C 2.7: Circular Economy, Recycling and Industrial Water - 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 |
| 1 | C 1.1: Digital services to citizens and businesses - 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 |
| 7 | C 1.1: Digital services to citizens and businesses - Investment 1: Digital services for end users | Milestone | Full operation of the Single Digital Gateway |
| 8 | C 1.1: Digital services to citizens and businesses - Investment 1: Digital services for end users | Milestone | Completion of new information systems |
| 13 | C 1.1: Digital services to citizens and businesses - 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 |
| 14 | C 1.1: Digital services to citizens and businesses - Investment 3: Digital service for justice | Target | Equipment of courtrooms with audio-visual data recorders |
| 27 | C 1.2: Digital Public Administration Systems - 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 |
| 202 | C 4.3: Anti-Corruption Reforms - Reform 1: Protection of whistle-blowers | Milestone | Entry into force of the law on the protection of whistle-blowers and the accompanying amending law |
| 59 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 7: Czech Rise-Up programme | Target | Support of projects aiming at innovation in medical and digital solutions to cope with the effects of COVID-19 and with its economic and social consequences |
| 79 | C 2.1: Sustainable Transport - Reform 1: Creating alternatives to energy and space-intensive road transport | Milestone | Approval and entry into force of the new Freight Transport Concept |
| 80 | C 2.1: Sustainable Transport - Reform 1: Creating alternatives to energy and space-intensive road transport | Milestone | Approval of the transport service plans. |
| 88 | C 2.1: Sustainable Transport - Investment 2: Electrification of railways | Target | Completion of six additional projects from a predefined set of projects |
| 91 | C 2.1: Sustainable Transport - Investment 3: Improving the environment (railway infrastructure support) | Target | Completion of 11 additional projects from a predefined set of projects |
| 343 | C 7.7 Simplifying environmental permitting processes and defining areas for the development of renewable energy sources-Reform 2: Renewable acceleration areas | Milestone | Methodology for designating renewables acceleration areas |
| 341 | C 7.7 Simplifying environmental permitting processes and defining areas for the development of renewable energy sources-Reform 1:  Single Environmental Opinion | Milestone | Technical assistance to accelerate and improve the quality of environmental permitting procedures |
| 325 | C 7.4: School adaptation – Promoting green skills and sustainability in universities-Reform 1: Transformation of universities to adapt to changing needs of the labour market | Milestone | Launch of a programme to support transformation of universities |
| 100 | C 2.1: Sustainable Transport - 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 |
| 101 | C 2.1: Sustainable Transport - 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 |
| 108 | C 2.2: Reducing Energy Consumption in the Public Sector - 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 |
| 136 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 2: Small watercourses and water reservoirs | Target | T2: Completion of 50% additional small watercourses and water reservoirs |
| 145 | C 2.7: Circular Economy, Recycling and Industrial Water - 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 |
| 154 | C 2.8: Brownfields Revitalisation - Investment 1: Support for revitalisation of specific areas | Milestone | Entry into force of all subsidy contracts between the State Investment Fund and selected brownfield project holders |
| 156 | C 2.8: Brownfields Revitalisation - Investment 2: Support for the revitalisation of areas in public ownership for non-business use | Milestone | Entry into force of all contracts between the State Investment Fund and selected brownfield project holders |
| 158 | C 2.8: Brownfields Revitalisation - Investment 3: Support for the revitalisation of areas in public ownership for business use | Milestone | Entry into force of all public contracts for the regeneration of publicly owned brownfields for business use |
| 183 | C 3.2: Adaptation of School Programmes - Investment 2: Tutoring of pupils | Target | Number of individual enrolments for tutoring courses |
| 186 | C 3.3: Modernisation of Employment Services and Labour Market Development - Reform 1: Development of labour market policies | Milestone | Database of reskilling and upskilling courses |
| 192 | C 3.3: Modernisation of Employment Services and Labour Market Development - Reform 2: Ensuring sustainability of financing of childcare facilities | Milestone | Entry into force of the law on childcare (amendment to Act No 247/2014 on the provision of childcare services in a child group) |
| 193 | C 3.3: Modernisation of Employment Services and Labour Market Development - Reform 3: Reform of long-term care | Milestone | Entry into force of the law on long-term care |
| 301 | C 7.1: Renewable energy and electricity infrastructure -Reform 1 : Simplifying permitting procedures for renewables | Milestone | Entry into force of the amended legislation |
| 340 | C 7.7 Simplifying environmental permitting processes and defining areas for the development of renewable energy sources  Reform 1:  Single Environmental Opinion | Milestone | Entry into Force of the Single Environmental Opinion |
| 284 | C4.1: Systemic support for public investment- Reform 4: The increase of effectiveness and enhancing the implementation of the Recovery and Resilience Plan | Milestone | Approval of a government resolution on increasing the administrative capacity for the implementation of the National Recovery and Resilience Plan (systematisation decision) and approval of the related budget |
| 285 | C 4.1: Systemic support for public investment-  Reform 4:  The increase of effectiveness and enhancing the implementation of the Recovery and Resilience Plan | Target | Increasing the number of people working on the Recovery and Resilience Plan by 2023 |
| 280 | C 4.1: Systemic support for public investment-Reform 1: Methodological support for the preparation of projects in line with the EU objectives | Milestone | Establishment of the Coordination and Competence Centre and adoption of its management plan. |
| 205 | C 4.3: Anti-Corruption Reforms - Reform 3: Collection and analysis of data on corruption | Milestone | Creation of methodology for measuring of corruption in the Czech Republic |
|  |  | Instalment Amount | EUR 1 268 379 005 |

1.5.Fifth Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 143 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 5: Water retention in forest | Target | 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). |
| 174 | C 3.1: Innovation in Education in the Context of Digitalisation - 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 |
| 18 | C 1.2: Digital Public Administration Systems - 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 |
| 84 | C 2.1: Sustainable Transport - Investment 1: New technologies and digitisation on railway infrastructure | Target | Completion of two projects from a predefined set of projects. |
| 56 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 5: European Blockchain Services Infrastructure (EBSI) – DLT bonds for SME financing | Target | Number of SMEs enabled to offer digital bonds on the basis of EBSI |
| 64 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 11: Digital regulatory sandboxes in line with EU priorities | Milestone | Launch of the digital regulatory sandbox |
| 113 | C 2.3: Transition to Cleaner Energy Sources - Investment 2: Modernisation of distribution of heat in district heating systems | Milestone | Plan for investment in heat/power generation facilities |
| 179 | C 3.2: Adaptation of School Programmes - Investment 1: Development of selected key academic sites | Milestone | Award of contracts for the construction of new university facilities |
| 231 | C 6.1: Increasing Resilience of the Health System - Reform 1: Improvement of education of healthcare professionals | Milestone | Electronic system for management, administration and evaluation of training of healthcare professionals |
| 274 | C3.3: Modernisation of Employment Services and Labour Market Development -  Investment 4: Development and modernisation of children social care infrastructure | Milestone | Call for projects published for housing for children at risk |
| 275 | C3.3: Modernisation of Employment Services and Labour Market Development -  Investment 4: Development and modernisation of children social care infrastructure | Milestone | Call for projects published for facilities for children at risk |
| 281 | C 4.1: Systemic support for public investment -Reform 2: Methodological support and modernisation of public investment | Milestone | Adoption by the Government of the Czech Republic a new public procurement strategy and an action plan for its implementation |
| 286 | C 4.1: Systemic support for public investment- Reform 4:  The increase of effectiveness and enhancing the implementation of the Recovery and Resilience Plan | Milestone | Approved media and communications plan for the revised Recovery and Resilience Plan |
| 304 | C 7.1: Renewable energy and electricity infrastructure- Reform 3 – Sub measure 1  Improve transparency of the grid connection procedure | Milestone | Entry into force of legislative and procedural changes |
| 305 | C 7.1: Renewable energy and electricity infrastructure- Reform 3 – Sub measure 1  Improve transparency of the grid connection procedure | Milestone | Publication of information on grid connection requests and capacities |
| 309 | C 7.2 Supporting decentralisation and digitalisation of the energy- Investment 1: Electricity Data Centre | Milestone | Entry into force of the legislation establishing the Electricity Data Centre |
| 250 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology-  Investment 2: European Digital Media Observatory Hub (EDMO) | Milestone | Launch of the extended CEDMO hub |
| 256 | C 1.7: Digital Transformation of Public Administration-  Investment 2: Improvement of the management system for digitalised services | Milestone | Setting up the working groups |
| 292 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 5: Aid for research and development in enterprises in line with the national RIS3 strategy | Target | Research and development in line with the RIS3 strategy |
| 294 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 6: Aid for research and development in the field of transport | Target | Research and development in the field of transport |
| 296 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 7: Aid for research and development in the environmental field | Target | Research and development in the environmental field |
| 312 | C 7.2 Supporting decentralisation and digitalisation of the energy- Reform 1 : Energy communities | Milestone | Entry into force of the amended legislation on energy communities |
| 329 | C 7.5 Decarbonisation of Road Transport - Reform 1: National Action Plan for Clean Mobility and deployment targets for zero-emission mobility | Milestone | Revision of the National Action Plan for Clean Mobility |
| 333 | C 7.5 Decarbonisation of Road Transport (REPowerEU) -  Reform 3: Improving the regulatory framework for renewable hydrogen | Milestone | Revision of the Czech Hydrogen Strategy |
|  |  | Instalment Amount | EUR 687 612 357 |

1.6.Sixth Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 125 | C 2.5: Building Renovation and Air Protection - Investment 1: Renovation and revitalisation of buildings for energy savings | Target | Projects contracted for reduction of energy consumption |
| 148 | C 2.7: Circular Economy, Recycling and Industrial Water -Investment 1: Building recycling infrastructure | Milestone | Award of the contracts for projects investing in recycling infrastructure by the Ministry of Environment |
| 141 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 4: Building forests resilient to climate change | Target | T2: Reforestation of additional 24000ha of areas by ameliorative and stabilising tree species |
| 245 | C1.1: Digital Services to Citizens and Businesses Investment 2: Development of open data and public data | Target | Increase in the number of new or improved open data sets published in the National Open Data Catalogue |
| 9 | C 1.1: Digital services to citizens and businesses - Investment 1: Digital services for end users | Milestone | Full operation of 4 information systems |
| 261 | C 2.1: Sustainable Transport- Investment 3: Improving the environment (railway infrastructure support) | Target | Completion of 19 additional projects from a predefined set of projects |
| 276 | C3.3: Modernisation of Employment Services and Labour Market Development -  Reform 4: Reform of residential and social care for vulnerable children and families | Milestone | Entry into force of an Amendment to the Act on Social and Legal Protection of Children |
| 302 | C 7.1: Renewable energy and electricity infrastructure- Reform 2: Accelerating and digitalizing permitting process for renewables | Milestone | Entry into force of the amended legislation |
| 303 | C 7.1: Renewable energy and electricity infrastructure- Reform 2: Accelerating and digitalizing permitting process for renewables | Milestone | Digital one stop shop |
| 31 | C 1.2: Digital Public Administration Systems - Investment 4:   Creating the conditions for digital justice | Target | Increase of the data storage capacity |
| 36 | C 1.3: High-Capacity Digital Networks - 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 |
| 38 | C 1.3: High-Capacity Digital Networks - 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 |
| 43 | C 1.3: High-Capacity Digital Networks - 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 |
| 45 | C 1.3: High-Capacity Digital Networks - 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 |
| 60 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 8: Fostering entrepreneurship and innovative firms | Target | Number of start-ups supported via innovation hubs and partner organisations of the programme |
| 69 | C 1.5: Digital Transformation of Enterprises - Investment 1: European and national Digital Innovation Hubs | Target | Creation of functional and interconnected European and national Digital Innovation Hubs |
| 76 | C 1.6: Acceleration and Digitalisation of the Building Process - Investment 2: Development and use of public administration data in spatial planning | Milestone | Creation of a standardised database of spatial analytical documentation |
| 77 | C 1.6: Acceleration and Digitalisation of the Building Process - Investment 3: Reaping the Full Benefits of Digitising Building Control | Milestone | IT systems supporting digitalisation of the building permit process fully operational |
| 85 | C 2.1: Sustainable Transport - Investment 1: New technologies and digitisation on railway infrastructure | Target | Completion of six additional projects from a predefined set of projects. |
| 103 | C 2.2: Reducing Energy Consumption in the Public Sector- 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 |
| 98 | C 2.1: Sustainable Transport - 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 |
| 133 | C 2.6: Nature Protection and Adaptation to Climate Change-Investment 1: Flood Protection | Target | T2: Completion of additional 23 projects aiming at establishing resilient flood protection. |
| 106 | C 2.2: Reducing Energy Consumption in the Public Sector - 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 |
| 137 | C 2.6: Nature Protection and Adaptation to Climate Change - 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). |
| 138 | C 2.6: Nature Protection and Adaptation to Climate Change - Investment 3: Land consolidation | Target | Completion of environmental protection activities and adaptation to climate change (in ha of land served by the investment). |
| 160 | C 2.9: Promotion of Biodiversity and Fight against Drought - 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. |
| 170 | C 3.1: Innovation in Education in the Context of Digitalisation - Investment 1: Implementation of the revised curriculum and digital skills of teachers | Milestone | Creation of a digital platform for effective sharing of educational resources |
| 204 | C 4.3: Anti-Corruption Reforms - 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 |
| 11 | C 1.1: Digital Services to Citizens and Businesses - Investment 2: Development of open data and public data | Milestone | Extension of National Open Data Catalogue with advanced functionalities |
| 218 | C 4.5: Development of the Cultural and Creative Sector - Reform 1: Status of the Artist | Target | Number of cultural and creative professionals supported by skills provision |
| 49 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology-  Reform 2: Joint Strategic Technologies Support and Certification Group with the Strategic Technologies Board | Target | Number of companies provided with certification |
| 70 | C 1.5: Digital Transformation of Enterprises -  Investment 2: European Reference Testing and Experimentation facility | Target | Creation of a European Reference Testing and Experimentation facility |
| 73 | C 1.6: Acceleration and Digitalisation of the Building Process-  Reform 1: Implementation of the new construction law and zoning law into practice | Milestone | Start of the activity of the new structure of building authorities |
| 75 | C 1.6: Acceleration and Digitalisation of the Building Process-  Investment 1: Creation of a new central information system (“AIS”) | Milestone | Central Information System fully operational |
| 220 | C 4.5: Development of the Cultural and Creative Sector - Reform 2.: Legislative reform introducing multi-source financing of cultural institutions | Milestone | Entry into force of a legislative amendment allowing for cooperative multi-source financing of culture |
| 196 | C 3.3: Modernisation of Employment Services and Labour Market Development - 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 |
| 234 | C 6.1: Increasing Resilience of the Health System - Investment 2: Rehabilitation care for patients recovering from critical conditions | Target | Support of rehabilitation care |
| 282 | C4.1: Systemic support for public investment-Reform 3:     Financial support for the preparation of projects in line with EU objectives | Target | Number of projects prepared for implementation |
| 287 | C4.1: Systemic support for public investment-Reform 4: The increase of effectiveness and enhancing the implementation of the National Recovery and Resilience Plan | Milestone | Upgrade of the repository system (AIS) |
| 288 | C4.1: Systemic support for public investment-Reform 4: The increase of effectiveness and enhancing the implementation of the National Recovery and Resilience Plan | Target | Increasing the number of people working on the Recovery and Resilience Plan by 2024 |
| 310 | C 7.2 Supporting decentralisation and digitalisation of the energy sector-Investment 1: Electricity Data Centre | Milestone | Entry into operation of the Energy Data Centre |
| 315 | C 7.2 Supporting decentralisation and digitalisation of the energy sector-Reform 2:  Energy Storage and Non fossil flexibility framework | Milestone | Report on the need for non- fossil flexibility |
| 316 | C 7.2 Supporting decentralisation and digitalisation of the energy sector-  Reform 2 :  Energy Storage and Non fossil flexibility framework | Milestone | Entry into force of the legislative changes |
| 318 | C 7.3: Comprehensive reform of the Renovation Wave Advice in the Czech Republic-  Reform 1: One-stop-shops for energy communities and energy efficiency renovations | Milestone | One-stop shop for energy |
| 327 | C 7.4: School adaptation – Promoting green skills and sustainability in universities-  Investment 1: Sustainable and Green Transition Strategies | Target | Adoption of new Sustainable and Green Transition Strategies by public universities |
| 332 | C 7.5 Decarbonisation of Road Transport (REPowerEU) -  Reform 2: Tax measures in support of zero-emission mobility | Milestone | Tax exemptions for promotion of deployment of zero-emission vehicles in the private companies |
| 335 | C 7.5 Decarbonisation of Road Transport (REPowerEU) -  Reform 4: Enabling conditions for zero-emission alternative fuels infrastructure | Milestone | Simplification of permitting process for construction of electric charging stations and hydrogen refuelling stations |
| 337 | C 7.5 Decarbonisation of Road Transport (REPowerEU) -  Reform 5: Incentivising zero-emission mobility through changes highway vignette | Milestone | Revising the highway vignette costs |
| 342 | C7.7 Simplifying environmental permitting processes and defining areas for the development of renewable energy sources-  Reform 1: Single Environmental Opinion | Milestone | Publication of methodologies and templates by the Ministry of Environment |
| 344 | C7.7 Simplifying environmental permitting processes and defining areas for the development of renewable energy sources-Reform 2:  Renewable acceleration areas | Milestone | Framework supporting the renewable acceleration areas |
| 345 | C7.7 Simplifying environmental permitting processes and defining areas for the development of renewable energy sources-Reform 2:  Renewables acceleration areas | Target | Designation of renewables acceleration areas for wind and solar energy development |
|  |  | Instalment Amount | EUR 1 616 469 125 |

1.7.Seventh Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 21 | C 1.2: Digital Public Administration Systems - 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 |
| 47 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - 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 |
| 65 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 11: Digital regulatory sandbox in line with EU priorities | Target | Sandbox participants supported by the sandbox |
| 197 | C. 3.3: Modernisation of Employment Services and Labour Market Development - Investment 3: Development and modernisation of social care infrastructure | Target | T2: Number of low-emission vehicles purchased for social prevention, counselling and home-care services |
| 206 | C 4.3: Anti-Corruption Reforms - Reform 4: Regulation of lobbying | Milestone | Entry into force of the law on lobbying |
| 237 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Reform 2: Supporting and enhancing quality of preventive screening programmes | Milestone | Appointment of an institution responsible for coordination of oncological screening programs |
| 273 | C 3.3: Modernisation of Employment Services and Labour Market Development - Investment 3: Development and modernisation of social care infrastructure | Milestone | Amendment of Social Services Act concerning inspections and complaints |
| 277 | C 3.3: Modernisation of Employment Services and Labour Market Development - Investment 4: Development and modernisation of children social care infrastructure | Target | Housing area for children at risk acquired – 1st batch |
| 298 | C 5.3: A strategically managed and internationally competitive R&D&I Ecosystem - Reform 1: A strategically managed and internationally competitive R & D & I ecosystem | Milestone | Strengthening of strategic intelligence capacities, creation of an excellence programme, and adoption of a methodological guideline for support providers |
| 306 | C 7.1: Renewable energy and electricity infrastructure (REPowerEU) - Reform 3 – Sub measure 1: Improve transparency of the grid connection procedure | Milestone | Publication of information on grid connection requests and capacities |
| 313 | C 7.2 Supporting decentralisation and digitalisation of the energy sector (REPOWER EU) - Reform 1: Energy communities | Milestone | Progress report on investment in IT infrastructure |
| 317 | C 7.2 Supporting decentralisation and digitalisation of the energy sector (REPOWER EU) - Reform 2 : Energy Storage and Non fossil flexibility framework | Milestone | Publication of the Flexibility Action Plan |
| 320 | C 7.3: Comprehensive reform of the Renovation Wave Advice in the Czech Republic (REPOWER EU) - Reform 2: Data, methodological guidance and trainings for advisory system | Milestone | Data, methodological guidance |
| 321 | C 7.3: Comprehensive reform of the Renovation Wave Advice in the Czech Republic (REPOWER EU) - Reform 2: Data, methodological guidance and trainings for advisory system | Target | Number of trainings provided |
| 322 | C 7.3: Comprehensive reform of the Renovation Wave Advice in the Czech Republic (REPOWER EU) - Investment 1: Provision of advisory services to households, enterprises, and the public sector | Target | Provision of advisory services to households, enterprises, and the public sector |
| 324 | C 7.3: Comprehensive reform of the Renovation Wave Advice in the Czech Republic (REPOWER EU) - Investment 2: Awareness raising | Target | Completion of a nation-wide awareness-raising campaign |
| 328 | C 7.4: School adaptation – Promoting green skills and sustainability in universities (REPOWEREU) - Investment 2: Establishment of strategic partnership | Target | Establishment of strategic partnerships by public universities |
|  |  | Instalment Amount | EUR 444 005 144 |

1.8.Eighth Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 147 | C 2.7: Circular Economy, Recycling and Industrial Water - 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 |
| 169 | C 3.1: Innovation in Education in the Context of Digitalisation - Reform 1: Curricula reform and strengthening of IT education | Milestone | Implementation by schools of new curricula strengthening digital literacy and computational thinking |
| 2 | C 1.1: Digital services to citizens and businesses - Reform 1: Conditions for quality data pool management and ensuring controlled data access | Target | Introduction of new data management methodologies in public administration |
| 4 | C 1.1: Digital services to citizens and businesses - Reform 2: eHealth | Target | Number of new telemedicine services introduced and made available to patients |
| 5 | C 1.1: Digital services to citizens and businesses - Reform 2: eHealth | Target | Completion of projects leading to the implementation of new digital health services. |
| 6 | C 1.1: Digital services to citizens and businesses - Reform 2: eHealth | Target | Connection of healthcare providers to the interoperability system according to interoperability rules for eHealth services |
| 19 | C 1.2: Digital Public Administration Systems - Investment 1:  Development of information systems | Target | Successful operation of new or upgraded information systems of public administration (completion of the projects contracted under target 18) |
| 24 | C 1.2: Digital Public Administration Systems - Investment 3:  Cyber security | Target | Number of information systems whose cyber security has been strengthened in line with Act No. 181/2014 Coll., on cyber security |
| 26 | C 1.2: Digital Public Administration Systems - Reforms 1:   Centres 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 in the scope of at least 5 man-days, provided to specific public administration bodies |
| 28 | C 1.2: Digital Public Administration Systems - 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 |
| 33 | C 1.3: High-Capacity Digital Networks - Reform 1: Improving the environment for the deployment of electronic communications networks | Target | Completion of digital technical maps (DTM) objects for basic spatial situation |
| 34 | C 1.3: High-Capacity Digital Networks - 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 |
| 35 | C 1.3: High-Capacity Digital Networks - Reform 1: Improving the environment for the deployment of electronic communications networks | Target | Completion of electronic communication quality measurements |
| 37 | C 1.3: High-Capacity Digital Networks - 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 |
| 41 | C 1.3: High-Capacity Digital Networks - Investment 2: Covering 5G corridors and promoting the development of 5G | Target | Completion of ensuring mobile signal coverage of railway wagons |
| 42 | C 1.3: High-Capacity Digital Networks - 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). |
| 46 | C 1.3: High-Capacity Digital Networks - Investment 4: Scientific research activities related to the development of 5G networks and services | Target | Completion of scientific research projects related to 5G networks |
| 52 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 2: European Digital Media Observatory Hub (EDMO) | Target | Publication of research results by CEDMO |
| 58 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 6: 5G Demonstrative application projects for cities and industrial areas | Target | Completion of use cases for Smart Cities and for Industry 4.0 |
| 63 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 10: Internationalisation of start-ups | Target | Support of start-ups international expansion via consulting, mentoring business advisory services, accelerator programmes |
| 66 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 12: Building quantum communication infrastructure | Milestone | Completion of construction and pilot operation phase of an optical quantum network |
| 71 | C 1.5: Digital Transformation of Enterprises - Investment 3: Digital transformation of manufacturing and non-production companies and increase of their resilience | Target | Direct support to enterprises for digital transformation |
| 74 | C 1.6: Acceleration and Digitalisation of the Building Process - 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 |
| 81 | C 2.1: Sustainable Transport - 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 |
| 82 | C 2.1: Sustainable Transport - 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 |
| 115 | C 2.4: Clean Mobility - Investment 1: Building infrastructure for public transport in the city of Prague | Target | Number of recharging points for the city of Prague |
| 117 | C 2.4: Clean Mobility - Investment 2: Building infrastructure – Recharging points for private companies | Target | Number of recharging points deployed for private companies |
| 118 | C 2.4: Clean Mobility - Investment 3: Building infrastructure – Recharging points for residential buildings | Target | Number of recharging points deployed for residential buildings |
| 119 | C 2.4: Clean Mobility - Investment 4: Aid for purchase of vehicles – vehicles (electric, H2, bikes) for private companies | Target | Number of vehicles (electric, H2, bikes) for private companies |
| 120 | C 2.4: Clean Mobility - Investment 5: Aid for purchase of vehicles (electric, H2) and infrastructure for municipalities, regions, state administration and other public entities | Target | Number of vehicles (electric, H2) for municipalities, regions, state administration |
| 121 | C 2.4: Clean Mobility - 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 |
| 123 | C 2.5: Building Renovation and Air Protection - Reform 1: Renovation wave in the household sector | Milestone | Consultation and training services for renovation wave in the household sector and timetable for implementing measures included in air quality plans |
| 124 | C 2.5: Building Renovation and Air Protection - Reform 2: Support for pre-project preparation and support of community energy projects | Target | Advisory services on energy communities |
| 126 | C 2.5: Building Renovation and Air Protection - Investment 1: Renovation and revitalisation of buildings for energy savings | Target | Reduction of energy consumption and reduction of CO2 emissions |
| 129 | C 2.5: Building Renovation and Air Protection - Investment 2: Replacement of stationary sources of pollution in households with renewable energy sources | Target | Reduction of energy consumption and reduction of CO2 emissions |
| 130 | C 2.5: Building Renovation and Air Protection - 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 |
| 149 | C 2.7: Circular Economy, Recycling and Industrial Water - Investment 1: Building recycling infrastructure | Target | Completion of projects investing in recycling infrastructure |
| 151 | C 2.7: Circular Economy, Recycling and Industrial Water - Investment 2: Circular solutions in businesses | Target | Completion of projects investing in circular solutions in businesses |
| 153 | C 2.7: Circular Economy, Recycling and Industrial Water - Investment 3: Water saving in industry | Target | Completion of projects to save and optimise water in the industry |
| 155 | C 2.8: Brownfields Revitalisation - Investment 1: Support for revitalisation of specific areas | Target | Completion of energy-efficient revitalisation projects of specific brownfields |
| 157 | C 2.8: Brownfields Revitalisation - 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 |
| 159 | C 2.8: Brownfields Revitalisation - 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 |
| 162 | C 2.9: Promotion of Biodiversity and Fight against Drought - 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 |
| 163 | C 2.9: Promotion of Biodiversity and Fight against Drought - Investment 2: Rainwater management in urban agglomerations | Target | Increase of the volume of rainwater retained by rainwater management measures in urban areas |
| 164 | C 2.9: Promotion of Biodiversity and Fight against Drought - 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. |
| 165 | C 2.9: Promotion of Biodiversity and Fight against Drought - 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 |
| 166 | C 2.9: Promotion of Biodiversity and Fight against Drought - Investment 4: Adaptation of aquatic, non-forest and forest ecosystems to climate change | Target | Assessment of water retention potential and proposal of concrete measures |
| 167 | C 2.9: Promotion of Biodiversity and Fight against Drought - Investment 4: Adaptation of aquatic, non-forest and forest ecosystems to climate change | Target | Implementation of proposed selected water retention measures |
| 173 | C 3.1: Innovation in Education in the Context of Digitalisation - Investment 2: Digital equipment for schools | Target | Number of IT devices purchased for the school fund of mobile digital devices for disadvantaged pupils |
| 181 | C 3.2: Adaptation of School Programmes - Reform 2: Support of disadvantaged schools | Target | Number of disadvantaged schools supported |
| 182 | C 3.2: Adaptation of School Programmes - Reform 2: Support of disadvantaged schools | Milestone | Proposal of a new system of financing of schools according to socio-economic disadvantage |
| 185 | C 3.3: Modernisation of Employment Services and Labour Market Development - 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 |
| 187 | C 3.3: Modernisation of Employment Services and Labour Market Development - 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 |
| 188 | C 3.3: Modernisation of Employment Services and Labour Market Development - Reform 1: Development of labour market policies | Target | Number of regional training centres established to promote Industry 4.0 |
| 194 | C 3.3: Modernisation of Employment Services and Labour Market Development - Investment 3: Development and modernisation of social care infrastructure | Target | T1: Number of community-based residential, outpatient, outreach, prevention and counselling facilities constructed or reconstructed |
| 201 | C 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 - 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 |
| 215 | C 4.4: Enhancing the Efficiency of Public Administration - Reform 1: Increase efficiency, pro-client orientation and use of the principles of evidence-based decision-making in public administration | Target | Completion of five actions promoting evidence-informed decision making and improving policy co-ordination and strategic planning at the centre of government |
| 216 | C 4.4: Enhancing the Efficiency of Public Administration - 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 |
| 217 | C 4.5: Development of the Cultural and Creative Sector - Reform 1: Status of the Artist | Milestone | Entry into force of the law on the Status of the Artist |
| 219 | C 4.5: Development of the Cultural and Creative Sector - Investment 1: Development of regional cultural and creative sectors | Target | Opening of new regional cultural and creative centres to public |
| 221 | C 4.5: Development of the Cultural and Creative Sector - Investment 2: Digitalisation of cultural and creative sector | Target | Number of completed projects of digitalisation of the cultural content |
| 222 | C 4.5: Development of the Cultural and Creative Sector - Investment 3: Creative vouchers | Target | Number of creative vouchers allocated to SMEs |
| 225 | C 5.1: Excellent Research and Development in the Health Sector - 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 |
| 233 | C 6.1: Increasing Resilience of the Health System - Investment 1: Creation of the Intensive Medicine Simulation Centre and optimisation of the education system | Milestone | Intensive Medicine Simulation Centre put in operation |
| 235 | C 6.1: Increasing Resilience of the Health System - Investment 3: Building a centre for cardiovascular and transplant medicine | Milestone | Centre for Cardiovascular and Transplant Medicine fully operational |
| 243 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Investment 3: Establishment and development of the Centre for Cancer Prevention and Infrastructure for Innovative and Supportive Care at the Masaryk Memorial Cancer Institute | Milestone | Cancer Prevention Centre at the Masaryk Memorial Cancer Institute |
| 244 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Investment 3: Establishment and development of the Centre for Cancer Prevention and Infrastructure for Innovative and Supportive Care at the Masaryk Memorial Cancer Institute | Milestone | Expansion of facilities for Innovative and Supportive Care at the Masaryk Memorial Cancer Institute |
| 263 | C 2.10 Affordable housing - Reform 1: Entry into force of the Affordable Housing Act | Milestone | Affordable Housing Act in force |
| 278 | C 3.3: Modernisation of Employment Services and Labour Market Development - Investment 4: Development and modernisation of children social care infrastructure | Target | Housing area for children at risk acquired – 2nd batch |
| 319 | C 7.3: Comprehensive reform of the Renovation Wave Advice in the Czech Republic (REPOWER EU) - Reform 1: One-stop-shops for energy communities and energy efficiency renovations | Milestone | Evaluation of pilot operation of three One-stop-shops for energy |
| 326 | C 7.4: School adaptation – Promoting green skills and sustainability in universities (REPOWEREU) - Reform 1: Transformation of universities to adapt to changing needs of the labour market | Target | Launch of new study programmes, new courses in existing study programmes and lifelong learning courses |
| 334 | C 7.5 Decarbonisation of Road Transport (REPowerEU) - Reform 3: Improving the regulatory framework for renewable hydrogen | Milestone | Revision of the Czech Hydrogen Strategy – measures to promote uptake of hydrogen |
| 336 | C 7.5 Decarbonisation of Road Transport (REPowerEU) - Reform 4: Enabling conditions for zero-emission alternative fuels infrastructure | Milestone | Simplification of permitting process for construction of electric charging stations and hydrogen refuelling stations – additional measures |
| 338 | C 7.5 Decarbonisation of Road Transport (REPowerEU) - Investment 1: Scaled up measure: Aid for purchase of vehicles – vehicles (electric, H2, bikes) for private companies | Target | Scale-up of target 119 of Component 2.4 |
| 346 | C 7.7 Simplifying environmental permitting processes and defining areas for the development of renewable energy sources (REPOWER EU) - Reform 2: Renewables acceleration areas | Target | Designation of renewables acceleration areas for wind and solar energy development |
|  |  | Instalment Amount | EUR 1 539 264 751 |

1.9.Ninth Instalment (non-repayable support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 10 | C 1.1: Digital services to citizens and businesses - 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) |
| 17 | C 1.2: Digital Public Administration Systems - Investment 1: Development of information systems | Milestone | Successful operation of the Integrated Foreigners system reducing the administrative burden of foreigners and public servants |
| 39 | C 1.3: High-Capacity Digital Networks - Investment 1: Building high-capacity connections | Target | Completion of address points connected with the very high-capacity network (VHCN) |
| 40 | C 1.3: High-Capacity Digital Networks - Investment 2: Covering 5G corridors and promoting the development of 5G | Target | Completion of enhanced 5G signal coverage of selected rail corridors |
| 44 | C 1.3: High-Capacity Digital Networks - Investment 3: Supporting the development of 5G mobile infrastructure in rural investment-intensive white areas | Target | Completion of base stations for 5G signals |
| 61 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology Investment 9: Funds for the development of pre/seed investments, strategic digital technologies and university spin-offs | Milestone | Launch of the Fund of funds and the investment of the three designated funds (pre-seed, strategic technologies and spin-off funds |
| 104 | C 2.2: Reducing Energy Consumption in the Public Sector - Investment 1: Improving the energy performance of state buildings | Target | Reduction of energy consumption |
| 107 | C 2.2: Reducing Energy Consumption in the Public Sector - Investment 2: Improving the energy performance of public lighting systems | Target | Reduction of energy consumption |
| 109 | C 2.2: Reducing Energy Consumption in the Public Sector - Investment 3: Improving the energy performance of public buildings | Target | Reduction of energy consumption |
| 112 | C 2.3: Transition to Cleaner Energy Sources - Investment 1: Development of new photovoltaic energy sources | Target | Increase of installed capacity of FVE sources |
| 114 | C 2.3: Transition to Cleaner Energy Sources - Investment 2: Modernisation of distribution of heat in district heating systems | Target | Primary energy savings resulting from the modernisation of heat distribution |
| 116 | C 2.4: Clean Mobility - Investment 1: Building infrastructure for public transport in the city of Prague | Target | Number of kilometres of dynamic charging road for the city of Prague |
| 122 | C 2.4: Clean Mobility - 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 |
| 171 | C 3.1: Innovation in Education in the Context of Digitalisation - Investment 1: Implementation of the revised curriculum and digital skills of teachers | Target | Number of schools which received support to implement new IT curricula (digital skills of teachers and guidance) |
| 175 | C 3.1: Innovation in Education in the Context of Digitalisation - Investment 2: Digital equipment for schools | Target | Number of schools supported in counselling and mentoring on IT equipment and internal IT systems |
| 177 | C 3.2: Adaptation of School Programmes - 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 |
| 178 | C 3.2: Adaptation of School Programmes - 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 |
| 227 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 1: Supporting the uptake of innovation in business practice | Target | Introduction of product, process or organisational innovations |
| 22 | C 1.2: Digital Public Administration Systems - Investment 2:   Development of core registers and facilities for eGovernment | Milestone | Provision of cloud computing services to public authorities |
| 180 | C 3.2: Adaptation of School Programmes - Investment 1: Development of selected key academic sites | Target | Number of square metres of new university area |
| 189 | C 3.3: Modernisation of Employment Services and Labour Market Development - Investment 2: Increasing the capacity of pre-school facilities | Target | Number of refurbished existing pre-school facilities |
| 190 | C 3.3: Modernisation of Employment Services and Labour Market Development - Investment 2: Increasing the capacity of pre-school facilities | Target | Number of new pre-school facilities |
| 191 | C3.3: Modernisation of Employment Services and Labour Market Development - Investment 2: Increasing the capacity of pre-school facilities | Target | Number of new places in pre-school facilities |
| 195 | C 3.3: Modernisation of Employment Services and Labour Market Development - Investment 3: Development and modernisation of social care infrastructure | Target | T2: Number of community-based residential, outpatient, outreach, prevention and counselling facilities constructed or reconstructed |
| 230 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - 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 |
| 238 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Reform 2: Supporting and enhancing quality of preventive screening programmes | Target | Increase in the coverage of the target population by the colorectal cancer screening programme |
| 239 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Reform 2: Supporting and enhancing quality of preventive screening programmes | Target | Number of participants in the new early lung cancer detection programme |
| 241 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Investment 1: Building and establishment of the Czech Oncological Institute | Milestone | The Czech Oncology Institute put in operation |
| 242 | C 6.2: The National Plan to Strengthen Oncological Prevention and Care - Investment 2: Developing highly specialised oncological and hematooncological care | Target | Number of supported facilities providing oncological and hematooncological care |
| 257 | C 1.7: Digital Transformation of Public Administration - Investment 1: Unification of domains and the creation of a learning platform | Milestone | Update of Design System |
| 258 | C 1.7: Digital Transformation of Public Administration - Investment 2: Improvement of the management system for digitalised services | Milestone | Update of ICT governance in public administration |
| 259 | C 1.7: Digital Transformation of Public Administration - Investment 3: Creation of a public administration contact centre | Milestone | Public administration contact centre operational |
| 260 | C 1.7: Digital Transformation of Public Administration - Investment 4: Creation of a central data infrastructure | Milestone | Central data warehouse operational |
| 262 | C 2.9: Promotion of Biodiversity and Fight against Drought - Reform 2: Establishment of landscape policy and planning | Milestone | Adoption of an integrated landscape policy and planning |
| 279 | C 3.3: Modernisation of Employment Services and Labour Market Development - Investment 4: Development and modernisation of children social care infrastructure | Target | Capacity of facilities for children at risk |
| 283 | C 4.1: Systemic support for public investment - Reform 3:    Financial support for the preparation of projects in line with EU objectives | Target | Number of projects prepared for implementation |
| 289 | C 4.4: Enhancing the Efficiency of Public Administration - Reform 1: Increase efficiency, pro-client orientation and use of the principles of evidence-based decision-making in public administration | Milestone | An IT system and action plan for better HR in the public administration |
| 290 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - 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 |
| 291 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 3: Aid for research and development in the environmental field | Target | Research and development in the environmental field |
| 293 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 5: Aid for research and development in enterprises in line with the national RIS3 strategy | Target | Research and development in line with the RIS3 strategy |
| 295 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 6: Aid for research and development in the field of transport | Target | Research and development in the field of transport |
| 297 | C 5.2: Support for Research and Development in Companies and Introduction of Innovations into Business Practice - Investment 7: Aid for research and development in the environmental field | Target | Research and development in the environmental field |
| 299 | C 7.1: Renewable energy and electricity infrastructure (REPowerEU) - Investment 1: Modernisation and digitalisation of the regional distribution systems | Target | Completion of investments into modernisation of distribution networks in the Czech Republic |
| 300 | C 7.1: Renewable energy and electricity infrastructure (REPowerEU) - Investment 2: Scaled up measure: Development of new photovoltaic energy sources | Target | Completion of a further 224,7MW installed capacity of FVE sources |
| 307 | C 7.1: Renewable energy and electricity infrastructure (REPowerEU) - Reform 3 – Sub measure 1 Improve transparency of the grid connection procedure | Target | Grid connection authorisation for renewable power plant capacity |
| 308 | C 7.1: Renewable energy and electricity infrastructure (REPowerEU) - Reform 3 – Sub measure 2: Regulatory incentives for electricity network operators to increase grid flexibility | Milestone | Publication of the new TSO and DSO tariff methodologies on the website of the energy regulator |
| 311 | C 7.2 Supporting decentralisation and digitalisation of the energy sector (REPOWER EU) - Investment 1: Electricity Data Centre | Milestone | Entry into operation of the Energy Data Centre |
| 314 | C 7.2 Supporting decentralisation and digitalisation of the energy sector (REPOWER EU) - Reform 1: Energy communities | Milestone | Guidelines on energy communities |
| 323 | C 7.3: Comprehensive reform of the Renovation Wave Advice in the Czech Republic (REPOWER EU) - Investment 1: Provision of advisory services to households, enterprises, and the public sector | Target | Provision of advisory services to households, enterprises, and the public sector |
| 330 | C 7.5 Decarbonisation of Road Transport (REPowerEU) - Reform 1: National Action Plan for Clean Mobility and deployment targets for zero-emission mobility | Target | Increasing the number of zero-emission vehicles registered |
| 331 | C 7.5 Decarbonisation of Road Transport (REPowerEU) - Reform 1: National Action Plan for Clean Mobility and deployment targets for zero-emission mobility | Milestone | Support for accelerated deployment of alternative fuels infrastructure |
| 339 | C 7.6 Electrification of Rail Transport (REPowerEU) - Investment 1: Electrification of Brno region | Target | Completion of rail electrification project “Electrification of Brno- Zastávka u Brna, stage 2” |
|  |  | Instalment Amount | EUR 983 488 992 |

  

2. Loans 

The instalments referred to in Article 2a(2) shall be organised in the following manner:

2.1. First Payment Request (loan support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 247 | C1.2: Digital Public Administration Systems-  Investment Top-up of cyber security investment | Milestone | Publication of the call related to the strengthening of information systems in accordance with Act No 181/2014 Coll. on cyber security |
| 254 | C1.5: Digital Transformation of Enterprises- Investment 4: IPCEI Microelectronics and Communication Technologies | Milestone | Signature of grant agreements |
|  |  | Instalment amount | EUR 190 898 548 |

2.2. Second Payment Request (loan support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 251 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology Investment 13: Funds for the development of strategic technologies | Milestone | Implementing agreement |
| 264 | C2.10 Affordable housing-Investment 1:  Concessional loan facility | Milestone | Implementing Agreement |
| 267 | C2.10 Affordable housing-Investment 2:  Subordinated loan facility | Milestone | Implementing Agreement |
| 270 | C2.10 Affordable housing-Investment 3:  Co-investment facility | Milestone | Implementing Agreement |
|  |  | Instalment amount | EUR 381 797 096 |

  

2.3. Third Payment Request (loan support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 248 | C 1.2: Digital Public Administration Systems-  Investment : Top-up of cyber security investment | Target | Information systems whose cyber security has been strengthened in line with Act No. 181/2014 Coll., on cyber security |
|  |  | Instalment amount | EUR 20 453 416 |

  

2.4. Fourth Payment Request (loan support):

|  |  |  |  |
| --- | --- | --- | --- |
| Sequential Number | Related Measure (Reform or Investment) | Milestone / Target | Name |
| 246 | C1.1: Digital Services to Citizens and Businesses-Investment 4: Digital services for end-users in social area | Milestone | Upgraded self-service portal for the Labour Office – Client zone II |
| 249 | C 1.2: Digital Public Administration Systems-Investment: Development of information systems in the social area | Target | Upgraded information systems of public administration in the area of social policy |
| 252 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology-  Investment 13: Funds for the development of strategic technologies | Target | Legal agreements signed with funds |
| 253 | C 1.4: Digital Economy and Society, Innovative Start-Ups and New Technology - Investment 13: Funds for the development of strategic technologies | Milestone | Ministry has completed the investment |
| 255 | C 1.5: Digital Transformation of Enterprises - Investment 4: IPCEI Microelectronics and Communication Technologies | Target | Development of pilot solutions |
| 265 | C 2.10 Affordable housing - Investment 1: Concessional loan facility | Target | Legal agreements signed with final beneficiaries |
| 266 | C 2.10 Affordable housing - Investment 1: Concessional loan facility | Milestone | Ministry has completed the investment |
| 268 | C 2.10 Affordable housing - Investment 2: Subordinated loan facility | Target | Legal agreements signed with final beneficiaries |
| 269 | C 2.10 Affordable housing - Investment 2: Subordinated loan facility | Milestone | Ministry has completed the investment |
| 271 | C 2.10 Affordable housing - Investment 3: Co-investment facility | Target | Legal agreements signed with final beneficiaries |
| 272 | C 2.10 Affordable housing - Investment 3:  Co-investment facility | Milestone | Ministry has completed the investment |
|  |  | Instalment amount | EUR 224 987 575 |

SECTION 3: ADDITIONAL ARRANGEMENTS

1.Arrangements for monitoring and implementation of the recovery and resilience plan

The monitoring and implementation of the recovery and resilience plan of Czechia shall take place in accordance with the following arrangements:

In order to establish well-defined tasks, competences and powers, the Czech Government adopted on 17 May 2021, the Government resolution No 467. This resolution approved the recovery and resilience plan, statute, rules of procedures and ethical code for the Managing Council of the national recovery and resilience plan, tasks and competences of the bodies involved in the implementation of the recovery and resilience plan and appointed the Ministry of Industry and Trade as coordinating body and the Ministry of Finance as the audit body for the recovery and resilience plan.

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. Payment claims have to be approved by this council. The Ministry of Industry and Trade, as the central coordinating body for the recovery and resilience plan and its implementation, is responsible for coordination, monitoring and reporting of the recovery and resilience plan and is main point of contact for the Commission. This body is also responsible for drawing-up of the payment claims and management declarations. It coordinates the reporting of milestones and targets, relevant indicators, but also qualitative financial information and other data, such as on final recipients. The data encoding is taking place in decentralized information systems throughout systems at the level of component owners, which are obliged to report the required data to the Ministry of Industry and Trade. 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 are included to the plan to ensure that these weaknesses have been addressed before the first payment request.

2.Arrangements for providing full access by the Commission to the underlying data

In order to provide full access to the Commission to the underlying relevant data, Czechia shall have in place the following arrangements:

The Ministry of Industry and Trade, as the central coordinating body for Czechia’s recovery and resilience plan and its implementation, is responsible for overall coordination and monitoring of the plan. In particular, it acts as a coordinating body for monitoring progress on milestones and targets, where appropriate, for carrying out management verifications, and for providing reporting and requests for payments. It coordinates the reporting of milestones and targets, relevant indicators, but also qualitative financial information and other data, such as on final recipients. The data encoding is taking place in decentralised systems throughout different component owners, which are obliged to report the required data to the coordinating body.

In accordance with Article 24(2) of Regulation (EU) 2021/241, upon completion of the relevant agreed milestones and targets in Section 2.1 of this Annex, Czechia shall submit to the Commission a duly justified request for payment of the financial contribution. Czechia shall ensure that, upon request, the Commission has full access to the underlying relevant data that supports the due justification of the request for payment, both for the assessment of the request for payment in accordance with Article 24(3) of Regulation (EU) 2021/241 and for audit and control purposes.

:   [(1)](#footnoteref2)
     In particular, the measure requires the economic operators carrying out the construction works to ensure that at least 70% (by weight) of the non-hazardous construction and demolition waste (excluding naturally occurring material referred to in category 17 05 04 in the European List of Waste established by Decision 2000/532/EC of 3 May 2000 replacing Decision 94/3/EC establishing a list of wastes pursuant to Article 1(a) of Council Directive 75/442/EEC on waste and Council Decision 94/904/EC establishing a list of hazardous waste pursuant to Article 1(4) of Council Directive 91/689/EEC on hazardous waste (notified under document number C(2000) 1147)) generated on the construction site shall be prepared for re-use, recycling and other material recovery, including backfilling operations using waste to substitute other materials, in accordance with the waste hierarchy and the EU Construction and Demolition Waste Management Protocol.
:   [(2)](#footnoteref3)

    Adopted pursuant to Commission Recommendation 2020/1307 on a common Union toolbox for reducing the cost of deploying very high-capacity networks and ensuring timely and investment-friendly access to 5G radio spectrum, to foster connectivity in support of economic recovery from the COVID-19 crisis in the Union.
:   [(3)](#footnoteref4)
     
       Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
:   [(4)](#footnoteref5)
     
       Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
:   [(5)](#footnoteref6)
     
       This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
:   [(6)](#footnoteref7)
     
       This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
:   [(7)](#footnoteref8)
     For strategic investments, i.e. those in defence technologies and products identified in the annual work programme for the European Defence Fund; space investments in atomic clocks, strategic launchers; and space products; and investments focusing solely on developing and deploying cybersecurity tools and solutions, including when these are part of deploying or upgrading digital networks and data infrastructure; final beneficiaries shall not be controlled by a third country or third country entities and shall have its executive management in the Union except for investments below EUR 10 000 000. If the final beneficiary is involved in a strategic investment in the field of 5G connectivity, the measures and risk mitigation plans, pursuant to the 5G Cybersecurity Toolbox shall also apply to its suppliers. Such suppliers notably include vendors of telecom equipment and manufactures and other third-party suppliers, such as cloud infrastructure providers, managed service providers, systems integrators, security and maintenance contractors and transmission equipment manufacturers. Where the final beneficiary is involved in a strategic investment in the field of defence, this limitation shall also apply to its suppliers and subcontractors. The limitations concerning the absence of control by a third country or third country entity above do not apply for a particular financing and investment operation where the final beneficiary can demonstrate that it is a legal entity for which the Member State in which it is established has approved a guarantee for the specific action concerned in line with the principles concerning eligible entities set out in the relevant provisions of the European Defence Fund (‘EDF’) Regulation -or the Commission waiver granted in accordance with principles concerning eligible entities set out in the relevant provisions of the Space Regulation. The implementing partner must notify the government of any derogation granted to the limitations.
:   [(8)](#footnoteref9)
     It is considered that a Final Beneficiary has a “substantial focus” on a sector or business activity if such sector or activity is identified as being an essential part of the business activity of the Final Beneficiary respectively in relation to the gross revenue, profit, or client base of the Final Beneficiary. The gross revenue generated from the restricted sector or activity shall, in any case, not exceed 50% of the gross revenue.
:   [(9)](#footnoteref10)

    Except for (a) assets and activities in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01) and (b) activities and assets under point (ii) for which the use of fossil fuels is temporary and technically unavoidable for the timely transition towards a fossil fuel free operation.
:   [(10)](#footnoteref11)

    Including activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks. Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks, an explanation of the reasons why this is not possible shall be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
:   [(11)](#footnoteref12)

    Polluting vehicles are defined as non-zero-emission vehicles.
:   [(12)](#footnoteref13)
     This exclusion does not apply to actions in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
:   [(13)](#footnoteref14)

     In accordance with Article 12 of Directive 2008/98/EC as amended by Directive (EU) 2018/851.
:   [(14)](#footnoteref15)
     In accordance with Directive 1999/31/EC as amended by Directive (EU) 2018/850.
:   [(15)](#footnoteref16)
     Except for (a) assets and activities in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01) and (b) activities and assets under point (ii) for which the use of fossil fuels is temporary and technically unavoidable for the timely transition towards a fossil fuel free operation.
:   [(16)](#footnoteref17)
     Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks, an explanation of the reasons why this is not possible shall be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
:   [(17)](#footnoteref18)
     Except for (a) assets and activities in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01) and (b) activities and assets under point (ii) for which the use of fossil fuels is temporary and technically unavoidable for the timely transition towards a fossil fuel free operation.
:   [(18)](#footnoteref19)
     Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks, an explanation of the reasons why this is not possible shall be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
:   [(19)](#footnoteref20)
     Except for (a) assets and activities in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01) and (b) activities and assets under point (ii) for which the use of fossil fuels is temporary and technically unavoidable for the timely transition towards a fossil fuel free operation.
:   [(20)](#footnoteref21)
     Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks, an explanation of the reasons why this is not possible shall be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
:   [(21)](#footnoteref22)

    Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, which are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
:   [(22)](#footnoteref23)

    Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
:   [(23)](#footnoteref24)

    This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
:   [(24)](#footnoteref25)
     This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
:   [(25)](#footnoteref26)
     https://ec.europa.eu/health/sites/default/files/non\_communicable\_diseases/docs/eu\_cancer-plan\_en.pdf

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