8 February 2023

Positive preliminary assessment of the satisfactory fulfilment of milestones and targets
related to the first payment request submitted by Czechia on 25 November 2022,
transmitted to the Economic and Financial Committee by the European Commission
Executive summary
In accordance with Article 24(2) of Regulation (EU) 2021/241, on 25 November 2022, Czechia
submitted a request for payment for the first instalment of the non-repayable support. The payment
request was accompanied by the required management declaration and summary of audits.
To support its payment request, Czechia provided due justification of the satisfactory fulfilment of
the 37 milestones and targets of the first instalment of the non-repayable support, as set out in
Section 2 (1) (1.1) of the Council Implementing Decision of 08 September 2021 on the approval of
the assessment of the recovery and resilience plan for Czechia1.
For two targets covering a large number of recipients, in addition to the summary documents and
official listings provided by Czechia, Commission services have assessed a statistically significant
sample of individual files. The sample size has been uniformly set at 60, which corresponds to a
confidence level of 95% or above in all cases.
Upon receipt of the payment request, the Commission has assessed on a preliminary basis the
satisfactory fulfilment of the relevant milestones and targets. Based on the information provided by
Czechia, the Commission has made a positive preliminary assessment of the satisfactory fulfilment of
all 37 milestones and targets.
The milestones and targets positively assessed as part of this payment request demonstrate
significant steps in the implementation of Czechia’s Recovery and Resilience Plan. This includes,
among others, in the areas of school curricula, eHealth and the prevention, detection and correction
of conflicts of interests. The milestones and targets also confirm progress towards the completion of
investment projects related to railway infrastructure and digital devices for distance learning.
By the transmission of this positive preliminary assessment and in accordance with Article 24(4) of
Regulation (EU) 2021/241, the Commission asks for the opinion of the Economic and Financial
Committee on the satisfactory fulfilment of the relevant milestones and targets.

1

Council Implementing Decision of 8 September 2021 on the approval of the assessment of the recovery and
resilience plan for Czechia (ST 11047/21; ST 11047/21 ADD 1; ST 11047/21 COR 1), not yet published.

1

Non-repayable support ...................................................................................................................... 4
Related Measure: CZ-[C1.1]-R[R2]: eHealth................................................................................... 4
Related Measure: CZ-C[C1.2]-I[I4]: Creating the conditions for digital justice ................................. 6
Related Measure: CZ-C[C1.4]-I[I2]: European Digital Media Observatory Hub (EDMO) ................... 8
Related Measure: CZ-C[C1.5]-R[R1]: Creation of a platform for the digitalisation of the economy 10
Related Measure: CZ-C[C1.6]-R[R1]: Implementation of the new construction law and zoning law
into practice .............................................................................................................................. 12
Related Measure: CZ-C[C2.1]-I[I1]: New technologies and digitalisation on railway infrastructure 14
Related Measure: CZ-C[C2.1]-I[I2]: Electrification of railways ...................................................... 16
Related Measure: CZ-C[C2.1]-I[I3]: Improving the environment (railway infrastructure support) .. 18
Related Measure: CZ-C[C2.1]-I[I4]: Road and rail safety (railway crossings, bridges and tunnels,
cycle paths and barrier-free routes) ............................................................................................ 21
Related Measure: CZ-C[C2.1]-I[I4]: Road and rail safety (railway crossings, bridges and tunnels,
cycle paths and barrier-free routes) ............................................................................................ 23
Related Measure: CZ-C[C2.1]-I[I4]: Road and rail safety (railway crossings, bridges and tunnels,
cycle paths and barrier-free routes) ............................................................................................ 25
Related Measure: CZ-C[C2.2]-I[I1]: Improving the energy performance of state buildings ............ 27
Related measure: CZ-C[C2.2]-I[I2]: Improving the energy performance of public lighting systems 29
Related Measure: CZ-C[2.6]-I[I1]: Flood protection ..................................................................... 30
Related Measure: CZ-C[C2.6]-I[I2]: Small watercourses and water reservoirs ............................... 32
Related Measure: CZ-C[C2.6]-I[I2]: Small watercourses and water reservoirs ............................... 34
Related Measure: CZ-C[2.7]-R[R2]: Finalisation and implementation of the circular Czechia strategy
2040 .......................................................................................................................................... 37
Related Measure: CZ-C[C3.1]-R[R1]: Curricula reform and strengthening of IT education ............. 38
Related Measure: CZ-C[C3.1]-I[I2]: Digital equipment for schools ............................................... 40
Related Measure: CZ-C[C3.2]-R[R1]: Transformation of universities to adapt to new forms of
learning and changing needs of the labour market ...................................................................... 42
Related Measure: CZ-C[C3.3]-R[R1]: Development of labour market policies ............................... 44
Related Measure: CZ-C[C4.2]-R[R1]: Development of the Czech-Moravian Guarantee and
Development Bank as a National Development Bank .................................................................. 46
Related Measure: CZ-C[C4.2]-R[R1]: Development of the Czech-Moravian Guarantee and
Development Bank as a National Development Bank .................................................................. 47
Related Measure: CZ-C[C4.2]-I[I1]: Development of a new line of quasi-equity instruments
supporting entrepreneurship ..................................................................................................... 50
Related Measure: CZ-C[C4.3]-R[R2]: Judiciary reform aimed at strengthening the legislative
framework and transparency in the areas of courts, judges, prosecutors and bailiffs ................... 53
Related Measure: CZ-C[C4.3]-R[R5]: Control and audit ................................................................ 55
Related Measure: CZ-C[C4.3]-R[R5]: Control and audit ................................................................ 59
2

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit ................................................................ 63
Related Measure: CZ-C[C4.3]-R[R5]: Control and audit ................................................................ 64
Related Measure: CZ-C[C4.3]-R[R5]: Control and audit ................................................................ 67
Related Measure: CZ-C[C4.3]-R[R5]: Control and audit ................................................................ 69
Related Measure: CZ-C[C4.3]-R[R5]: Control and audit ................................................................ 71
Related Measure: CZ-C[C4.3]-R[R5]: Control and audit ................................................................ 75
Related Measure: CZ-C[C5.1]-I[I1]: Public Research & Development support for priority areas of
medical sciences and related social sciences ............................................................................... 77
Related Measure: CZ-C[C5.1]-I[I1]: Public Research & Development support for priority areas of
medical sciences and related social sciences ............................................................................... 81
Related Measure: CZ-C[C5.2]-R[R1]: Creation of National Coordination Group for Support for
Industrial Research .................................................................................................................... 85
Related Measure: CZ-C[C6.2]-R[R1]: National Oncological Programme ........................................ 88

3

Non-repayable support
Number: 3

Related Measure: CZ-[C1.1]-R[R2]: eHealth

Name of the Milestone: Definition of interoperability standards in accordance with the
European Interoperability Framework for eHealth and definition of rules governing
telemedicine
Qualitative Indicator: Adoption of standards and rules by the Ministry of
Time: Q1 2022
Health
Context:
The objective of the reform is to increase the digitalisation of the health sector by laying down
the rules and standards for providing eHealth and telemedicine services, by introducing new
eHealth services with extended functionalities, by connecting health service providers in line
with interoperability standards and by strengthened cybersecurity requirements.
Milestone #3 concerns the definition of rules governing Data Structures for Data Transfer
between information systems of health facilities. It also lays down the definition of rules to
health service providers for the development and provision of telemedicine services.
Milestone #3 is the first step of the implementation of this reform. It will be followed by target
#4 on the number of new telemedicine services introduced and made available to patients.
Target #4 will be followed by target #5 on the completion of projects leading to the
implementation of new digital health services which include Smart quarantine 2.0, promotion
of digital health services, eHealth portal solutions and secondary use of health data. Target #6
on Connection of health service providers / medical facilities to eHealth services according to
interoperability rules and full operation of eHealth portal with increased functionality and
service catalogue is the fourth and last target of this reform. Its aim is connecting healthcare
providers in an interoperable system to eHealth portal. The reform has a final expected date for
implementation on 31 December 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Annex 1 - Official Journal of the Ministry of Health, No. 7, 28 June 2022, which includes
the reference to the ministry’s website.

The authorities also provided:
iii.

iv.

v.

Annex 2 - Decree No. 279/2020 amending Implementing Decree No. 98/2012 on medical
records (Vyhláška č. 279/2020 Sb. kterou se mění vyhláška č. 98/2012 Sb., o zdravotnické
dokumentaci, ve zněnípozdějších předpisů). The decree was published in the national
Official Journal of 19 June 2020 and entered into force on 1 July 2020;
Annex 3 - Act 326/2021 amending certain acts in connection with the adoption of the law
on the digitalisation of health services (Zákon č. 326/2021 Sb. kterým se mění některé
zákony v souvislosti s přijetím zákona o elektronizacizdravotnictví). The act was published
in the national Official Journal of 08 September 2021 and entered into force on 1 January
2022;
Annex 4 - Technical specification of Patient Summary data structure, which describes
4

data structures and guidelines of data blocks for development;
vi.
Annex 5 - “Methodology for keeping and sharing the Patient Summary in the Czech
Republic further to Decree No. 98/2012 on medical records”, published on the website of
the Ministry of Health, 25 October 2022;
vii.
Annex 6 - Testing framework for the information system interoperability of health service
providers with the National Contact Point for eHealth (NCPeH) of the Czech Republic
published on 27 October 2022;
viii.
Annex 7 - Act No. 89/2021 on medical devices amending Act No. 378/2007 on medicinal
products and amending certain related acts (the Medicines Act) (Zákon č. 89/2021 Sb. o
zdravotnických prostředcích a o změně zákona č. 378/2007 Sb., o léčivech a ozměnách
některých souvisejících zákonů (zákon o léčivech)). The act was published in the national
Official journal on 01 March 2021 and entered into force on 26 May 2021;
ix.
Annex 8 - Rules for the development of telemedicine in the Czech Republic, which lay
down rules for development of telemedicine service and provide a basis for the
formulation of other specific measures and guides.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:


Standards, rules and requirements governing interoperability by healthcare providers
Decree 279/2020 amending Implementing Decree No. 98/2012 on medical records
(Annex 2) introduces the requirements of transferring patient data in the form of
“Patient Summary” by:
i.

ii.

prescribing that for providing basic health data via the National Contact
Point for eHealth to another healthcare provider the Patient Summary
shall be electronic and shall be structured and coded in a way that is
compatible with the National Contact Point. The necessary codes are
published on the website of the Ministry of Health (paragraph 4a);
defining the content and structure of the Patient Summary (Section 4b).

Furthermore, in line with the description of the measure and the name of the milestone,
the interoperability standards are defined in accordance with the European
Interoperability Framework for eHealth. The evidenced Methodology for keeping and
sharing the Patient Summary in the Czech Republic (Annex 5), which provides guidance
to health service providers who implement the Patient Summary on the application of
the relevant legal provisions, confirms on page 9, second paragraph, that “the content
Patient Summary or its entry is designed to reflect the form in which it has been approved
by the [Member] States in the framework of the eHealth Network”.


[… ] shall serve as a basis for adaptation of the health systems
The evidenced Testing framework for the information system interoperability of health
service providers (Annex 6), lays down the methodology, process and the requirement of
verification for information systems of service providers in the context of communication
with/via the National Contact Point for eHealth. According to the evidence, test
specifications (section three) have been described and contact points at the National
Contact Point for eHealth have been made available in order to enable health service
5

providers to test the interoperability of their information systems for exchanging the
Patient Summary. Via the website indicated in the Official Journal of the Ministry of
Health (Annex 1) and submitted by Czechia (https://ncez.mzcr.cz/cs/pacientsky-souhrn)
the functional requirements and the minimum data models have been made available
for the use of service providers. Moreover, the evidenced Technical Specification of
Patient Summary data structure (Annex 4) provides examples and templates for the
adoption of data structures and stored data of patients in line with the European Patient
Summary as approved by the European eHealth Network. These functional, technical and
testing specifications enable the health service providers to commence the adaptation of
the information system.


Rules governing telemedicine services […] defin[ing] the conditions of providing such
services
Act 89/2021 on medical devices (Annex 7) lays down the competences and processes of
authorities, notably of the State Institute for Drug Control, in relation to authorisation
and monitoring of medical devices and to the management of Medical Device
Information System (paragraphs 5 and 6). Paragraphs 8 to 10 lay down the conditions for
obtaining certification to medical devices, including hardware and software used for
telemedicine, that manufacturers must obtain, and service providers must comply with
in order to be able to provide telemedicine services. Moreover, it sets the rules for
prescribing and dispensing of devices, including the use and transmission of electronic
vouchers for such devices using mobile phone-based solutions (paragraphs 29 to 31).
Furthermore, Rules for the development of telemedicine in the Czech Republic (Annex
8), as published on the website of the Ministry of Health in accordance with (2)(c) of
paragraph 38 of Act No. 325/2021 on the digitalisation of healthcare, set the conditions
for the selection and implementation of projects supported by authorities aiming at
providing telemedicine services. In particular, Section 1, page 5, paragraph 2 provides
that it is mandatory for the implementation of telemedicine projects supported by the
RRP to comply with such rules. The document outlines the approach for the analysis,
clinical trials, evaluation, operation and reimbursement of telemedicine services. The
rules, applied by public authorities, determine the support of the development of
telemedicine services, in particular for the support under subsequent target #4 and need
to be taken into account by developers who seek authorisation or support.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 29

Related Measure: CZ-C[C1.2]-I[I4]: Creating the conditions for digital justice

Name of the Milestone: Analysis of data management and use of data in the justice sector and
the deployment of a data warehouse
Qualitative Indicator: The analysis is approved by the Ministry of Justice
Time: Q2 2022
and the data warehouse is deployed
Context:
The objective of this investment is to modernise the working environment of the judicial system,
enable remote and flexible working conditions and thus increase the resilience of the national
justice system.
Milestone #29 concerns the delivery of an analysis to map the usage of data in the current Czech
justice IT systems and define the needs for digitalisation of the justice sector. The milestone also
requires the development of a pilot data warehouse solution that allows to handle and interpret
such data.
6

Milestone #29 is the first step of the implementation of the investment and will be followed by
two targets. Target #30 on the increase of equipped videoconferencing rooms and target #31 on
the increase of the infrastructure capacity, which includes the development of a more extended
data warehouse solution. The investment has a final expected date for implementation on 31
December 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.
iii.
iv.
v.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Annex 1 - Analysis of data management and use of data in the justice sector, which defines
the data use and data management needs of the justice sector and the Ministry of Justice;
Annex 2 - Protocol of Acceptance: Analysis of data management and use of data in the
justice sector;
Annex 3 - Chief Architect of eGovernment Declaration;
Annex 5 - Protocol of Acceptance: Data warehouse platform.

The authorities also provided:
vi.

Annex 4 - Data Warehouse, which contains the link to access to the data warehouse
application.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:


The milestone shall include an analysis mapping the data use and data management
needs of the Justice sector and the Ministry of the Justice.
Annex 1 provides a comprehensive analysis on the state of play of data processing in the
Ministry of Justice and describes the key issues that hinder a more efficient data
management, explaining in detail how the current IT system works (mapping of the data
use) as well as the need for an upgrade of the existing reporting solutions to ensure more
effective decision-making processes (data management needs). The analysis maps the
current IT systems used by the justice department and identifies whether data is used as an
input for reporting purposes. The document contains information on how the IT systems
interact with each other, it describes how the data is captured and whether it can be easily
extracted and processed.
Additionally, the analysis describes the functioning of the current data warehouse and how
data mining is performed to produce reports. The document also summarises the
requirements of the data warehouse and its design, including the description of the
solution architecture, a staffing proposal to cover for different roles and the functioning of
the operational backup, providing substantive input for public procurement reporting that
allows for better data management and analysis of existing needs.
Annex 2 confirms that the analysis has been issued in accordance with the national
legislation and approved by the Ministry of Justice, as required by the milestone and
further specified in the Operational Arrangements. Annex 3 demonstrates that the
7

department of the Chief Architect of eGovernment was consulted and confirmed that the
architectural and technical parameters specified in the analysis are aligned with the basic
requirements set out in the National Architectural Plan.


The analysis shall serve as a basis for the preparation of future projects aiming at the
digitalisation of the sector.
The analysis describes five projects to be completed by the end of 2024, whose common
goal is to increase the level of digitalisation of the justice sector in Czechia:
o Mapping of the domain’s data resources
o Analytical design of a local open data catalogue
o Staffing capacities
o Preparation of data processing solutions
o Implementation of data processing solutions



The milestone shall also include the deployment of a data warehouse for the Ministry of
Justice.
The milestone in the Council Implementing Decision is further specified in the Operational
Arrangements, which requires the deployment of the data warehouse to be issued in
accordance with the national legislation and approved by the Ministry of Justice (Annex 5).
The solution proposed in the analysis (Annex 1) is demonstrated through the Denodo
virtual data warehouse and made available through an online platform powered by Cognos
Analytics, available at the link provided in Annex 4:
https://cognos-test.datera.tech:5633/msp/.
The solution runs on a virtual data warehouse, using a dataset of court proceedings in
Czechia, divided by district, and recorded for the last seven years (data sources are in csv
and xlsx format). It provides a user-friendly reporting interface to visualise the available
information via graphs, maps, tables or other tools in the dashboard.

Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C1.4]-I[I2]: European Digital Media Observatory
Hub (EDMO)
Name of the Milestone: Launch of the European Digital Media Observatory hub for CEE in the
Czech Republic (CEDMO)
Qualitative Indicator: Launch of the CEDMO hub built by the academic
Time: Q4 2021
consortium with the Charles University in Prague as a leading partner
Context:
Number: 51

The objective of the investment is to establish the regional institution called the Central European
Digital Media Observatory (CEDMO) as part of the European Digital Media Observatory (EDMO)
network.
Milestone #51 concerns the launch of the Central European Digital Media Observatory (CEDMO).
It requires the CEDMO to be part of the European network (EDMO), and to provide analysis,
methodology and digital tools to combat disinformation spread online. The activity is expected to
focus, among other things, on popular disinformation topics such as fake information related to
COVID or 5G networks.
Milestone #51 is the first step of the implementation of the investment and will be followed by
target #52 related to the expected output in the form of research and monitoring activity and to
8

the number of involved panellists in those by 31 December 2025. The investment has a final
expected date for implementation on 31 December 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Annex 1 - Copy of the Consortium Agreement of the CEDMO;
Annex 2 - Link to the website where information on the operation of and services provided
by the CEDMO is being published;
Annex 5 - Certificate signed by the management of CEDMO in accordance with national
legislation attesting that the CEDMO has been launched and is operational.

ii.
iii.
iv.

The authorities also provided:
v.

Annex 3 - Website of the European Digital Media Observatory, clearly indicating the list of
national observatories being part of the network including CEDMO;
vi.
Annex 4 - CEDMO Grant Agreement, as supported by the Connecting Europe Facility;
vii.
Annex 6 - Call for grant applications for CEDMO under the RRP;
viii.
Annex 7 - Eligibility manual for CEDMO support under the RRP.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:
 Launch of the CEDMO hub built by the academic consortium with the Charles University
in Prague as a leading partner.
The launch of the CEDMO has been confirmed by the declaration submitted by the Czech
authorities and signed by the members of the strategic and project executive committees
of CEDMO (Annex 5), by the signed consortium agreement between the parties (Annex 1)
determining the duration of consortium and by the output of the work done by the
consortium, which is published on its website (Annex 2). The signed consortium agreement
between Charles University, as leading partner and project coordinator (page 3 and section
6.2.3 of Annex 5), on the one hand and its partner organisations on the other hand
confirms the participation of the university, as required by the qualitative indicator of the
milestone and the participation of other entities such as CVUT and Demagog.cz as indicated
by the measure description.


The Digital Media Hub as part of the EDMO network […]
The criterion is supported by the evidenced CEDMO Grant Agreement (Article I.1 of Annex
4), and by the website (Annex 3) of the European Digital Media Observatory (EDMO), which
was created as part of the Commission’s Action Plan against disinformation, and which
presents CEDMO on its list of regional hubs (https://edmo.eu/edmohubs/#1644246468231-e6e67622-672d).



[…] shall focus on analysing and combating the spread of fake information providing AI
tools and methodology to fight fake news in the digital space
This, including the use of AI tools and the preparation of methodology, has been confirmed
by the evidenced CEDMO Grant Agreement (Article I.3 - Activities, Annex 4) and by the
9

website of the CEDMO (Annex 2), which in its mission lists the activities of the CEDMO,
that aim at combating the spread of and the harm caused by disinformation via the
following activities:
o developing the technical infrastructure for immediate disinformation responses
and daily fact checking;
o innovating methods and digital tools to improve debunking and research
disinformation flow;
o researching the impact of disinformation on society and specific groups;
o producing interdisciplinary analytical reports on the state of disinformation;
o designing and implement media literacy campaigns using innovative interactive
tools;
o evaluating the impact of planned interventions;
o strengthening the information ecosystem;
o networking and cooperating internationally to counteract disinformation within the
EU.
Combating of disinformation is also supported by the evidenced fact checking activities and
events organised as published on the CEDMO website (Annex 2):
https://cedmohub.eu/?_gl=1%2Aeunefw%2A_ga%2AMzUyMDY4OTkxLjE2NzU0MTg0ODQ.
%2A_up%2AMQ..%2A_ga_1FB9CRHWST%2AMTY3NTQxODQ4My4xLjEuMTY3NTQxODUwN
y4wLjAuMA...


[…] such as misinformation related to COVID or 5G networks.
This criterion indicates COVID and 5G networks as illustrative, not exclusive examples. The
evidenced website of the CEDMO (Annex 2), as cited above, presents fact checking
activities in relation to COVID, vaccines, public figures, the war in Ukraine and renewable
energy amongst others. The coverage of topics is not pre-determined and should be based
on necessities and the disinformation challenge that has occurred.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 68

Related Measure: CZ-C[C1.5]-R[R1]: Creation of a platform for the digitalisation
of the economy

Name of the Milestone: Creation of Platform for the digitisation of the economy
Qualitative Indicator: Launch of operation of the platform
Time: Q1 2022
Context:
The objective of the reform is to connect and coordinate all the actors in the Czech digital
ecosystem to share expertise, boost digital transformation and improve digital resilience in the
industry.
Milestone #68 concerns the creation and operationalisation of a physical platform. The platform
shall operate as a working group enabling coordination among a number of entities, such as the
European and national Digital Innovation Hubs, the Centres of Excellence in Artificial Intelligence,
the National Competence Centres in High-Performance Computing and Cybersecurity, the
European Reference Testing and Experimentation facilities, the innovation centres, and clients of
all these centres.
Milestone #68 is the only milestone of this reform. The reform has a final expected date for
implementation on 31 December 2025.
Evidence provided:
10

In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.
iii.
iv.
v.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Annex 1 - Statute and rules of procedure of the platform, which establishes the platform
and contains the rules for the management of its operations;
Annex 2 - Letter of appointment for the Chairman of the platform;
Annex 3 - Letters of appointment for the members and secretary of the platform;
Annex 4 - Minutes of the meeting no. 1.

The authorities also provided:
vi.
Annex 5 - Presentation of the meeting no. 1;
vii.
Annex 6 - Minutes of the meeting no. 2.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:


A platform for the digitisation of the economy shall be established and its operation
launched.
The platform was created on 14 April 2022, with the signature and entry into force of the
statute and rules of procedure (Annex 1) by the Czech Minister of Industry and Trade. The
document establishes the platform as a permanent advisory and coordinating body of the
Ministry of Industry and Trade and lays down the internal rules governing such body,
namely the appointment of members, the voting arrangements and other organisational
procedures. It also describes the scope of the platform, its activities and its functioning.
Additionally, the letter on the appointment of the Chair of the platform by the Ministry of
Industry and Trade (Annex 2) as well as the letter appointing the vice-president, three
members and the secretary (Annex 3) complete the administrative procedures for the
establishment of the platform. The launch of operations is demonstrated by minutes of the
first meeting, which took place on 25 April 2022 (Annex 4).
The authorities also provided the presentation that was shared during the meeting (Annex
5), which regards the agenda of the meeting and the main objectives of the platform, as
well as the minutes of the second meeting (Annex 6), which took place on 26 May 2022 and
proves that the working group has continued its operations in the month following its
creation.



The platform shall coordinate the interconnection of all actors in the national digital
ecosystem such as the European and national Digital Innovation Hubs, the Centres of
Excellence in Artificial Intelligence, the National Competence Centres in HighPerformance Computing and Cybersecurity, the European Reference Testing and
Experimentation facilities, the innovation centres, and clients of all these centres.
Article 3 of the rules of procedure (Annex 1) provides for the participation of the following
permanent members in the working group:
o

Deputy minister responsible for digitisation and innovation at the Ministry of
11

o
o
o
o

Industry and Trade (President of the working group);
Director for digital economy and smart specialisation at the Ministry of Industry
and Trade (Vice-president of the working group);
The director of the department for research, development and innovation at the
Ministry of Industry and Trade;
The director of the department for digitalisation and the internet at the Ministry of
Industry and Trade;
The head of unit responsible for the implementation of the National Recovery Plan
at the Ministry of Industry and Trade.

It also provides for the participation of additional members, such as the secretary, and
guests invited to attend the meeting by the President or Vice-President, such as experts
from:
o (European) Digital Innovation Hubs
o Centres of Excellence in Artificial Intelligence
o High Performance Computing (HPC) Centres
o Cyber security hubs
o Testing and experimentation centres in artificial intelligence
o Innovation hubs
o Business confederations, chambers and associations
The first meeting was attended by representatives from the High-Performance Computing
(HPC) and Cybersecurity Centres, from the Innovation hubs as well as from business
associations. Experts from the Centres of Excellence in Artificial Intelligence and the Cyber
security hubs were invited but did not attend the meeting. Representatives from the
(European) Digital Innovation Hubs as well as the testing and experimentation centres in
artificial intelligence will be invited once the successful candidates from the EU call have
been officially selected.


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.
The platform is considered a working group of the Digital Transformation Committee,
which will be established as part of milestone #47 ‘Implementation of organisational
changes to reform the structure of public bodies overseeing digital transformation of the
economy’ of reform 1 ‘Institutional reform of the system of management for digital
transformation including RIS 3 strategy’ under component 1.4 ‘Digital economy and society,
innovative start-ups and new technology’.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C1.6]-R[R1]: Implementation of the new construction
law and zoning law into practice
Name of the Milestone: Entry into force of the new construction law
Qualitative Indicator: Provision in the law indicating the entry into force
Time: Q3 2021
of the new construction law
Context:
Number: 72

The objective of the reform is to digitalise, simplify and streamline the process of issuing
construction permits. To reach this objective, the new Construction Law aims to speed up the
building permit process, digitalise the process, and decrease the number of regulatory
authorities.
12

Milestone #72 concerns the entry into force of the new Construction Law.
Milestone #72 is the first step of the implementation of the reform, and it will be followed by
milestone #73 on start of the activity of the Supreme Construction Office and target #74 on
shortening of the construction permit process by at least two years. The reform has a final
expected date for implementation on 31 December 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Copy of the publication of Construction Law No. 283/2021 in the Official Journal 283/2021
of 13 July 2021.
Analysis:
The justification and substantiating evidence provided by Czech authorities covers all constitutive
elements of the milestone.


Entry into the force of the new Construction Law.
The new Construction Law 283/2021 Coll. (Stavební zákon) was published in the Official
Journal 283/2921 on 13 July 2021. In line with the national legal framework, legislative acts
enter into force upon publication in the Official Journal.



Correspondence of the main qualitative features of the new Construction Law with the
requirements in the Council Implementing Decision.
o Acceleration of the building permit process and making authorisation procedures
more efficient
The new Construction Law contains the provisions on acceleration primarily in
Article 196 (with new exact periods for the issuance of permits of 30 days and 60
days, replacing the previous practice of issuing permits “without unnecessary
delays” on the basis of Article 6(1) of general Administrative Law 500/2004), Article
178(3) (which newly establishes automatic approval if the construction office
misses its deadline) and Article 184(3) which defines a more efficient process for
the applications (i.e. if an application is missing the opinion of another authority,
the Construction Authority will obtain it directly from the concerned authority).
Compared to the old Construction Law, missing documents in application would
have paused the building permit procedure. The digitalisation of the process (see
below) is also an important factor contributing to the acceleration of the
processes.
o

Digitalisation of the process
Part 7 of the new Construction Law called Information systems of public
administration explicitly covers the digitalisation of the procedures. It ensures that
the whole process from the application to the issuance is handled digitally and all
concerned public authorities have access to the information in the real time. The
new Construction Law also mandates the creation of a web portal for applicants in
Article 268 which will allow applicants to, for example, submit applications and
documents online. In addition, Article 271 provides for the storage of the relevant
data in the Document Management System. Finally, Article 274 obliges all
concerned construction authorities to use a single centralised information system.
13

o

Decrease
in
the
number
of
regulatory
authorities
Part II of the new Construction Law entitled Organisation and operation of public
administration ensures the new institutional structure is in place. Its main objective
is to streamline the number of authorities involved. This is secured mainly through
the establishment of the Supreme Construction Office in Article 16, the Specialised
and Appeal Construction Office in Article 17 and regional construction authorities
in Article 18.

o

Place building procedures under the Supreme Construction Office
Article 30 sets that building procedures are the responsibility of the Supreme
Construction Office, the Specialised and Appeal Construction Office and Regional
Building Offices. Article 33(1) sets that Regional Building Offices fall under the
Specialised and Appeal Construction Office, Article 32(1) sets that the Specialised
and Appeal Construction Office falls under the Supreme Construction Office.
Consequently, all building procedures are under the responsibility of the Supreme
Construction Office.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 83

Related Measure: CZ-C[C2.1]-I[I1]: New technologies and digitalisation on
railway infrastructure

Name of the Milestone: Definition of the set of projects for Investment 1
Qualitative Indicator: Definition of the set of projects by the
Time: Q2 2022
Ministry of Transport
Context:
The objective of this investment is to contribute to digitalisation of railways in Czechia, improve
traffic safety and the quality of the services provided, optimise capacity of the railway
infrastructure and ensure interoperability.
Milestone #83 concerns the definition of a set of projects under the related investment.
Milestone #83 requires Czechia to define a set of projects of 41 kilometres of lines covered by
Global System for Mobile Communications – Railway (GSM-R), set of projects for 20 newly
installed or more reliably powered base transceiver stations (BTS), a set of projects
implementing new technologies and equipment for railway traffic management.
Milestone #83 is the first step of the implementation of this investment. It defines the projects
which will be completed in the following two targets. Milestone #83 will be followed by target
#84 which relates to the completion of two of the predefined projects deriving from milestone
#83. Target #85 is the third and last target of the investment and involves the completion of six
additional projects. The investment has a final expected date for implementation on 31
December 2024.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
Summary Document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Annex 1 - List of the planned projects, including brief descriptions.
14

Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone. The Czech authorities also provide sets of replacement
projects. These are not defined as substitute projects, rather all have the material prerequisites
for their inclusion in component 2.1. According to the Summary Document, the decision of the
Ministry of Transport to include in component 2.1 will only be made based on the submitted
application for support and after its approval by the owner of component 2.1.
In particular:


Definition of a set of projects of 41 kilometres of lines covered by Global System for
Mobile Communications – Railway (GSM-R).
The list (Annex 1) includes a brief description of each project, specific location and the
number of kilometres covered by each project, with all projects being identified through
unique identifier numbers. With respect to this requirement, Annex 1 sets out a single
lead project of 41 kilometres (project identifier #1). The list also provides two
replacement projects (project identifiers #2 and #3). When considered together these
two replacement projects also reach the required length of 41 kilometres. Brief
descriptions in Annex 1 of the projects provide the context for the type of activity that
will be done in the projects, with all descriptions pointing to works related to GSM-R
signal networks. The specific locations are described in sufficient detail for each project,
as each project defines either the location (city station), or a specific track number and
kilometre.
To provide an example for the projects envisaged, project identifier #1 titled “Entry into
the ECTS area” aims to expand the coverage of the GSM-R signal for selected track
sections by the ETCS system. According to Annex 1, the construction expands the
network of ground base stations by 13 new locations, another 2 pieces of the existing BTS
are being modified by the construction. The total signal coverage of the GSM-R network
would be about 41 km, while the locations are clearly specified (e.g., track Brno- Střelice,
track Kladno-Kralupy nad Vltavou, and more track).



Definition of a set of 20 newly installed or more reliably powered base transceiver
stations (BTS).
With respect to this requirement, Annex 1 includes six projects (project identifier from #4
to #9) which total 39 newly installed or more reliably powered base transceiver stations
(BTS). Notably, projects from #4 to #6 are the lead projects, while unique identifier from
#7 to #9 are replacement projects. The brief descriptions provided give context for the
types of activity that will be done in the projects, with all descriptions pointing to works
on related newly installed or more reliably powered BTS. The specific locations are
described in sufficient detail. This is because each project is defined either in location,
city, or on a specific track number and kilometre.
To provide an example for the projects envisaged, project identifier #4 titled “Addition of
redundant power supply for GSM-R base radios” would be constructed at Railway line
Plzeň main railway station - Cheb, Railway line Brno - Židenice - Havlíčkův Brod, Railway
line Havlíčkův brod - Kolín. According to Annex 1, the aim of the construction is to
supplement the redundant power supply for the existing base radios of the GSM-R
15

system, which are currently supplied from the traction line. The construction responds to
the needs of operation and maintenance, which in the long run evaluated the current
state of BTS power supply as unsatisfactory. The main aspects are frequent power
failures from the traction line and the related large number of service interventions, the
need for short-term activation of the backup power supply (batteries) and at the same
time disproportionately reducing the life of the backup power supply. According to Annex
1, the project builds on previous projects focused on the construction of GSM-R base
stations, with the difference that the objective of this construction is to eliminate
operational problems with the existing method of power supply of the affected BTS. The
project would construct a total of 12 BTS.


Definition of a set of projects implementing new technologies and equipment for
railway traffic management.
With respect to this requirement, Annex 1 includes 9 projects submitted (project
identifiers from #10 to #18) with new technologies and equipment for railway traffic
management, of which 5 replacement projects (project identifiers from #14 to #18). Brief
descriptions give context for the types of activities that will be done in the projects, with
all descriptions pointing to works related to upgrading existing dispatch centres, network
infrastructure, and upgrades to further network technologies. The specific locations are
described in sufficient detail. This is because each project is defined either by location,
city, or on a specific track number and kilometre.

To provide an example for the projects envisaged, project identifier #10 titled “Network
status event management” would be implemented in Prague and Olomouc region.
According to Annex 1, the aim of the project is to create a specialized dispatching office
for mutual communication with dispatch centres of the Railway Administration, state
organizations (Railway Infrastructure Dispatcher system, Information System to support
operational management in dealing with emergencies), crisis staffs and senior
management of the Railway Administration, which will use new "Traffic Information
Collection" system. The aim of the "Operational Information Collection" system is to
ensure fast and convenient acquisition of information on operational events that are
acquired beyond basic information (e.g., train movement information, facts about
exclusions) and to ensure the exchange of selected information to ensure rapid reporting
of MU and operational emergencies, or alert to possible problems.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 86

Related Measure: CZ-C[C2.1]-I[I2]: Electrification of railways

Name of the Milestone: Definition of the set of projects for Investment 2
Qualitative Indicator: Definition of the set of projects by the
Ministry of Transport
Context:

Time: Q2 2022

The objective of this investment is to increase 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.

16

Milestone #86 consists of the definition of the set of projects under the related investment. It
entails the definition of a set of projects comprising 39.7 kilometres of electrified lines and four
traction feeder stations with increased power or newly built ones.
Milestone #86 is the first step of the implementation of the investment and defines the projects
which will be completed in the following two targets under Investment 2. Milestone #86 will be
followed by target #87, which relates to the completion of two of the predefined projects. Target
#88 is the third and last target of the investment and involves the completion of five additional
projects. The investment has a final expected date for implementation on 30 June 2024.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
Summary Document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Annex 1 - List of the planned projects, including brief descriptions.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone. The Czech authorities also provide sets of replacement
projects. These are not defined as substitute projects, rather all have the material prerequisites
for their inclusion in Component 2.1. According to the Summary Document, the decision of the
Ministry of Transport to include in component 2.1 will only be made based on the submitted
application for support and after its approval by the owner of Component 2.1
In particular:


Definition of the set of projects comprising 39.7 kilometres of electrified lines. The list
includes a brief description of each project, the number of kilometres, the number of
tracks, specific location, the date of construction for each project, and the power
capacity.
Annex 1 identifies the projects and for each of them it contains the number of kilometres
as well as a sufficiently granular description, the specific location and the respective
timelines for each project. The list sets out three lead projects which together constitute
39.7 kilometres (project identifiers from #1 to #3). The list also provides two replacement
projects (project identifiers #4 and #5). Brief descriptions give context for the types of
activities that will be done in the projects, with all descriptions pointing to works related to
construction of electrified railway lines. Moreover, the descriptions also define whether
they are single or double-track projects and the respective traction power system
capacities. The specific locations are described in sufficient detail including the descriptions
the track numbers for each project. The start of the physical implementation and the
completion of implementation are also spelled out.
To provide an example, project identifier 2 is titled “Electrification and capacity building of
the Šumperk - Libina line (outside)”. According to Annex 1, the project would be completed
by January 2023, with the realisation of the project having started in February 2021. It is a
14.3-kilometre project on track No. 290 at kilometre 29.169 - kilometre 43.485. According
to Annex 1, the aim of the construction is to optimize the entire single-track line from
Šumperk (outside) to Libina (outside), including electrification by a DC traction supply
system. Furthermore, the line speed will be maximized, mainly on the existing track body,
up to 100 km/h, while eliminating most speed drops to less than 70 to 80 km/h.



A set of projects of four traction feeder stations with increased power or newly built
17

ones. The list includes a brief description of each project, specific location, the date of
construction for each project, and the power capacity.
Annex 1 identifies the projects, contains the number of kilometres, a sufficiently granular
description, the specific location for each project and the timelines. All projects are
identified through unique identifier numbers. As per the requirement of the Council
Implementing Decision, the list sets out five projects which constitute the four traction
feeder stations (identifiers from #6 to #10). The list also provides four replacement projects
(project identifiers from #11 and #14). Brief descriptions give context for the types of
activities that will be implemented as part of the projects, with all descriptions pointing to
works related to construction of new or the increase of power of existing traction feeder
stations. Moreover, the descriptions also define what the traction feeder system capacities
are.
The specific locations are described in sufficient detail including the descriptions of the
track numbers for each project. The start of the physical implementation and the
completion of implementation are also spelled out, meeting both minimum starting dates
and maximum implementation dates required for Investment 2 of Component 2.1 of the
Council Implementing Decision.
To provide an example, project identifier #8 is the construction of R110kV at TNS Ostrava
Svinov. According to Annex 1, the completion of the implementation will be by February
2023, and the physical realisation started in March 2021. The subject of the construction is
the construction of a new 110 kV substation, including a 110/22 kV transformer station at
TNS Ostrava Svinov, thus ensuring sufficient power input for the entire TNS and subsequent
consumption. According to Annex 1, the construction includes cable lines of the 110 kV line
for the new substation. The location is Track 271 at kilometre 262.38, and the building is
located in the cadastre of the village of Ostrava - Třebovice in Silesia in the MoravianSilesian Region, close to the Ostrava - Svinov railway station.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 89

Related Measure: CZ-C[C2.1]-I[I3]: Improving the environment (railway
infrastructure support)

Name of the Milestone: Definition of the set of projects for Investment 3
Qualitative Indicator: Definition of the set of projects by the Ministry
of Transport
Context:

Time: Q2 2022

The objective of this investment is to contribute to environmental goals, help increase the share
of rail transport in freight and passenger transport and improve the energy efficiency of railway
stations. This investment covers rail infrastructure development projects, taking into account
among other things adequate access to services for disadvantaged and vulnerable persons.
Projects under the investment shall focus on network sections important for suburban transport
and projects to upgrade railway hubs and station buildings within multimodal passenger
terminals.
Milestone #89 consists of the definitions of the set of projects comprising 121.88 kilometres of
modernised lines, nine modernised railway stations with reconstructed tracks and safe, barrierfree accessible platforms, and over 35 station buildings with reduced energy intensity, increased
comfort and better services for passengers.
18

Milestone #89 is the first step of the implementation of the investment and defines the projects
which will be completed in the following two targets. Milestone #89 will be followed by target #90
which relates to the completion of 26 projects from the predefined set of projects. Target #90 will
be followed by target #91, which involves the completion of 30 additional projects from the
predefined set. The investment has a final expected date for implementation on 31 December
2023.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary Document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Annex 1 - List of the planned projects.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone. The Czech authorities also provide sets of replacement
projects. These are not defined as substitute projects, rather all have the material prerequisites
for their inclusion in Component 2.1. According to the Summary Document, the decision of the
Ministry of Transport to include in Component 2.1 will only be made based on the submitted
application for support and after its approval by the owner of Component 2.1.
In particular:


Definition of the set of projects comprising about 121.88 kilometres of modernised lines
Annex 1 includes a description for each project and the modernisation work done, includes
the number of kilometres, the number of tracks, and location. All projects are identified
through unique identifiers. The list sets out fourteen projects which together constitute
129.885 kilometres (project identifiers from #1 to #12). The list also provides two
replacement projects (project identifiers from #13 and #14), which constitute just over
eight kilometres. Brief descriptions give context for the type of activity that will be done in
the projects, with all descriptions pointing to works on the modernisation or reconstruction
of railway lines. The specific locations are described in sufficient detail, including the
descriptions the track line and kilometre numbers for each project.
To illustrate with an example, project identifier #8 titled “Adamov-Blansko, BC” is a
projected that will be conducted along 6.7 kilometres. According to Annex 1, the subject of
the construction is the complete reconstruction of the railway top of the double-track line
of the TEN-T category in the entire interstation section and the rehabilitation of the railway
bottom in selected sections of the second track. Simultaneously with the reconstruction of
the upper part and the establishment of the structural layers of the lower part, the
drainage and stabilization of the rock slopes and the reconstruction of five tunnels will be
proposed. Moreover, according to Annex 1 the stop in Adamov will undergo a total
renovation, where the equipment will be supplemented with a technical solution meeting
the requirements for the movement of people with limited mobility and orientation. The
construction also includes the reconstruction of technological facilities with the aim of
increasing the safety of railway traffic and the comfort of passengers.



A set of projects of nine modernised railway stations with reconstructed tracks and safe,
barrier-free accessible platforms.
Annex 1 includes a brief description of each project and the modernisation work done,
including the number of tracks and the number, type of modernisation and length of the
19

platforms concerned, as well as the specific location. All projects are identified through
unique identifiers. Annex 1 identifies the projects, contains the number of kilometres,
descriptions and the specific location for each project. The list sets out nine projects with
reconstructed track and safe, barrier-free accessible platforms (project identifiers from #16
to #24). The list also provides five replacement projects (project identifiers #15 and from
#25 to #28).
Brief descriptions give context for the types of activities that will be carried out for the
implementation of the projects, with all descriptions pointing to works on the
modernisation of railway stations, especially on the barrier-free accessibility and safety.
Project identifiers from #17 to #24 note that the modernisation of railway stations and
platforms were made barrier-free. Given that the Prague Main Railway Station, is already a
barrier-free station, project #16 focused on modernising other parts of the railway station,
such as reconstruction of roofing and extending pedestrian access. On safety, many of the
identified projects focused on increasing safety through greater security systems and
roofing improvements. The description for each project also includes the length of each
platform, roofing, and pedestrian routs.
To provide an example, project identifier #17 titled “Reconstruction of platforms and
establishment of barrier-free accesses in Lovosice railway station” is going to take place
Losovice, track KE3 in the region of Usti. According to Annex 1, the aim of the construction
is reconstructing the platforms at the Lovosice railway station to a height of 550 mm above
the top of the rail and ensure barrier-free access to these platforms. Part of the
construction is the extension of the underpass to the other side of the track to Máchovy
Street and the solution to the new roofing of the platforms. The length of the roofing for
the mentioned event is a total of 476.56m. The length of the platforms is a total of 780m
for platforms no. 1 to 4.


A set of projects over 35 stations 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) as well as increased comfort and better services for
passengers.
The list includes a brief description of each project, identifying all projects through unique
identifier numbers, providing descriptions and the specific location for each project.
The list sets out 40 projects related to station buildings (project identifiers from #29 to
#68). The list identifies project from #64 to #68 as replacement projects.
Brief descriptions give context for the type of activity that will be carried out as part of the
implementation of the projects, with all descriptions pointing to works related to
reconstruction or new construction of stations. Moreover, the specific locations are
described in sufficient detail, including with the descriptions of the track kilometre
numbers for each project.
With respect to the requirement of greenhouse gas emission reduction, Czechia provided
information in every project description of 35 station buildings about expected energy
saving according to the energy carrier. Based on the information provided, the listed
projects are on average set to overachieve the emission reduction target by a large margin
(the overall average greenhouse gas emission reductions is estimated as overall at 54%).
Only five of the thirty-five projects had smaller emission reductions than 30%, with most
achieving much higher levels of emission reductions.
Regarding the requirement to achieve greater comfort and better service at the stations,
20

the descriptions show that the reconstructions, renovations, or new constructions of
selected stations will significantly increase comfort and better service. Projects consist of
improving services and comfort for pedestrians, cyclists, and cars drivers, modify or provide
barrier-free entrance, adding quite zones, repair insulation, improving information systems,
adding toilets and connect them to public sewage, reconstructing gutters and improving
the heating systems.
To illustrate with an example, project identifier #33 titled “Karviná ON - reconstruction of a
part of the station building” is going to take place at Karvina railway station (track number 320 km. position - 333.725). According to Annex 1, the project will entail the reconstruction
of part of the exhibition building including space optimization, reconstruction of the roof,
replacement of facade fillings, insulation of the building, as well as the reconstruction of
the exchanger and distribution of central heating. Moreover, sewage reconstruction and
construction modifications of the check-in hall will also be completed. The expected energy
saving according expressed in reduction of direct and indirect GHG emissions 85%.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 92

Related Measure: CZ-C[C2.1]-I[I4]: Road and rail safety (railway crossings,
bridges and tunnels, cycle paths and barrier-free routes)

Name of the Target: Completion of level crossings with an increased safety
Quantitative Indicator: Number
of level crossing with an increased
Baseline: 0
Target: 45
safety
Context:

Time: Q2 2022

The aim of this investment is to improve traffic safety by taking concrete safety measures at
railway crossings and improving the condition of bridges and tunnel structures.
Target #92 concerns the completion of 45 level crossings with an increased protection level, with
newly installed or modernised flashlight warning system or mechanical safety installation.
Target #92 is the first step of the implementation of the part of the investment related to level
crossing, and it will be followed by target #96 related to the completion of 160 level crossings.
Target #96 will be followed by target #98 which entails the completion of 291 level crossings. The
investment has a final expected date for implementation on 31 December 2024.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.
iii.

iv.

Summary document duly justifying how the target (including all the constitutive elements)
was satisfactorily fulfilled;
Annex 1 -List of 45 completed projects;
Annex 2 - Certificate of completion signed by the project evaluation committee of the
Ministry of Transport and State Fund for the Development of Transport infrastructure,
including confirmation of compliance of the technical specifications of the 45 projects with
the description of the target and of the description of the investment set out in the
Council Implementing Decision;
Annex 3 - Protocols on handover and acceptance of the construction signed by the
constructor and the Czech Railway Management Agency (Správa Železnic);
21

v.

Annex 4 - Permits for trial operation issued by the State Rail Office (Dražní úřad).

The authorities also provided:
vi.
Annex 5 – The “declaration on meeting the ‘do no significant harm’ (hereinafter referred
to as “DNSH”) requirements”;
vii.
Annex 6 - Report sheet submitted as an attachment to the DNSH declaration in Annex 5.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the target.
In particular:


Completion of 45 level crossings with an increased protection level, with newly installed
or modernised flashlight warning system or mechanical safety installation.
According to the summary document and evidence provided (Annexes from 1 to 4),
Czechia completed 45 railways crossings with an increased protection level, with newly
installed or modernised flashlight warning system or mechanical safety installation. The
summary document details that there were 34 construction actions in total, where seven
projects contained 14 crossings, two projects contained six crossings and remaining 25
projects contained 25 crossings. In Annex 3, Czechia has provided 45 protocols on
handover and acceptance of the construction signed by the constructor and the Czech
Railway Management Office, including confirmation of compliance of the technical
specifications of the project with the description of the target and of the description of the
investment in the Council Implementing Decision. The evidence of the latter is provided in
Annex 2 by undersigned minutes of the project evaluation committee of the Ministry of
Transport and the State Fund for Transport. The document declares that technical
specifications of all projects complied with the description of the target in the Council
Implementing Decision. Furthermore, for every project, Annex 3 provides a certificate of
receipt of the work, undersigned by the Czech Railway Management Agency as (Správa
Železnic) as the competent authority, and the relevant contractor. Finally, permits for trial
operation issued by the State Rail Office for each of the 45 projects are provided in Annex
4.
Evidence towards the requirement to provide an increased level of protection through
newly installed or modernised flashlight warning system or mechanical safety installations
is jointly provided by Annex 1 and Annex 4. Annex 1 in column “name of project” provides
information about the nature of the protection measures undertaken for each crossing.
Furthermore, Annex 4 (handover protocols) provides further information about the nature
of the protection measures undertaken.
To provide a few examples, modernised mechanical safety installations have been
installed in project number “007” at the Žďár nad Sázavou - Tišnov line. Newly installed
flashlight warning system was constructed under project number “003” at the Blatná Nepomuk line. New mechanical safety installations have been installed on the project
number “025” on the Frýdlant - Jindřichovice p. Smrkem line. A modernised flashlight
warning system was, for example, installed for project number “014” newly installed
flashlight warning system was, for example, installed on the Retz - Znojmo line.
22

To conclude, based on the provided evidence in Annex 1 and 4, all 45 level crossings
benefit from increased protection levels either on the basis of newly installed or
modernised flashlight warning system, or based on new or modernised mechanical safety
installations.


DNSH requirement on construction and demolition waste
As specified in the Council Implementing Decision, at least 70 % of construction and
demolition waste from this measure had to be prepared for reuse or recycling. In Annex 6,
Czechia submitted a “DNSH report sheet”, which assesses possible DNSH risks in relation
to the six environmental objectives. With regards to the waste prevention objective, CZ
reports to have met the condition of preparing 70% of generated waste under this
measure for reuse or recycling. Czechia has also submitted in Annex 5 a “DNSH
declaration”, dated 19/07/2022, and signed by the Ministry of Transport on the fulfilment
of the DNSH principle for all 45 level crossings in accordance with the “DNSH report sheet”
in Annex 5.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C2.1]-I[I4]: Road and rail safety (railway crossings,
bridges and tunnels, cycle paths and barrier-free routes)
Name of the Target: Completion of built cycle paths, sidewalks, and barrier-free routes
Quantitative Indicator: Length of
Target:
built cycle paths, sidewalks,
Baseline: 0
Time: Q2 2022
25
barrier-free routes kilometres
Context:
Number: 93

The aim of this investment is to improve traffic safety by taking concrete safety measures at
railway crossings and improving the condition of bridges and tunnel structures. Building cycle
paths and pedestrian barrier-free routes is also part of the investment, with the objective of
improving the safety of vulnerable traffic participants as part of the promotion of active mobility,
especially in cities.
Target #93 concerns the completion of 25 kilometres of built cycle paths, sidewalks and barrierfree routes.
Target #93 is the first step in the implementation of the part of the investment related to cycle
paths, sidewalks and barrier free routes, and it will be followed by target #97 related to the
completion of a total of 49 kilometres of built cycle paths, sidewalks and barrier free routes,
target #97 will be followed by target #100 which relates to the completion of 85 kilometres of
built cycle paths, sidewalks and barrier free routes. The investment has a final expected date for
implementation on 31 December 2023.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.
iii.

Summary document duly justifying how the target (including all the constitutive elements)
was satisfactorily fulfilled;
Annex 1 - List of nine completed projects amounting to a total 29.49 kilometres;
Annex 2 - Certificates of completion signed by the project evaluation committee of the
Ministry of Transport, including confirmation of compliance of the technical specifications
23

iv.
v.

of the nine projects with the description of the target and of the description of the
investment in the Council Implementing Decision;
Annex 3 - Protocols on handover and acceptance of the construction signed by the
constructor and the competent authority;
Annex 4 - Approval decisions by the relevant building authority allowing each project to be
used by the public.

The authorities also provided:
vi.

Annex 5 - The ‘do no significant harm’ (hereinafter referred to as “DNSH”) report sheet,
the “DNSH table with attached documents”, the “declaration on meeting the DNSH
requirements” and supporting evidence, which include weight tickets and waste
production declarations.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the target.
In particular:
 Completion of projects involving 25 additional km of built cycle paths, sidewalks and
barrier-free routes
The target in the Council Implementing Decision is to (i) construct 25 kilometres of built
cycle path, sidewalk and barrier-free routes. According to the evidence provided (summary
document and Annexes from 1 to 4), Czechia completed 29.49 kilometres of constructed
and reconstructed cycle paths, barrier free routes and sidewalks as part of nine projects.
The detailed list of projects is found in Annex 1, and it includes information on the start
and end dates of physical implementation for each project, project length, the names of
contractors and subcontractors together with their identification numbers. Eight projects
involve the construction of built cycle paths, and one project (#006) concerns the
reconstruction of a sidewalk in the Petlerská Street in Klášterec nad Ohří.
Czechia provided certification of completion for each project including a confirmation of
compliance of the technical specifications of the project with the description of the target
and of the description of the investment in the Council Implementing Decision. This
evidence is provided in Annex 2 in the form of undersigned minutes of the project
evaluation committee of the Ministry of Transport and the State Fund for Transport, dated
17 June 2022. The document declares that technical specifications of all projects complied
with the description of the target in the Council Implementing Decision.
Furthermore, for every project, Annex 3 provides a certificate of receipt of the work,
undersigned by the relevant municipality as the competent authority, and the relevant
contractor. For each project, Czechia has also submitted an approval decision by the
relevant building authority allowing the project to enter use by the public (Annex 4).


DNSH requirement on construction and demolition waste
As specified in the Council Implementing Decision, at least 70 % of construction and
demolition waste from this measure had to be prepared for reuse or recycling. In Annex 5,
Czechia submitted a “DNSH report sheet”, which assesses possible DNSH risks in relation
to the six environmental objectives. The “DNSH report sheet” refers also to the binding
opinions and statements of the competent environmental authorities issued in the context
of the permitting procedure as the prerequisite for the issuance of the building permit.
Czechia has also submitted in Annex 5 “DNSH declaration” signed by the Ministry of
24

Transport on the fulfilment of the DNSH principle for all selected projects, and of the
“DNSH report sheet” mentioned above. Czechia submitted specific evidence on the
operationalisation of the requirement to prepare at least 70% of construction and
demolition waste for recycling (signed declarations, weight tickets and waste production
declarations). Based on the calculation provided in Annex 5 (“DNSH table with attached
documents”), 97% of the total volume of generated construction waste has been sent for
recycling. This calculation is based on the amounts of reported waste per project by the
constructor, as evidenced in Annex 5 for every single project.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C2.1]-I[I4]: Road and rail safety (railway crossings,
bridges and tunnels, cycle paths and barrier-free routes)
Name of the Target: Completion of modernised railway bridges or tunnels
Quantitative Indicator: Bridges or
Time: Q2
Baseline: 0
Target: 3
tunnels
2022
Context:
Number: 94

The investment aims at improving traffic safety by taking concrete safety measures at railway
crossings and improving the condition of bridges and tunnel structures. 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.
Target #94 concerns the completion of three modernised railway bridges or tunnels.
Target #94 is the first step of the implementation of the part of investment 4 related to
modernised railway bridges or tunnels, and it will be followed by target #95 related to the
completion of six modernised railways bridge or tunnels. Target #95 will be followed by target
#99 which entails the completion of a further, seventh, railway bridge or tunnel. Target #99 will
be followed by the fourth and last target #101 which relates to the completion of the last
modernised railway bridge or tunnel reaching the objective of eight new constructions. The
investment has a final expected date for implementation on 31 December 2023.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the target (including all the constitutive elements)
was satisfactorily fulfilled.

For each of the modernised railway bridges or tunnels, the following evidence was provided:
i.
ii.

iii.

iv.

Annex 1 - A list of three modernised railways bridges or tunnels;
Annex 2 - Certificate of completion signed by the project evaluation committee of the
Ministry of Transport and State Fund for Transport Infrastructure Development, including
confirmation of compliance of the technical specifications of the projects with the
description of the target and of the description of the investment in the Council
Implementing Decision;
Annex 3 - Protocols on handover and acceptance of the construction signed by the
constructor and the Czech Railway Management Agency (“Správa Železnic”) as the
competent authority;
Annex 4 - Permits for trial operation issued by the State Rail Office.
25

The authorities also provided:
v.

Annex 5 - Declaration of honour on the fulfilment of the ‘do no significant harm’
(hereinafter referred to as “DNSH”) principle for all supported projects;
vi.
Annex 6 - Calculation of recycled waste for every supported project;
vii.
Annex 7 - The DNSH report for every supported project.
Analysis:
The justification and substantiating evidence provided by the Czechia authorities covers all
constitutive elements of the target.
In particular:


Completion of three modernised railway artificial structures for the operational phase
(bridges or tunnels). Czechia provided evidence concerning the completion of three
bridges:
i.
Reconstruction of the bridge at kilometre 21.502 of the Rumburk (outside) Sebnitz (DBAG) line;
ii.
Reconstruction of the bridge at kilometre 20.054 of the Čerčany - Světlá nad
Sázavou line;
iii.
Reconstruction of the bridge at kilometre 0.989 on the line Havlíčkův Brod Pardubice-Rosice n/L.
The construction of the first of the three projects began on 9 March 2020, and the target
for the final (third) project was met on 30 November 2021. In Annex 2, Czechia submitted
a certificate of completion signed by the project evaluation committee of the Ministry of
Transport and State Fund for Transport Infrastructure Development, including
confirmation of compliance of the technical specifications of the projects with the
description of the target and of the description of the investment in the Council
Implementing Decision. The compliance of the technical specifications of the projects with
the description of that target and of description of the Council Implementing Decision is
confirmed, for all three projects, by the project evaluation committee of the Ministry of
Transport. The committee´s meeting minutes and official conclusion statement, dated 10
June 2022, can be found in Annex 2. The procedure of the evaluation commission is
defined in the manual of work procedures for the implementation of the National
Recovery Plan within the corresponding component 2.1. The protocol on handover and
acceptance of the construction signed by the relevant contractors and Czech Railway
Management Agency (“Správa Železnic”), is provided in Annex 3 for every single project.
In addition, for every project, a permit has been issued by the State Rail Office (“Dražní
úřad”). This evidence can be found in Annex 4.



DNSH requirement on construction and demolition waste
As specified in the Council Implementing Decision, at least 70 % of construction and
demolition waste from this measure had to be prepared for reuse or recycling.
Annex 7 provides a DNSH report sheet, which summarises the risks of harm to the six
environmental objectives for each project under this target. For each project where a risk
to an environmental objective is relevant, the DNSH report sheet refers to a statement of
the relevant national environmental body issued in the context of the permitting
26

procedure as the prerequisite for the building permit to show that the project has no
impact on the corresponding environmental objective. Annex 5 includes a declaration on
the fulfilment of the DNSH principle signed by the Deputy Minister of Transport. The
declaration states that “I confirm that the system related to the abovementioned measure
of the National Recovery Plan is operational and complies with the DNSH principle under
the Recovery and Resilience Facility within the meaning of Article 17 of 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 (the so-called ‘Taxonomy Regulation’). Third, Annex 6 includes
a declaration from the State Rail Office, which details that 100% of all construction and
demolition waste per project was reused or recycled (amounting to a total of 1674
tonnes).
Commission Preliminary Assessment: Satisfactorily fulfilled
Number:
102

Related Measure: CZ-C[C2.2]-I[I1]: Improving the energy performance of state
buildings

Name of the Milestone: Adoption of the model contract by the Ministry of Industry and Trade
for the Energy Performance Contracting method services with a guarantee
Qualitative Indicator: Publication of the model contract on the
Ministry’s website

Time: Q4 2021

Context:
The objective of the investment is improving the energy performance of state buildings. It aims
at supporting up to 100 buildings renovation projects including with insulation of buildings and
exchange and renovation of windows and doors, installation of systems based on renewable
energy sources or implementation of improvements of the indoor environment measures.
Milestone #102 consists of publishing a model contract for the Energy Performance Contracting
method services in order to promote the implementation of projects with an emphasis on
maximising the yield of energy savings compared to the funds spent.
Milestone #102 is the first step of the implementation of the investment. It will be followed by
target #103 related to contracting through a grant agreement of at least 75% of 100 building
renovations projects by Q4 2023. Target #103 will be followed by the third and last target #104
elated to reducing energy consumption in state buildings by 216 TJ/per year as an outcome of
the renovation of buildings, which shall be demonstrated through energy performance
certificates. The investment has a final expected date for implementation on 31 March 2026.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Annex 1 - A copy of the model contract for the Energy Performance Contracting
(hereinafter “EPC”) method services adopted by the Ministry of Industry and Trade titled
“Energy Performance Contract for public entities”. The document has been adopted on
02/09/2021 in accordance with section 10e(1) of the Energy Management Act and in
conjunction with Section 1746(2) of the Civil Code.

27

The authorities also provided:
iii.
Annex 2 - Annexes to the model EPC method for public entities.
Analysis:
The justification and substantiating evidence provided by Czechia’s authorities covers all
constitutive elements of the milestone.
In particular:


A model contract for the EPC 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 maximising the yield of energy savings compared to the funds spent.
The main advantage of the EPC method is that it can be used to reduce operating costs for
buildings owned by municipalities, regions or organizational units of the state. Moreover,
the EPC contracting method provides a contractual guarantee on the amount of reached
energy savings, which will support the meeting of the 30% energy savings requirement or
a reduction in CO2 emission of 30% applying to public building renovation investments
under this measure in subsequent targets #103 and #104. Furthermore, in line with the
description of the measure, the (ii) model contract shall be published on the Ministry’s
website.
The model contract for the EPC method services was adopted by the Ministry of Industry
and Trade on 02/09/2021 and published online in December 2021 on the same date. A
copy of the model contract is provided in Annex I, and the annexes to this contract that
include notably the amount of guaranteed energy savings are provided in Annex II. The
published model contracts and their annexes are widely used for both contracting
authorities and all other parties interested in the EPC method, which leads to reduced
operating costs on buildings.
As required by the milestone description according to Article 12 of the model contract
(submitted in Annex 1), any energy service company (energy provider) makes the
commitment that, as a result of the measures taken, the guaranteed savings specified in
Annex 5 of the EPC model contract (submitted in Annex 2) will be achieved for the
duration of the guarantee in each billing period. In addition, the contracting parties agree
that if the guaranteed savings are not achieved for reasons attributable to energy service
company during the billing period, the client shall be entitled to the penalty paid by the
energy service company determined in accordance with Article 19 of the model contract.
To operationalize the 30% guaranteed energy saving requirement in subsequent targets
#103 and #104 under this measure, Annex V will require for each contract to include:
(i) The total amount of guaranteed cost savings for the EPC project reached as a result of
the measures. Annual and cumulative cost savings shall be provided. Savings are
guaranteed at constant prices. This requirement is detailed in Annex 2 of the model
contract.
(ii) The method of calculating the penalty and the amount of the penalty for nonachievement of the guaranteed savings, which is to be specified and elaborated in
accordance with the tender specifications and in accordance with the EPC model contract
(Article 19 of the EPC model contract).
(iii) Method of calculation of the premium and the amount of the premium, which is to be
specified and elaborated in accordance with the tender specifications and in accordance
with the EPC method (Article 20 of the EPC model contract).
28

The EPC model contract and its annexes have been published on the website of the
Ministry of Industry and Trade, as evidenced through website links listed in the summary
document:
o

https://www.mpo.cz/assets/cz/energetika/energeticka-ucinnost/energetickesluzby/2021/9/Vzorova_SES_OSS.pdf
o https://www.mpo.cz/assets/cz/energetika/energeticka-ucinnost/energetickesluzby/2021/9/Vzorova_SES_OSS_Prilohy.pdf
Commission Preliminary Assessment: Satisfactorily fulfilled

Number:
105

Related measure: CZ-C[C2.2]-I[I2]: Improving the energy performance of public
lighting systems

Name of the milestone: Adoption of programme documentation by the Ministry of Industry and
Trade regarding measures to renovate public lightning systems
Qualitative Indicator: Publication of the model contract on the Ministry’s
Time: Q4 2021
website
Context:
The aim of this investment is to enable the renovation of public lighting across the Czech
Republic. Its objective is reaching 286 TJ/per year of energy savings as an outcome of the
reconstruction of public lighting systems.
Milestone #105 requires adopting and publishing programme documentation that provides the
framework for subsequent investments in 2000 projects of renovation of public lightning
systems across different municipalities in Czechia, 80% of which shall be contracted by 31
December 2024. Milestone #105 further requires the adoption and publication of the
documentation by the Ministry of Industry and Trade, and its subsequent publication on the
Ministry´s website. The documentation under this milestone establishes 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.
Milestone #105 is the first step of the implementation of the investment. Milestone #105 will be
followed by target #106 which concerns contracting 80% (1600) of at least 2000 projects of
renovation of public lightning by Q4 2024. The third and last target #107 of this investment
entails achieving a total reduced energy consumption by 286 TJ/per year as an outcome of the
reconstruction of public lighting, which should be demonstrated through energy performance
certificates. The investment has final expected for implementation by 31 March 2026.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Annex 1 - A copy of the program documentation prepared by the Ministry of Industry and
Trade titled “Tender no.1/2022 for reconstruction of public lighting systems”. The tender
has been published on 27/04/2022.
Analysis:
29

The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the target.
In particular:


Adoption of programme documentation by the Ministry of Industry and Trade
regarding measures to renovate public lightning systems. The documentation shall (i)
establish the timetable and the conditions for support of the measures to renovate
public lighting systems, (ii) including the smart elements, in view of the objective of (iii)
achieving at least 30% primary energy savings.
First, according to the provided evidence the summary document and Annex 1, the
Ministry of Industry and Trade has adopted the programme documentation on 27 April
2022, in the form of a public tender. Annex 1 is a copy of the program documentation
(public tender), which indicates the (i) timeline and conditions for support. The tender in
Annex 1 specifies the eligible entities, eligible costs, technical project requirements,
project timetables, a methodology for measuring energy savings and a methodology for
the calculation of reference energy consumptions values. The tender has been launched
on 1 January 2022 and will end on 30 June 2023, which is in line with the indicative
timeline for target 106 of contracting at least 80% of projects by the end of 2024.
Furthermore, the tender´s scope covers renovations of public lighting systems in towns
and cities, and therefore meets to the Council Implementing Decision requirement to
focus on public lighting systems. Programme documentation (call for applications) was
developed and published on the website www.mpo-efekt.cz (published on 27 April 2022),
with more detailed information for applicants in corresponding section of the website in
https://www.mpo-efekt.cz/cz/dotacniprogramy/vyzvy/1-2022-rekonstrukce-verejnehoosvetleni. It also includes a detailed guidebook (“Osvětlovací příručka MŽP”) on
minimising of light pollution to avoid significant harm to the environment.
Second, the project documentation (Annex 1) and summary document describe how the
Council Implementing Decision requirement of including “smart elements” in the
investment was met. The tender (Annex 1, letter B) includes preparation support for
charging stations (electric-vehicle ready) as a separate sub-activity, and it is supported
with a dedicated allocation. A subsidy in the amount of CZK 25.000 can be provided to
installations for the preparation of cabling for 1 charging point. The maximum number of
supported preparations for recharging points per municipality or a project is set at 50.
The preparation investment support under the call is conditional on a commitment from
the applicant to construct the charging stations within five years from obtaining the
support.

Third, the requirement to (iii) achieve at least 30% of energy savings is met on the basis
of evidence provided in Annex 1, page 4. The eligibility condition of the tender is that
compared to the original lighting system, the renovated lighting system must reach at
least 30% of energy savings has been met. Moreover, Annex 1 also specifies that new
public lighting system are not eligible.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 131

Related Measure: CZ-C[2.6]-I[I1]: Flood protection

Name of the Milestone: Notification of award of flood protection contracts
30

Qualitative Indicator: Notification of awarded
projects and contracted tenderers
Context:

Time: Q1 2022

The objective of this investment is to protect populated areas against the negative effects of flood,
to achieve retardation of surface run-off and reduction in flood wave speed notably by improving
water retention in the landscape and by facilitating the natural treatment of water structures in
built-up areas.
Milestone #131 consists of the notification of awarded contracts for flood protection measures.
Milestone #131 is the first step of the implementation of this investment and is followed by target
#132 which relates to the completion of 20 projects aiming at flood protection by Q4 2022. The
third and last target #133 concerns the completion of 20 additional projects aiming at flood
protection. The investment has final expected for implementation on 31 December 2023.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Notification of awarded flood protection projects. These documents contain the contracting
parties and prove that the tender has been completed and the public contract has been
awarded.

The authorities also provided:
iii.
iv.

v.

vi.
vii.

Building permits for the awarded projects (when required by the national legislation);
Methodological instruction of the Ministry of Agriculture and the Ministry of the
Environment on the assessment of the potential impact of the project on the status of the
affected water bodies [Section 23a of Act No. 254/2001 Coll., on Water and on
Amendments to Certain Acts (Water Act);
Calls for proposal of the two programmes: 2a programme “Flood prevention programme
IV” and 2b programme “Sustainable and efficient water management in municipalities and
ensuring the flood protection of the cities” under the Ministry of Environment;
List of flood protection projects. The list includes names of projects, their identification
numbers, information about tenders and contractors;
Template assessment sheet to be used by an independent engineer to verify compliance
with the Council Implementing Decision in the context of Target #132;

Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


Notification of awarded flood protection projects (total number of projects: 40).
In line with the description of the milestone, the Czech authorities provided a list of 45
awarded flood protection projects with the name of the projects, their identification
number, information about tenders and the name of contractors. Czechia also provided
31

copy of award notifications for all projects, which also contain the contracting parties and
prove that the tender has been completed and the public contract has been awarded.
The list includes projects awarded under two calls for proposals:
o
o

“Flood prevention programme IV” under the Ministry of Agriculture;
“Sustainable and efficient water management in municipalities and Ensuring the flood
protection of the inner cities” under the Ministry of Environment.
Czechia has provided both calls for proposals, which contain a clear definition of supported
activities and the terms and conditions for projects to be eligible.



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.
According to the justification provided by the Ministry of Agriculture, compliance with the
Water Framework Directive before the commencement of any construction works is proven
by the issuance of a building permit. Czechia submitted building permit or building
notification for all projects. In Czechia, the Water Framework Directive is transposed into
the Water Act (254/2001 as amended in Act 254/2020). According to the Water Act,
compliance with the Water Framework Directive must be ensured for projects affecting
water bodies (§ 115 paragraph 21 act No. 254/2001 Coll., Water act) before the issuance of
a building permit. 38 projects included in the list obtained a building permit and a copy of
the permit was provided by the authorities as supporting evidence. For seven projects in
the list a permit was not needed (because of their small scale and characteristics). For these
projects, building notifications have been provided by the authorities as supporting
evidence. In Czechia, before a building notification is issued, a statement of the the river
basin authority is required. This statement is made based on the Methodological instruction
of the Ministry of Agriculture and the Ministry of the Environment on the assessment of the
potential impact of the project on the status of the affected water bodies [Section 23a of
Act No. 254/2001 Coll., on Water and on Amendments to Certain Acts (Water Act). The
assessment of the river basin authority ensures compliance with the Water Framework
Directive.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 134

Related Measure: CZ-C[C2.6]-I[I2]: Small watercourses and water reservoirs

Name of the Milestone: Submission by the Ministry of Agriculture of the list of projects to be
supported under Investment 2
Qualitative Indicator: Submission of the list of projects to be supported
Time: Q3 2021
under investment 2
Context:
The aim of the investment is increasing water retention in water courses and at strengthening
safety in the event of flows in towns in municipalities by the revitalisation of small watercourses
and construction of close-to-nature water reservoirs.
Milestone #134 consist in the submission of the list of projects to be supported.
Milestone #134 is the first step of the implementation of this investment and is followed by target
#135 which relates to the completion of 50% of the small watercourses and water reservoirs
32

projects, which is also part of the present payment request. The third and last target #136
concerns the completion of the remaining 50% of the small watercourses and water reservoirs
projects. The investment has a final expected date for implementation on 31 December 2023.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Annex 1 - Database of projects, including their identification (ID numbers), name of
projects, applicants for the subsidy (State Enterprises Basin, Forests of the Czech Republic
and municipalities, associations of municipalities), subject of the subsidy, timeframe for
completion, total costs and amount of the subsidy;
iii.
Annex 2 - Rules of Ministry of Agriculture No. 53466/2019-MZE-15151 for the provision and
drawing of subsidies from the program "Support for measures on small watercourses and
small reservoirs” and Appendix 1 to the Rules.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


Database including identification of the projects, a short description and timeline for
completion.
A list of 900 projects to be supported under the measure has been submitted. The
database contains projects from two different programmes of a grant scheme targeting
small watercourses and small reservoirs: 129 290 (sub-programme 129 293) and 129 390
(sub-programmes 392 and 393). It contains the identification number of the projects, a
short description and timeline for completion of each of the projects, in line with the
requirements of the Council Implementing Decision.



The projects shall consist of construction and reconstruction of small water reservoirs.
Technical specifications for the grant scheme ensure compliance of the projects with the
requirement of the Council Implementing Decision (see Annex 2 - Rules of the Ministry of
Agriculture for the provision and use of grants from the programme 129 390 p.1 and Rules
of the Ministry of Agriculture for the provision and use of grants from the programme 129
290 p.1) by specifying that projects shall consist of reconstruction and repair of small
watercourses and small water reservoirs.



Project design in compliance with relevant requirements under the EIA, Habitat and
Water Framework Directives.
According to the justification provided by the Czech authorities in the summary document,
compliance with the Water Framework Directive and Habitat Directive is proven by the
issuance of a building permit. Compliance with these directives is an integral part of
permitting procedures. Czech law no 100/2011 Coll., Environmental Impact Assessment Act
is harmonised with the Directive 2011/92/EU. Given the nature of the projects (small water
structures) environmental impact assessment is not required.
Commission Preliminary Assessment: Satisfactorily fulfilled

33

Related Measure: CZ-C[C2.6]-I[I2]: Small watercourses and water
reservoirs
Name of the Target: Completion of 50% of the small watercourses and water reservoirs
projects
Quantitative Indicator: Number of
Baseline: 0
Target: 450
Time: Q2 2022
projects
Context:
The objective of this investment is to increase water retention in water courses and to
strengthen safety in the event of flows in towns by revitalising small watercourses and setting
up close-to-nature water reservoirs.
Target #135 consists of the completion of 50% of the small watercourses and water reservoirs
projects. This represents 450 projects.
Target#135 is the second step of the implementation of the investment. It is followed by the
third and last target #136 which relates to the completion of the remaining 50% of projects. The
investment has a final expected date for implementation on 31 December 2023.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
Number: 135

i.

Summary document duly justifying how the target (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Annex 1 - Building permit for all of the 450 projects.
iii.
Annex 2 - Completion report by an independent body endorsed by the relevant
ministries for 450 projects (50% of the total number of projects to be supported under
the measure), including justification that implementation is in line with the description of
the investment (15 November 2022);
iv.
The National Action plan for Climate Change Adaptation and State Policy of the
Environment in the Czech Republic 2030 with a view to 2050;
v.
Demonstration that public consultations have been conducted;
vi.
In the context of the sampling analysis, additional evidence provided for a sample of 60
units including: (i) the corresponding individual assessment fiche per project as
developed by the independent authority and (ii) a document proving project completion
per individual project.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


Completion report by an independent engineer for 450 projects (50% of the total
amount projects to be supported under the measure).
As required by the Council Implementing Decision, an independent completion report
dated 15 November 2022 was submitted and covers 450 projects (50% of the total
number of 900 projects). The report was prepared by the Czech Technical University
(Faculty of Civil Engineering) and certifies the completion of 450 projects including 356
projects of rehabilitation or construction of water reservoirs and 94 projects involving
small watercourses reservoirs. The independent report includes justifications claiming
that the implementation of the projects is in line with the description of the measure. It
also assesses in detail the alignment of the projects with the description of the target in
the Council Implementing Decision. The assessment of each project was carried out
separately by addressing the following assessment points (as specified in the
independent report on pages 1 and 2):
34

o
o

The project contributes to water retention or retention in water courses;
The project significantly improves morphological conditions of small
watercourses or water reservoirs;
o The project increases safety during high flows in towns and municipalities;
o The project does not include expansion of existing Irrigation system on
waterbodies with less than good status or potential;
o The project does not have a negative impact on status/potential of the affected
water bodies;
o The project meets the requirements arising from the relevant environmental
legislation including Directive 2011/92/EU and Council Directive 92/43/EEC;
o The project respects the relevant provisions of the Directive 2000/60/EC;
o The project complies with the Do No Significant Harm (hereinafter referred to as
“DNSH”) Technical Guidance (2021/C58/01);
o The project prefers nature-based solutions and avoided concrete-based
solutions where possible;
o The project design documentation acquired legal building permit according to
Czech legislation;
o The project is implemented in accordance with the design documentation.
Furthermore, according to the independent report (on pages 3 and 4), and in line with
the description of the measure, the projects significantly improved reservoirs
morphology. The increased safety during high flows in towns and municipalities is
achieved due to increased water retention volume (in total 1 256 619 cubic meters), or
due to increased safety of reservoirs located in areas adjacent to build-up areas. The
independent report also concludes that the water retention in the watercourses is
achieved (7195 cubic meters restored). Considering the location of the watercourse
projects, they contribute to an increased safety during high flows in the adjacent towns
or municipalities.


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.
According to the independent report (on page 5) and in line with the description of the
target, nature-based solutions were given preferences in vast majority of projects and
the use of concrete was limited to parts of the projects where it could not be avoided for
structural reasons.



Permits issued in accordance with environmental impact assessment and relevant
assessments in the context of the Water Framework Directive (2000/60/EC),
Environmental Impact Assessment Directive (2011/92/EU) and Habitat Directive
(92/43/EEC).
In line with the description of the target, the Czech authorities submitted building
permits for 450 projects (see Annex 1) and justified that compliance with Directive
2011/92/EU and Directive 2000/60/EC is an integral part of the verifications in the
context of the Czech permitting procedure. The independent body confirmed on page
five that all the 450 implemented projects meet the requirements from the relevant
environmental legislation including Directive 2011/92/EU, Council Directive 92/43/EEC
and Directive 2000/60/EC as required by the Council Implementing Decision. The
independent body also specifically confirmed (See Independent report on p. 2) that if a
permit or approval is issued, the compliance with Directive 2011/92/EU is considered to
be satisfactory, including requirements on direct involvement of the public.

35



The permits 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 independent body also states (see Independent report on pages 2 and 5) that, in
line with the description of the target, 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
were assessed by the relevant water authorities during the process of issuing permits or
approvals.



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
With regards to good ecological status/potential of the relevant bodies in accordance
with the requirements of Directive 2000/60/EC, the independent report states on page
five that none of the projects causes deterioration of the ecological status/potential of
affected water bodies or prevents good ecological status/potential achievement. The
Council Implementing Decision states that good ecological status/potential of the
relevant bodies is to be achieved in accordance with the requirements of the Water
Framework Directive 2000/60/EC and evidenced by the latest relevant supporting data.
The independent body and authorities both flagged that it is not technically feasible to
provide such data. Relevant data is in fact only collected every three years as part of the
River Basin Management plans, in line with EU requirements. In addition, there is an
important time lag needed for the projects financed to translate into an improved water
status. Such technical remarks are fully consistent with the fact the DSNH requirements
for such type of measures usually allow for a much longer time span for demonstrating
progress on water quality (until 2026). To account for limited availability of recent official
data, the independent body undertook a specific assessment on water quality and
confirmed (see independent report on page five) that based on the available information
the measure as a whole contributes towards achieving good ecological status/potential
and that every possible effort is made and all necessary means are taken to achieve good
ecological status or potential. Water Framework Directive requires good status by 2015,
with possible extension until 2027 if justified in accordance with Article 4 of the Water
Framework Directive. The national authority confirmed that based on the information
currently available, good ecological status or potential of relevant water bodies is on
track to be achieved at the latest by Q2 of 2026. On this basis, it is considered that this
constitutive element of the target is satisfactorily fulfilled.



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.
Regarding the specific requirement on water reservoirs intended for irrigation included
in the description of the target, the independent report states on page four that none of
the implemented projects include expansion of existing irrigation system or are causing
deterioration of the ecological status/potential or are preventing good ecological
status/potential achievement.
For each unit in the sample, the evidence provided allows to confirm the information
36

contained in the independent report. The sample size has been uniformly set at 60.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[2.7]-R[R2]: Finalisation and implementation of the
circular Czechia strategy 2040
Name of the Milestone: Completion and adoption of the circular Czechia strategy 2040 by the
Ministry of Environment
Qualitative Indicator: Publication of the circular Czechia
strategy 2040 in the database of the Czech Republic’s Time: Q1 2022
strategic documents
Context:
The objective of this reform is to establish 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.
Number: 146

Milestone #146 consists of the completion and the 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.
Milestone #146 is the first step of the implementation of the reform, and it will be followed by
Milestone #147, related to the publication of a monitoring report evaluating the state of
implementation of the strategy. The reform has a final expected date for implementation on 30
September 2025.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided by the Czech authorities:
i.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Annex 1 - A copy of the adopted Circular Czechia Strategy 2040;
Annex 2 - A link to the database of the Czech Republic’s strategic documents where the
strategy can be accessed.

ii.
iii.

The authorities also provided:
iv.

Government resolution of 13 December 2021 on the Strategic Framework for Circular
Economy of the Czech Republic 2040.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:


Completion and adoption of the Circular Czechia 2040 strategy.
The Government approved on 13 December 2021 the Strategic Framework of the Circular
Economy of the Czech Republic 2040 (“Circular Czechia 2040 strategy”) (see the Resolution
of the Government of the Czech Republic of 13 December 2021 No. 1151 on the Strategic
Framework for Circular Economy of the Czech Republic 2040).



Publication of the Circular Czechia strategy 2040 in the database of the Czech Republic’s
37

strategic documents.
The completed and adopted strategy was published in the database of strategic documents
of the Czech Republic on 13 December 2021. The strategy is also accessible online.


The strategy shall formulate the vision, global and strategic goals, priority areas and
principles necessary to achieve a circular economy in the Czech Republic.
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 is split into three parts.

The first part includes an analytical overview of the current situation of the circular
economy in Czechia and in the EU. The authors of the strategy drew attention to the fact
that in contrast to many other Member States, Czechia had not yet issued its own strategic
document for the circular economy. The second part provides strategic proposals by
identifying priority areas such as product design, circular solutions for consumers, cities,
and industries, waste management, education and R&D that should help Czechia transit to
a circular economy. The section also links the circular Czechia strategy 2040 with Czechia’s
Recovery and Resilience Plan particularly with the pillar “Physical infrastructure and green
transition”. The last part defines the implementation plan including indicators,
performance monitoring settings and a timetable for the implementation of the key
priority areas in the circular Czechia strategy 2040. Thus, in line with the Council
Implementing Decision requirement, the strategy formulates the vision, global and
strategic goals, priority areas and principles necessary to achieve a circular economy in the
Czech Republic.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C3.1]-R[R1]: Curricula reform and strengthening of IT
education
Name of the Milestone: Approval of new curricula strengthening digital literacy and
computational thinking
Qualitative Indicator: Approval of new curricula for primary, lowersecondary schools and gymnázia by the Ministry of Education, Youth and Time: Q3 2021
Sports
Context:
Number: 168

The aim of this reform is to revise the curricula of primary and lower-secondary schools (“basic
education” (základní školy)) and selective lower-secondary and upper-secondary schools
(“grammar schools” (gymnázia)) with a view to promote digital literacy and IT skills across all
educational areas. The new curricula shall 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). Teaching of informatics shall be reinforced in terms of hours
taught.
Milestone #168 requires the new curricula to: 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 and promote the
use of digital technologies across educational areas, including non-IT subjects.
Milestone #168 is the first step of the implementation of the reform, and it will be followed by
38

milestone #169 which covers the gradual implementation of the new curricula. Milestone #168
requires the approval of a new curricula for primary, lower-secondary schools and uppersecondary by the Ministry of Education, Youth and Sports. The reform has a final date for
implementation on 1 September 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

iii.
iv.
v.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to underlying evidence;
Annex 1 Minister’s decree amending the Framework Educational Programme for Basic
Education No. MSMT-40117/2020-4 published on the Minister’s webpage on the 29
January 2021;
Annex 2 Minister’s decree amending the Framework Educational Programme for Grammar
Schools No, MSMT-24248/2021-2 September 2021;
Annex 3 Minister’s decree amending the Framework Educational Programme for Bilingual
Grammar Schools No. MSMT-24248/2021-3 September 2021;
Annex 4 Minister’s decree amending the Framework Educational Programme for Sports
Grammar Schools No. MSMT-24248/2021-4 September 2021.

The authorities also provided:
vi.

Annex 5 Summary explanation of all changes and methodological support for schools which
contains four links to the following:
a. Explanation of curriculum changes and how the schools can access support for
applying these changes found in https://revize.edu.cz/;
b. General explanation of how the new curriculum will look like after incorporating
the new educational field of informatics and the new digital competence
https://revize.edu.cz/co-se-meni;
c. Explanation
of
curriculum
changes
for
grammar
schools
https://revize.edu.cz/navrh-zmen-v-rvp-pro-gymnazia;
d. Detailed explanation of new digital competences incorporated to the amended
curriculum
of
primary,
lower-secondary
schools
and
gymnázia
https://revize.edu.cz/digitalni-gramotnost-v-rvp-zv.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular the new curricula shall:
 Reinforce education of Informatics in terms of teaching hours.
In line with the description of the measure, the Czech government approved the new
Framework Educational Programme which ensures that the number of teaching hours
dedicated for informatics in primary basic education is doubled and in lower secondary
basic education it is quadrupled. In addition, bilingual grammar schools had to increase the
number of teaching hours dedicated to informatics by 1 hour. This is shown in chapter 7
(page 150) of the Annex to the action of the Minister for Education, Youth and Sport
amending the Framework training programme for basic and lower secondary education,
ref. MSMT-40117/2020-4 and chapter 7 (page 106) of the Annex to the action of the
Minister for Education, Youth and Sport amending the Framework training programme for
bilingual grammar schools, ref. MSMT-24248/2021-3.
39



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.
In line with the description of the measure, the new Framework Educational Programme
introduced new educational areas of informatics, in order to develop computational
thinking. The new educational areas are data, information and modelling, algorithms and
programming, information systems and digital technology as reflected in chapter 5.8.1
(page 64-66) of the Annex to the action of the Minister for Education, Youth and Sport
amending the Framework training programme for gymnasiums, ref. MSMT-24248/2021-2



Introduce the digital competence as one of the key competences.
In line with the description of the measure, the new Framework for Educational
Programme ensures that digital competences are one of the key competences for primary,
lower-secondary, and upper-secondary schools. In particular, this is done by adding digital
competence as one of the key different competences of the basic education phase. The
other key competences being learning competences, problem-solving, communicative,
social and personal, civic and work. Its importance is also reinforced with an increase to the
minimal number of hours that must be dedicated to the Informatics educational area. This
is shown in chapter 4 (pages 9 to 13) on Annex to the action of the Minister for Education,
Youth and Sport amending the Framework training programme for gymnasiums, ref.
MSMT-24248/2021-2.



Promote the use of digital technologies across educational areas, including non-IT
subjects.
In line with the description of the measure, schools ought to develop the use of digital
competences across all areas. The new Framework Educational Programme ensures that
schools develop digital competences across curricula as reflected in Chapter 4 (pages 9 to
13) on the annex to the action of the Minister for Education, Youth and Sport amending the
Framework training programme for gymnasiums, ref. MSMT-24248/2021-2. This will be
done by teaching students how to use digital devices for learning and participating in
school life and society, acquiring, searching and critically assessing data, modifying digital
content, using digital technologies to improve processes, understand the importance of
digital technologies for society and preventing the misuse of digital devices. Therefore, the
use of digital devices is promoted across different educational areas which englobe both IT
and non-IT subjects.
Commission Preliminary Assessment: Satisfactorily fulfilled
Number: 172

Related Measure: CZ-C[C3.1]-I[I2]: Digital equipment for schools

Name of the Target: Number of digital devices purchased by schools for distance learning
Quantitative Indicator:
Number of devices
Context:

Baseline: 0

Target: 74000

Time: Q4 2020

The two main aims of this reform are to prevent digital exclusion by ensuring that digital
equipment is accessible to all pupils and that schools are adequately equipped with both basic
and advanced technologies to support digital literacy and implement the curricula that have
been revised further to the completion of milestone #168, which is part of the same reform.
Target #172 on the number of digital devices purchased by schools for distance learning
40

concerns the purchase of at least 74 000 digital devices by schools for distance learning and the
provision of funding for IT equipment for distance learning for at least 4 102 primary and
secondary schools.
Target #172 is the first step of the implementation of the investment, and it will be followed by
target #173 which relates to the purchase of additional 70 000 digital devices for pupils in need.
In addition, as part of the same target, at least 80% of schools will set up a fund for mobile
digital devices for disadvantaged pupils. This will be followed by target #174 which relates to
equipping at least 9 620 schools with both basic and advanced digital technologies necessary for
promoting digital literacy and teaching new informatics according to the revised curricula.
Target #175 on number of schools supported in counselling and mentoring on IT is the fourth
and last target of the investment. It relates to the provision of targeted mentoring and
counselling to at least 1 120 schools on the usage of IT equipment and internals school
networks, complemented by centrally provided methodological guidance.
Evidence Provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the target (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to underlying evidence;
Annex 1 - Copy of the decision by the ministry on the dedicated funding for basic schools
Bulletin No. LXXVI, Book 6 of September 2020;
Annex 2 - Copy of the decision by the ministry on the dedicated funding for lower
secondary stage of grammar schools Bulletin No. LXXVI, Book 7 of October 2020;
Annex 3 - List of digital devices purchased by schools (the number of devices by type);
Annex 4 - List of schools which received funding for IT equipment for distance learning
with references to the name of the company that delivered the equipment in each case;
In the context of the sampling analysis, additional evidence provided for a sample of 60
units including: (i) proof of payment between the suppliers and the school containing the
list of devices declared to the Ministry of Education and/or (ii) the signed contracts
between the suppliers and the school containing the list of devices declared to the
Ministry of Education, (iii) a proof that the school received funding for ICT equipment for
distance learning in 2020.

ii.
iii.
iv.
v.
vi.

The authorities also provided:
vii.

Annex 5 - “Report on the extraordinary survey on distance learning in primary and lower
secondary education by the Ministry of Education” which is based on a survey from the
Ministry of Education, Youth and Sports (MEYS) survey among schools on distance
learning published in April 2021.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the target.
In particular:


At least 74 000 devices (tablets, laptops, mobile phones, etc.) are purchased by schools
for distance learning:
The target in the Council Implementing Decision requires that at least 74 000 digital
devices (tablets, laptops, mobile phones, etc.) are purchased by schools for distance
41

learning. Czechia has provided a list of at least 74 000 digital devices purchased by
schools including the number of devices by type. As Annex 3 (List of digital devices
purchased by schools) and Annex 5 “Report on the extraordinary survey on distance
learning in primary and lower secondary education by the Ministry of Education”)
demonstrate, Czechia purchased 61 969 laptops, 11 844 tablets, 217 mobile phones, 1
060 graphic tablets and visualizers which amounts to a total of 75 090 devices. As part of
the sampling exercise, Czechia provided signed contracts between suppliers and schools,
proof of payments between suppliers and schools and a proof that the school received
funding for ICT equipment for distance learning in 2020. Concerning that this target
covers a large number of beneficiaries, in addition to the summary documents and
further annexes provided by Czechia, Commission services have assessed a statistically
significant sample of individual schools. The sample size has been uniformly set at 60,
which corresponds to a confidence level of 95% or above in all cases. The evidence
provided for a sample of 60 units confirmed that the schools had purchased digital
devices for distance learning.



At least 4 102 primary and secondary schools received funding for IT equipment for
distance learning:
The target in the Council Implementing Decision requires that at least 4 102 primary and
secondary schools received funding for IT equipment for distance learning. Czechia has
provided a list of schools which purchased the digital devices together with the
corresponding suppliers. As Annex 4 (List of schools which received funding for IT
equipment for distance learning with references to the name of the company that
delivered the equipment in each case) and Annex 5 (“Report on the extraordinary survey
on distance learning in primary and lower secondary education by the Ministry of
Education") show, 4 106 schools (both primary and lower-secondary) received funding
for IT equipment for distance learning. The list also includes suppliers. In addition, the
Czech authorities have shared the two decisions from the Ministry of Education, Youth
and Sports (“ad-hoc publications”), which were issued on 6 September 2020 (Annex 1)
and on 7 October 2020 (Annex 2) respectively. They inform on the funding totalling CZK
1.3 billion to be used to reimburse the digital devices for online learning acquired by
primary and lower secondary schools.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 176

Related Measure: CZ-C[C3.2]-R[R1]: Transformation of universities to adapt to
new forms of learning and changing needs of the labour market

Name of the Milestone: Launch of a programme to support transformation of universities
Qualitative Indicator: Launch of the programme by the Ministry of Education Time: Q2 2022
Context:
The aim of this reform is to accelerate the transformation of universities regarding both content
and forms of learning. The range of study programmes should be adjusted to new trends and
changing needs in the labour market, especially concerning digital transformation. The reform
should also facilitate transition to new, mainly digital skills and modern teaching methods.
Milestone #176 requires the Ministry of Education to set up a programme which supports
universities to adapt to new forms of learning and introduction of new study programmes. Focus
42

should be on fast-growing sectors, which suffer from a lack of high-skilled specialists. The objective
is to provide support to at least 20 universities.
Milestone #176 is the first step of the implementation of the reform, and it will be followed by
target #177 related to the provision of accreditation to at least 35 new study programmes. Target
#178 is the third and last target of the reform and relates to the creation and offer of at least 20
new courses focused on upskilling and reskilling by universities. The reform has a final expected
date for implementation on 31 December 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to underlying evidence;
ii.
Annex 1 - Publication of the call No. MSMT-29805/2021-5 with a link to the publication of
the call for proposals which was published on 14 December 2021 by the Ministry of
Education, Youth and Sports;
iii.
Annex 2 - Identification of sectors - analysis supporting the identification of the supported
sectors, processed as of 30 June 2021;
iv.
Annex3a - Copy of the invitation to the subcommittee meeting containing also the agenda
points dated 24 November 2021 and drafted by the Ministry of Education, Youth and
Sports;
v.
Annex 3b - Summary of the consultation of social partners dated 24 November 2021
drafted by the Ministry of Education, Youth and Sports and copy of invitations to the
consultation with the social partners which took place on 24 November 2021;
vi.
Annex 3c - Summary of the consultation of social partners dated 21 October 2021 drafted
by the Ministry of Education, Youth and Sports and minutes of the consultation with the
social partners for the meeting which took place on 21 October 2021;
vii.
Annex3d - Summary of the consultation of social partners and minutes of the consultation
with the social partners for the meeting dated 1 October 2021 and drafted by the Ministry
of Education, Youth and Sports;
viii.
Annex 4 - List of universities supported by the programme and individual documents per
each university proving they were selected for the programme.
ix.
Annex 5 - Further identification of sectors - further analysis supporting the identification of
the supported sectors.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular the programme shall:


Support adaptation of universities to new forms of learning and introduction of new
study programmes. In line with the description of the measure, the Czech authorities
published the call of proposals on 14 December 2021. The call MSMT-29805/2021-5 was
published the 14 December 2021 on the website of the Ministry of Education, Youth and
Sports (MŠMT) under the following link: https://www.msmt.cz/vzdelavani/vysokeskolstvi/vyzva-k-predkladani-navrhu-projektu-v-ramci-narodniho-planu. The objective of
the call is to choose at least 20 universities which will be granted an aid administered by the
Ministry of Education, Youth and Sports. Within the universities selected at least 35 new
study programmes should be accredited, including at least 15 study programmes covering
43

priority, fast-growing high-added value sectors with a lack of highly qualified professionals,
at least 20 study programmes both Bachelor’s or Master’s degree with a professional
profile and at least 20 lifelong learning courses.


Support sectors that shall be identified on the basis of an analysis of economic data, in
consultation with the social partners. In line with the description of the measure the Czech
authorities conducted an analysis on different disciplines and sectors in order to decide the
focus of the call. The sectors identified are as follows digital technologies, technology and
engineering, mobility, environmental quality, waste management and energy, construction,
landscape planning and human health and social work activities as evidenced by Annex 2
and Annex 5. The analysis was conducted using recent data from both Czech policy
documents (e.g., “Strategic Framework Czech Republic 2030”) and European sources (e.g.,
“European Skills Agenda 2020”. Social partners were consulted on 1 and 20 October 2021
and an agreement was reached regarding the focus of the call and the specification of the
four abovementioned sectors as shown in annexes 3c and 3d. Annex 3c shows the
conclusion reached between the Association of Industry and Transport of the Czech
Republic (SP ČR) and the Ministry of Education, Youth and Sports dated 20 October 2021
and annex 3d shows the agreement reached between the Czech-Moravian Confederation
of Trade Unions (ČMKOS) and the Ministry of Education, Youth and Sports dated the 01
October 2021.



Focus 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. In line with the description of the measure the Czech authorities selected fastgrowing sectors which are set out on page one of the annex 4 Focus of study programmes
in a specific objective B (page 1) of the call of proposals MSMT-29805/2021-5 published the
14 December 2021. The sectors chosen were digital technologies, technology and
engineering, mobility, environmental quality, waste management and energy, construction,
landscape planning and human health and social work activities.


Support at least 20 universities. In line with the description of the measure, 26 public
universities have been supported by the programme on their respective projects as shown
by Annex 4 provided by the Czech authorities. This annex shows the list of universities
supported and the details of their successful application to the call explaining for which
programme they will receive funding.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C3.3]-R[R1]: Development of labour market
policies
Name of the Milestone: Establishment of the tripartite Re-skilling and Upskilling Committee
Qualitative Indicator: Entry into force of a decree establishing a
Time: Q1 2022
permanent Reskilling and Upskilling Committee of the Council of
Economic and Social Agreement (tripartite)
Context:
Number: 184

The aim of this reform is to promote life-long learning in Czechia. The reform consists of several
systemic measures such as the setting up of a tripartite mechanism involving the Ministry of
Labour, the Ministry of Education, employers and trade union representatives to coordinate the
development of the learning programmes. In addition, its aim is to create a database of
reskilling and upskilling courses, expanding the target groups that can participate in retraining
organised by the Labour Office to employ people at risk, establishing at least 14 regional training
44

centres in the area of digital technologies and Industry 4.0. Finally, the reform contains a
legislative amendment to increase the effectiveness of the retraining courses organised by the
Labour Office.
Milestone #184 aims to create a permanent Reskilling and Upskilling Committee of the Council
of Economic and Social Agreement (tripartite). Milestone #184 is the first step of the
implementation of the reform, and it will be followed by milestone #185 related to the entry
into force of the amended Employment Act increasing efficiency of employment services and
better targeting of most vulnerable groups. Milestone #185 will be followed by milestone #186
whose aim is to create a public database including reskilling and upskilling courses. Milestone
#186 will be followed by milestone #187 which relates to trainings on reskilling and upskilling in
digital skills and skills needed for Industry 4.0. Trainings will be offered to 130 000 participants.
Target #188 is the fourth and last target and it relates to the creation of the regional centres to
promote Industry 4.0. The reform has a final expected date for implementation on 31 December
2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to underlying evidence;
ii.
Annex 1 - Ministerial decree (14/2021), and letter of establishment including the Statute
and Rules of Procedure of the committee dated 11 October 2021 published by the
Ministry of Labour and Social Affairs;
iii.
Annex 2 - List of members of the committee;
iv.
Annex 3 - Minutes of the first meeting of the committee which took place on 2 February
2022;
v.
Annex 4 - Minutes of the second meeting of the committee which took place 2 February
2022.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


The Reskilling and Upskilling Committee shall coordinate development of life-long
learning in line with the actual and anticipated demand for skills. In line with the
description of the measure, the Reskilling and Upskilling Committee was established by a
Ministerial Decree (14/2021) signed by the Minister of Labour and Social Affairs on 11
October 2021. Three committee meetings have taken place on 25 November 2021, 3
February 2022, as supported by the minutes of both meetings, and 8 September 2022, as
supported
by
the
following
document
on
the
Ministry's
website
https://www.mpsv.cz/documents/20142/2649574/V%C3%BDbor+pro+rekvalifikaci+a+dal
%C5%A1%C3%AD+vzd%C4%9Bl%C3%A1v%C3%A1n%C3%AD.pdf/4add56fb-7a39-bf3141de-c8456cc084f2.



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.
Furthermore, in line with the description of the measure, during the Committee meetings
the Ministry of Labour and Social Affairs was represented by the Deputy Minister for
Employment and the Ministry of Education, Youth and Sports was represented by the
Deputy Minister for Education and Youth. In addition, employers were represented by
45

representatives from the Confederation of Industry of the Czech Republic, Confederation
of Employers' and Business Associations of the Czech Republic and the Chamber of
Commerce of the Czech Republic during the committee meetings. Trade unions were
represented by representatives from the Czech-Moravian Confederation of Trade Unions
and the Association of Independent Trade Unions of the Czech Republic. Future
meetings of the committee will consist of the same set up as established in art. 3
“Composition of the Committee” on page 1 of the Annex 1 to the Minister’s Order No.
14/2021 Statute of the Committee on Retraining and Continuing Training.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C4.2]-R[R1]: Development of the Czech-Moravian
Guarantee and Development Bank as a National Development Bank
Name of the 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)
Qualitative Indicator: Adoption of the medium-term strategy of the CzechTime: Q4 2021
Moravian Guarantee and Development Bank (ČMZRB)
Context:
Number: 198

The aim of this reform is to address the challenges concerning the access to finance by small and
medium sized enterprises (SMEs) through the Czech National Development Bank (formerly CzechMoravian Guarantee and Development Bank). The Czech National Development Bank committed
to introduce a new product line in the form of a financial instrument designed for supporting the
green transition. The financial product has to respond to environmental objectives with full
application of the “Do No Significant Harm” (hereinafter referred to as “DNSH”) principle.
Milestone #198 concerns the amendment of the Czech National Development Bank’s Strategy to
include broad principles for sustainable financing in line with EU environmental objectives and to
ensure that the bank is prepared to implement the new type of instrument including the
application of the DNSH principle. The update of the Strategy has to be approved by the bank’s
shareholders (Ministry of Finance, Ministry for Regional Development and Ministry of Industry and
Trade).
Milestone #198 is the first step of the implementation of the reform. It is followed by milestone
#199 which relates to the approval of the implementation plan and internal regulations for the
management of the new type of financial instruments. The reform has a final expected date for
implementation on 31 December 2021.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.
iii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Annex 1 - Decision no 1 of shareholders meeting of 16 December 2021 for the approval of
the updated Strategy of the National Development Bank for the period 2020-2023;
Annex 2 - The adopted amended Strategy of the National Development Bank for the period
2020-2023.

The authorities also provided:
46

iv.
Annex 3 - Document listing the changes made in the Strategy in December 2021.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the target.
In particular:
 Evidence of the adoption of the Strategy: In line with the Council Implementing Decision
Annex and Operational Arrangements, the Czech authorities provided the copy of the
decision of the formal adoption of the updated National Development Bank’s Strategy by
the bank’s shareholders (represented by the Ministry of Finance, Ministry for Regional
Development and Ministry of Industry and Trade) in the shareholders’ meeting held on 16
December 2021 (see Decision no 1 of shareholders meeting of 16 December 2021 for the
approval of the updated Strategy of the National Development Bank for the period 2020 2023).


Introduction of the new financial product and reference to the DNSH principle in the
provisions of the Strategy: The update of the Czech National Development Bank Strategy
includes principles for sustainable financing in line with EU environmental objectives. It
introduces the broader EU environmental principles in the Bank’s activities, including the
specific reference to the DNSH principle for the components supported by the Recovery
and Resilience Facility. Broader environmental principles in the form of the sustainable
finance (ESG) principles are introduced in the provisions on page 5 (part 3.3) of the
Strategy. The specific provisions containing the DNSH principle in relation to the instrument
financed by the Recovery and Resilience Facility are introduced in part 4.2 on page 12 of the
Strategy. The new product is targeted at financing low-carbon and climate-friendly projects
that have a positive environmental impact and support EU climate policy. The amended
Strategy explicitly confirms that the new financial instrument in the form of a junior
subordinated loan under the National Recovery Plan has to comply with the DNSH
principles as set out in the Council Implementing Decision Annex and Technical Guidance
under the Recovery and Resilience Facility Regulation (2021/C58/01), and that the
implementation of this financial instrument has to fulfil the requirements of the DNSH
requirements as set out in the Council Implementing Decision Annex (see page 12 of the
Strategy).
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 199

Related Measure: CZ-C[C4.2]-R[R1]: Development of the Czech-Moravian
Guarantee and Development Bank as a National Development Bank

Name of the Milestone: Delivery of a management model for the new quasi-equity instrument
Qualitative Indicator: 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).

Time: Q4 2021

Context:
The aim of this reform is to address the challenges concerning the access to finance by small and
medium sized enterprises (SMEs) through the Czech National Development Bank (formerly CzechMoravian Guarantee and Development Bank). The Czech National Development Bank will introduce
47

a new product line in the form of a financial instrument. The financial product has to respond to
environmental objectives with full application of the “Do No Significant Harm” (hereinafter referred
to as “DNSH”) principle.
Milestone #199 aims at setting up an internal management model for the new product, mainly
consisting of the implementation plan and internal regulations. The internal regulations should
allow for project evaluation and selection that complies with the DNSH Technical guidance
(2021/C58/01) requirements and green tagging criteria as established under Annex VI of the
Recovery and Resilience Facility Regulation, allowing for support of activities with a climate
coefficient of 40% or 100%. The implementation plan should also assure that human resources and
appropriate IT system are in place for the new product, compliant with the DNSH methodology.
Milestone #199 is the second and last milestone of the reform whose aim is to prepare the Czech
National Development Bank for the implementation of the new financial instrument. The reform
has a final expected date for implementation on 31 December 2021.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

iii.
iv.
v.
vi.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Annex 1 - Implementation plan called “Proposal for the introduction of the National
Development Bank’s Subordinated Loan product” from 17 January 2022 which includes also
the management model of the new product. Evidence of its approval is included in the same
Annex in the part called “Extract from the Minutes of the proceedings of the Assets and
Liability Management Committee no 1 from 17 January 2022”;
Annex 2 - Internal regulation on application and verification of the DNSH from 23 August
2022;
Annex 3 - Evidence of the approval of the internal regulation on application and verification
of the DNSH by the Board of Directors of the National Development Bank on 6 May 2022;
Annex 4 - Report on consultation of the Subordinated loan with the market by the National
Development Bank;
Sub-annexes 4a and 4b –Documents containing unique MS Teams IDs, list of participants,
agenda and minutes of two meetings between representatives of the Czech National
Development Bank and the Czech Banking Association (“Czech Banking Association meeting
12_2021” and “Czech Banking Association meeting 3_2022”) held via Microsoft Teams on 6
December 2021 and on 1 March 2022, as drafted by the National Development Bank
representatives.

The authorities also provided:
vii.

Sub-annex 3a - DNSH assessment tool “Project Financing Assessment Tool for the
Subordinated Loan” provided by the Czech Development Bank in excel format;
viii.
Sub-annex 4c - PowerPoint presentation called “NRB subordinated loan” prepared by the
Czech National Development Bank representatives for the Czech Banking Association;
ix.
Sub-annex 4d - Copy of the agreement dated 10 November 2021 entered into between the
Czech Development Bank and the professional advisor on the elaboration and
implementation of the rules related to DNSH and climate regulations of the new Subordinate
loan product.
Analysis:
48

The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:
 Implementation plan and its approval
The implementation plan for the new type of financial instrument (see document “Proposal
for the introduction of the National Development Bank Subordinated Loan product” dated
17 January 2022) has been approved by an extended Committee (“the Assets and Liabilities
Management Committee”), which includes all Board of Director members (see document
“Extract from the Minutes of the proceedings of the Assets and Liability Management
Committee no 1 from 17 January 2022”). This Committee has in its statutes the mandate to
approve new products including the implementation plan. The implementation plan includes
a description of the new type of financial product (section 2), a plan for the delivery of the
product (section 3), the risk characteristics of the product (section 4), the economics of the
product (section 5), the potential risks with the implementation of the product (section 6),
the timetable for implementation as well as the software requirements (section 7).


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 (see description of Reform 1)
The implementation plan also assesses the need for 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 (sections 3.3 and 3.4). Besides the use of standard systems, processes and capacity,
new agendas related to the DNSH, and the quasi-equity type of products are identified. The
use of present human resources is envisaged by the implementation plan for the new
products, with the further adaptation needed to the proper implementation of the
“Environmental, social, and governance” and quasi-equity specificities including product
training (4.3, 6.1, 7.10). The plan also details the steps needed for the adaptation of the IT
systems of the bank in order to be able to process the new type of products and the DNSH
methodology (7.6).



Internal regulation and its approval
The Council Implementing Decision Annex envisages that the Bank develops a methodology
for project evaluation and selection that complies with the 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%. A
new internal regulation in compliance with the DNSH principle and with the requirements of
the applicable intervention fields of Annex VI of Regulation (EU) 2021/241 was approved by
the Board of Directors of the Czech National Development Bank (see document “Internal
regulation on application and verification of the DNSH from 23 August 2022”). The internal
regulation’s main objective is: 1. to ensure that the DNSH regulation is applied and is well
anchored in the internal management system by establishing an internal process of DNSH
and intervention fields evaluation; 2. to ensure the process of approval / rejection of
project’s compliance with the DNSH and intervention fields; 3. to ensure the system of
verification in place which includes process of ex-ante, on-the-spot and ex-post checks. The
decision no 19 of the Board of Directors of 6 May 2022 (see document “Evidence of the
approval of the internal regulation on application and verification of the DNSH by the Board
of Directors of the National Development Bank on 6 May 2022”) provide evidence of the
approval of the internal regulation.
The regulation consists of the following key parts:
49

o

o

o

Basic provisions – defining the scope of the new regulation for ensuring compliance
with environmental criteria for the new product, the subordinate loan fund K
4.2/2022, (1.1) in line with the Council Implementing Decision Annex requirements
and listing related Bank’s internal regulations (1.3)
Control and inspection mechanisms – definition of the process and its main output.
The process consists of collection of relevant data from the client (2.1.1), procedure
of internal assessment (2.1.1.2) and evaluation process defined in 2.1.1.3. (use of the
methodology – see point 3 below). The checks (controls) take place before the
approval/rejection of the project (2.1.2) and ex-post (2.1.3.). There are different
types of ex-post controls: regular (aimed at client’s creditworthiness, 2.1.3.1), on the
spot check (physical inspection, 2.1.3.2) and administrative control (ongoing basis
and based on the credit agreement). All of the checks incorporate the DNSH aspect.
The output of these processes is formalized in the ‘Project Inspection Report’
(2.1.3.5).
Methodology – the methodology consists of the evaluation of the total project costs
which cannot exceed 10 million EUR (described in 2.2.1. of the regulation),
evaluation against the list of excluded sectors (described in 2.2.2 of the regulation),
intervention fields of Annex VI of Regulation (EU) 2021/241 with the climate
coefficient of 40% or 100% (described in 2.2.3 of the regulation) and compliance
with European and national legislation (described in 2.2.4-2.2.12 of the regulation).
An instrument for the purposes of evaluation of project compliance with the DNSH
and intervention fields for the product is provided in the Annex 3 in the form or
excel file that the bank developed internally.



Consultation with market entities and professional advisers
The new rules related to the implementation of the new product have been consulted with
market entities and professional advisers. The National Development Bank has collaborated
with a professional advisor for the development of the product characteristics including the
provision for evaluation of the products ensuring compliance with the DNSH principle. This is
evidenced by the Advisory Agreement entered into by the bank and the professional advisor
on 10 November 2021 (see document” Copy of the agreement between the Czech
Development Bank and the professional advisor on the elaboration and implementation of
the rules related to DNSH and climate regulations of the new Subordinate loan product”).
Besides the collaboration and the meetings held with professional advisor (which took place
between January and March 2022, the representatives of the National Development Bank
also held on-line meetings with the Czech Banking Association which comprises
representatives of the largest commercial banks in the country. A list of these meetings, held
on 6 December 2021 and 1 March 2022 was also annexed to the documentation submitted.
The meetings focused on the development of the new product including the DNSH
assessment and the applicable intervention fields. The authorities have also submitted the
documents “CBA meeting 3 2022” and “CBA meeting 12 2021” including the list of
participants in the meetings, the unique MS Teams IDs of the meetings, the agendas and
main points of discussion as drafted by the representatives of the National Development
Bank.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C4.2]-I[I1]: Development of a new line of quasi-equity
instruments supporting entrepreneurship
Name of the Milestone: Funding agreement with the Czech-Moravian Guarantee and
Development Bank as a National Development Bank (ČMZRB)
Number: 200

50

Qualitative Indicator: Signing of the Funding Agreement
Context:

Time: Q4 2021

The investment aims to address the challenges concerning the access to finance by small and
medium sized enterprises (SMEs) through the Czech National Development Bank (formerly CzechMoravian Guarantee and Development Bank). The Czech National Development Bank will
introduce a new product line in the form of a quasi-equity financial instrument. The investment
aims to finance at least 30 projects providing a combined support of EUR 32.4 million, complying
with the Do No Significant Harm (hereinafter referred to as “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%.
Milestone #200 requires the signing of a Funding Agreement between the Ministry of Industry and
Trade and the Czech National Development Bank for financing quasi-equity instruments. The
agreement has to be in compliance with the objectives of the Regulation (EU) 2021/241, including
the DNSH Technical Guidance (2021/C58/01) and the supported projects must comply with the
intervention fields of Annex VI to Regulation (EU) 2021/241 with a 40% or 100% coefficient. Until
31 December 2026, the reflows from the new quasi-equity instrument shall be re-used only for
the purposes of this instrument. 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.
Milestone #200 is the first milestone of the investment following the reform in which the Bank’s
Strategy has been updated and internal regulations have been designed for project evaluation and
selection that complies with the DNSH principle and green tagging. Milestone #200 will be
followed by target #201 which concerns the actual selection of projects. The investment has a
final expected date for implementation on 31 December 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangement, the following
evidence was provided:
i.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
ii.
Annex 1 – The signed Funding Agreement entered into by the Ministry of Industry and
Trade and the Czech National Development Bank dated 19 May 2022 on the creation and
management of a loan fund “K 4.2/2022”.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:
 Signature of the Funding Agreement: The Funding Agreement has been entered into by
the Ministry of Industry and Trade and the National Development Bank and came into force
on 19 May 2022, following the signature of both contractual parties (see document “The
signed Funding Agreement entered into by the Ministry of Industry and Trade and the
Czech National Development Bank dated 19 May 2022 on the creation and management of
a loan fund “K 4.2/2022””).


Investment policy: The investment policy is elaborated in Annex I to the Funding
Agreement. It consists of three main sections: 1. Investment strategy which reconfirms the
form of the subordinated loans of the financial product, specifies co-financing and
51

expected mobilization of the private capital; 2. Basic parameters of the product
(minimum/maximum amount of loan, maturity, repayment, interest, etc.); 3. Eligibility
criteria including the environmental criteria (see below).


Eligibility criteria: The eligibility criteria are explicitly covered in Annex I to the Funding
Agreement, under the separate heading ‘Eligibility conditions’. These eligibility conditions
list the set of criteria for a project to be eligible for funding by the Czech National
Development Bank under the new subordinated loan product (beneficiary must be SME,
project seat on the territory of Czech Republic, public aid conditions, co-financing) including
the environmental criteria defined by the DNSH and climate coefficient (see below).



Compliance with the DNSH 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 condition of the compliance of projects with the DNSH is ensured by:
o a general provision in the text of the Agreement in article VIII, point 2, which
requires compliance with the Technical Guidance on the application of the DNSH
principle under the RRF Regulation (2021/C58/01), as described in the Annex to the
Council Implementing Decision on the approval of the assessment of the recovery
and resilience plan for Czechia (2021/0245(NLE)); and
o specific provisions included in the Eligibility conditions in Annex I to the Funding
Agreement, which state that the total costs of the project cannot exceed EUR 10
million and that the funding by the National Development Bank will be provided
directly to final beneficiaries (without an intermediary) so that the specific
provisions on the exemption from InvestEU Sustainability proofing apply.
It also provides for an exclusion list in order to ensure compliance with the DNSH Technical
Guidance (2021/C58/01) and requires compliance with the national and European
environmental legislation as defined in the Council Implementing Decision
Annex. Furthermore, the provision in Article VIII, point 3, explicitly states that the Bank
shall establish and implement in its procedures an effective system for evaluating and
verifying individual projects in order to fulfil the conditions related to the DNSH, in such a
way that, for each project supported, it is able to demonstrate that these conditions have
been met.



Compliance with the requirements of the applicable intervention fields of Annex VI to
Regulation (EU) 2021/241 (with a 40% or 100% coefficient): This condition of compliance
is ensured by:
o a general provision in the text of the Agreement in article VIII point 1, which
authorises the Bank to finance only those projects whose planned output is an
activity to which a coefficient of 40 % or 100 % is attributed on the basis of the
methodology set out in Annex VI to Regulation (EC) 241/2021 of the European
Parliament and of the Council; and
o specific provisions included in the Eligibility conditions in the Annex I, which
provide a list of activities in line with the applicable intervention fields of Annex VI
to Regulation (EU) 2021/241 (with a 40% or 100% coefficient).
Furthermore, the provision in Article VIII point 3, explicitly states that the Bank shall
establish and implement in its procedures an effective system for evaluating and verifying
individual projects in order to fulfil the conditions related to climate coefficient, in such a
way that, for each project supported, it is able to demonstrate that these conditions have
been met.

52



Use of reflows: Article III point 7 of the Funding Agreement specifies that the reflows from
the financial instrument will be used for the same instrument until 31 December 2026 and
reflows to the Czech-Moravian Guarantee and Development Bank as a National
Development Bank (ČMZRB) core capital shall take place only after 2026.



Further specifications: The new quasi-equity instrument shall consist of investment
loans. The Funding Agreement specifies in Article I under the term ‘Subordinated loan’ that
the quasi-equity financial instrument is in the form of a subordinated loan, which is
provided from the ‘K 4.2/2022’ loan fund under the terms of the call. The form of a
subordinated loan is also reconfirmed in the Annex I, under ‘Basic parameters of the
product’.
Commission Preliminary Assessment: Satisfactorily fulfilled
Related Measure: CZ-C[C4.3]-R[R2]: Judiciary reform aimed at strengthening
the legislative framework and transparency in the areas of courts, judges,
Number: 203
prosecutors and bailiffs
Name of the Milestone: Entry into force of the Courts and Judges Act
Qualitative Indicator: Provision in Courts and Judges Act indicating the entry
Time: Q4 2021
into force
Context:
The aim of this reform is to establish a transparent and uniform system of recruitment and
selection of judges and court officials 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 lay judges. It also seeks to strengthen the safeguards of
disciplinary proceedings for judges, prosecutors and bailiffs by introducing an appeal review.
Milestone #203 requires the entry into force of an amendment to the Courts and Judges Act
which shall create transparent and objective criteria for the selection of judges and court
presidents, regulate in more detail secondary activities of judges and streamline court
proceedings in which lay judges participate.
Milestone #203 is the first milestone of the reform. It concerns the entry into force of the
amendment to the Courts and Judges Act. The second and last milestone #204 concerns the entry
into force of the amendment to the Act on proceedings in cases of judges, prosecutors and
bailiffs. The reform has a final expected date for implementation on 31 December 2024.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Annex 1 - Copy of the publication of the amending Act of the law on Courts and Judges
dated 25 May 2021 with reference number 218/2021 in the Czechia’s Collection of Law.

The authorities also provided:
iii.
iv.

Annex 2 - Explanatory memorandum to the amending Act on Courts and Judges with
reference number 218/2021;
Annex 3 - Transcript from the hearing of the Senate discussing the draft amendment dated
53

v.

17 March 2021 with reference number Printing No. 51;
Annex 4 -Ministerial decree No 2/2023 of the Ministry of Justice on the organisation of
work and training of judges of district and regional courts. On 3 February 2023, the ministry
issued a decree to streamline the organisation of work of lay judges and strengthen their
competences by providing further training and assistance, entering into force on 7
February 2023, as published in the Official Journal of the Ministry of Justice on 7 February
2023.

Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


The Courts and Judges Act shall introduce objective rules for the selection of judges and
court officials.
As required by the Council Implementing Decision, the Act No. 218/2021 which is the
amendment to Act No. 6/2002 . on Courts and Judges, as amended – hereinafter referred
to as the Amendment of the Courts and Judges Act (published in the Czechia’s Collection of
Law on 25 May 2021, Sbírka zákonů č.218/ 2021, pages 1826 – 1835) establishes a uniform
and transparent system for the selection of judges and court officials and contains new
provisions about secondary activities of judges.
The Amendment of the Courts and Judges Act entered into force on 1 January 2022, with
the exception of the provisions of points 23, 27, 28, 33 and 35 of the first part of Article I,
which relate to the publication of decisions of district, regional and high courts judgments
and entered into force on 1 July 2022 as established in Article XI. These provisions, further
enhance the transparency of the justice system but do not relate to the requirements of
the Council Implementing Decision.
As required by the Council Implementing Decision, the Amendment of the Courts and
Judges Act introduces a new selection system of new judges, which is based on precise,
objective and uniform criteria (Part no 5, Section 109-117a).
The new selection system of new judges consists of five phases which have to be
completed by the candidate-judge: i) practice as an assistant of a judge, ii) judicial exam, iii)
selection procedure of a judicial candidate, iv) practice of a judicial candidate and v) open
competition for the position of a judge. Selection committees in phases iii) and vi) shall
consist of judges and judicial experts while judges will have majority. Applicants from other
legal professions (such as lawyers, notaries, bailiffs or public prosecutors) are also allowed
to apply for the position of a judicial candidate and/or judge.
The Amendment of the Courts and Judges Act also establishes new rules in connection to
the selection of presidents of district, regional and high courts (Section 105a-e). From 1
January 2022, court presidents of district, regional and high courts shall be selected in open
competitions before selection committees in which judges will have a majority. Applicants
are required to have at least five years of practice as a judge. The proposal prohibits the
possibility to repeat the mandate of a court president at the same court. Presidents of high
and regional courts may repeat their mandate at a different court of the same level after
five years from the end of the first mandate. Court presidents are required to complete a
management education course (organized by the Judicial Academy).



The Courts and Judges Act shall provide for a more detailed regulation of the secondary
54

activity of judges.
Additionally, as required by the Council Implementing Decision, the Amendment of the
Courts and Judges Act contains more detailed provisions about secondary activities of
judges (Sections 85 and 85a). From 1 January 2022, judges are obliged to report to the
president of the respective court secondary activities exercised by them in the previous
calendar year, by 30 June of the current year. The report contains information about the
type and form of the exercised activity, person for whom it was exercised, place where it
was exercised and the duration of the activity. This obligation will not apply to judges who
do not exercise such activity, or who earn by these secondary activities less than 20% of
their annual judge´s salary (to minimise the administrative burden).


The Courts and Judges Act shall streamline court proceedings in which lay judges
participate.
Concerning the streamlining of court proceedings involving lay judges, as part of the
Amendment of the Courts and Judges Act, the Government originally proposed a
substantial limitation of the scope of the involvement of lay judges in criminal proceedings.
The rationale for this was to improve efficiency, as the potential lack of legal expertise and
age profile of lay judges is perceived by some as slowing down proceedings. This proposal
was discarded during the legislative process (Annex 3). Instead, the Czech Parliament
decided to introduce an amendment providing that the remuneration of lay judges should
be ‘reasonable’ (Annex 1, Point 17 amended Section 93(4) of the Courts and Judges Act).
The main objective behind this proposal - as laid down in the explanatory memorandum
(Annex 2, page 26) and interventions during the debate in the Senate (Annex 3) - was to
make this function more attractive to younger, more qualified citizens, which would further
lead to making the proceedings with lay judges more efficient. The proposed amendment
to limit the number of proceedings with lay judges was proposed in the context of this
reform due to the fact that the institute of lay judges is enacted in the Courts and Judges
Act. However, it was ancillary to the objectives of the reform which were mainly focused
on creating transparent and objective criteria of selection of judges and courts presidents
and revising the issue of secondary activities of judges in order to address the
recommendations of the Group of States against Corruption (GRECO) in this area. By the
Amendment of the Courts and Judges Act these two main issues were solved.
In addition, by means of Ministerial Decree No. 2/2023 (Annex 4), published on the
Ministry’s website (https://justice.cz/web/msp/rejstrik-instrukci) , the composition of the
senate involving lay judges has been made more efficient by providing for communication
preferably via electronic means or via phone (Paragraph 2, subparagraph 2), and
introducing a deadline of at least 7 days for informing the lay judges of the convening of a
hearing, which can be shortened where there is a risk of frustration of the trial ((Paragraph
2, subparagraph 3). Finally, the Decree sets out that court presidents shall provide for
training activities for lay judges (paragraph 3(1)). These measures contribute to
streamlining the concerned proceedings, as well as improving the quality of lay judges’
contributions and are thereby expected to make the proceedings involving them more
efficient.

Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 207

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit

Name of the 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
55

laundering directive)
Qualitative Indicator: Procedure approved and implemented by the delivery
unit with the description of the system to collect and make available data on
final recipients
Context:

Time: Q2 2022

This reform aims to improve the control and audit environment of the Czech Republic, in order to
efficiently protect the financial interests of the Union during the implementation of the RRF.
Milestone #207 concerns the approval and the implementation 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.
This milestone (#207) is the first step of the implementation of the reform and is directly
connected to the milestone #210 on the repository system (due in Q2 2022), whose functionalities
should be confirmed by an audit report.
Other milestones of this reform are milestone #208 on the action plan on the prevention of the
conflict of interests (due in Q4 2021), milestone #209 on measures preventing conflict of interests
(due in Q2 2022), milestone #210 on the repository system (due in Q2 2022), milestone #211 on
audit strategy (due in Q4 2021), milestone #212 on the review of the definition of beneficial
ownership (due in Q4 2021), milestone #213 on the guidance on the avoidance and management
of conflict of interests (due in Q2 2022), and milestone #214 on procedures to avoid conflict of
interests in line with Article 61 of the Financial Regulation (due in Q2 2022).
The reform has a final expected date for implementation on 30 June 2022.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

iii.

iv.

v.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Annex 1 - Methodological guidance for monitoring of RRP in force from 21 November 2022,
including annex No. 1 Monitoring report to the request for the payment; annex No. 2
Partial monitoring report; and annex No. 3 Overview of information systems and their
connection to the repository system;
Annex 2 - Copy of the approval decision by the RRF Managing Council from 21 – 31 January
2022; Copy of the approval decision by the RRF Managing Council from 27 April – 10 May
2022; Copy of the approval decision by the RRF Managing Council from 21 November 2022;
Annex 3 - Internal manual of the coordinating body in force from 3 October 2022, including
the signatures, including annex No. 1 Checklist on Partial monitoring report; annex No. 2
Checklist on Monitoring report to the request for the payment; and annex No. 3 Checklist
on the sample check;
Annex 5a - Confirmation (from 26 September 2022) from the coordinating body that the
procedure to collect, store and make available data on final recipients, contractors, subcontractors, beneficial owners and the list of any measures for the implementation of
reforms and investment projects is being successfully implemented (hereinafter
“Confirmation document from the coordinating body”).

The authorities also provided:
vi.

Annex 4a - Acceptance protocol including summary of the functionalities of the repository
system from 4 April 2022;
56

vii.

Annex 4a - Acceptance protocol including summary of the functionalities of the system
from 28 April 2022;
viii.
Annex 4b - – Document explaining the technological procedures for the project
documentation in the repository system by the contractor ASD Software, s.r.o. from 2 May
2022;
ix.
Annex 5b - Post-Implementation review – PART I.: The process of collecting, storing and
making available data by Deloitte from September 2022;
x.
Annex 5c - Situation report on the protection of the financial interests of the Union and
related control of component owners regarding RRP signed 4 October 2022.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


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 methodological guidance for monitoring of the RRP describes the procedures and rules
for monitoring the implementation of the RRP, setting out the responsibility to monitor the
implementation of the components to the implementing bodies, which collect and store
the data in their information systems (chapter 5.1). There are various information systems
used by the implementing bodies, as the RRP implementation is built on the existing
national procedures and as a result the system is decentralised. The information systems of
the implementing bodies can be connected to the national register of beneficial owners, or
the beneficial owner data can be transferred in form of a web service upon a request to the
Ministry of Justice (chapter 5.1). The implementing bodies are then obliged to submit
reports and transfer the relevant data to the coordinating body (chapter 5) to the umbrella
repository system of the coordinating body (AIS system), which serves as an overarching,
central repository system (chapter 5.2).
Part of the monitoring report for the request for payment which is an annex to the
methodological guidance for monitoring of the RRP is a list of operations. The list of
operations, including the data on final recipients of funds, contractors, sub-contractors,
together with names and dates of births of beneficial owners can be transferred into the
umbrella repository system through a direct automated connection via interface, a
transmission of data via XML or a manual transcript of data directly in the umbrella
repository system. The checks and controls of transmitted data are carried out by the
system as well as by the coordinating body (chapter 5.2). Furthermore, the coordinating
body performs checks for the submitted projects on a sample basis through the checklist
on Monitoring report to the request for the payment, including the check on the storing of
the data according to Article 22 (2) (d) of the RRF Regulation (question 25 of the
checklist). Furthermore, the contractor developing the umbrella repository system has also
developed the document Technological procedures for the project documentation in the
repository system 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 uploaded and stored in the system.
Moreover, the Methodological guidance for monitoring of the RRP states that the umbrella
repository system contains the data for already implemented operations (chapter 5.2). This
position is further elaborated in the Confirmation document from the coordinating body,
which states that in case of measures that are part of the RRP but do not receive any funds,
57

only a list of measures (reforms and investment projects) with their description are
collected, stored and made available, as there are no funds hence no final recipients or
beneficial owners to these measures. It means that data are collected and stored also in
the repository system(s) of the implementing bodies, which was confirmed by the final
evidence submitted for milestone #89 (see assessment of milestone #210).
The successful implementation of the described procedures is further supported by other
documentation submitted by Czechia, including the post-Implementation review
performed by a private consultant from September 2022, and Technological procedures for
the project documentation in the repository system from 2 May 2022.


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 Methodological guidance for monitoring of RRP defines the data, which shall be
collected and stored by all implementing bodies in their information system (chapter 5.1).
The guidance presents the list of data in line with the requirements of Article 22(2)(d) of
the RRF Regulation, covering all categories of data necessary:
o name of the recipient and final recipient of the funds;
o name of the contractor and sub-contractor, where the final recipient of funds is a
contracting authority in accordance with the Union or national law on public
procurement;
o first name, last name and date of birth of beneficial owner(s) of the recipient of the
funds or contractor, as defined in Article 3 (6) of Directive (EU) 2015/849 of the
European Parliament and of the Council;
o a list of any measures for the implementation of reforms and investment projects
under the RRF with the total amount of public funding of those measures and
indicating the amount of funds paid under the Facility and under other Union
funds;
o data as defined in chapter 5.2 of the Methodological guidance for monitoring of
RRP, which are declared to the coordinating body (aggregated data on the
fulfilment of the milestones and targets, and data on each operation of the
declared milestones and targets).



The procedures shall be approved and implemented by the RRF Managing Council
The procedures and methodological guidance, including the Monitoring guidance, were
approved by the Steering Committee (the Czech RRF Managing Council) decisions from 21
to 31 January 2022, 27 April to 10 May 2022, and 21 November 2022, respectively, as
evidenced by the Annex 2. The decisions from 21 to the 31 January 2022 and from 27 April
to 10 May 2022 were taken by voting per rollam, whereas the decision on the
methodological guidance from 21 November 2022 was taken during a regular meeting of
the Steering Committee. The Methodological guidance for monitoring of RRP is binding for
the coordinating body, audit body and implementing bodies involved in the RRP (chapter 1
of the Guidance).



The system of collecting data will be based on and follow the best practices gained of
MS2014+ system.
As evidenced in the Confirmation document from the coordinating body, the experience
with MS2014+ system for monitoring of programs under cohesion was used for the
development of the umbrella repository system. The functionalities from MS2014 + system
implemented in the umbrella repository system include the unique ID of each project, the
58

mandatory data system, automated checks and verifications, automated interconnections
via interface with other systems and registers, ability to generate and send XML or XLS file,
communication tools with implementing bodies, automated notifications following changes
(transition) of reports, monitoring report calendars, overall overview of reports received,
history of filled data, and obligatory checkboxes to prove acquaintance and confirmation of
obligations laid down in the system (point 3).
Commission Preliminary Assessment: [Satisfactorily fulfilled]

Number: 208

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit

Name of the 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
Qualitative Indicator: Effective implementation of the action plan confirmed
Time: Q4 2021
by updated procedures and processes of the coordinating body
Context:
This reform aims to improve the control and audit environment of the Czech Republic, in order to
efficiently protect the financial interests of the Union during the implementation of the RRF.
Milestone #208 concerns the creation and the implementation of an action plan that would
include measures to be implemented by the coordinating body of the Czech Recovery and
Resilience Plan in the area of prevention and management of conflict of interests.
Milestone #208 is the second step in the implementation of the reform. Milestone #208 is directly
linked to milestone #209 which requires audit report confirming effective implementation of the
action plan (due in Q2 2022). In addition, some measures developed as part of the action plan are
assessed in more detail under milestone #213 which relates to the guidance on the avoidance and
management of conflict of interests (due in Q2 2022). Other milestones of this reform are
milestones milestone #207 on the system to collect, store and make available data in relation to
all final recipients including all beneficial owners (due in Q2 2022), milestone #211 on audit
strategy (due in Q4 2021), milestone #212 on the review of the definition of beneficial ownership
(due in Q4 2021), and milestone #214 on procedures to avoid conflict of interests in line with
Article 61 of the Financial Regulation (due in Q2 2022).
The reform has a final expected date for implementation on 30 June 2022.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.
iii.
iv.
v.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Annex 1 - Action Plan for the systematic prevention of conflict of interests according to
Article 61 of the Financial Regulation for RRP in its current version;
Annex 2 - Overview of training on methodological documents and related procedures;
Annex 3a - The result of the coordinating body internal verification of the implementation
of the action plan and the setting up of the management and control systems;
Annex 3b - Checklists of readiness for implementation of the Action Plan for RRP.

The authorities also provided:
59

vi.

Supplementary information on milestone 208 provided on 20 December 2022 including
also four lists indicating the users of Arachne.
vii.
Supplementary information on corrective actions taken in the repository system on the
‘Public project and entities search engine’ provided on 27 January 2023.
viii.
The risk analysis of the coordinating body adopted on 31 August 2022 by the Ministry of
Industry and Trade.
ix.
Report on the risk status of component owners adopted on 30 June 2022 by the Ministry of
Industry and Trade.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


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 interests.
The Action Plan for the systematic prevention of conflict of interests according to Article 61
of the Financial Regulation for the RRP was adopted by the Steering Committee and
became effective on 11 May 2022. The Steering Committee is the highest decision making
and managing body of the Czech RRP as established by the governmental resolution No.
467 of 17 May 2021. The coordinating body of the Czech National RRP (the so-called
Delivery Unit) is located in the Ministry of Industry and Trade and is responsible for the
Steering Committee. In order to ensure an efficient internal administrative system of the
coordinating body, in particular as regards sufficient and systemic prevention of the conflict
of interests, 14 measures were proposed in the Action Plan and implemented as evidenced
by the documents submitted by the Czech authorities, in particular:
o RED FLAGS Methodological Guidance for the National Recovery Plan (further referred
as “RED FLAGS Guide”) was adopted on 25 January 2023 by the Steering Committee by
the decision to vote per rollam. The Guidance is assessed in detail under milestone
#213 (measure No. 1).
o Guidance on conflict of interests according to Article 61 of the Financial Regulation for
National Recovery Plan (further referred as “Conflict of Interests Guide”) was adopted
on 25 January 2023 by the Steering Committee by the decision to vote per rollam. The
Guidance is assessed in detail under milestone #213 (measure No. 2).
o The trainings took place in spring 2022 and were attended by representatives of all
implementing entities as evidenced by Annex No. 2 to the summary document which
includes an overview of the trainings organised with the attendance lists from the
trainings. Recordings of the training sessions are also available on shared working
spaces (measure No. 3).
o The Action plan sets out firm deadlines for the implementing bodies to comply with the
overall methodological framework for the RRP, particularly with the RED FLAGS Guide
and Conflict of Interests Guide and imposes on all RRP implementing bodies its
implementation and integration into their management and control documents. These
documents were prepared by the implementing bodies and sent to the coordinating
body for their verification, together with ten checklists of readiness for the
implementation of the Action plan on conflict of interests as evidenced under Annex
No. 3b to the summary document (measures No. 4 and 5).
o On the basis of documents prepared and submitted by the implementing bodies
(including the checklists), as described under measures No. 4 and 5 above, the
60

o

o

o

o

o

o

o

coordinating body verified if the requirements from the central methodologies were
implemented. This verification is evidenced in Annex 3a - Summary report to verify the
fulfilment of the points of the Action Plan for systematic prevention of conflict of
interests as referred to in Article 61 of the Financial Regulation for the National
Recovery Plan 2021-2026 for selected components. This report was supplemented by
the addendum dated on 30 September 2022 which described the additional measures
taken by the Ministry of Culture following the previous recommendation of the
coordinating body (measure No. 6).
A positive opinion on the effectiveness of Czechia’s internal control system was issued
by the audit body despite the identification of some shortcomings (as evidenced in the
audit report following the Audit No. NPO/2022/S/002, Annex No. 1 to the summary
document under milestone #214) (measures No. 7 and 8).
The implementing bodies prepared the risk analysis on their parts by 31 May 2022. The
elaboration of risk-analysis was later verified by the coordinating body as evidenced by
question two of the checklist (Annex No. 3b to the summary document) and the results
of that verification were summarised in the Report submitted as Annex No. 3a to the
summary document. The overall risk analysis at the level of the coordinating body was
adopted on 31 August 2022 as evidenced by the evidence submitted additionally on 20
December 2022, together with the assessment of the risk status of the implementing
bodies (measure No. 9).
This Code of Ethics was established as Annex No. 1 to Conflict of Interests Guide. It is
binding to all interested persons of the RRP as defined in this guide (chapter 4.3)
(measure No. 10).
Signing the Code of Ethics by the staff involved in implementation of the RRP was
verified by the coordinating body as evidenced by question four of the checklist (Annex
No. 3b to the summary document) and the results of that verification were
summarised in the Report submitted as Annex No. 3a to the summary document
(measure No. 11).
The Declaration on Honour was adopted as Annex No. 2 to Conflict of Interests Guide.
The concerned entities1 are obliged to require that the applicant/final recipient signs a
Declaration on Honour stating that he or she is not aware of any conflicts of interests
towards the implementing body and disclosing relevant data on its beneficial owners
(measure No. 12).
According to RED FLAGS Guide (chapter 2.2), all implementing bodies are obliged to
use Arachne or similar risk scoring tools in order to verify the applicant’s operation(s). If
they use Arachne, they are also obliged to describe the procedures on its use in detail
in their internal procedures and to ensure that it is communicated to all their
employees involved in the implementation of the RRP (chapter 4.2). As evidenced by
the summary of audits (part 5.2) accompanying the first payment request, the audit
body provided trainings to coordinating body, component owners and implementing
bodies on the use of Arachne on 13 May 2022, 13 September 2022 and 18 October
2022. Following that training, participants were granted access to Arachne as
evidenced in the supplementary information in M#208 provided by the Czech
authorities on 20 December 2022 (measure No. 13).
The database of all operations supported by the RRF is part of the RRF umbrella
repository system (AIS system). The coordinating body launched this system in
production version on 1 July 2022. This system is continuously being filled by data from
implementing bodies. Within the AIS system, the coordinating body developed a public
search tool in which a list of all measures (projects) included in the payment request(s)
submitted to the Commission is published, together with their recipients, contractors
and sub-contractors. The tool is accessible through the website of RRP
61

https://www.planobnovycr.cz/dokumenty - “Vyhledávač podpořených projektů a
subjektů”. No data on beneficial owners are published since all final recipients for
milestones and targets in the first payment request are public bodies for which no data
on beneficial owners are required (measure No. 14).
To sum up the measures to substantiate the requirement ensure an efficient internal
administrative system of the coordinating body, in particular as regards sufficient and
systemic prevention of the conflict of interests.


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 interests 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.
The measures of the action plan described above enforce procedures for the investments
and reforms under the RRP and for the whole implementation structure, thus ensuring that
payments to final recipients, contractors, and sub-contractors under the RRP will be
subjected to prior multilevel controls of conflict of interests, down to the level of beneficial
owners.
o The main documents 1) RED FLAGS Guide (measure No. 1) and Conflict of Interests
Guide (measure No. 2) clearly define procedures of control and verification of
conflict of interests and procedures for avoiding funding or withdrawing funding if
any conflict of interests is identified, verified, and confirmed. The guides distinguish
between the procedures (i) for the implementation structure, and (ii) for
operations (see Introduction of the Conflict of Interests Guide). Regarding controls
of conflict of interests at the level of the implementing structure, the following
actions are envisaged: the entities concerned are obliged to require that the
applicant/final recipient signs a Declaration of Honour stating that he or she is not
aware of any conflicts of interests and disclosing relevant data on its beneficial
owners (see Chapter 4.5 of the Conflict of Interests Guide and the template of the
Declaration in Annex No. 2). The Conflict of Interests Guide then sets out in chapter
5.1 the procedure for the verification of the Declaration on Honour, particularly by
indicating the relevant databases to be used for the verification. For this purpose, it
also establishes a checklist of questions in Chapter 5.2. The checks should be
performed before the legal act is issued or the contract is concluded, as well as
after completion of the project (chapter 5.1). These checks are carried out
regardless of the legal form of the final recipient (legal entity, foundation, legal
arrangement – trust, etc.). The control is carried out regardless of the form of
funding (ex-ante, interim, ex-post). Finally, Chapter 6 of the Conflict of Interests
Guide describes the relationship between Article 61 of the Financial Regulation and
the public procurement procedures. It confirms that Article 61 applies to anyone
and to any entity under Member States jurisdictions involved in implementing the
EU budget, including in the procurement process and that similar national rules,
which generally forbid conflict of interests, are applied on public procurement
procedures. The implementing bodies on whom this guidance is binding have to
ensure compliance with the obligations pursuant to Article 61 Financial Regulation
on all levels of the implementation of the measures. The Guide also informs that
furthermore, conflicts of interest at the level of the contracting authority (i.e. the
applicant/final recipient) and the supplier are also regulated in Section 44 of the
Act. Contracting authorities are required to take appropriate measures to
effectively prevent, identify and remedy conflicts of interest arising in the course of
public procurement procedures.
62

Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 209

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit

Name of the Milestone: Measures preventing conflict of interests implemented by the
coordinating body.
Qualitative Indicator: Audit report confirming effective implementation of
Time: Q2 2022
the action plan.
Context:
This reform aims to improve the control and audit environment of the Czech Republic, in order to
efficiently protect the financial interests of the Union during the implementation of the RRF. The
objective of this milestone is to improve the national control system to prevent, detect and
correct situations of the conflict of interests.
Milestone #209 requires a follow-up audit carried out by the audit body to confirm the effective
implementation of the action plan under milestone #208 on the action plan on the prevention of
the conflict of interests (due in Q4 2021).
Milestone #209 is the third step in the implementation of the reform. Apart from milestone #208,
it is also directly linked to milestone #214 on the action plan on the prevention of the conflict of
interests (due in Q4 2021), since both milestones were covered by the same audit by the Czech
audit body. Other milestones of this reform are milestones milestone #207 on the system to
collect, store and make available data in relation to all final recipients including all beneficial
owners (due in Q2 2022), milestone #209 on measures preventing conflict of interests (due in Q2
2022), milestone #210 on the repository system (due in Q2 2022), milestone #211 on audit
strategy (due in Q4 2021), milestone #212 on the review of the definition of beneficial ownership
(due in Q4 2021), and milestone #213 on the guidance on the avoidance and management of
conflict of interests (due in Q2 2022).
The reform has a final expected date for implementation on 30 June 2022.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Final audit report from the system audit No. NPO/2022/S/002 of 13 October 2022;

The authorities also provided:
iii.
Final audit report from the system audit No. NPO/2022/S/004 of 19 October 2022;
iv.
Final audit report from the system audit No. NPO/2022/S/005 of 11 October 2022.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:
 Follow-up audit shall be carried out by the audit body to confirm the implementation of
63

the action plan.
The audit body started the system audit No. NPO/2022/S/002 on 29 March 2022. The audit
was carried out at the level of the coordinating body (Ministry of Industry and Trade). The
scope of the system audit included the implementation of the action plan for the
administrative system of the coordinating body as required by the M#208. Draft audit
report was submitted to the auditee on 15 September 2022. Following the contradictory
procedure, the final audit report was finalized on 13 October 2022 as evidenced in Annex
1.
 The content of this report shall include the measures taken by the coordinating body to
the internal administrative system and controls on conflict of interest prior to the
payments to final recipients, contractors and sub-contractors.
During the audit, the audit body verified actions taken by the coordinating body related to
the internal administrative system, in particular as regards to (i) adequate and systemic
avoidance of the conflict of interests; and (ii) controls on the conflict of interests prior to
the payments to final recipients, contractors and sub-contractors.
 The audit report shall confirm effective implementation of the action plan.
As regards to the implementation of the action plan, the audit body formulated its
conclusion that the action plan is effectively implemented, but some improvements were
needed (such as in the procedures of specific ministries).
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 210

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit

Name of the Milestone: Repository system
Qualitative Indicator: Audit report confirming
functionalities
Context:

repository

system

Time: Q2 2022

This reform aims to improve the control and audit environment of the Czech Republic, in order to
efficiently protect the financial interests of the Union during the implementation of the RRF.
Milestone #210 aims to confirm the functionality and operationalisation of the 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 by the audit body.
Milestone #210 is the fourth step in the implementation of the reform. It is connected to
milestone #207 on the system to collect, store and make available data in relation to all final
recipients including all beneficial owners (due in Q2 2022). Other milestones of this reform are
milestones #208 on the action plan on the prevention of the conflict of interests (due in Q4 2021),
milestone #209 on measures preventing conflict of interests (due in Q2 2022), milestone #211 on
audit strategy (due in Q4 2021), milestone #212 on the review of the definition of beneficial
ownership (due in Q4 2021), milestone #213 on the guidance on the avoidance and management
of conflict of interests (due in Q2 2022), and milestone #214 on procedures to avoid conflict of
interests in line with Article 61 of the Financial Regulation (due in Q2 2022).
The reform has a final expected date for implementation on 30 June 2022.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:

64

i.
ii.
iii.
iv.
v.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Final audit report from the system audit No. NPO/2022/S/001 of 13 October 2022;
Acceptance protocol including summary of the functionalities of the system from 1 April
2022;
Acceptance protocol including summary of the functionalities of the system from 10 June
2022;
Acceptance protocol including summary of the functionalities of the system from 31 August
2022.

The authorities also provided:
vi.

vii.

Supplementary information on corrective actions taken in the repository system provided
on 19 December 2022, including confirmation from the Czech audit body, updated on 26
January 2023.
Updated data extracted from the repository system as of 11, 20 and 25 January 2023.

Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:




A repository system for monitoring the implementation of the RRF shall be in place and
operational.
The umbrella repository system (AIS system), which serves as an overarching, central
repository system, is under the responsibility of the coordinating body and is in operation
since 1 July 2022. The coordinating body submitted three acceptance protocols, from 1
April 2022, 10 June 2022, and 31 August 2022, including the summaries of the
functionalities deployed.
The final audit report from the audit body shall indicate:
o The auditor/responsible body signing the report
 The final audit report was signed by the audit body – the Ministry of
Finance performing the audit, and it includes the names and signatures of
the lead and associated auditors (chapter 6).
o The date on which the report was signed
 The final audit report was signed on 11 October 2022 (chapter 6).
o The system is operational and has at least the following functionalities
 collects data and monitors the achievement of milestones and targets
 collects, stores and ensures access to the data required by Article
22(2)(d)(i) to (iii) of the RRF Regulation
- The audit body has verified the umbrella repository system and
concluded that the system is in principle functional (except findings
No. 2 and 3, see point e) below) and has at least the following
functionalities: (i) it ensures the collection of data and monitoring
of the achievement of the milestones and targets; and (ii) it
collects, stores and ensures access to the data required by Article
22(2)(d)(i) to (iii) of the RRF Regulation (chapter 3).
- It is to be noted that the audit body audited only the umbrella
repository system of the coordinating body. The rest of the
information systems used by the implementing bodies for the
65



monitoring of the implementation of the RRP and to collect and
store the data (such as MS2014 +, eSSL GINIS, EDS) were not
audited. The audit body will be requested to check the systems of
the implementing bodies during the next system audits at these
bodies.
o that the data is being collected by the implementing bodies and/or
recipients/any other entity entrusted with this task, according to national set-up
and that the data is being stored into the system
 The audit body confirms in its audit report (chapter 3) that the data is
collected and stored into the system by the implementing bodies
(component owners) or entities authorized by them, with the exception of
finding No. 1 (see point below).
any weaknesses of the system identified by the report and any corrective actions
recommended to address them:
 Based on the audit work performed, the audit body identified that as of 9
September 2022, the complete data and documents needed for monitoring
the successful fulfilment of the milestones and targets were not available
in the umbrella repository system. For target #172 the required data,
including the final recipients, contractors, and their beneficial owners were
missing in the umbrella repository system. The audit body issued a
recommendation to ensure the completion of required data (chapter 4,
finding No. 1). The coordinating body informed the Commission services
that the data for the target #172 have been stored in the umbrella
repository system in the end of November 2022 - the data have been
subsequently audited by the audit body and submitted to the Commission
via Fenix. In addition, for milestone #89, the data on beneficial owners
were also missing in the umbrella repository system - they are collected in
the repository system of the implementing bodies, which was confirmed by
the final evidence submitted by the Czech authorities.
 The audit body also identified the lack of control mechanism for the data
on beneficial owners, which need to be entered manually and therefore
are prone to mistakes, however, the umbrella repository system does not
distinguish between the data uploaded automatically from the available
registers or manually by the implementing bodies. As there is no control or
validation of data entered manually, the sufficient reliability of this data is
not ensured. The audit body recommended to ensure the additional
control and validation of the manually entered data (chapter 4, finding No.
2). A technical solution has been prepared and deployed, and an
automated validation can be done repeatedly and on request, which will
flag any inconsistencies (confirmed by the final evidence submitted by the
Czech authorities).
 The third deficiency identified by the audit body relates to the absence of
the possibility to record in the umbrella repository system multiple layers
of recipients/final recipients. As the system allowed only one level of the
recipient to be entered, it did not provide a complete picture of the
structure how the RRF funds are transferred to the final recipient. The
audit body recommended to modify the system in a way that will provide a
complete structured picture of the projects (chapter 4, finding No. 3).
66

Based on the additional information provided by the coordinating body,
the system has been adjusted. Multiple levels of recipients down to the
final recipients, together with multiple final recipients under one project
with clear reference to their contractors and subcontractors for each
individual case can be entered into the system now.
Following the verification of the data and information provided by the Czech authorities,
Commission auditors were able to confirm that the repository system stores reliable and complete
data as required by Article 22(2)(d) of the Regulation (EU) 2021/241, thus allowing to reach the
conclusion that the repository system is functional and operational.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 211

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit

Name of the Milestone: Audit strategy ensuring independent and effective audit of the RRF
implementation
Qualitative Indicator: Audit strategy approved by the head of audit body

Time: Q4 2021

Context:
This reform aims to improve the control and audit environment of the Czech Republic, in order to
efficiently protect the financial interests of the Union during the implementation of the RRF. The
objective of this milestone is to adopt an audit strategy ensuring the independent and effective
audit of the RRF implementation.
Milestone #211 concerns the 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.
Milestone #211 is the fifth step of the implementation of the reform. Other milestones of this
reform are milestones milestone #207 on the system to collect, store and make available data in
relation to all final recipients including all beneficial owners (due in Q2 2022), milestone #208 on
the action plan on the prevention of the conflict of interests (due in Q4 2021), milestone #209 on
measures preventing conflict of interests (due in Q2 2022), milestone #210 on the repository
system (due in Q2 2022), milestone #212 on the review of the definition of beneficial ownership
(due in Q4 2021), milestone #213 on the guidance on the avoidance and management of conflict
of interests (due in Q2 2022), and milestone #214 on procedures to avoid conflict of interests in
line with Article 61 of the Financial Regulation (due in Q2 2022).
The reform has a final expected date for implementation on 30 June 2022.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Annex 1 - Audit strategy approved by the head of the audit body on 23 December 2021, in
force as of 1 January 2022;
67

iii.
Annex 2 - Risk assessment table.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:


Adoption and entry into force of the audit strategy by the head of the audit body.
The audit strategy of the audit body for the RRF implementation has been approved by the
head of unit of the audit body on 23 December 2021 and has entered into force is 1
January 2022 (p. 2 of the audit strategy).



The audit strategy shall ensure the independent and effective audit of the RRF
implementation in accordance with internationally accepted audit standards.
The audit body is functionally and organisationally independent from the coordinating
body and implementing bodies, because according to the Government Resolution No. 467
of 17 May 2021, the Ministry of Finance was designated to perform the audits of the RRF
implementation, whereas the responsibility to perform the function of the audit body for
the RRF was assigned to the Department 52 – Audit authority at the Ministry of Finance
(chapter 1.2 of the audit strategy).
The effective performance of the audit activities for the RRF are ensured by (i) an adequate
audit methodology and approach (see point 3 below); and (ii) an adequate allocation of the
human resources (chapter 5 of the audit strategy). As per the audit strategy, there are 13
audit positions in the unit 5211 (one of the 11 units of the Department 52) responsible for
the RRF Audit, with a possibility to outsource some audit activities in the case of lack of
capacities or lack of specific knowledge. In addition, the audit strategy provides measures
related to the continuous professional trainings of the auditors (chapter 5).
As indicated in the chapter 1.4 of the audit strategy, the auditors should follow the Ethical
codex of the employees of the Ministry of Finance. In addition, the audit strategy states
that the internationally accepted audit standards are reflected in the audit activities carried
out by the audit body (chapter 1.5).



The audit strategy shall include at least
o The methodology and approach to risk assessment.
The audit body developed its methodology and approach to risk assessment
based on its experience from the audit of the ESI Funds. The risk assessment is
described in the chapter 2 of the audit strategy and is carried out at two levels:
(i) risk assessment of the implementing bodies; and (ii) risk assessment of the
milestones and targets. The audit body confirms that the substantive testing of
milestones and targets will be carried out before the submission of the payment
request to the Commission.
o The frequency and type of audits (such as systems and project audits, deskbased 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

Chapter 3 of the audit strategy specifies the two types of the audits which will be carried out by
the audit body:
o

System audits at the level of the coordinating body and implementing bodies
based on the key requirements specified in the annex No. 1 of the Financing
68

Agreement. Chapter 3.1 specifies, which key requirement will be audited for the
coordinating body and which for the implementing bodies; and
o Substantive testing to verify the achievement of the milestones and targets and
reliability of data supporting their achievement, which will be carried out before
the submission of each payment request to the Commission. The selection of
the sample for the substantive testing is described in the chapter 3.2 and fully
reflects the Commission Guidance on sampling methods for audit bodies under
the RRF for audits to ensure the effective functioning of Member State systems
in terms of collecting, storing, verifying and certifying reliable and accurate data
on the achievement of milestones and targets.
In chapter 4, the audit strategy includes the audit plan of the audit body for
years 2022, 2023 and 2024.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 212

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit

Name of the Milestone: Review of the definition of beneficial ownership as it relates to the RRF
control system
Qualitative Indicator: Report from a compliance review including
Time: Q4 2021
suggestions on possible follow-up action.
Context:
The aim of this reform is to ensure the effective protection of the EU’s financial interests when
implementing the RRF. Adjustments to national control and audit processes were required in that
context – as a pre-requisite for the disbursement of funds – to provide sufficient assurance as to
the prevention, detection and correction of fraud, corruption and conflicts and interests, as
defined in Article 61 of the Financial Regulation. This reform includes several measures designed
to harmonise, formalise and strengthen national procedures and control systems.
Milestone #212 concerns the review of the definition of beneficial ownership as it relates to the
RRF control system. The review of national procedures is carried out to ensure that the
application of beneficial ownership 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.
Milestone #212 is the sixth step of the implementation of the reform (due in Q2 2022). It is linked
to milestone #210 which is about collection of data, including on beneficial owners. Other
milestones of this reform are milestone #207 on the system to collect, store and make available
data in relation to all final recipients including all beneficial owners (due in Q2 2022), milestone
#208 on the action plan on the prevention of the conflict of interests (due in Q4 2021), milestone
#209 on measures preventing conflict of interests (due in Q2 2022), milestone #211 on audit
strategy (due in Q4 2021), milestone #213 on the guidance on the avoidance and management of
conflict of interests (due in Q2 2022), and milestone #214 on procedures to avoid conflict of
interests in line with Article 61 of the Financial Regulation (due in Q2 2022).
The reform has a final expected date for implementation on 30 June 2022.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.

Summary document duly justifying how the milestone (including all the constitutive
69

elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
ii.
Annex 1 - Report from compliance review of national procedures conducted by the Czech
Ministry of Justice - ‘Definition of the beneficial owner and beneficial owner registration
under Czech legislation in comparison with the requirements of the AML Directive’;
iii.
Annex 2 - Act No. 245/2022 Coll. of 10 August 2022, published in the Official Journal1,
amending Act No. 37/2021 Coll. on the registration of beneficial owners (RBO Act). The Act
No. 245/2022 Coll. entered into force on 1 October 2022, as stated in its Article III;
iv.
Annex 3 - Updated manual on beneficial ownership registration prepared by the Ministry of
Justice in cooperation with Ministry of Finance, the Financial Analysis Office and the
Ministry of Regional Development. Its content corresponds to the legal situation in force on
1 October 2022.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:
 A compliance review of the national procedures was carried out by the Czech authorities
to ensure that the application of beneficial ownership in the context of the RRF control
system aligns with the definition of ‘beneficial owners’ as defined in Article 3(6) of
Directive 2015/849, as amended by Directive 2018/843 (the so-called anti-money
laundering Directive – AML Directive).
In line with the description of the measure, the Czech authorities finalised in December
2021 a detailed analysis of the definition of beneficial owners and beneficial owner
registration under Czech legislation in conjunction with the requirements of the AML
Directive. The version attached to this payment request reflects the amendment to Act No.
37/2021 Coll. on the registration of beneficial owners (hereafter “RBO Act”), which was
prepared and adopted following the initial compliance review. In accordance with the
requirements set out in the Council Implementing Decision, the review covers relevant
legislation - by examining the compliance of the definition of beneficial owner applicable
under the RBO Act (section two of the analysis) – as well as its practical implications and
application (sections three and four of the analysis on the identification and registration of
beneficial owners). The analysis covers, in particular, the manual for the registry of
beneficial owners (on page 20 of the English translation) and also looks at the effective,
proportionate and dissuasive sanctions in case of breaches of the obligation to obtain and
hold information on the beneficial ownership (section 4.8), as provided by Article 30(1) of
the AML Directive.


The deficiencies identified have been corrected following the review.
As evidenced by several mentions (on page 1 and 3 of the analysis), the review took into
account the arguments presented by the European Commission in the letter of formal
notice of 12 November 2021, which launched the infringement proceedings for incorrect
transposition of the AML Directive (Proceedings No. 2021/2162) pursuant to Article 258 of
the Treaty on the Functioning of the European Union. The European Commission
considered that the RBO Act deviated from the AML Directive both in its definition of
beneficial owner and in the extent of its registration exemptions.
In the light of these elements and on the basis of the analysis performed, the review
concluded (page 19 of the English translation of the analysis) that a reform of the definition
of beneficial ownership under the RBO Act had to be carried out in order to improve its
consistency with the wording and scope of the AML Directive. In accordance with the
Council Implementing Decision, which requires that deficiencies identified following the
review be corrected, the RBO Act was amended by the Act No. 245/2022 Coll., which was
70

published in the Official Journal on 31 August 20222 and entered into force on 1 October
2022, as stated in its Article III. The Act No. 245/2022 Coll. introduced several changes
aimed at ensuring full compliance with the AML Directive (the assessment is without
prejudice to compliance assessment under Union law):
o Firstly, the new law deleted the existing two-fold definition of beneficial owner
based on the concepts of ‘end recipient’ and ‘person with ultimate influence’. In
Article 1 of the Act No. 245/2022 Coll., the existing definitions have been replaced
by a general and uniform definition taken from the introductory part of Article 3(6)
of the AML Directive so as to ensure full consistency, as requested by the Council
Implementing Decision. The term ‘beneficial owner’ now refers under Czech law to
any natural person who ultimately owns or controls a legal person or legal
arrangement. The application of this general definition for corporations is further
specified in Section 4 of the RBO Act, as amended by Article I(7) of the Act No.
245/2022 Coll. while the new provisions applicable to foundations, similar legal
persons and legal arrangements are further detailed in the new Section 5a
introduced by Article I(11) of the Act No. 245/2022 Coll.
o Secondly, in response to the concerns raised by the European Commission in its
letter of formal notice of 12 November 2021, articles I(12) and I(13) of the Act No.
245/2022 Coll. amended section 7 of the RBO Act to, respectively, add a material
test whereby it can be concluded that a legal person does not have a beneficial
owner, and remove the registration exemptions previously granted to several legal
persons governed by private law (e.g. political parties, churches, trade unions).
Relevant guidance documents have been adjusted accordingly following the entry into
force of Act No 245/2022 Coll., as evidenced by the updated manual (version from 1
October 2022) on beneficial ownership registration published on the website of the
Financial Analytical office3 and attached to the summary document submitted. The
document, which was prepared by the Ministry of Justice in cooperation with the Financial
Analytical Office at the Ministry of Finance, provides clarifications and practical guidance on
the application of the new identification and registration obligations stemming from the
amended RBO Act, in particular with regards to the transitional provisions set out in Article
II of the Act No. 245/2022 Coll. (section 7.2.2 of the manual). These transitional provisions
provide for the swift and full implementation of these new obligations. Article II(1) states
that the Ministry of Justice shall ensure that all the data automatically transcribed before
the entry into force of the amended RBO Act is brought into compliance with the new Act
and automatically updated by 1 November 2022. In addition, and as provided by Article
II(2), legal persons who were deemed not to have a beneficial owner before 1 October
2022 have to ensure until 1 March 2023 the registration of their beneficial owner(s) and
comply with the requirements of the amended RBO Act. The manual on the registration of
beneficial owners (section 7.2.2.2) and the summary note submitted by the Czech
authorities indicates that for the vast majority of these entities, the fulfilment of these
registration obligations is ensured by the automatic transcription of data from the relevant
public registers (such as the register of associations of churches and religious societies,
register for political parties) into the beneficiary owners register.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 213

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit

Name of the Milestone: Guidance on the avoidance and management of conflict of interests
Qualitative Indicator: Guidance on the avoidance and management of
Time: Q2 2022
conflict of interests issued by the delivery unit of the coordinating body.
71

Revision by the audit authority.
Context:
This reform aims to improve the control and audit environment of the Czech Republic, in order to
efficiently protect the financial interests of the Union during the implementation of the RRF. The
objective of this milestone is to strengthen the measures to protect the EU budget against fraud
and irregularities.
Milestone #213 requires issuing guidance on the avoidance and management of conflict of
interests in accordance with the EU Financial Regulation and applicable national law for the
component owners and other entities implementing reforms and investments under the recovery
and resilience plan and the revision of this guidance by the audit body.
The adoption of the guidance under Milestone #213 is also part of the measures of the action plan
on the prevention of the conflict of interests under Milestone #208 (due in Q4 2021). Other
milestones of this reform are milestone #207 on the system to collect, store and make available
data in relation to all final recipients including all beneficial owners (due in Q2 2022), milestone
#209 on measures preventing conflict of interests (due in Q2 2022), milestone #210 on the
repository system (due in Q2 2022), milestone #211 on audit strategy (due in Q4 2021), milestone
#212 on the review of the definition of beneficial ownership (due in Q4 2021), and milestone #214
on procedures to avoid conflict of interests in line with Article 61 of the Financial Regulation (due
in Q2 2022).
The reform has a final expected date for implementation on 30 June 2022.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

iii.

iv.
v.
vi.
vii.
viii.
ix.
x.
xi.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Annex 1 - Guidance on conflict of interests according to Article 61 of the Financial
Regulation for National Recovery Plan in the version of 25 January 2023 (further referred as
“Conflict of Interests Guide), including the annex No. 1 Code of Ethics and annex No. 2
Declaration on Honour;
Annex 2 - RED FLAGS Methodological Guidance for National Recovery Plan in the version of
25 January 2023 (further referred as “RED FLAGS Guide), including the annex No. 1
Checklist for RED FLAGS and annex No. 2 Examples of RED FLAGS;
Annex 3a - Steering Committee minutes approving the Conflict of Interests Guide and the
RED FLAGS Guide in the version of January 2022;
Annex 3 b - Steering Committee minutes approving the Conflict of Interests Guide and the
RED FLAGS Guide in the version of May 2022;
Annex 3 c - Steering Committee minutes approving the Conflict of Interests Guide and the
RED FLAGS Guide in the version of November 2022;
Annex 3 – Steering Committee decision to vote per rollam of 25 January 2023.
Annex 4a - Comments of the audit body on the Conflict of Interests Guide including their
settlement;
Annex 4b - Comments of the audit body on the RED FLAGS Guide including their
settlement.
M#213 - additional evidence submitted on 19 December 2022 on the comments of the
audit body regarding the RED FLAGS Guide.
Annex 4 – additional evidence submitted on 26 January 2023 on the comments of the audit
72

body on the final versions of the Conflict of Interests Guide and the RED FLAGS Guide.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


Adoption by 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 and its revision by the audit
body
The coordinating body adopted the latest versions of the Conflict of Interests Guide
pursuant to Article 61 of the Financial Regulation for the Czech RRP (see the decisions of
the Steering Committee, which is the highest decision making and managing body of the
Czech RRP). All the versions of the guide have been revised by the audit body (see the list
of comments provided for each guidance). In addition, the coordinating body adopted the
RED FLAGS Guide for the Czech RRP on 25 January 2023, which also deals with the
avoidance and management of conflict of interests based on the national law on conflict of
interests.
Concerning the avoidance of conflicts of interests, chapter 4.4 sets out the obligations and
measures that the concerned entities2 shall abide by and implement within their internal
procedures to prevent and detect cases of conflict of interests. These include, for instance,
ensuring the identification of all financial actors, ensuring appropriate separation of
functions, and the signing of a Code of Ethics by the staff of the concerned entities. In this
regard, the Code of Ethics requires the employees to familiarise themselves with the
Conflict of Interests Guide and comply with it. Furthermore, the concerned entities are
obliged to require that the applicant/final recipient signs a Declaration on Honour stating
that he or she is not aware of any conflicts of interests towards the implementing body and
disclosing relevant data on its beneficial owners (chapter 5). The guide then sets out in
chapter 5.1 the procedure for the verification of the Declarations on Honour. For this
purpose, it also establishes a checklist of questions in chapter 5.2. The checks should be
performed ex-ante, before the legal act is issued or the contract is concluded, as well as
after completion of the project. Where appropriate, checks may be performed on a sample
basis (chapter 5.1). In the framework of calls and competitions, the component owners
shall ensure that the applicant/final recipient is informed in advance regarding the
application of the conflict of interests’ rules, and the consequences for detected conflicts of
interests (chapter 5).
Concerning the management of conflict of interests, the Conflict of Interests Guide
distinguishes between the procedures to be applied within the implementing structure and
vis-à-vis the applicant/final recipient. As regards the internal procedures, the guide recalls
the obligations under Article 61(2) of the Financial Regulation in chapter 4 (reporting of the
case to the hierarchical superior for its assessment and adoption of appropriate measures).
It further determines the actions to be taken in case of detection of a conflict of interests in
chapter 4.4. In particular, the guide sets out that the person concerned shall be excluded
from the implementation of the RRP, and that the responsibilities of the person on the side
of the implementing body affected by a conflict of interests shall be adjusted to eliminate
the conflict of interests. As regards conflict of interests vis-à-vis applicants/final recipients,
the guide states in chapter 5 that in case of an identified conflict of interests, no legal act
giving the possibility of receiving aid shall be issued, or that the relevant acts shall be
repealed.
73

The RED FLAGS Guide summarises these procedures in chapter 5.2.5 and refers generally to
the Conflict of Interests Guide. In addition, the RED FLAGS Guide provides procedures for
the avoidance of the conflict of interests in the public procurement and granting process
(Section 4(b) and(c) of the national law on conflict of interests and Section 44 of the
national law on public procurement) in chapters 5.2.1 to 5.2.4.


The guidance shall reflect the full breadth of necessary measures to protect the EU
budget against fraud and irregularities.
In addition to the Conflict of Interests Guide which deals solely with conflict of interests,
the RED FLAGS Guide reflects the full breadth of measures to protect the financial interests
of the Union. This guide addresses the procedures to prevent, detect and correct other
irregularities such as risks of double-funding and complementarity of funding (chapter 5.1),
as well as fraud and corruption (chapter 5.3). More generally, the guide sets out the
principles and procedures for detecting warning signals (red flags) which shall serve as a
guide for implementing bodies to take measures aimed at the protection of the budget of
the Union (see chapters 2.1 and 2.2). It further sets out the basic principles for the inclusion
of projects to be financed under the RRP and thus for its correct implementation (for
instance, chapter 3 and chapter 7). The RED FLAGS Guide further includes a checklist, which
shall help the component owners to implement the relevant procedures, as well as a list of
the most common indicators for the detection of warning signals (red flags).



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 Conflict of Interests Guide and the relevant parts of the RED FLAGS Guide are based on
the Commission’s Guidance. In general, in its introduction the Conflict of Interests Guide
indicates that Article 61 of the Financial Regulation and the Commission Notice – Guidance
on the avoidance and management of conflict of interests under the Financial Regulation
are the basic documents on which the Guide is based.
Concerning the definition of conflict of interests, chapter 4 of the Conflict of Interests
Guide recalls the definition set out in Article 61(3) of the Financial Regulation and covers
also perceived conflict of interests. The guide gives further explanations on the definition of
conflicts of interest for family and emotional reasons (chapter 4.1) and concerning other
direct or indirect interests (chapter 4.2), which are based on section 3.2.1 of the
Commission guidance, including relevant examples.
As regards the scope of the Conflict of Interests Guide, it applies to the coordinating body,
implementing bodies and other entities with delegated tasks, bodies at the Ministry of
Finance (audit body and AFCOS contact point), members of the Steering Committee,
recipients which further re-distribute the RRF funds and other entities subject to Article 61
of the Financial Regulation. Furthermore, chapter 4.3 of the guide specifies which are the
“interested persons” of the concerned entities in line with section 3.2.2 of the European
Commission guidance, while at the same time taking the specificities of the RRP into
account. These are national authorities at all levels, which are involved in the budget
implementation, including also preparatory acts, and therefore responsible for the
decision-making process related hereto. Furthermore, the guide recalls also relevant
examples of the Commission guidance.
Concerning the implementing bodies’ obligations, chapters 4 and 4.4 reflect, among others,
the obligations stipulated in Article 61(2) of the Financial Regulation and further described
in section 3.2.4 of the Commission guidance. These concern, inter alia, the reporting
obligations to the hierarchical superior in case of arising of a conflict of interests, as well as
its management, as described above under point 1.
74

Additionally, several measures to avoid and manage conflict of interests described under
point 1 are based on the measures recommended by the Commission guidance in Section 6,
such as, for instance, the use of Code of Ethics, ensuring the separation of functions, as well
as checking information in relevant databases and risk scoring tools such as Arachne.
Finally, chapter 6 of the Conflict of Interests Guide addresses the relationship between
Article 61 of the Financial Regulation and the public procurement rules. The guide recalls
the national law on public procurement to address conflicts of interests in the procurement
process. It confirms that Article 61 of the Financial Regulation 2018 applies to all persons
and entities under the jurisdiction of the Member States involved in the implementation of
the EU budget, including where a private entity (under a contract) is entrusted with the
performance of any activity related to the management, monitoring, control or audit of
contracts. In addition, it also states that public procurement procedures are subject to
similar national rules that generally prohibit conflicts of interest. Implementing bodies or
other persons bound by these guidelines shall ensure compliance with the obligations
under Article 61 of the Financial Regulation. The Guide also informs that conflicts of
interest at the level of the contracting authority (i.e. the applicant/final recipient) and the
supplier are also regulated in Section 44 of the Act. Contracting authorities are required to
take appropriate measures to effectively prevent, detect and remedy conflicts of interest
arising or likely to arise in the course of public procurement procedures.


The guidance shall harmonise the measures to be taken by the entities implementing
reforms and investments under the RRP (ministries, other public bodies, state funds,
etc.)
The Conflict of Interests Guide is binding for the coordinating body, implementing bodies
and other entities with delegated tasks, bodies at the Ministry of Finance (audit body and
AFCOS contact point), members of the Steering Committee, recipients who further redistribute the RRF funds and other entities subject to Article 61 of the Financial Regulation
(see the Introduction of the Conflict of Interests Guide). The RED FLAGS Guide is binding for
the coordinating body, implementing bodies and other entities with delegated tasks,
bodies at the Ministry of Finance (audit body and AFCOS contact point) and members of
the Steering Committee (see the Introduction of the RED FLAGS Guide). This ensures the
harmonisation of the measures to be taken by the relevant actors for the prevention,
detection and correction of conflict of interests in line with the requirements of the Council
Implementing Decision.
Commission Preliminary Assessment: [Satisfactorily fulfilled]

Number: 214

Related Measure: CZ-C[C4.3]-R[R5]: Control and audit

Name of the Milestone: Procedures to avoid conflict of interests in line with Article 61 of the
Financial Regulation
Qualitative Indicator: Audit report with the unqualified audit opinion on the
effectiveness of the RRF internal control system to prevent, detect and Time: Q2 2022
correct situations of conflict of interests
Context:
This reform aims to improve the control and audit environment of the Czech Republic, in order to
efficiently protect the financial interests of the Union during the implementation of the RRF. The
objective of this milestone is to improve the national control system to prevent, detect and
correct situations of the conflict of interests.
Milestone #214 requires an unqualified audit opinion of the audit body on the effectiveness of the
75

internal control system to avoid conflict of interests at the level of the RRP.
Milestone #214 is the eighth and last milestone of the implementation of the reform. It is directly
linked to milestone #209 on measures preventing conflict of interests (due in Q2 2022), since both
milestones were covered by the same audit by the Czech audit body. Other milestones of this
reform are milestone #207 on the system to collect, store and make available data in relation to
all final recipients including all beneficial owners (due in Q2 2022), milestone #208 on the action
plan on the prevention of the conflict of interests (due in Q4 2021), milestone #210 on the
repository system (due in Q2 2022), milestone #211 on audit strategy (due in Q4 2021), milestone
#212 on the review of the definition of beneficial ownership (due in Q4 2021), and milestone #213
on the guidance on the avoidance and management of conflict of interests (due in Q2 2022).
The reform has a final expected date for implementation on 30 June 2022.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled, with appropriate links to the underlying evidence;
Final audit report from the system audit No. NPO/2022/S/002 of 13 October 2022;

The authorities also provided:
iii.
Final audit report from the system audit No. NPO/2022/S/001 of 11 October 2022;
iv.
Final audit report from the system audit No. NPO/2022/S/004 of 19 October 2022;
v.
Final audit report from the system audit No. NPO/2022/S/005 of 11 October 2022.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the milestone.
In particular:


The RRF internal control system to avoid conflict of interests shall be effective and shall
ensure, in particular that: (a) collection, storage and processing data in relation to all final
recipients, including all beneficial owners as established by Article 3, point 6 of the
Directive (EU) 2015/849; (b) internal control system to prevent, detect and correct
conflict of interests situations is in accordance with Article 61 of the Financial Regulation;
and (c) national control procedures to avoid conflict of interests situations for all
beneficial owners are effective.
The audit body started the system audit No. NPO/2022/S/002 on 29 March 2022. The audit
was carried out at the level of the coordinating body (Ministry of Industry and Trade). The
scope of the system audit included the assessment of the internal control system of the
RRF, in particular that the system (i) collects, stores and processes data in relation to all
final recipients, including all beneficial owners as established by Article 3, point 6 of the
Directive (EU) 2015/849; (ii) prevents, detects and corrects conflict of interests situations in
accordance with Article 61 of the Financial Regulation; and (iii) ensures that the national
control procedures to avoid conflict of interests situations for all beneficial owners are
effective. Draft audit report was submitted to the auditee on 15 September 2022.
Following the contradictory procedure, the final audit report was issued on 13 October
2022.

76



The final audit report from the audit body with unqualified audit opinion on the
effectiveness of the RRF internal control system is submitted.
As regards to the audit on the effectiveness of the internal control system to avoid conflict
of interests at the level of the RRP, the audit body provided unqualified (positive) audit
opinion. The audit body formulated the following observations related to the internal
control system of the RRP in its subsequent audit reports:
o Incomplete data in the umbrella repository system (AIS system) as regards data
required by Article 22(2)(d) of the RRF Regulation (identified under the audit No.
NPO/2022/S/001);
o Lack of control mechanism for the manual recording of the data on beneficial owners in
the AIS system (identified under the audit No. NPO/2022/S/001);
o Design of the AIS system does not provide the possibility to record multiple layers of
recipients/final recipients (identified under the audit No. NPO/2022/S/001);
o Measures to prevent, detect and correct conflict of interests, fraud, corruption are not
implemented and carried out for the target No. 172 (identified under the audit No.
NPO/2022/S/004); and
o Controls of the conflict of interests and double funding for the target No. 135 are only
formal, based on submitted self-declarations (identified under the audit No.
NPO/2022/S/005).
The action plan with the actions to be taken based on the audit recommendations is
evidenced in the Annex No. 4 of the final audit report No. NPO/2022/S/002. The actions
were addressed by the Czech authorities as evidenced under milestones # 208 and # 210.

Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 223

Related Measure: CZ-C[C5.1]-I[I1]: Public Research & Development support for
priority areas of medical sciences and related social sciences

Name of the Milestone: Launch of a new Research & Development support program
Qualitative Indicator: Approval of the program by the Czech Government
Time: Q4 2021
and launch of a tender
Context:
The objective of this reform is to establish and support at least four research consortia 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. 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 aim to form national research authorities which will bring 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.
Milestone #223 concerns the launching of a new programme to support Research & Development
in priority medical sciences and related social sciences, in accordance with the national rules
established in the Act No. 130/2002 on support for research, experimental development and
innovation from public funds and publishing an open call for public tender in Research &
Development & Innovation (hereinafter referred to as “R&D&I”) for the newly established
programme.
77

Milestone #223 is the first step of the implementation of the investment and it will be followed by
target #224 which relates to the award of at least four Research & Development consortia in
priority medical sciences and related social sciences. Target #224 will be followed by target #225
which concerns the validation of at least four national Research & Development consortia
together with their integrations on the Czech Research & Development system as national
research authorities. The investment has a final expected date for implementation on 31
December 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
Summary document duly justifying how the milestones (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Annex 1 -Programme EXCELES (LX) containing full text of 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 socioeconomic impact of diseases, in accordance with the Act No. 130/2002 on support for
research, experimental development and innovation from public funds;
iii.
Annex 2 - The ex-ante analysis of the programme EXCELES’ draft provided by the
Technology Centre of the Czech Academy of Sciences;
iv.
Annex 3 - Absorption capacity analysis of the programme EXCELES’ draft provided by the
Technology Centre of the Czech Academy of Science;
v.
Annex 4 -Summary of consultations with the Czech Research, Development and Innovation
Council (hereinafter referred to as “RDIC”) and its Health Research Working Group and the
Commission for the evaluation of research organisations;
vi.
Annex 5 - Official statement of the RDIC to the full text of programme EXCELES;
vii.
Annex 6 - The result list of the official external comment procedures;
viii.
Annex 7 - Czech Government resolution No. 796, dated on 13 September 2021 (in Czech)
approving the programme EXCELES;
ix.
Annex 8 -Open call for project proposals in R&D&I public tender published in the official
Trade Bulletin (in Czech). Advertisement of the public tender in R&D&I launched according
to the Act No. 130/2002 of the Czech Republic on 8 December 2021;
x.
Annex 9 - Publication of the programme EXCELES in the national R&D&I information system
(IS VaVaI). Hyperlink on the programme website in the IS VaVaI:
https://www.isvavai.cz/cea?s=programy&ss=detail&n=0&h=LX;
xi.
Annex 10 - Tender Documentation. Full text of tender documentation of programme
EXCELES.
The
official
MEYS´
website
for
the
programme
EXCELES:
https://www.msmt.cz/research-and-development-1/programme-exceles-implementationtool-for-component-5-1-of.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


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 socioeconomic impact of diseases, in accordance with the national rules established in the Act
78

No. 130/2002 on support for research, experimental development and innovation from
public funds.
As set out in the Council Implementing Decision, a new programme EXCELES was launched
on 13 September 2021 by adoption of the Czech Government resolution No. 796 and
published on the website of the Ministry of Education: https://www.msmt.cz/vyzkum-avyvoj-2/program-exceles-komponenta-5-1-narodniho-planu-obnovy.
The
programme
promotes excellent research in priority areas of public interest in the health sector and
follows the national rules established in the Act No. 130/2002 on support for research,
experimental development and innovation from public funds which is stated in part I of the
Government resolution. Compliance with the Act No. 130/2002 is further ensured in the
description of the EXCELES programme (Annex 1) through multiple references in the
provisions governing the application and selection procedures of the programme such as
the legislative framework of the programme (part 2), aid intensity in the programme and its
justification (part 6.3), method of implementation of the programme and its projects (part
7.1), specification of the subject of support (part 8.1), eligibility requirements for applicants
(part 9) and definition of recognised costs (part 10.1).
For the purposes of registration in the publicly available Research & Development National
Information System (hereinafter referred to as “IS VaVaI"), the EXCELES programme has
been assigned the code "LX". EXCELES aims to increase the capacity of research capacities
in selected priority areas to respond to current trends and needs following the occurrence
of major diseases and the social and economic impact of systemic health risks associated
with them.
The selected R&D&I priority areas are: i) infectious diseases research, ii) cancer research,
ii) neurosciences, iv) metabolic disorders or cardiovascular diseases research and v)
research on the socio-economic impact of diseases – presented in the part ‘Objectives of
the programme and basic intervention logic of the programme’ of the Czech Government
resolution No. 796 establishing the EXCELES programme.


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.
The government resolution was adopted following public consultations with all
stakeholders, including the representatives of the academic and application communities
and universities in the R&D&I Council. The following evidence was submitted which
confirms that the public consultations took place, firstly internally, within the bodies
involved in the research and development policy: Annex 4 – Summary of consultations with
the Czech Research, Development and Innovation Council (RDIC) and its Health Research
Working Group and the Commission for the evaluation of research organisations; Annex 5 –
Official statement of the RDIC to the full text of programme EXCELES, adopted on 25 June
2021 and later, as the inter-ministerial consultation procedure: Annex 6 - The result list of
the official external comment procedure, that included all relevant stakeholders such as
Czech Ministries, the Research, Development and Innovation Council, the Czech Academy
of Sciences, the Government Commissioner for Human Rights and the Confederation of
Industry of the Czech Republic.



Verification of absorption capacity.
The absorption capacity was verified before adoption of the programme by the Technology
Centre of the Czech Academy of Sciences (Annex 3 - Assessment of health R&D capacities
79

and focus based on analysis of participation in national R&D programmes and Horizon
2020). This study on the absorption capacity was completed on 30 November 2020. It was
drawn up as one of the supporting documents for the preparation of the programme to
support excellent research in the health sector and related fields of the Ministry of
Education, Youth and Sports of the Czech Republic. As indicated in part 4 of the Assessment
(Summary of the most important findings), the analysis has shown that there are capacities
in the Czech Republic for health (or biomedical) R & D in both the public and private
sectors. The importance of institutions varies between biomedical R & D disciplines. The
offices of the Czech Academy of Science have an important role to play in particular in
biochemistry and molecular biology, as well as in immunology and neurology. Schools and
their faculty hospitals have a strong position in particular in R & D focused on oncology and
endocrinology. In the field of cardiology, there is an important role for the state-funded
institutions sector.
In addition, the draft programme was evaluated ex-ante by the same institution on 21
March 2021 (Annex 2 - Ex-ante evaluation of the programme to promote excellent research
in priority areas of public interest in health (EXCELES)).


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.
The tender documentation of the program EXCELES was approved by the Ministry of
Education, Youth and Sport on 1 December 2021 (Annex 10, no MSMT-30175/2021-1). On
8 December 2021 an open call for project proposals in R&D&I public tender came out and
was published in the official Trade Bulletin (Annex 8, no MSMT-30175/2021-1), on the
MEYS´ website (Annex 10, no MSMT-30175/2021-1): https://www.msmt.cz/vyzkum-avyvoj-2/zadavaci-dokumentace-programu-exceles and in the official website of the national
R&D&I information system - IS VaVaI (Annex 9, np LX) on the website:
https://www.isvavai.cz/cea?s=programy&ss=detail&n=0&h=LX.
It follows the national rules, especially established in the Act No 130/2002 on support for
research, experimental development and innovation from public funds.
The national rules, especially established in the Act No 130/2002 are applicable to the
launched call – Chapters: Introduction and Legal Framework) which is confirmed in
numerous chapters of the programme documentation including on page 5 and 6 of the
tender documentation (Annex 10).



Furthermore, in line with the description of the measure, the consortia will 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.
This is confirmed in Chapter 3 ‘Focus and goal of the programme’ of the tender
documentation, which underlines that the programme aims to significantly increase the
quality and internationalisation of research carried out in the Czech Republic in chosen
priority areas of research, development and innovation and to achieve European or world
excellence, so that the Czech Republic becomes an equal and respected player in the
European Research Area that participates in the creation of trends of excellent European
research. In order to achieve that, in Chapter 4 of the tender documentation (Subject of
support) sets clear requirements described in description of the investment. The EXCELES
programme supports a consortium project focusing on the R&D&I priority area and carried
out by a multidisciplinary, highly qualified team with a high degree of internationalisation
using the most modern research infrastructures and cutting-edge scientific methodology
80

available, which will meet the objectives of the programme.”
The requirements that had to be fulfilled by the consortia and the objectives to be achieved
were further specified in Chapters 5 (Project proposal) and Chapter 6 (Applicants and
proof of eligibility) of the tender documentation. For example, under part 5.1 - Content of
the project proposal, letter (i) point 2, it is required that each applicant presents how and
to what extent the consortium will cooperate with other entities (research organizations,
enterprises, public organizations from the application sphere) outside the project
consortium from different regions of the Czech Republic and abroad, and with public
authorities. Additionally, under section 6.2, the tender documentation requires that
applicants for support in the programme EXCELES may be legal entities that are research
organisations or enterprises engaged in research, development or innovation and another
participant in a project under this programme may be an organisational unit of the State or
an organisational unit of the Ministry engaged in research and development or a legal
entity that is a research organisation or an enterprise engaged in research, development or
innovation. This is in line with the requirements of the investment which state that the
consortia are expected to be established between relevant universities, public research
institutions and other public and private entities, ensuring the necessary knowledge
transfer.
The requirement of the necessary knowledge transfer is further elaborated in part 6.3.2
Professional competence – each applicant has to also demonstrate its professional
competence for the entire project by the ability to staff the project with sufficiently
qualified professional capacity and by indicating the staff who actively participated in the
international projects or carried out successful R&D practice or has successfully
participated in the knowledge transfer or commercialisation of R&D&I results in a foreign
research organisation as an R&D worker or in a major innovative foreign enterprise (points
11 a-d).
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 224

Related Measure: CZ-C[C5.1]-I[I1]: Public Research & Development support for
priority areas of medical sciences and related social sciences

Name of the Target: Award of public contracts to at least four Research & Development consortia
Quantitative Indicator: Number
Baseline: 0
Target: 4
Time: Q2 2022
of contracts
Context:
The objective of this investment is to establish and support at least four research consortia 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. The
consortia will be established between relevant universities, public research institutions and other
public and private entities, ensuring the necessary knowledge transfer. These consortia aim to
form national research authorities which will bring about a qualitative change to the chosen
Research and Development priority areas with impacts both in terms of scientific production and
on the functioning of Czechia’s public administration in health crisis situations.
Target #224 concerns the award of public contracts to at least four Research & Development
consortia in priority medical sciences and social sciences.
Target #224 is the second step of this investment. Target #224 will be followed by target #225
which relates to the validation of at least four consortia in the areas of research of: infectious
81

diseases, cancer, neurosciences, metabolic disorders or cardiovascular diseases and their socioeconomic impact. Target #225 also aims to integrate the consortia in the Czech Research &
Development system as national research authorities. The investment has a final expected date
for implementation on 31 December 2025.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
ii.
Annex 1 - List of consortia which have been awarded public contracts for Research &
Development projects, incl. the amount of award to be disbursed, accompanied by a brief
description of each consortium;
iii.
Annex 2 - Notification of the contract award to the beneficiaries (Document No. MSMT2789/2022-2).
The authorities also provided:
iv.
Annex 3 - Public contracts on special-purpose support - The National Institute for Research
on the Socioeconomic Impact of Diseases and Systemic Risks;
v.
Annex 4 - Public contract on special-purpose support - The National Institute for Cancer
Research;
vi.
Annex 5 - Public contract on special-purpose support - The National Institute of Virology
and Bacteriology;
vii.
Annex 6 - Public contract on special-purpose support - The National Institute for Research
on Cardiovascular Diseases Related to Metabolic Diseases of Diabetes and Obesity;
viii.
Annex 7 - Public contract on special-purpose support - The National Institute for
Neurological Research.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of T#224 provided in the Council Implementing Decision Annex as follows:


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 Ministry of Education notified the award of public contracts in May 2022
to five Research & Development Consortia (see Annex 2, public contract award
notification). The consortia cover the fields specified in the Council Implementing
Decision Annex as follows:
o

The National Institute of Virology and Bacteriology (NIVB) (project No.
LX22NPO5103) has been notified the award of a public contract for the priority
area ‘infectious diseases research’ on 17 May 2022 (see Annex 2, p. 3, Annex 5 –
Annex 1 of the contract, Section a) - Occupied Research &Development
&Innovation priority area, p. 34).

o

The National Institute for Cancer Research (NICR) (project No. LX22NPO5102)
has been notified the award of a public contract for the research field area
‘cancer research’ on 17 May 2022 (see Annex 2 p. 2, Annex 1, pp. 3 - 4, Annex 4
– Annex 1 of the contract, Section a) 1) - selected R&D&I priority area, p. 33).

82



o

The National Institute for Neurological Research (NINR) (project No.
LX22NPO5107) has been notified the award of a public contract for the priority
area ‘neurosciences’ on 17 May 2022 (Annex 2, p. 7, Annex 7 – Annex 1 of the
contract, Section a) 1) - selected Research & Development & Innovation priority
area, p. 33).

o

The National Institute for Research on Cardiovascular Diseases Related to
Metabolic Diseases of Diabetes and Obesity (project No. LX22NPO5104) has
been notified the award of a public contract for the priority area ‘metabolic
disorders or cardiovascular diseases research’ on 17 May 2022 (Annex 2, p. 4,
Annex 6 – Annex 1 of the contract, Section a) 1) - selected Research &
Development & Innovation priority area, p. 34).

o

The National Institute for Research on the Socioeconomic Impact of Diseases
and Systemic Risks (project No. LX22NPO5101) had been notified the award of a
public contract in the priority area ‘research on the socio-economic impact of
diseases’ on 17 May 2022 (see Annex 2, p. 1, Annex 3 – Annex 1 of the contract,
Section a) 1) - selected Research & Development & Innovation priority area, p.
32).

The total budget allocated for this purpose shall amount to at least EUR 196 371 000.
The overall budget disbursed for the total of the five research consortia amounts to CZK 4
986 559 000, as evidenced by Annex 1 (p. 1), and further confirmed by the notifications of
the contract award (Annex 2) and Article 6 of the public contracts (Annexes 3-7), which set
out the individual budget allocated to each project. This total amount corresponds to
EUR 195 843 178 when applying the exchange rate agreed in the Operational
Arrangements of 1 EUR = 25,462 CZK. The Council Implementing Decision required that the
total budget allocated for this purpose amounts to at least EUR 196 371 000. Whilst this
constitutes a minimal numerical deviation of 0.27% from the requirement of the Council
Implementing Decision, the overall objective of this target is considered met
notwithstanding this minor deviation. Given the minor amount that arises due to the
exchange rate differences it is considered that the overall objective of the investment is
met. On this basis, it is considered that this constitutive element of the milestone is
satisfactorily fulfilled.

The evidence provided by the Czech authorities addresses the description of the reform in the
Council Implementing Decision Annex as follows:
 The investment 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.
In line with the Council Implementing Decision requirement that the investment shall
enhance scientific support to the public administration, according to Article 10(1)l) of each
contract, the beneficiaries are required to ensure the production of at least two results in
the context of expert and information support for “evidence-based” decision-making by
public authorities (see Article 10(1)l) of Annexes 3-7). Furthermore, the beneficiaries shall
ensure the cooperation of the beneficiary and other participants in the Research &
Development & Innovation project for a period of at least three years after the completion
of the project solution in order to provide expert and information support for “evidencebased” decision-making by public authorities (see Article 10(2)b) of each contract, Annexes
3-7). The project proposals annexed to the contracts further specify how each respective
research consortium intends to support the knowledge transfer to public authorities (see
83

Section I in the project description “Cooperation and application potential”, as well as the
f2e) tables of Annexes 3-7.


The consortia are expected to be established between relevant universities, public
research institutions and other public and private entities, ensuring the necessary
knowledge transfer.
The consortia are established between relevant actors as required by the Council
Implementing Decision Annex (see Article 6 of each contract and, where applicable, section
B.1. of the annexed proposal on the composition of the consortium):
o The National Institute of Virology and Bacteriology (NIVB) (project No.
LX22NPO5103) is composed by four universities and four public research institutes
(Annex 5, Article 6 of the contract, p. 9, Annex 1 to the contract, Section B.1., pp.
42-45).
o The National Institute for Cancer Research (NICR) (project No. LX22NPO5102) is
composed of three universities and eight public research institutes (see Annex 4,
Article 6 of the contract, p. 9).
o The National Institute for Neurological Research (NINR) (project No. LX22NPO5107)
is composed of six universities, four public research institutes, and one university
hospital (Annex 7, Article 6 of the contract, p. 9).
o The National Institute for Research on Cardiovascular Diseases Related to
Metabolic Diseases of Diabetes and Obesity (project No. LX22NPO5104) is
composed of two universities and three public research institutes (Annex 6, Article
6 of the contract, page 8, section B.1.1 of the Annex to the contract, page 46).
o The National Institute for Research on the Socioeconomic Impact of Diseases and
Systemic Risks (project No. LX22NPO5101) is composed of two universities and
seven public research institutes, (Annex 3, Article 6 of the contract, on page 9).
o The necessary knowledge transfer in line with the requirements of the Council
Implementing Decision is ensured through the commitment to deliver concrete
research outputs, as well as the cooperation with other subjects outside the
consortium:
 Each consortium committed to achieve concrete results and outputs (see
Article 10(1) of each contract, Section H, and tables f2a) and f2b), Annex 1
to each of the contracts).
 Each consortium further committed to achieve the project objective of
strengthening inter-institutional, interdisciplinary, and inter-regional
cooperation and the quality of national research by further increasing
international cooperation (see Article 10(1) and Article 1(4)b) of each
contract, and table f2a) point b), Annex 1 to each of the contracts).
 All consortia outlined in their proposals that they will cooperate with other
research organisations, the private sector, and public authorities (see
Section I. of each proposal on cooperation and application potential, Annex
1 to the contracts, and table f2e).
 Particularly with regards to the knowledge transfer with the private sector,
all consortia will either build up on existing cooperation with private
entities of their members or envisage the establishment of such
cooperation (see section I of each contract, and table f2e)).



The 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.
84

The contracts signed with the beneficiaries set out several obligations ensuring compliance
with the requirements of the Council Implementing Decision:
o

o

o

o

Article 10(1) n) sets out the obligation for the beneficiary to ensure the
establishment of a national scientific authority in the selected Research &
Development & Innovation priority areas, whose structure and activities are
regulated in writing (such as a consortium contract) for a period of at least three
years after the completion of the project (see the respective Article of each
contract, Annexes 3 to7).
According to Article 10(1), the consortia are required to comply with the project
objectives which were set out in the tender documentation. These include, in
particular, achieving and maintaining a European level of excellence in research,
and strengthening inter-institutional, interdisciplinary and inter-regional
cooperation and the quality of national research by further increasing international
cooperation (see the project objectives and sub-objectives in Article 1(3) and (4) of
each contract, the detailed explanations in Section C of each proposal annexed to
the contracts, along with the steps aimed at achieving the goals set out in Annex 1,
table f2a)).
To this end, the consortia are required to meet certain target values (see Article
10(1) of the contract, and Annex 1, in particular table f2b) on ‘results and outputs’,
which will be monitored on an annual basis (see Article 10(1) of the contract and
Section 11 of the tender documentation).
The project objectives shall be achieved by 15 December 2025 (see Article 4(1) and
(4) a) of each contract, Annexes 3-7). Beyond the duration of the project (for at
least another three years), pursuant to Article 10(2) of each contract, the consortia
shall cooperate in order to maintain the level of scientific achievements and interinstitutional and inter-regional cooperation in the Research & Development &
Innovation priority area (see letter a)), and to generate internationally competitive
Research & Development & Innovation results (see letter c)). As regards to the
cooperation with public authorities, as mentioned above, Article 10(2) b) ensures
that consortia shall cooperate in order to provide expert and information support
for “evidence-based” decision-making by public authorities also beyond the
duration of the project. These commitments are therefore in line with the
description requirement that the investment shall have a qualitative impact both in
terms of scientific production and on the functioning of Czechia’s public
administration in health crisis situations.

Commission Preliminary Assessment: Satisfactorily fulfilled

Related Measure: CZ-C[C5.2]-R[R1]: Creation of National
Coordination Group for Support for Industrial Research
Name of the Milestone: Establishment of National Coordination Group for Support for Industrial
Research
Qualitative Indicator: Establishment of National Coordination Group
Time: Q4 2021
for Support for Industrial Research
Context:
Number: 226

The aim of this reform is to establish a National Coordination Group for the Support for Industrial
Research, which shall harmonise the industrial Research & Development support policies between
policy makers, existing Research, Development and Innovation (hereinafter referred to as
“R&D&I”) support providers and the Government Council for R&D&I.
85

Milestone #226 concerns the establishment of a National Coordination Group for the Support for
Industrial Research. The coordination group shall harmonize the industrial Research &
Development support policies between policy makers, existing R&D&I support providers and the
Government Council for R&D&I, the conditions for granting support, and concentrate all relevant
programmes under the remit of the Technology Agency of the Czech Republic.
Milestone #226 is the only milestone of this reform and calls for the establishment and entry into
operation of a National Coordination Group for Support for Industrial Research. The reform has a
final expected date for implementation on 31 December 2021.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.
iii.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Annex 1 - Copy of the resolution of the Government of the Czech Republic of 27 April 2022
No. 333 establishing the National Coordination Group for Support for Industrial Research;
Annex 2 - Copy of the minutes of the first meeting of 7 June 2022 of the National
Coordination Group for Support for Industrial Research proving the start of operation of
the group.

The authorities also provided:
iv.
v.
vi.

Annex 1b - A PDF version of the webpage where the Resolution was uploaded;
Annex 2 and 3b - A PDF version of the webpage of the Ministry of Industry and Trade
Annex 3 - The Statute of the National Coordination Group for Support for Industrial
Research;
vii.
Annex 4 - Rules of procedure of the National Coordination Group for Support for Industrial
Research;
viii.
Annex 5 - Letter of appointment of 1 June 2022 for a permanent guest of the National
Coordination Group for Support for Industrial Research;
i.
Annex 6 - Statute and rules of procedure of the Coordination Group of SIGMA programme;
ii.
Annex 7 - Copy of the minutes of the first meeting of Coordination Group of SIGMA
programme of 5 September 2022;
iii.
Annex 8 - Description of SIGMA programme.
Analysis:
The justification and substantiating evidence provided by the Czech authorities cover all
constitutive elements of the milestone.
In particular:


Establishment of a National Coordination Group for Support for Industrial Research
The National Coordination Group for Support for Industrial Research was established by
point I. 1 of RESOLUTION of the GOVERNMENT OF THE CZECH REPUBLIC of 27 April 2022
No. 333 on the establishment of a National Coordination Group for the Support of
Industrial Research.



Putting into operation of the National Coordination Group for Support for Industrial
Research
The Czech authorities provided evidence that the National Coordination Group entered
into operation. According to the minutes, the National Coordination Group held its first
meeting on 7 June 2022 (minutes of the National Coordination Group meeting of June
86

2022, Annex 2, published on the website of the Ministry of Industry and Trade, see Annex
2-3-b). As pages 1 and 2 of the minutes show, during its first meeting, the National
Coordination Group adopted its Rules of Procedure and discussed the topics of the adopted
agenda, as well as its future activities. The next meeting of the National Coordination
Group is expected to be held at the end of 2022 (see page 2 of the minutes).


Harmonisation of the industrial R&D support policies between policy makers, existing RDI
support providers and the Government Council for RDI Members
According to its mandate as set out in Article II.1 a) of the Statute (Annex 3), which was
approved by point I.2 of the Government Resolution (Annex 1), the National Coordination
Group shall contribute to the harmonisation of the industrial research support policies
applied by R&D&I aid providers by coordinating the approach to support industrial research
in line with the requirement of the Council Implementing Decision Annex. This
responsibility of the National Coordination Group was also stressed by its President during
its first meeting, who also recalled that complementing the management system of the
national R&D&I environment by establishing the National Coordination Group as the
coordinating body for policy makers was an important reform for the Commission in the
context of the RRP (see page 1 of the meeting minutes). On its website, the Ministry of
Industry and Trade refers to the newly established National Coordination Group as the
coordinating body of policymakers and providers of support for R&D&I (see Annex 2-3-b).
As provided by Article II. Pont 3) of the Statute (Annex 3), the National Coordination Group
exercises its competences – including the coordination of the approach to research
support, through a) the conduct of the National Coordination Group, b) the issuing of
opinions on issues falling within its competences, and c) recommendations on the
promotion of industrial research to the Czech government or individual providers.
The harmonisation of industrial research between the relevant actors mentioned in the
Council Implementing Decision is ensured by the composition of the National Coordination
Group as provided by Article III point 1), III point 5), and III point 8) of the Statute while
executing its competences in line with the Group’s Statute mentioned above. According to
Article III, point 1) of the Statute, the National Coordination Group is composed by its
members and permanent guests. According to Article III point 5), members of the National
Coordination Group are representatives of policy makers and relevant providers of
industrial research support (Article III, point 5. a)), and the national RIS3 manager (article
III, point 5) b)). According to Article III, point 8), representatives of the R&D&I Council may
be appointed as permanent guests. As evidenced by the letter of the Deputy Minister for
Digitalization and Innovation provided by the Czech authorities, a representative of the
R&D&I Council was appointed as a permanent guest on 1 June 2022 (Annex 5). As a
justification, the Czech authorities explained in the summary document that this role was
requested by the R&D&I Council as a reason of caution, to avoid possible conflict of
interests of its members. The fact that permanent guests do not have voting rights
according to Article IV. point 3) of the Rules of Procedure (Annex 4), therefore addresses
this concern. At the same time, it ensures that the R&D&I Council representative will be
entitled to take part in all the meetings and discussions, thereby contributing to the
harmonisation of R&D&I policies in line with the requirements of the Council Implementing
Decision Annex.



Harmonisation of the conditions for granting support
In line with the requirements of the Council Implementing Decision Annex, Article II point
1) b) of the Statute provides that the National Coordination Group shall approximate the
conditions for granting aid (see Annex 3, Article II point 1) b) of the Statute). Moreover, the
87

meeting minutes prove that at the first meeting of the National Coordination Group, its
Chair suggested that the proposals for invitation for tenders and similar activities under the
RRP will be shared with the members of the National Coordination Group for their
comments and indicated that the item “Coordination of call announcements in R&D&I” will
be regularly included in the agenda for discussion (page 2 of the minutes of the meeting).




Concentration of all relevant programmes under the remit of the Technology Agency of
the Czech Republic
The Council Implementing Decision required that the National Coordination Group for
Support for Industrial Research concentrates all relevant programmes under the
Technology Agency. The Czech authorities created the SIGMA Programme for the support
of Applied Research and Innovation by Government Resolution No. 414 of 18 May 2022, to
concentrate relevant programmes under the remit of the Technology Agency (see the
website of the Technology Agency, https://www.tacr.cz./program/program-sigma and
Resolution No. 414 available at https://odoc.cz/portal/zvlady/usneseni/2022/414). As
evidenced by the minutes, the National Coordination Group should then discuss the SIGMA
programme. Whilst this constitutes a minimal formal deviation from the requirement of
the Council Implementing Decision, since it was the Czech authorities instead of the
National coordination Group assigning the concentration of programmes under the remit
of the Technology Agency, the deviation is acceptable because the same result has been
achieved and does not affect the progress towards the achievement of the reform that the
milestone represents. As of this, this minimal deviation does not affect the progress
towards achieving the reform that the milestone represents. On this basis, it is considered
that this constitutive element of the milestone is satisfactorily fulfilled.
Ensuring the establishment of a structure for supporting programmes compatible with
the smart specialization strategy

According to its mandate under Article II. 1c), the National Coordination Group contributes
to the unification of industrial research support policies applied by R&D&I support
providers by stabilising the structure of the national Research and Innovation Smart
Specialisation Strategy (RIS3) and meeting its objectives.
Commission Preliminary Assessment: Satisfactorily fulfilled

Number: 236

Related Measure: CZ-C[C6.2]-R[R1]: National Oncological Programme

Name of the Milestone: National Oncological Programme of the Czech Republic 2022-2030
Qualitative Indicator: Approval of the National Oncological Programme
Time: Q4 2021
2022-2030 by the government
Context:
The objective of this reform is to increase the resilience of the cancer prevention and care system
in Czech Republic by establishing the Czech Republic’s National Oncological Programme for the
period 2022-2030 (NOP 2030), reflecting the priorities set out in Europe’s Beating Cancer Plan, in
consultation with key actors and stakeholders. A National Council for the Implementation of the
National Oncological Programme 2022-2030 shall also be set-up, which shall play a coordinating
role in the preparation, implementation and evaluation phases.
Milestone #236 concerns the approval of the National Oncological Programme 2022-2030 in
consultation with key actors and stakeholders and the set-up of the National Council for the
Implementation of the programme.
88

Milestone #236 is the only milestone of this reform. The reform has a final expected date for
implementation on 31 December 2021.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
i.
ii.
iii.
iv.
v.
vi.

Summary document duly justifying how the milestone (including all the constitutive
elements) was satisfactorily fulfilled;
Annex 1 - A copy of the National Oncological Plan of the Czech Republic 2022-2030
Annex 4 - Government resolution No. 541 - approving NOP 2022-2030;
Annex 6 - (a) Summary document - activities of the National Council for NOP
implementation - summarizing the consultation among stakeholders;
Annex 6 - (b) List of members of the National Council for NOP implementation;
Annex 7 - Ministerial Decree No. 34/2021 – establishing National Council for NOP
Implementation and the summary of the responsibilities of the National Council.

The authorities also provided:
vii.

Annex 2 - Overview of objectives, relevant strategies, funding sources and stakeholders of
National Oncological Programme 2022-2030;
viii.
Annex 3 - National Oncological Programme 2022-2030 Summary of the analytical study;
ix.
Annex 5 - Europe’s Beating Cancer Plan.
Analysis:
The justification and substantiating evidence provided by the Czech authorities covers all
constitutive elements of the target.
In particular:


Approval of the National Oncological Programme 2022-2030
In accordance with the milestone definition and with the Operational Arrangements
specifications, the Czech authorities have provided a copy of the approved National
Oncological Programme 2022-2030. The programme also reflects the priorities set out in
Europe’s Beating Cancer Plan, including the principles of the Patient Centred Cancer Care
Culture. The plan was approved by the government decision 541 on 22 June 2022 which is
also attached as evidence. The summary document also contains a link where the plan can
be publicly consulted. In addition to the required evidence, the Czech authorities have also
submitted a summary of the plan and an overview document summarizing objectives,
relevant strategies, funding sources and stakeholders of the National Oncological
Programme 2022-2030.



Consultation with actors and stakeholders involved, 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.
The Czech authorities have submitted a document summarising the consultation that took
place with the actors and stakeholders involved. Preliminary meetings have been held since
May 2021 to discuss the involvement of the stakeholders, the drafting of the National
Oncological Programme 2022-2030, as well as other elements of component 6.2 of the
Recovery and Resilience Plan - The National Plan to Strengthen Oncological Prevention and
89

Care. After the set-up of the National Council for Implementation of the National
Oncological Programme 2022-2030 (6 August 2021), discussions were held under the
umbrella of this Council. The Council includes representatives from the Ministry of Health,
the Czech Oncology Society representing also the National Oncology Centres, specialised
cancer and haematology care centres, Institute of Health Information and Statistics,
representatives of healthcare providers (such as the Czech Surgery Society, Czech
Pneumological and Phthiseological Society and Society of General Medicine), health
insurance companies (e.g. General Health Insurance Fund VZP, Association of Health
Insurance Funds) and patients associations (e.g. Patient Council of the Ministry of Health).
Further discussion took place from August 2021 until May 2022 while at the last meeting
on 11 May 2022, the actors involved were informed of the submission of the National
Oncological Programme 2022-2030 to the government.


Setting up the National Council for the Implementation of the National Oncological
Programme
According to evidence provided in Annex 7, the National Council for Implementation of the
National Oncological Programme 2022-2030 has been set-up by the Ministerial Decree No.
34/2021. The role of the Council, its organisation and its composition are specified in detail
in the Ministerial Decree. The Council will ensure preparation, implementation and
evaluation of the success of the National Oncological Programme 2022-2030.

Commission Preliminary Assessment: Satisfactorily fulfilled

90