The Memorandum on the development of the Strategic Business Park in Cheb is starting to come to fruition

Karlovy Vary (16 September 2024) The signatories of the Memorandum on the development of the Strategic Business Park in Cheb informed today about the current state of preparation of the project, which is a key step towards the transformation of the Karlovy Vary region and increasing the competitiveness of the Czech Republic. The key point is the announcement of consensus on the definition of the parameters of the end investors that should be located in the prepared area. The aim is to bring in a quality strategic investor or investors who will bring added value, good salary and a link to science and research. Investors should offer 20 to 30 percent higher wages than the current average, which will help retain young and educated people in the region.

Following the signing of the joint memorandum in May this year, a full technical review of the site was initiated, which includes a detailed verification of the possibilities of connection to technical and transport infrastructure, a biological assessment, an engineering geological survey and the preparation of an impact study. The overall feasibility study is expected to be completed in early 2025 and will serve as the basis for further project preparation. "The interim results show that the site is suitable for the location of a technologically advanced investor with higher utility capacity requirements. The site offers sufficient water capacity, the possibility of providing increased power capacity and very good transport connections, including the possibility of providing a rail link. We are able to create up to 123 hectares of a modern business park in a sustainable standard," described David Petr, member of the Board of Directors and Director of the Development Department of the State Investment and Development Company (SIRS), which is in charge of the technical preparation of the strategic business park.

The project is currently being designed to be flexible and can be tailored subsequently to a specific strategic investor. "Most investors come with the requirement to start production within 3 years of the decision to implement the project. Most sites in the Czech Republic are not able to meet this today due to their unpreparedness and the length of the permitting process. SIRS was created to effectively shorten this process for strategic investors. By proactive pre-project preparation, we can reduce the duration of the investor's localization process by at least 2 to 3 years," explained David Petr from SIRS.  

The common goal of all the signatories of the memorandum is to bring in a quality strategic investor that will contribute to the modernisation of the local economy, bring attractive job opportunities and ideally a link to science and research. "Part of our efforts is to bring in an investor who will offer above-average salaries. To attract him, we need not only a ready area, but also an attractive business environment and a ready surrounding infrastructure with the support of the city and the region. This applies to transport as well as education, for example. The CzechInvest Agency will present this investment opportunity both at foreign trade fairs and during meetings with potential investors," said Jan Michal, Director General of the CzechInvest Agency.

All parties to the Memorandum therefore agreed that the determining parameters for a potential investor to be accommodated within the strategic business park include not only the subject of activity and the level of wages, but also the requirements for qualified jobs. In this respect, the agreed typology of the investor is then decisive, which should be from the sector of, for example, clean or autonomous mobility, the semiconductor industry, the production of electronic or optical equipment, technological equipment in the health sector, the pharmaceutical industry, the production of components for renewable energy sources or the defence industry. Jan Michal commented, "The state, the city and the region also agree that we want to locate activities with higher technological intensity and skilled jobs within the strategic business park. We want to create better conditions for skilled people not to leave the region or to return here. The definition of the investor typology is based on the analysis of the region, as well as on the strategic documents of the state, the law on investment incentives and the strategic plans of the region and the city."

Petr Kulhánek, the Governor of the Karlovy Vary Region, added: "Fifty thousand people are travelling outside the Karlovy Vary Region for work today. A significant part of this number commutes to work in German border areas, where they are often employed in less skilled positions. Our goal is to attract investors to the region, which will be a significant initiating element in the direction of preventing the outflow of young people by offering above-average-value jobs, which will also be linked to the creation of new training programmes."

Along with the preparation of the strategic business park, the construction of new housing, the expansion of the capacity of schools and kindergartens, including the development of other civic amenities, is also planned. The impact study currently being prepared is used to develop a plan for the development of these capacities. "The aim is to create an environment that will be comprehensively prepared in advance for the development related to the use of the Cheb II industrial area and will also benefit local citizens. We appreciate the fact that the verification of the capacities of amenities and other public infrastructure is done in advance and not ex-post, as it was in the past, when the negative impacts of the development of industry with lower added value became apparent. We will insist that the development of these capacities go hand in hand with the preparation of the strategic business park," said Jan Vrba, Mayor of Cheb.

"I would like to follow up with the mayor and add that within the working group we are intensively working on the detailed formulation of conditions and requirements for the future investor in order to help improve the quality of life for our fellow citizens not only in Cheb, but also in the entire region. We are definitely counting on expanding housing capacities not only for the potential investor in PP2, but also for our fellow citizens. I am referring to the upcoming new Špitálský vrch neighbourhood. According to the study, around 500 housing units will be available in this area, including other amenities such as shops and services. We are also counting on the implementation of specific projects, including, for example, the reconstruction of the public swimming pool, the modernisation of the Lokomotiva sports complex, and the construction of a car park," said Michal Pospíšil, 1st Deputy Mayor of Cheb.

Jan Kuchař, Member of Parliament for the Karlovy Vary Region, who initiated the 5G connectivity project for the Karlovy Vary Region, summed up the situation around the memorandum. The fact that the almost quarter-billion-dollar T-mobile project will start in our territory already this year is very pleasing. It will bring a high-quality data and telephone signal throughout the region, but also an interesting boost for value-added investors. This will create jobs with salaries that will easily compete with German wages in the border region."

The outputs of the impact study, like the feasibility study, are expected to be available in early 2025. All parties confirmed that they expect to translate all findings into binding agreements thereafter.