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Grants for Real Estate Regeneration and Environmental Clearance

( 01 / May / 2008 )

There are a number of new environmental grants programmes open or announced by the Czech Government for the period 2007-2013. This article focuses on two programmes specifically related to environmental clean-up and regeneration of brownfield sites.

Applying for grants can be very bureaucratic and paper intensive procedure and companies often employ the services of an experienced grants advisory consultant to assist them. The process typically starts with a review and assessment of the client’s chances of receiving a grant and outlines the steps that need to be taken for success. The consultant will then usually manage the application process and communications with the institutions in charge.

1. Real Estate Programme (Czech Ministry of Trade and Industry)

This programme enables enterprises to obtain financial support for project preparation, construction, development and regeneration of disused sites. However, the current framework of the programme does not support environmental clearance.

The programme promotes reconstruction of existing brownfields as opposed to demolition and redevelopment of a new site. The cost of demolition and construction of a new site has to be proved lower than the costs incurred for reconstruction.

• The main conditions for beneficiaries are;
• Minimum 2 ha site or 500 m2 floor area
• Must be owner of the site
• Must not be liable for the condition of the property requiring reconstruction/regeneration
• User of property falls within the field of manufacturing
• Manufacturing production has to remain on the site for 3/5 years (SMEs/large enterprises
• The new/reconstructed site must be completed within 5 years of the application

Eligible costs include;

• Tangible fixed assets (real estate purchase and construction costs directly related to the project implementation)
• Demolition
• Intangible fixed assets
• Specific operational costs (services of advisors and experts, studies, project publicity)
• Project documentation

The minimum award is 1 mil. CZK, the maximum 500 mil. CZK

2.   Environmental Clearance (Czech Ministry of the Environment)

The programme supports environmental improvements and public health. The clean-up of industrial pollution and redevelopment of seriously contaminated locations is the priority of the programme. The call for projects is expected Q4 2008 so full details are not yet clear however the conditions should be less strict than for brownfield regeneration grants.

Supported activities are likely to include;

• Inventory and categorisation of priorities for contaminated locations
  
• Risk Analysis on the list of selected priority areas
  
• Construction operations preparing the location for regeneration or clearance, feeder roads, network communications, sewage plant, installation of equipment used in the clearance process
  
• Demolition of buildings or their parts in order to access and treat the centre of contamination
  
• Site preparation costs
  
• Purchase of tangible and intangible assets for manipulation, removal of ecological burdens; purpose-built PC systems with peripheries and software for sewage removal and related activities
  
• Warranty and quality testing of the ecological clearance results (sewage, water, soil samples etc.)
  
• Purchase of property or construction site
  

The minimum investment is 0,5 mil. CZK with no cap on how much can be awarded.

For both programmes, projects can be divided into several phases and the award, in the form of a direct subsidy, can be claimed after termination of each phase. Enterprises could expect that from 40% (Large Enterprises) to 60% (SME) of the project related expenditures could be financed through the grant scheme.