The state will provide 2.8 billion crowns for the revitalization of brownfields, the government approved

Prague - The state will provide 2.8 billion crowns for the renewal of neglected and unused properties, such as former industrial areas. The government today approved a new grant program for Brownfields, through which the State Fund for Support of Investments (SFPI) aims to allocate European funds from the National Recovery Plan (NPO). This follows from the results of today’s government meeting. According to the fund, the money must be used up under stricter "green" criteria by mid-2026.

The SFPI offers a combination of loans and grants from the state for the revitalization of brownfields ranging from 400,000 CZK to 50 million CZK, covering at most half of the total costs. Newly, 2.8 billion crowns will be allocated for brownfields from the European Recovery and Resilience Facility, which is being implemented in the Czech Republic through the NPO, with two billion for projects ranging from 30 to 500 million crowns.

"There is not much time. The funds must be expended by mid-2026, which means that projects must be completed by the end of 2025. The preparation of the program took a long time because the conditions of the NPO were discussed. Therefore, next year we want to finalize contracts as quickly as possible. The goal is to minimize administration to allow time for implementation," said Hana Pejpalová, director of the SFPI, to ČTK.

The Ministry of Regional Development (MMR) has been communicating with potential applicants for almost a year. Identified are projects that could apply, said the SFPI director. There are estimated to be around 45 small projects under 30 million crowns and 14 large projects, one from each region. "The Regional Permanent Conference (RSK) may establish the order of projects if there are many," Pejpalová added.

The use of grants is similar to the previous program. Recipients include regions, municipalities, and newly also legal entities, but it pertains to non-business use. Pejpalová pointed out that there will be stricter criteria. According to the European Commission, construction work must not significantly harm the environment, while costs for renovations must focus on energy-efficient improvements. For building renovations, the applicant must demonstrate that 90 percent of the costs meet requirements.

This year, the Ministry of Industry and Trade (MPO) has selected 35 projects totaling 200 million crowns for both business and non-business purposes from the NPO. According to the plan, up to 500 million crowns may be distributed among cities, city districts, municipalities, and regions for the renewal of neglected buildings and areas for business purposes owned by municipalities and regions.

The National Recovery Plan serves as a basis for drawing funds from an extraordinary fund established by the EU for the economic recovery of member states after the COVID-19 pandemic. The Czech Republic is allocated 179 billion crowns. The NPO is divided into six main areas: digital transformation, infrastructure and the so-called green transformation, education and the labor market, post-pandemic business support, development and innovation, and health prevention. Support from the NPO can be accessed no later than 2026.