Most frequently asked questions concerning the Triangle Strategic Industrial Zone
Below you will find the most frequently asked questions by press, academic community and general public.
The list of questions is not final. It will be completed gradually according to actual need and with the aim at better access to relevant information.
Explanation of abbreviations used in text:
ÚR – Ústí Region
MF – Ministry of Finance of the Czech Republic
MIT – Ministry of Industry and Trade of the Czech Republic
ACR – Army of the Czech Republic
IZ – Industrial zone
Triangle SIZ – Triangle Strategic Industrial Zone
PVPS – Photovoltaic power station
UMP - Urban Master Plan
Question no. 1) What is the genesis and total costs of the Triangle Strategic Industrial Zone development?
Transfer of Žatec airport into ownership of the Ústí Region and foundation of the Triangle SIZ, including approval of general financial framework, were stipulated by Governmental Decree no. 549/2002 of 29.5.2002. The Ústí Region´s ownership was registered in real estate registry based on a contract on gratuitous transfer of real estate between the CR, Ministry of Defence and the ÚR on 11.11.2002. Original financial amount allocated for phase I of the Triangle SIZ preparation in 2003 - 2004 amounting to 400 mill. CZK was increased to 413 mill. CZK. The project was called „From brownfields to greenfields” and it was approved by Governmental Decree no. 366/2003 of 14.4.2003 (followed by Governmental Decree no. 1100/2005 of 31.8.2005 which approved financing of investment preparation of strategic industrial zones, including the Triangle SIZ). The state allocated in total 1.2 billion CZK, i.e. 75% of total costs for implementation of projects of technical and transport infrastructure. Remaining 0.5 bill. CZK was covered from the ÚR budget. We assume that the slogan used for the 1st phase of preparation of the zone – „From brownfields to greenfields” hit off rather neglected technical condition of constructions, related infrastructure and at that time also take-off and landing runway left there after departure of the Army of the CR, and it was obvious that the area required complete revitalization including necessary clean-up of environmental burden. Soil as well as groundwater in part of the area was contaminated by oil-containing substances.
In the 2nd phase, the ÚR contributed to completion of the Triangle SIZ´s development by 25.19%, i.e. 428.549 mill. CZK. Remaining 74.81%, i.e. 1 272.539 mil. CZK, was financed by the state, all that in period 2005-2009. By revitalization of former military airport (brownfield) and its conversion to current up-to-date industrial zone ranking among the best developed ones in the CR, the ÚR fully met the Governmental Decree.
Question no. 2) Did the ÚR use state financial means for development of the Triangle SIZ rightfully and effectively?
In 2009, a group of three auditors from the MIT carried out an audit focused on disposal of financing allocated to the ÚR as a subsidy for development of the Triangle SIZ from the state budget, special account of the MF and special account of the MIT. The group of auditors arrived at the conclusion that the beneficiary fulfilled conditions set for the use of the subsidy, the 25% of own financial means/ total eligible costs ratio for the Triangle SIZ development was met, and own financial resources as well as provided subsidy were used for implementation of the IZ project in compliance with all Resolutions issued in relation to this project. Tenders for contractors of all construction works, project documentation and technical supervision were held in compliance with effective laws and regulations of the CR and EU.
Qestion no. 3) Is there any real threat of ecological hazard in the Triangle SIZ?
There is no real threat there. Sanitation of the site was divided into two phases. The first phase focused on sanitation of unsaturated zone took place in period 2003 – 2004. The second one dealt with saturated zone and was carried out in period 2004 – 2009. As far as ToR are concerned, both phases were assessed positively; works were carried out in compliance with implementation project. Target parameters for soil sanitation, civil structures and groundwater quality were met successfully. In September 2009, achievement of sanitation limit was also confirmed by the Czech Environmental Inspection´s resolution. Currently, five-year post-sanitation monitoring has been in progress.
Qestion no. 4) How many jobs have been created in the Triangle SIZ?
The ÚR is not able to answer this question exactly. Private investors are not obliged to inform the Regional Authority about number of their employees. Moreover, they use services of HR agencies´ employees ever more often, and their number changes very fast and dramatically based on demand for products on the market. Due to economic recession and hardly predictable drop in demand for products of Hitachi Home Electronics (Czech) s.r.o. (further on referred to only as Hitachi) from consumers´ portfolio side the company terminated its manufacturing activities in the CR completely in April 2009, and just part of them will be compensated by Panasonic who rented a production hall from Hitachi and employed about 500 people. Even this company, however, moved their activities into IPS Alpha production hall earlier this year so that since May 2010 the production hall belonging to IPS Alpha has been hosting both IPS manufacturing plant and Panasonic assembly lines. Hitachi has been trying to find another use for their facility; result of this effort, however, has not been known to us so far. Crisis in 2008 and 2009 suspended or slowed-down negotiations and decision-making of investors significantly and development of our national economy since the beginning of 2010 has raised only slight optimism; nevertheless, the developed zone still attracts and sooner or later the industrial property market will resume its former pace. A proof thereof may be a new investor - Solar Turbines EAME s.r.o. – who is interested in building a repair centre for gas turbines which should create 100 – 450 new jobs with slow increase from 2011 to target year 2020.
Qestion no. 5) Is it true that the ÚR plans to let part of the IZ for construction of a solar power station?
Yes, the Ústí Region Council approved a business plan intending to use part of the Triangle SIZ area for construction of PVPS with output of 6000 kWp for transformation of solar power into electricity. This business plan was approved both by CEZ Distribuce, a.s., the administrator of the distribution network, and the MIT, which due its role of industrial property and infrastructure development program administrator, had decisive influence on approval of the lease.
Qestion no. 6) In which part of the zone will it be built and what is the size of the construction site?
The PVPS will be built within the Triangle SIZ premises. Part thereof it is a separate area, so called Žiželice spread, on plot number 1060/8 in Žiželice u Žatce cadastral territory, of total area of 22 hectares. After demolition of constructions, the whole Žiželice spread was subject to landscaping in the scope of phase I of the Triangle SIZ preparation so that nowadays it is a flat plot slightly sloping towards south. Currently it is grassed and there is a closed service road running through its central part connecting public roads I/27 and III/25010. The plot in Žiželice spread has settled ownership relations and it is fully owned by the ÚR who acquired it by gratuitous property transfer from the Army of the Czech Republic. The whole area is governed by Žiželice land-use plan which dedicated the area to industrial activities (including the PVPS construction).
Qestion no. 7) Who will rent the plot?
In its session on 19 May 2010, the Ústí Region Council accepted the most advantageous tender bid submitted by PKVL joint-stock company, represented by Mr Tomáš Vohryzka, member of the Board of Directors. The governess of the Ústí Region Ms Jana Vaňhová set her hand to the contract with the new tenant whose lands in the Triangle SIZ are to be used exclusively for construction of the PVPS. Profit from the area let will be reinvested by the ÚR into maintenance and development of the Triangle SIZ as such.
Qestion no. 8) When should construction of the PVPS be completed?
Estimated completion date is the end of 2010.
Updated by: MP
Date and time: 31.05.2010, 11:45
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