Despite a number of strategic advantages, including Germany’s geographical proximity, the Czechia now has more than a trio of competing countries to gain massive investment. One of the reasons is the “speed” that is built in the country. According to various rankings, the Czechia has long been one of the worst countries in the world in terms of the pace of building permits.
“Our biggest enemy is the speed of legislation under the Building Act. Volkswagen wants to start building relatively quickly, ie in the order of years, and produce in 2027. The risk that construction in the Czech Republic would take longer is perceived by potential investors as one of our biggest handicaps, “said Špoták. According to his information, the airport in Líny has the lowest preferences of the four locations considered by Volkswagen.
The VW Group did not comment on this information, but when asked by E15, its press department stated that it compared about one hundred criteria when comparing the selected locations. These include, for example, infrastructure, logistics, available labor and green energy in place, and the level of government support.
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Although the possible construction of a factory in the Czech Republic has already been supported by representatives of the previous and current governments, who are still negotiating with VW on an investment incentive, this may not be enough to succeed. According to President Špoták, Volkswagen is well aware of the differences between government support in the Czech Republic and, for example, in Hungary.
“We and the investor know how it works in Hungary, especially after the last parliamentary elections (in which the conservative Fidesz party of the authoritarian Prime Minister Viktor Orbán won – editor’s note). When the management says that it simply wants the project, it will easily obtain a building permit in two months. That is the reality, “says Špoták.
Other factors also play a role to the detriment of Líní. In addition to the fragmentation of land ownership, which belongs not only to the Ministry of Defense but also to the municipalities concerned, which may potentially turn against the project, the large amount of water that would be needed to run the factory is also a significant obstacle. The American carmaker Tesla, which recently started production at a gigafactory near Berlin, where it manufactures electric cars, also faced a similar challenge.
“Water would be a huge problem. The factory would need a flow rate of about 126 liters per second. They would like to take water with a remote feeder from the České údolí reservoir, which can be found in such a large volume in the EIA report (on environmental impact – editor’s note), “says the mayor of Dobřany Martin Sobotka, who also represents other affected municipalities in Chotěšov. , Líně, Nová Ves and Zbůch. “However, the governor told us that we are the last in the order of the four considered sites,” added Sobotka.
Nevertheless, the location offers potential investors a number of advantages, including the proximity of the D5 motorway to Germany or the connection to the railway, recalls Zdenka Klapalová from Knight Frank, which specializes in the real estate market.
This is how Škoda Auto imagines electromobility:
“In modern high-tech production with an emphasis on eco-sustainability, we do not anticipate the environmental impact of operations on the surrounding environment; on the contrary, these multinational companies already require environmental certifications for their new projects as standard. The surrounding municipalities could benefit from such a project mainly by higher tax revenues, “says Klapalová, adding that the possible construction of the municipality would burden, but in the long run would mean benefits for the entire region.
In the past, there was speculation about the possible construction of the VW factory on the site where the Prunéřov I lignite power plant now stands, but it is being demolished. “We have information that Volkswagen has increased the area requirement to two hundred hectares, which Prunéřov does not meet,” said Pavel Cyrani, Deputy Chairman of the Board of Directors of ČEZ Energy. The capacity of the area in Prunéřov is “only” about forty hectares. Nevertheless, ČEZ is still negotiating with more than five other battery manufacturers about the possible construction of a factory in Prunéřov.
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Take a look at the Pilsen location that Volkswagen is considering for a possible gigafactory construction:
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