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April 30, 2018 8:49 pm | FILED UNDER: business

BMW Receives Kc480 Million In Subsidies For Sokolov Test Track

By ČTK

Prague, April 30 (CTK) – The Czech government today approved a memorandum of cooperation with BMW based on which the German car maker might get an investment incentive of EUR18.75m (some Kc480m) to build a car test track near Sokolov.

 

An application for the incentive will be further debated, government spokeswoman Barbora Peterova told CTK.

 

BMW wants to invest EUR250m (some Kc6.35bn) in the test track for autonomous cars in the west of Bohemia, creating several hundreds of jobs. The centre will comprise more than 100 km of test tracks including technical equipment, covering a total area of about 525 hectares.

 

BMW may get an incentive in the form of material aid for a strategic investment worth up to 10 percent of eligible costs, income tax relief, material aid for creation of new jobs and material aid for staff training or retraining.

 

In order to get such an incentive, the project must obtain a status of strategic investment. The company will draft a report for the cabinet that will then prepare follow-up documents assessing benefits of the investment and calculating its costs.

 

The government and BMW are expected to sign a statement on strategic cooperation, its part being the intention to get a building permit in Q4 2019 and to ensure the launch of the operation in Q4 2022 at the latest.

 

The government is to acknowledge that BMW needs to complete land purchases from current owners by December 31 next year so that the construction work may begin (in line with schedule).

 

The Karlovy Vary Region promised to build access roads and facilities needed for the centre’s operation, with the costs estimated at some Kc40m.

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