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A pilot project has been launched in the West Kazakhstan Region that could fundamentally change the approach to attracting investment into Kazakhstan's industrial sector. A new mechanism, the "Accessibility Payment", is being implemented within the territory of the "Eurasia" Cross-Border Trade Center industrial zone.
This tool, initiated by the national company "KAZAKH INVEST", aims to overcome one of the key barriers for investors—the lack of ready-made engineering infrastructure ("greenfield site") and the lengthy timelines for its creation. As noted by the Chairman of the Board of KAZAKH INVEST, Sultangali Kinzhakulov, the model creates fast, transparent, and result-oriented conditions for business.
This tool, initiated by the national company "KAZAKH INVEST", aims to overcome one of the key barriers for investors—the lack of ready-made engineering infrastructure ("greenfield site") and the lengthy timelines for its creation. As noted by the Chairman of the Board of KAZAKH INVEST, Sultangali Kinzhakulov, the model creates fast, transparent, and result-oriented conditions for business.
What is the Essence of the "Accessibility Payment" Mechanism
The new model represents a public-private partnership in the infrastructure sector and operates on the following principle:
1.Primary Investment from Business: an investor interested in locating production within the industrial zone independently finances the construction of the necessary engineering infrastructure (power supply, water supply, gas, roads, etc.).
2.Phased Reimbursement of Costs: after the infrastructure facilities are commissioned, the investor's costs begin to be reimbursed. Compensation comes from two sources:
3.Reduced Timelines: this approach allows a new production facility to start operations in a compressed timeframe, without waiting for the infrastructure to be built under classic state programs.
1.Primary Investment from Business: an investor interested in locating production within the industrial zone independently finances the construction of the necessary engineering infrastructure (power supply, water supply, gas, roads, etc.).
2.Phased Reimbursement of Costs: after the infrastructure facilities are commissioned, the investor's costs begin to be reimbursed. Compensation comes from two sources:
- Other participants of the industrial zone who subsequently connect to this infrastructure.
- The state, represented by the authorized body.
3.Reduced Timelines: this approach allows a new production facility to start operations in a compressed timeframe, without waiting for the infrastructure to be built under classic state programs.
Advantages of the New Model for Investors and the State
The "Accessibility Payment" mechanism creates a win-win situation for all parties.
For the Investor:
For the State and the Region:
For the Investor:
- Speed: maximum reduction of time from the investment decision to the plant's launch.
- Control and Quality: the ability to build infrastructure tailored to the specific needs of production, ensuring its highest quality and compliance with international standards.
- Predictability: clear and transparent rules for cost recovery, reducing financial risks.
- Competitiveness: entering the market with a modern, technologically equipped production facility faster than competitors.
For the State and the Region:
- Efficient Budget Utilization: distribution of financial burden and reduction of initial budget expenditures on infrastructure.
- Attracting Quality Projects: the mechanism is particularly attractive for large, technology-driven investors for whom time and infrastructure quality are critical factors.
- Cluster Development: accelerated formation of full-fledged industrial clusters with a ready utility network.
Key Legal and Financial Aspects for the Investor
Successful implementation of a project under the "Accessibility Payment" model requires meticulous preparation at the outset:
Participation in the "Accessibility Payment" pilot project is a unique opportunity for companies, but it is accompanied by complex legal, financial, and administrative tasks.
The Acsour team in Kazakhstan is ready to provide investors with comprehensive support at all stages:
The new "Accessibility Payment" mechanism opens a path for a quick and effective entry into the Kazakh market. Submit a request, and our investment experts in Kazakhstan will conduct an individual analysis for you and present an action plan.
- Detailed Agreement: concluding a comprehensive investment agreement with KAZAKH INVEST and the industrial zone administration, which will secure the financing procedure, construction stages, object acceptance criteria, and the cost recovery mechanism.
- Financial Modeling: accurate calculation of capital expenditures, investment schedule, and fund recovery model considering the timelines for new residents connecting.
- Technical Specifications: approval of design documentation that meets both the investor's requirements and Kazakh technical regulations.
- Tax Implications: analysis of the tax regime both during the construction phase and during the cost recovery period.
Participation in the "Accessibility Payment" pilot project is a unique opportunity for companies, but it is accompanied by complex legal, financial, and administrative tasks.
The Acsour team in Kazakhstan is ready to provide investors with comprehensive support at all stages:
- Legal Support: preparation and expert review of the investment agreement, legal support at all stages of interaction with state authorities and KAZAKH INVEST.
- Financial and Tax Consulting: development of the project's financial model, analysis of recovery schemes, optimization of tax liabilities.
- Project Management and Reporting: assistance in organizing processes, monitoring timelines, and preparing documentation for cost recovery.
The new "Accessibility Payment" mechanism opens a path for a quick and effective entry into the Kazakh market. Submit a request, and our investment experts in Kazakhstan will conduct an individual analysis for you and present an action plan.