Kazakh Invest launches new investment attraction mechanism in industrial zones
A new investment attraction mechanism Availability Payment has been introduced in Kazakhstan, aimed at accelerating the development of industrial zones and create sustainable conditions for the long-term presence of investors, Qazinform News Agency has learnt from Kazakh Invest.
The pilot project is being implemented in West Kazakhstan region on the territory of the Eurasia Cross-Border Trade Center industrial zone, where 17 investment projects with the participation of foreign investors are planned for launch.
The new mechanism provides for the construction of engineering infrastructure at the investor’s expense, followed by phased reimbursement of costs by industrial zone participants and the state after the facilities are commissioned. This approach makes it possible to reduce production launch timelines, ease the burden on the budget, and ensure infrastructure that meets international standards.
The introduction of the Availability Payment mechanism forms clear and predictable conditions for investment, focused on results and scalability.
As part of the launch of the pilot project, a memorandum of mutual cooperation was signed between the local authority of West Kazakhstan region, represented by governor Nariman Turegaliev, and Kazakh Invest national company, represented by Chairman of the Management Board Sultangali Kinzhakulov. The document formalizes cooperation between the sites on attracting investors and implementing projects within the industrial zone.
Kazakh Invest will act as the operator of the industrial zone and ensure investor support, implementation of best international practices in management, and coordination of projects.
As a result of Kazakh Invest’s work, the attracted companies were added to the approved Roadmap for the implementation of 17 investment projects totaling approximately 370 million US dollars, with the creation of more than 1,500 jobs. It is planned to launch production in the fields of construction materials, metal structures, chemical and light industry, industrial infrastructure and energy, as well as industrial and logistics services.
West Kazakhstan region was selected for the pilot project as a region with developed gas and transport infrastructure, a favorable geographical location, and high transit potential.
Based on the results of the pilot project, it is planned to scale the Availability Payment mechanism to other regions of Kazakhstan.
The launch of this mechanism forms a new investment model - fast, transparent, and results-oriented. We are creating conditions under which an investor comes not to a ‘greenfield site,’ but to a prepared industrial site, noted Kinzhakulov.
Implementation of the project will ensure inflow of investment into the region, creation of new jobs, growth of the tax base, and development of modern industrial infrastructure.
Earlier, Qazinform reported Kazakhstan attracts $439.7bn in investments in two decades.
