KPMG Outsourcing team supported the implementation of the first large-scale commercial power generation project in Kazakhstan
About the client:
Aksa Energy is an international energy company implementing the first major commercial power generation project in Kazakhstan with investment volume of KZT 215 billion. The project includes the construction and subsequent operation of a combined heat and power (CHP) plant, which will meet the energy needs of the Kyzylorda region and supply electricity to the commercial market.
The challenge:
Launching a project in a new jurisdiction required the establishment of robust accounting and tax processes, as well as legal support for the execution of key contracts.
KPMG’s role:
KPMG Outsourcing team joined the project at the earliest stage — immediately after the company’s registration in Kazakhstan.
KPMG provided comprehensive support, including:
- Accounting – consultation on the development of methodology for recognition and accounting of expenses adjusted for specific of the operations.
- Tax support – development an approach to tax accounting, preparing calculations and reports, and communication with government authorities.
- Payroll – implementation a transparent payroll system and other compensations in line with Kazakhstan’s labor legislation.
- Technical support – implementation and configuration of the 1C accounting system, tailored to the company’s business specifics.
Key risks mitigated:
| Lack of a local team could have delayed the project launch | → | KPMG supported the client in navigating and adapting to the local market environment |
| Non-compliance with tax legislation could have resulted in penalties | → | A sustainable tax accounting framework was established |
| The absence of an accounting policy could have led to errors in financial accounting | → | The accounting team’s expertise ensured compliance with International Financial Reporting Standards (IFRS) |
Next step:
The project is entering the production stage, which requires adapting systems to scalable operations. KPMG is already assisting in preparation for this next phase.
Launching a project in a new jurisdiction always comes with challenges — from tax and financial matters to legal and cultural aspects. For companies entering the Kazakhstani market, it is important not only to understand the opportunities this market offers but also to carefully assess all related consequences and risks, as well as to be prepared for frequently changing legislation and increased attention from tax authorities.
