Azerbaijan's transformative journey: Revitalization of Garabagh & Eastern Zangazur

Under the leadership of President Ilham Aliyev, Azerbaijan is experiencing notable progress in socio-economic development. State initiatives have prioritized the economic reintegration of territories liberated from occupation. The accelerated restoration and construction efforts in the Garabagh and Eastern Zangazur regions are generating substantial opportunities for both economic growth and social advancement.

Reintegration measures, renovation of infrastructure in residential areas, the return of the population to their homes, and employment initiatives are all contributing to the development of this region.

President Ilham Aliyev discussed these issues in depth during the first session of the 7th convocation of the Milli Majlis. After the war, he noted that 19 billion manats were planned to be spent by the end of this year, emphasizing that the majority of the funds would be allocated to infrastructure projects.

According to the State Statistics Committee, 2 billion 254.4 million manats were invested in the Garabagh economic region in 2023, representing a 19.5 percent increase compared to 2022. Of this total investment, 747 million 332 thousand manats were allocated to Fuzuli, 626 million 67 thousand manats to Shusha, and 589 million 564 thousand manats to Aghdam.

During this reporting period, 76 million 613 thousand manats were allocated to Agjabadi, which is part of the Garabagh economic region; 10 million 647 thousand manats to Barda; 5 million 304 thousand manats to Khojaly; 112 million 88 thousand manats to Khojavan; and 86 million 151 thousand manats to Tartar. For the first time, 31.5 thousand manats were invested in the city of Khankendi last year.

Additionally, 4 billion 11 million 125 thousand manats were invested in the Eastern Zangazur economic region last year, an increase of 80.7 percent compared to 2022. Of this total investment, 1 billion 550 million 708 thousand manats were allocated to Lachin, 671 million 783 thousand manats to Jabrayil, 919 million 85 thousand manats to Kalbajar, 280 million 964 thousand manats to Gubadli, and 587 million 821 thousand manats to Zangilan. In total, approximately 12 billion manats have been spent from the state budget to restore life in Garabagh and Eastern Zangazur since the beginning of the reconstruction efforts. An additional 4 billion manats have been allocated for this purpose from the 2024 state budget.

According to information from the Central Bank of Azerbaijan, by July 1 of this year, the total amount of loans granted in the Garabagh economic region reached 456 million 441 thousand manats, up from 404 million 983 thousand manats at the beginning of the year. This marks an increase of 51 million 459 thousand manats, or 13 percent, in the loan portfolio of the economic region. Most of the loans were issued in manat, totaling 455 million 627 thousand manats, with an average interest rate of 18.87 percent. This creates favorable opportunities for the private sector to engage actively in the restoration and reconstruction efforts.

These expanding opportunities are leading to an increase in infrastructure projects. As the President mentioned, 3,000 kilometers of highways have been constructed.

"In general, 45 tunnels are planned, with a total length of 70 kilometers. Building tunnels and roads in mountainous areas is no easy task, and the construction of 450 bridges is also planned. Additionally, railways and two international airports have been put into operation," Mr. President added.

The President also noted the strengthening energy potential of the region, stating, "Energy capacity is being enhanced, with 270 megawatt hydropower plants put into operation over the past three years, and this process is ongoing."

It's important to mention that the creation of hydroelectric power stations on the rivers formed in the Lesser Caucasus mountain range is continuing systematically. In the past year, hydropower plants were built in nine locations. To date, 32 hydropower plants with a total capacity of 270 MW have been commissioned in the liberated territories. It is anticipated that up to 25 million kilowatt-hours of green energy will be produced at the "Zar" and "Toghanaly" stations, which were opened this month alone. This will save 5.5 million cubic meters of natural gas and prevent more than 10,000 tons of carbon emissions.

Both hydropower plants were constructed within one year. They feature modern digital equipment for turbines, generators, and remote control systems. The stations are integrated into the country’s centralized optical cable network and SCADA system with 24 core fiber-optic cable lines. As a result, these stations will significantly contribute to the region's energy potential.

The Yukhary Veng Hydropower Plant, which opened on September 2 of this year, is the largest hydropower plant commissioned in the region since the liberation of Garabagh. The Yukhary Veng hydropower plant, with a capacity of 40 megawatts, is located in the Kalbajar range and is included in the green energy zone. During its construction, all regulations for the protection of flora and fauna were strictly observed, and European-made ecoturbines were installed at the facility. This hydropower plant is capable of transmitting electricity not only to Kalbajar but also to surrounding regions, providing electricity to Kalbajar for up to five years.

The commissioning of the Yukhary Veng hydropower plant is particularly significant in the year of Green World Solidarity and COP29. Overall, the hydropower potential of Garabagh and Eastern Zangazur is estimated to reach up to 500 megawatts.

Noting that large-scale efforts are being made for the revival of Garabagh and Eastern Zangazur, President Ilham Aliyev highlighted the construction of new schools, hospitals, social facilities, and villages.

"I don't know if similar restoration works have been carried out in any country in history, but this fact shows that this has always been a top priority for us."

President Ilham Aliyev stated that significant progress has been made for the return of former displaced persons, with more than eight thousand already settled in Garabagh and Eastern Zangazur. He noted that this number will continue to increase every month and every year.

It should be noted that the great return to the territories freed from occupation has been designated as one of the five National Priorities of Azerbaijan until 2030. This important document aims to achieve the goals of the new development stage outlined in the "Socio-economic Development Strategy of the Republic of Azerbaijan for 2022-2026," based on these National Priorities. According to the first stage of the program, 34,500 families, or 140,000 citizens, will be resettled by 2026.

Under the leadership of President Ilham Aliyev, Azerbaijan is making significant strides in revitalizing the Garabagh and Eastern Zangazur regions. With a robust investment strategy focused on infrastructure, energy, and social facilities, the government is laying the groundwork for sustainable economic development. The ongoing return of displaced persons and the commitment to large-scale reconstruction underscore the importance of this initiative as a national priority.