REHABILITATION INFRASTRUCTURE

The victory of Azerbaijan in the Second Garabagh War took place slightly more than two years ago. Yet Azerbaijan has launched a wide range of construction works on the liberated territories. The government is now looking for ways to accelerate this process in order to enable some 35,000 families to be resettled in the Garabagh region within the next five years. Therefore, President Ilham Aliyev approved the First State Programme ‘Great Return to the Liberated Territories of Azerbaijan’, which includes a set of measures to strengthen inter-agency coordination and public-private partnerships.

State is the main donor

Azerbaijan is implementing a large-scale programme to revive the liberated territories of the Karabakh and East Zangezur economic regions. This includes not only Azerbaijani companies, but also dozens of contractors and equipment suppliers from Turkey, Britain, EU, Israel and post-Soviet states almost entirely funded from the state budget. Transport, energy and utilities infrastructure is being restored through joint efforts. The construction and development of production facilities, towns and villages is ongoing.

The scale of the Garabagh Construction Project is unprecedented for the region, both in terms of the volume of the infrastructure works and capital investment. According to Azerbaijan’s Finance Minister Samir Sharifov, the total cost of rebuilding the liberated territories in 2021-2023 will reach ₼9.7b. This amount includes not only direct injections from the state budget, but also the funds of state-run agencies and companies, as well as private investments.

So far hundreds of kilometres of roads, dozens of bridges and tunnels have been built, power lines and substations have been installed, while the water, sewerage, gas and other utility systems are being restored. At the same time, there is an ongoing work to deploy here the systems necessary for mobile communication, the Internet and radio/television broadcasting networks. Highways, railway lines and internationally important air hubs are also under construction. There are already two international airports operating in Fuzuli and Zangilan. A similar facility will be constructed in Lachin in 2024. A capital-intensive program for the construction of highways and railway infrastructure, the foundation of the future Zangezur Corridor, is implemented in the East-Zangezur economic region of Azerbaijan. In particular, the construction of 124-km Horadiz-Aghbend-Armenia border road is 60% complete; the road will be commissioned in late 2023. The railway line Horadiz-Aghbend (110 km) is 40% complete, with the deadline completion  date slated for 2024.

In general it is planned to complete the major construction works on transport communications in the next five years. It is planned to finish until 2026 the design and construction of bus terminals in the settlements, paving of the internal roads of Aghdam, as well as the establishment of maintenance facilities for vehicles in Garabagh.

The construction of industrial zones and agriculture parks in Aghdam, Zangilan and Jabrayil has already started. Residential and tourism facilities are being built in Shusha. These business projects include not only local investors, but also foreign companies. In perspective it is planned to ensure the involvement of international donor structures in many projects. By the end of this year alone, the total amount of private investment in Garabagh is expected to reach ₼300m.

Nevertheless, the state remains the main donor of reconstruction works in Garabagh. The volume of budget investment in fixed capital (construction of social and residential buildings, infrastructure, industrial facilities) in the liberated territories will not decrease for quite some time, estimated at many billions of US dollars. In the draft state budget for 2023, state capital investments for these purposes are increased again up to ₼3b.

Smart solutions

As noted in the preamble of the First State Programme, the revival of the liberated territories is defined as one of the five long-term development objectives of the country under the National Priorities for Socio-Economic Development: Azerbaijan 2030 adopted two years ago.

By 2027, it is planned to construct about 35,000 apartments and individual houses for 34,500 families of displaced persons, who will resettle on these territories in stages. About 66 families (325 people) have already been resettled in the smart village of Aghali in Zangilan since July this year. The village has a total of 87 houses commissioned already, and the number of houses will increase to over 200 in the coming year or two. Most of the houses are built with eco-friendly materials and equipped with IoT technology (smart home). Other projects in Aghaly include the ongoing works to establish high-tech agro-industrial complex, IT-managed utilities infrastructure, solar panels etc. in the village. In October 2022, the Azerbaijani-Turkish agro-park DOST was put into operation in Zangilan. The facility actively employs smart technologies for managing 3,500 cattle and a fodder base for them.

An even more ambitious project is about to be implemented in the Zangilan district, which has become the main platform for testing best practices in high-tech human settlements. In May 2023, the Azerbaijani government will be presented the master plan for the smart city of Zangilan. The project includes the introduction of smart technologies in transport, fire safety, disaster warning system, law enforcement and other public services of the city. There will also be an integrated transport system management centre with smart parking, bus stops, etc.

The second smart village is being created in the village of Dovletjarli, Fuzuli, which also expects its new residents soon be resettled there. Another project to upgrade the housing stock and to construct residential buildings is underway in Shusha. The city will also see the construction of a number of tourist infrastructure facilities. Recreational facilities will also be created in Kalbajar, Terter, Sugovushan, where the resettlers are expected to contribute to a great extent to the hospitality and recreation services in respective settlements.

Aghdam is expected to play a special role as the industrial centre of the Garabagh region. This year, the first residents launched investment projects in the Aghdam industrial zone starting the construction of about a dozen new enterprises. The industrialisation of Aghdam will expand in the coming years. According to the state program, it is planned to create thousands of jobs for future residents. Some $100m will be invested to industrial facilities of the industrial zone alone. In parallel, water reservoirs, various hydroelectric facilities, dozens of artesian wells, sewage, gas and electricity infrastructure, as well as social, municipal and housing facilities will be constructed and commissioned in a number of settlements of the Aghdam district.

By 2027, projects on the construction of housing, social and community facilities will be also gradually implemented in various settlements of the Khojavand, Kalbajar, Lachin, Gubadly, Jabrayil, Terter and Khojaly districts. By that time all housing and social facilities must be connected to the necessary electricity, gas and water utilities. In particular, it is expected that SOCAR completes the construction of the main gas pipeline Aghdam-Khankendi by 2025.

The State Programme places a special emphasis on the establishment of the Green Energy Zone and renewable energy projects (RES) currently actively promoted throughout the country. Thus, by 2026, it is planned to build a 240MW solar power plant in the Zangilan-Jabrayil zone and a 400MW wind power plant in the Lachin or Kalbajar districts jointly with bp. Azerenerji will rehabilitate and put into operation dozens of small HPPs, while the construction of the Khudaferin (100MW) and Giz Galasy (40MW) HPPs are expected to be over by 2025.

Social aspects

Another, perhaps the most important mission of the state programme is to speed up the process of demining the liberated territories, which seriously hinders the resettlement of citizens and the agro-industrial regeneration of the region. Unfortunately, the land mines have claimed the lives of 268 people since the end of the war. Since November 2020, more than 59,000 hectares have been demined, with over 76,810,000 mines and unexploded weapons cleared. According to the Great Return State Programme, 280,000 hectares are to be cleared of mines and other explosive hazards by 2026. "The human and technical capacities of the Azerbaijan Agency for Mine Clearance will be increased in the coming years in accordance with the set tasks. It is therefore planned to ensure the procurement of the necessary equipment, tools and machinery. The Agency's staff also increased; we continue the training of new deminers and team leaders at our regional training centre in Goygol," Vugar Suleymanov, head of the agency said. He added that all necessary steps would be taken to ensure the safe return of Azerbaijanis to their native lands.

Preparations to select future resettlers who are ready to return to native homeland in Garabagh have already started. "Public awareness works are ongoing. Technical issues are being resolved for the forthcoming organisation of the Great Return," the State Committee for Internally Displaced Persons and Refugees stated.

There are plans to speed up the establishment of educational, medical, sports and other social infrastructure facilities in the region. By 2026, 197 pre-school and general education institutions will be built and rehabilitated there. By 2027, it is planned to start the operation of a university branch. A network of polyclinics and dispensaries will be deployed in the restored lands of Garabagh. The construction of Olympic sports complexes and multipurpose sports halls will be launched in 2023-2024, including the largest stadium of Aghdam, Imarat, to be commissioned by 2026. In addition, there will be several ASAN Xidmət service centres, Safe City service, seven branches of DOST service centres, and a digital database on the population and labour resources of the region.

The Great Return to Liberated Territories is one of the most ambitious policy documents in Azerbaijan's history, both in terms of the scope of goals and their cost. Undoubtedly, we will soon witness an unprecedented transformation in the war-torn and currently devastated lands, which will enjoy full involvement in the socio-economic life of the country.