Azerbaijan advances infrastructure in East Zangezur Renewable Energy, Industrial Parks, and Logistics Hubs

After fully restoring sovereignty over its territories, Azerbaijan has intensified reconstruction efforts in the Karabakh region with renewed determination. A recent highlight of these ongoing initiatives, which aim to revive lands liberated from occupation over the past four years, was President Ilham Aliyev's visit to the Jabrayil and Zangilan districts.

During this visit, the president reviewed the construction of residential and social buildings and participated in the groundbreaking ceremony for several enterprises within the Araz Valley Economic Zone industrial park, as well as the commissioning of new energy facilities and other projects.

In the initial phase of restoring the territories liberated from occupation, Azerbaijan focused on rebuilding essential transportation, energy, and utility infrastructure. These efforts have been particularly active in the Zangilan and Jabrayil districts, which are part of the Eastern Zangezur Economic Region. Here, dozens of kilometres of modern roads have been constructed, high-voltage power lines and substations have been built, and work has commenced on gas and water supply systems. Additionally, mobile communication and internet base stations have been restored, and fuel stations have been constructed.

The development of renewable energy sources in the Zangilan (small hydropower plants) and Jabrayil districts appears promising. Recently, BP and its partners—SOCAR Green (a subsidiary of the State Oil Company of Azerbaijan) and the Azerbaijan Investment Company (AIC)—signed a shareholder agreement to establish a new joint venture, "Shafag (Jabrayil) Solar Limited (SJSL)," aimed at constructing a 240 MW solar power plant named "Shafag."

Moreover, the Eastern Zangezur Economic Region, which is seeing the development of a robust roadway, railway, and transit power infrastructure known as the Zangezur Corridor, is poised to become the next major industrial and transport hub in the liberated territories, following the agglomeration of Aghdam, Khojaly, and Khankendi.

As part of this ambitious strategy, a logistics and agribusiness cluster is being developed in the Jabrayil district within the Araz Valley Economic Zone. According to the latest data from the Agency for Development of Economic Zones (ADEZ) of the Ministry of Economy, as of the end of June, 13 residents and 1 non-resident have been registered in this area. Investors are expected to gradually invest over 133.8 million manats ($78.2 million) in this industrial zone, creating more than two thousand jobs. So far, over 20 million manats ($11.7 million) have already been invested in the Araz Valley.

Infrastructure work has been completed, including the construction of an administrative building, a substation, and a water reservoir. In the near future, there are plans to establish a logistics centre in the area.

During Ilham Aliyev’s visit to the Araz Valley Economic Zone, Minister of Economy Mikayil Jabbarov informed the president about the raw material and logistical potential of the Jabrayil district, which is strategically located at the crossroads of Karabakh and other regions. Access to infrastructure enhances the district's prospects of becoming a regional industrial centre in the future.

Considering the primary focus of the industrial park in this area, plans are underway to establish a logistics and trade centre, warehousing complexes, wholesale and retail trade facilities, a heavy truck park, customs facilities, fueling stations, and maintenance points for vehicles and other machinery.

The industrial zone is designed to serve as a regional supplier of construction materials and other products in the process of restoring the territories liberated from occupation. Several enterprises focused on producing specialized equipment, metal products, and various types of adhesive tape are expected to be completed by the end of this year.

In the long term, a facility for producing fibre-reinforced and polystyrene concrete blocks will be established in the Jabrayil district's industrial zone. One of the residents has already set up service centres for the maintenance and repair of trucks and agricultural machinery. Additionally, another company plans to assemble components for Italian IVECO Daily trucks and manufacture spare parts and individual units for automotive equipment. Several investors are also exploring opportunities for the production and processing of agricultural products, including recycled materials.

The industrial potential of the Jabrayil district is steadily expanding. During a recent visit to the Araz Valley Economic Zone, President Ilham Aliyev and First Lady Mehriban Aliyeva participated in the groundbreaking ceremony for factories and plants being established by limited liability companies (LLCs).

One of the largest business projects will be the construction of a furniture cluster factory by the Lithuanian company Dominari. In the initial phase (which consists of five stages), a factory for producing foam materials and a textile factory will be built to supply fabrics and fillings for mattresses, which are essential raw materials for the furniture industry.

Overall, the project is expected to create 650 jobs and produce 6,000 tons of flexible polyurethane, 250,000 units of various furniture items, 1 million mattress, sofa, and bed covers, 200,000 mattresses, and 5,500 cubic meters of furniture components. A portion of the production is planned for export.

Another enterprise established with the participation of the head of state belongs to Karabakh Stone, which plans to launch the production of decorative stone (tiled slabs) and curb stones using Turkish technology by 2025. The annual production capacity is expected to reach 1.25 million square meters, providing stable employment for 95 people at the plant.

Additionally, President Ilham Aliyev participated in the groundbreaking ceremony for another industrial enterprise, Prestij-Kimya. This facility aims to produce 30,000 tons of various disinfectants, liquid cleaning agents, and bleaching products annually, utilizing equipment from Türkiye, China, and Europe. The plant will employ 214 people, and a portion of its production is planned for export.

During the visit, President Ilham Aliyev also attended the groundbreaking ceremony for a breeding egg production facility by Hijaz Gushchulug in the village of Sultanli, located in the Jabrayil district. This facility is designed to produce 24 million breeding eggs annually. Additionally, a complex established by the LLC AzerSun Holding in the city of Jabrayil is set to produce 250 million PET bottles and 350 million aluminium cans for non-alcoholic beverages each year.

On the same day, the head of state reviewed the construction of private homes and social facilities in the village of Horovlu, Jabrayil district, where 3,470 people are expected to reside in the future. He also attended the opening of the Mehdi Mehdizade Secondary School in the city of Jabrayil, which has a capacity of 960 students.

Similar large-scale efforts are underway in the Zangilan district, where the high-tech "smart" village of Aghali has been built, featuring a modern agricultural complex and "green" energy solutions. Several hundred families have already returned to live there. Additionally, the Azerbaijani-Turkish agropark "Dost" has been established in this district, with farms for 3,500 cattle and a developed feed base already operational.

Hydropower plays a significant role in the development of the Zangilan district. Earlier, with the participation of the head of state, three small hydropower plants—"Jahangirbeyli," " Shayifli," and "Zangilan"—were commissioned, built in a cascading method along the Okhchuchay River. The fourth hydropower plant in the Zangilan cycle, "Sarigishlag," was inaugurated last Thursday with the participation of President Ilham Aliyev.

"Sarigishlag" is equipped with two eco-turbines in its machine hall, which can automatically shut down when the river's water level decreases, ensuring that twice the river's natural flow is retained in the Okhchuchay. The plant is expected to generate up to 33 million kilowatt-hours of electricity annually, saving 7.4 million cubic meters of gas and preventing the release of 13,000 tons of carbon dioxide into the atmosphere. Overall, the total capacity of the four-cascade hydropower system on the Okhchuchay River reaches 42 MW.

President Ilham Aliyev also took part in the opening of the Digital Control Center for the Zangilan Electric Power Network, operated by "Azerishig" OJSC. The two-story building houses two 2,500 kVA power transformers, enclosed 35- and 0.4-kilovolt switchgear units, and on the second floor, control rooms, technical facilities, and utility spaces. To supply the centre with electricity, dual-circuit underground cable lines have been laid from the 110/35/10-kilovolt "Zangilan" substation.

The new centre represents an innovative solution for monitoring, security, and management systems that collect and process all information on the state of the power grid and enable digital equipment management.

On the same day, the head of state reviewed the ongoing construction at the Zangilan Recreation Complex, where a hotel with 111 rooms, a conference hall, a meeting room, a banquet hall, fitness and spa centres, indoor and outdoor pools, a restaurant, and children's entertainment centres are being built. The complex will also feature 10 cottages for guests, along with a vineyard and fruit orchards. The complex will employ over 70 staff members.

During his visit to the Zangilan district, the president also reviewed the construction of a 104-apartment residential complex in the administrative centre and laid the foundation for the district’s fifth urban residential complex.