Azerbaijan announces $30 million investment drive in rebuilding Karabakh

Special Representative of the Azerbaijani president in Khankendi, Aghdara, and Khojaly Elchin Yusubov has said that a significant $30 million investment was made in Khankendi, Aghdara, and Khojaly, with funding from 439 local and international businesses.

The announcement was made during a visit to the Karabakh University, which also hosted a delegation of foreign diplomats, Caliber.Az reports per local media.

Yusubov emphasised that the region is undergoing significant development, fostering an environment conducive to both local and foreign investments.

"By the end of the year, over 3,000 people will be employed in these areas," Yusubov stated, highlighting the job creation potential of these investments. The special representative also shared updates on critical infrastructure projects, including the ongoing construction of the Khankendi Airport.

“We are building modern roads, railways, and a new hydroelectric power station,” he said. “The use of alternative energy based on green energy principles is expanding, and we are actively working on reforestation efforts to restore the forests destroyed during the occupation.”

In addition to infrastructure projects, Yusubov revealed that a new master plan for Khankendi is in development.

"Alongside modernising infrastructure, we are accelerating demining efforts. Our goal is to restore the villages that were damaged during the occupation," he added. "To date, 12,000 people have been relocated to seven settlements in Khankendi, Aghdara, and Khojaly, as part of our restoration efforts."

Azerbaijan’s government is set to allocate 20 billion manats (approximately $11.8 billion) over the next five years for the restoration and reconstruction of territories liberated in the Karabakh region.

This substantial allocation will comprise roughly 30 per cent of the capital expenditures in the state budget during this period, underscoring the government's commitment to revitalising areas affected by decades of occupation.

The planned expenditure represents a continuation of large-scale reconstruction efforts initiated in the aftermath of Azerbaijan’s restoration of control over its territories. From 2021 to 2024, the state budget allocated 17.6 billion manats ($10.3 billion) for rebuilding infrastructure and services in the liberated areas, with 5.35 billion manats ($3.1 billion) directed toward these efforts in 2024.

Looking ahead, 4 billion manats ($2.3 billion) has already been earmarked for 2025, reinforcing Azerbaijan’s focus on rebuilding war-affected regions and facilitating the safe return of displaced people. These funds are expected to support the construction of new housing, transport and energy infrastructure, public services, and demining operations across the region.

By Naila Huseynova