Azerbaijan's future - smart cities and villages Anaysis by Caliber.Az

In recent years, projects aimed at the digital transformation of various sectors of the economy and the sphere of public utilities have been implemented in Azerbaijan. Separate components of Smart Cities in public transport, communication, urban management systems, security, etc. are also being formed in Baku, Ganja, Shamakhi, and other cities of the country. Since the liberation of the Karabakh region, the concepts of smart city and smart village have been identified as the basic principle for the revival of these territories. Plans to digitalise the infrastructure of Azerbaijani cities and villages and achievements in this area were discussed at an international conference on "Innovative approach to the development of cities and rural areas: smart cities and villages" held the day before in Baku.

According to the UN estimates, 67% of the global population, more than 6.3 billion people, will live in cities by 2050. Today, many of the world's megacities are overcrowded, and the paradigm of the analogue era is no longer sufficient for city authorities and municipalities to manage safety and environmental issues, public transport, and public utilities. In order to provide the population with quality urban services, administrations are increasingly using automated data collection systems and implementing various IT systems for urban management. In such megacities, a centralised city management system functions by using sensors, telemetry, and video surveillance systems that are integrated in real-time into a single network. Digital systems manage traffic infrastructure, including traffic forecasting, adjusting the operation of smart traffic lights, and even monitoring bus driver fatigue. Sensors and real-time video monitoring systems help regulate almost all urban infrastructure, from street lighting systems and substations that redistribute power between residential areas and the city centre during peak hours, to ensuring efficient water supply, sewage, garbage collection, ambulance and hospital services, air, water, soil quality, and even street crime control.

According to a forecast by the British analytical agency IHS Markit, by 2025, at least 88 cities around the world will be "smart", where integrated information, communication, and technology solutions in three or more areas of life are implemented or being tested.

Such ideal forms of urban and rural infrastructure redevelopment are also sought by Azerbaijan, where back in pre-pandemic 2019, at the initiative of President Ilham Aliyev, it was decided to deploy a full-fledged Smart City system in Baku, and subsequently in other cities of the country. In particular, this programme involves the gradual digitalisation and connection of schools, hospitals, libraries, public transport, power substations, water supply, and waste management systems, and other public services to remote centres, which will optimise control over urban infrastructure and improve the quality of life of citizens.

These plans have been reinvigorated following Azerbaijan's resounding victory in November 2020, and today the digitalisation programme is aimed at creating 'smart' settlements in the country's liberated territories. In particular, Azerbaijani President Ilham Aliyev recently issued a decree approving the first State Program "Great Return to the Liberated Territories of Azerbaijan", the most important direction of which is the implementation of the concepts of "smart city", "smart village" and "green energy zone" in the Karabakh region. The five-year State Programme includes also the introduction of Smart Elements into utilities and other infrastructure of the region's reviving settlements, and steps are planned for the application of IT technologies in the field of energy efficiencies, such as heating in buildings and street and road lighting. The strategy document also outlines measures for establishing renewable energy (RE) generating capacities and their integration into the overall energy grid, construction of charging stations for electric vehicles, etc.

"Azerbaijan's former IDPs will be returning to smart cities and villages. Azerbaijan's concept of implementing projects on digitalisation of settlements and the use of alternative energy here is unique, and international organisations have already praised quite highly the implementation of the Aghali smart village project in Zangilan district," Agriculture Minister Inam Kerimov said at the international conference. According to him, the elements of digitalisation, use of alternative energy sources, electronisation of public services, environmental measures, and waste management are introduced in a comprehensive manner in the "smart villages" being formed in Karabakh and are being implemented for the first time in the post-Soviet space. According to the head of the Ministry of Agriculture, all these steps can be considered as a unique Azerbaijani model of digitalisation.

It is noteworthy that the Zangilan district, which has become the main area for the implementation of best practices on digitalisation, will soon implement an even more ambitious project: in May 2023 the master plan of the "smart city" Zangilan is to be submitted to the government of Azerbaijan. "The project covers the introduction of Smart technologies in the transport, fire safety, disaster warning system, law enforcement, and other public services sectors. There will also be an integrated control centre for Zangilan city's transport system, with smart parking, bus stops, etc. In this regard we plan to hold a series of meetings between experts and representatives of government agencies of Azerbaijan and the Republic of Korea," project manager of "smart village" Aghali Donghwan Lee said.

In October 2022 the Azerbaijani-Turkish agro-park "Dost" was put into operation in Zangilan district, where "smart" technologies are actively used: conditions for the maintenance of 3,500 cattle have been created and a feed base was created. At the first stage, 5,200 sq. m. of enclosed space and 113,000 sq. m. of open livestock have been built, and processing plant are underway. At the next stage, total investments will reach $100 million, dairy and beef herds will increase almost threefold, and meat and dairy products produced here will be exported under the "Made in Karabakh" brand.

At present, the main work on the development of Smart infrastructure in the Zangilan district is being carried out in the "smart" village of Aghali, the settlement of which started in July this year and is currently home to 66 families (325 people). Works on the formation of a high-tech agro-industrial complex, as well as communal IT infrastructure, continue in the village: over 200 residential facilities will be built on the area of 100 hectares using environmentally friendly materials and IoT technology (smart home), solar panels are installed, biogas production equipment is planned for introduction, other facilities for generating "green" energy will be installed. To manage the production cluster, a data and analytical centre is being established, as well as a computerised irrigation management system, drones will be actively used to control and pollinate crops, etc. Similar work on the introduction of smart technologies is underway in the village of Dovletyarli in the Fuzuli district, where a second "smart village" is being created: solar panels will also be installed here and it is planned to develop smart management systems for aquaculture and poultry farming with high export potential.

"Of the 200 residential units to be built in the Aghali smart village, 87 have been commissioned, construction work on the remaining houses is ongoing and about 100 more families are expected to be resettled here by the end of March 2023. Works on the planning of other villages in Zangilan district are being carried out and construction of which will be started from mid of 2023," Vahid Hajiyev, special representative of President of Azerbaijan to Zangilan district, who participated in the forum, said. The special envoy noted that the implementation of the Aghali smart village project is based on the strategy of 17 priority Sustainable Development Goals until 2030, developed by the UN.

It is appropriate to note here that Azerbaijan has been actively cooperating with relevant UN structures, the World Bank (WB), the European Bank for Reconstruction and Development (EBRD), and other international donor structures within the framework of country programs for several years and plans to introduce elements of "green" energy in Karabakh, energy efficiency systems in the utilities and energy sector of the city of Ganja (the EU Green City program), and, of course, the implementation of experience in the field of digitalisation of the transport sector in Baku, Sumgayit, Shamakhi.

"The Smart City and Smart Village projects implemented by the Government of Azerbaijan in Karabakh are important in terms of IT development, high-tech agricultural sector, and also contribute to the acceleration of the 'Great Return' by strengthening economic activity in the region. The World Bank welcomes the implementation of these projects and will support Azerbaijan in the implementation of the state strategy outlined until 2026," said Sarah Michael, WB Country Manager at the Baku Forum.