Lachin: From ruins to prosperity Azerbaijan’s Great Return

One of the central pillars of Azerbaijan’s investment strategy for 2021–2025 is the reconstruction and revitalisation of liberated territories, as part of the government’s Great Return programme. Among the districts undergoing rapid transformation is Lachin, where major infrastructure and economic development projects are being implemented at an accelerated pace.

In recent days, Azerbaijani President Ilham Aliyev has taken part in a series of inauguration ceremonies across Lachin. These included the opening of several newly rebuilt villages and the laying of the foundation stone for a future cable car line. Additionally, small hydropower plants and an Electric Network Digital Control Centre have been commissioned, alongside the launch of manufacturing enterprises focused on footwear and textile production.

Most notably, today—on May 28—a grand ceremony was held to mark the official opening of Lachin International Airport, symbolising a major milestone in the region’s recovery and reintegration.

For the fifth consecutive year, Azerbaijan has been engaged in the large-scale restoration of transport, energy, and utility infrastructure across the territories liberated from occupation. As part of the national revival programme, the government is also working to establish industrial clusters that will underpin long-term economic sustainability.

In line with these efforts, the First State Programme on the Great Return to the Liberated Territories of Azerbaijan—approved by President Ilham Aliyev in November 2023—sets out ambitious goals. Beyond rebuilding core infrastructure, the programme aims to accelerate the development of social and communal services, expand housing construction, and generate employment opportunities, thereby facilitating the rapid return of former internally displaced persons (IDPs) and other citizens.

Currently, between 40,000 and 43,000 people are living, working, or studying at universities in the liberated territories. Over the next few years, tens of thousands of apartments and private homes are scheduled for construction, with a phased resettlement plan targeting approximately 40,000 families of former IDPs.

The Lachin district is among the focal points of this effort. Extensive housing construction is already underway, supported by the development of social infrastructure and the commissioning of key public and industrial facilities to welcome returning residents.

During a recent visit to the Lachin district, President of Azerbaijan Ilham Aliyev met with residents who have resettled in the village of Beylik. The head of state personally handed over keys to their new homes and reviewed the living conditions created as part of the ongoing reconstruction efforts.

Beylik village, which spans 29.6 hectares, now features 91 private homes designed to accommodate 360 residents. A range of business, social, and communal facilities have been commissioned, along with the construction of internal roads and the establishment of essential utility infrastructure.

Notably, the village operates on green energy. Solar panels have been installed on the roofs of the community club and several other buildings, providing environmentally friendly lighting for homes and public spaces.

On the same day, the President of Azerbaijan attended the commissioning ceremony of two small hydroelectric power plants—Ashaghi Malibeyli (3.1 MW) and Mirik (3.5 MW)—located on the Zabukh River, a right tributary of the Hakari River.

Both facilities are outfitted with modern technology and have been integrated into the national energy grid via newly installed power and fibre-optic lines. These connections enable real-time monitoring and control through the centralised SCADA system.

Together, the plants are expected to generate approximately 20 million kilowatt-hours of green energy annually. This output will help save an estimated 4.3 million cubic metres of natural gas and prevent the release of 8,000 tonnes of CO₂ into the atmosphere each year.

The President of Azerbaijan also inaugurated the Lachin Electric Network Digital Control Centre—a cutting-edge facility equipped with state-of-the-art control, protection, and management systems. The centre monitors and analyses real-time data across the Lachin district’s power network and enables fully digital, remote control of all equipment through advanced telemetry systems.

The facility includes two 1600 kVA power transformers, as well as enclosed 35 kV and 0.4 kV switchgear units. Additionally, a 4.8-kilometre dual-circuit power transmission line has been constructed, linking the “Lachin” substation to the district centre.

The operation of this centre is expected to eliminate power outages across the district, significantly reduce energy losses and transmission costs, and enhance the integration of new green energy sources into Azerbaijan’s national grid.

Given the picturesque landscape of this mountainous region, special emphasis is being placed on developing its tourism infrastructure. On May 27, President Ilham Aliyev participated in the foundation ceremony for the new Lachin cable car. This modern transport system will run through the city’s Boulevard area and feature two sections. With a height of 300 metres and a length of 1,720 metres, the cable car will have 17 cabins and complete the journey in just six minutes. It will be capable of transporting up to 800 passengers per hour.

Significant progress has also been made in revitalising the district’s business sector. During his visit, the President inaugurated the Lachin branch of the PIRSHAGHI shoe factory, marking an important step in restoring local industry.

The factory, equipped with modern machinery and valued at 367,900 manats ($216,411), will employ 15 workers and produce 1,500 pairs of sports and classic footwear each month, with a portion of the output planned for export.

It is also worth noting that the Lachin Agro-Industrial Park, inaugurated in the village of Zerti on August 26, 2023, currently hosts 12 active enterprises, with plans to expand to 46 companies. The park includes furniture factories, fish farming operations, food and light industry businesses, ecological recycling facilities, and a scientific experimental centre focused on breeding small ruminants, among other initiatives.

Beyond the footwear cluster, a garment manufacturing industry is taking shape in the region. Recently, President Ilham Aliyev attended the opening of the Lachin LATIFA garment factory. With an investment of 1.2 million manats ($706,000), this sewing enterprise will create 30 new jobs and produce around 2,000 textile products daily, including sportswear, exclusive clothing, and other items.

The commissioning of new manufacturing, infrastructure, and service enterprises is creating significant potential for the sustainable resettlement of the population in the Lachin district, while also ensuring diverse employment opportunities. Notably, the mountainous Lachin district, together with neighbouring Kalbajar, is the source of ten key rivers in the region. Its high-altitude fertile pastures, forests, and arable land offer unique prospects for developing animal husbandry, beekeeping, various branches of crop production, cultivation of valuable medicinal herbs, establishment of nut orchards, and eventually the growth of processing and food industries based on these resources.

The region is also rich in mineral resources, primarily raw materials essential for the construction industry—such as limestone, clay, and volcanic ash—as well as facing stones like marble, tuff, nephrite, and agate. Deposits of mercury and potential gold reserves have also been identified.

Currently, construction is underway on the 72.8-kilometre Kalbajar–Lachin highway, which includes a 3.4-kilometre tunnel. The “Lachin” substation has been commissioned, and communal and energy infrastructure has been established in the district centre and surrounding settlements. There are also plans to develop a cascade of small hydropower plants to further boost local energy production.

Additionally, the construction of Lachin International Airport, which began in 2021, has recently been completed. Situated at an altitude of 1,800 metres above sea level, it is the highest-elevation airport in Azerbaijan. Building its 3,000-metre-long and 60-metre-wide runway involved extensive engineering work to overcome the challenges posed by the mountainous terrain.