Reconstruction in Karabakh: Government allocates over $2 billion for building projects

In the period from January to September 2024, a total of 3.604 billion manats has been spent on construction work in the liberated regions of Azerbaijan.

This is a 6.9% decrease, or AZN 266.3 million ($156 million) less, than during the same period last year, Caliber.Az reports per local media.

In January-September 2023, construction work in these regions received an allocation of AZN 3.870 billion ($2.28 billion).

The largest share of funds in the reporting period was allocated to Kalbajar AZN 797.437 million ($ 469 million), followed by Aghdam AZN 527.112 million ($ 310 million), and Lachin districts AZN 567.497 million ($333 million).

Notably, as of September 17, Azerbaijan announced plans to allocate AZN 4 billion (over $2 billion), representing 10.1% of its state budget expenditure, to the reconstruction of liberated territories in 2025, according to the Ministry of Finance. This budget marks a 17.6% decrease from 2024's forecasted funds.

The allocation will focus on rebuilding efforts in the Karabakh and East Zangazur regions, underscoring Azerbaijan's commitment to restoring these areas. Reconstruction activities have been ongoing since the end of the 2020 conflict with Armenia, which concluded with Azerbaijan reclaiming approximately 20% of its territory.

Following the ceasefire agreement, Azerbaijan initiated an extensive restoration plan, establishing a Coordination Headquarters and 17 specialised working groups to oversee various development projects in the region.

The rebuilding efforts continue despite the considerable challenges posed by the widespread destruction.

By Aghakazim Guliyev