Baku: The Islamic Development Bank Group may allocate $436.39 million for the reconstruction of the Karabakh irrigation canal, APA reports. This initiative is part of the larger efforts to rehabilitate and develop the territories recently liberated from occupation.
According to Azeri-Press News Agency, this potential investment was highlighted in the 'Report on the activities of the Cabinet of Ministers of the Republic of Azerbaijan for 2025,' which was discussed during a session of the Milli Majlis. The report underscores ongoing efforts to expand collaboration with international financial institutions to support reconstruction and development projects in these areas. Notably, during the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) held in November 2024, Azerbaijan signed agreements with the Islamic Development Bank Group for the 'Construction of the main irrigation canal from the Giz Galasi reservoir.' This particular venture marked the first instance of an international financial institution financing a project in Azerbaijan's liberated territories with a state guarantee.
In line with this, a loan agreement amounting to $96.48 million was signed with the Islamic Development Bank on November 14, 2024. This agreement aims to enhance water supply across 252,000 hectares of land in the Jabrayil and Fuzuli districts and to introduce 12,620 hectares of new irrigated land.
Moreover, negotiations are currently underway for financing another significant infrastructure project, the 'Reconstruction of the Karabakh irrigation canal,' valued at $436.39 million. This project is designed to irrigate approximately 115,000 hectares of farmland and provide drinking and domestic water to settlements in the Karabakh region and nine nearby districts, including Mingachevir, Yevlakh, Goranboy, Barda, Aghjabadi, Aghdam, Tartar, Beylagan, and Imishli.
The report further indicated plans to finalize agreements for this project during the Islamic Development Bank Group's Annual Meetings, which are scheduled to be held in Azerbaijan in 2026.