Bank Of Baku

Islamic Development Bank to allocate loan for construction of Karabakh canal

Islamic Development Bank to allocate loan for construction of Karabakh canal
# 05 November 2025 11:44 (UTC +04:00)

The construction of the Karabakh irrigation canal will be carried out with joint financing by the Azerbaijani government and the Islamic Development Bank, said the Azerbaijan State Water Resources Agency (ASWRA) in response to APA-Economics' inquiry.

It was noted that regarding the canal’s construction, a five-year loan agreement with the Islamic Development Bank is planned to be signed at the Bank’s 51st meeting: “Currently, the questions sent by the Islamic Development Bank regarding the Karabakh Canal and its impact on agriculture, the environment, and social sectors are being answered.”

According to ASWRA's information, the water taken from the Mingachevir reservoir through the Main Water Intake structure of the Karabakh Canal, located on the reservoir’s shore, passes through a tunnel 1,072 meters long and 4.9 meters in diameter before being delivered to the Karabakh Canal:

“The Karabakh Canal is 172.4 km long, with a normal water flow of 113 m³/s. A total of 119 hydraulic structures of various purposes have been installed on the canal. The newly constructed canal will be 168 km long with a concrete lining and is planned to be built mainly parallel to the existing canal. The discharge capacity of the new canal is planned to be increased to 135 m³/s. In addition, the new canal will enable the irrigation of an additional 51,034 hectares of new farmland, and the pumping stations on the canal will be modernized. The new canal will be equipped with a SCADA system.”

For reference, the reconstruction project of the Karabakh irrigation canal is being implemented based on the Presidential Order on measures for the reconstruction of the Karabakh irrigation canal, signed by the President of Azerbaijan last year.

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