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IsDB Group may allocate $436.39 mln for reconstruction of Karabakh irrigation canal

13 March 2026 11:20 (UTC +04:00)

The Islamic Development Bank Group may allocate $436.39 million for the reconstruction of the Karabakh irrigation canal, APA reports.

This was reflected in the “Report on the activities of the Cabinet of Ministers of the Republic of Azerbaijan for 2025,” which was discussed at today’s session of the Milli Majlis.

It was noted that efforts are ongoing to expand cooperation with international financial institutions within the framework of reconstruction and construction works carried out in the territories liberated from occupation. Within the framework of the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) held in November 2024, agreements were signed with the Islamic Development Bank Group on the project “Construction of the main irrigation canal from the Giz Galasi reservoir.” This project became the first project financed by an international financial institution with a state guarantee in the territories liberated by Azerbaijan.

Under the project, a loan agreement worth $96.48 million was signed with the Islamic Development Bank on November 14, 2024, to finance the project “Construction of the main irrigation canal from the Giz Galasi reservoir,” aimed at improving water supply for 252,000 hectares of land in the Jabrayil and Fuzuli districts and bringing 12,620 hectares of new irrigated land into use.

At the same time, negotiations are underway on financing another infrastructure project planned to be implemented in the territories liberated from occupation — the “Reconstruction of the Karabakh irrigation canal” project worth $436.39 million, which aims to irrigate nearly 115,000 hectares of farmland and supply settlements with drinking and domestic water in the Karabakh region and nine adjacent districts (Mingachevir, Yevlakh, Goranboy, Barda, Aghjabadi, Aghdam, Tartar, Beylagan and Imishli).

“It is planned to sign the agreements on this project within the framework of the Islamic Development Bank Group’s Annual Meetings to be held in Azerbaijan in 2026,” the report said.