BAKU, Azerbaijan, March 14. The Islamic Development Bank (IsDB) is in talks with Azerbaijan over financing the reconstruction of the Karabakh irrigation canal, TurkicWorld reports.
This was reflected in the report on the Cabinet of Ministers’ activities in 2025, which was discussed at a plenary session of the Azerbaijani Parliament.
The report on the activities of the Cabinet of Ministers of Azerbaijan for 2025, discussed during a plenary session of the Azerbaijani Parliament, notes that agreements were signed in November 2024 with the Islamic Development Bank Group during the 29th session of the United Nations Climate Change Conference (COP29) for the "Construction of the Main Irrigation Canal from the Maiden Tower Reservoir" project.
The project is the first initiative in Azerbaijan’s territories liberated from occupation to be financed by an international financial institution with a state guarantee. Under the plan, a $96.4 million loan agreement was signed on November 14, 2024, with the IsDB to fund the construction of the main irrigation canal from the Giz Galasi Reservoir. The project aims to improve water supply across 252,000 hectares in the Jabrayil District and Fuzuli District regions and bring 12,620 hectares of new irrigated land into use.
At the same time, negotiations are underway with the IsDB Group on financing another major infrastructure initiative, the $436.3 million "Reconstruction of the Karabakh Irrigation Canal" project. The project is designed to irrigate nearly 115,000 hectares of farmland and improve drinking and household water supply in nine districts of the Karabakh region and surrounding areas, including Mingachevir, Yevlakh, Goranboy District, Barda District, Aghjabadi District, Aghdam District, Tartar District, Beylagan District, and Imishli District.
Authorities expect agreements on the project to be signed during the IsDB Group’s annual meetings scheduled to be held in Azerbaijan in 2026.
