BAKU, Azerbaijan, May 11. Following the end of
military hostilities, Karabakh and the surrounding territories of
Azerbaijan have entered a large-scale reconstruction phase. This
process goes beyond simple rebuilding and instead represents the
formation of a new economic and infrastructure model for the
region. The process is under the political and strategic oversight
of the President of Azerbaijan, Ilham Aliyev, who views the
restoration of the liberated territories as a long-term national
development project.
According to analysts and expert institutions, total investment
in the region’s recovery over the medium term could reach
approximately $25–30 billion, covering
transportation infrastructure, energy, housing construction, and
digitalization initiatives.
One of the key priorities remains the development of the
transport network. The Ahmadbayli–Fuzuli–Shusha highway is the
first major infrastructure project connecting emerging development
centers in the region. It serves multiple purposes: supporting
construction logistics, forming the backbone of the future
transport system, and enabling the growth of tourism flows. In the
long term, the road is expected to become part of a broader
regional transport network integrated into Azerbaijan’s
economy.
A special role in the recovery process is played by the city of
Fuzuli, which is being built essentially from the ground up. Unlike
traditional reconstruction projects, this involves the creation of
a completely new urban structure. Long-term plans suggest the
city’s population could reach 50,000–80,000
residents. Fuzuli is being designed according to modern
standards, including energy-efficient construction, digital
management of utilities, and automation of core infrastructure
systems. It is seen as a model of a new type of urban development,
where the city environment is designed as an integrated
technological system from the outset.
Shusha is developing along a different trajectory. Here, the
restoration of historical heritage is being carried out in parallel
with infrastructure modernization. The city is being shaped as a
cultural and tourism hub for the region, with upgraded
communications, energy systems, and transportation infrastructure.
In the long term, annual tourist arrivals in Shusha could reach
1–2 million visitors, positioning it as one of the
leading cultural tourism centers in the South Caucasus.
Another key area of development is energy. Karabakh and East
Zangezur have been officially designated as a “green energy zone.”
The region is already implementing small hydropower projects,
installing solar energy systems, and introducing autonomous energy
solutions in selected settlements. Given its geographical and
climatic conditions, the region has significant renewable energy
potential, making it an important component of Azerbaijan’s
long-term energy strategy.
At the same time, the “smart village” concept is being
developed, focusing on digital management of basic infrastructure
such as water supply, irrigation, and electricity distribution.
These systems are designed to improve resource efficiency and
reduce operational costs, in some cases by 20–40%,
based on estimates from comparable international projects.
The economic impact of reconstruction is already visible in
rising demand for labor in construction, engineering, architecture,
and IT sectors. At the same time, conditions are emerging for the
development of small businesses, agriculture, and service
industries. In the long run, the region could evolve into a
combined construction, tourism, and energy hub.
However, the recovery process remains complex and long-term. Key
challenges include mountainous terrain, the scale of destruction,
and the need for complete reconstruction of engineering networks.
Experts emphasize that infrastructure development is only the first
stage. Sustainable growth will require parallel efforts to create
jobs, develop social infrastructure, and build a stable economic
environment.
Overall, Karabakh is gradually transforming into a new type of
integrated development region, where infrastructure, energy, and
digital technologies are being developed simultaneously. If current
trends continue, basic infrastructure could be largely completed by
2027–2028, key urban centers by
2030–2035, and full economic stabilization could
take 10–15 years.
It should also be noted that, just in recent days, the President
of the Republic of Azerbaijan Ilham Aliyev took part in the opening
of a residential complex in the city of Zangilan. In general, over
recent years, the Head of State and First Vice President Mehriban
Aliyeva, have consistently participated in official inauguration
ceremonies of schools, preschool institutions, roads, and other
infrastructure facilities in the liberated territories, which
reflects the consistent state-level attention to the issues of
reconstruction and the comprehensive development of the region.
The main thing in this process is, of course, a sense of human
peace, which is inherent in people of ours by nature. To create and
to build — this is what distinguishes true masters of the land from
alien ones.
