Islamic Development Bank approves loan for major irrigation project in Azerbaijan’s Karabakh

The Islamic Development Bank (IsDB) has approved a $97 million loan to fund a major irrigation project in Azerbaijan’s Karabakh region. The project will involve the construction of a 52-kilometre irrigation canal sourced from the Giz Galasi reservoir in the East Zangazur region.

IsDB President Muhammad Al Jasser made the announcement on the sidelines of the COP29 climate conference in Baku, News.Az reports.

He highlighted the canal's potential to serve around 1.6 million people. "We are proud to be the first to allocate funding for a major infrastructure project in Karabakh. This canal is vital for the region's development and the welfare of its people," he stated.

Al Jasser expressed confidence that the project would significantly transform Karabakh, adding that he looks forward to visiting the region. During a meeting with Azerbaijani President Ilham Aliyev, Al Jasser also reaffirmed the IsDB’s commitment to expanding its operations in Azerbaijan.

"We have the potential to increase the number of projects we can finance," he said. "We are optimistic about the future and eager to strengthen our partnership with Azerbaijan across various sectors of the economy, with new major projects on the horizon."

News.Az