As a result of the Second Karabakh War in 2020, a completely new phase began in the territories of Azerbaijan liberated from occupation. Decades of destroyed cities and villages, ruined infrastructure, and plundered cultural heritage had led many international observers to call many cities in these lands, especially Aghdam, the “Hiroshima of the Caucasus.”
However, large-scale restoration and reconstruction programs implemented in recent years have transformed Karabakh into one of the region's largest development and modernization projects. This process encompasses not only the establishment of infrastructure but also strategic directions such as the restoration of cultural heritage, the formation of a new economic model, and the transformation of the region into a tourism hub.
Modern.az presents an overview of the work done so far and the work planned for the future.
6 cities, 2 settlements, and 22 villages
To date, the resettlement of the population has been carried out in a total of 30 settlements in the liberated territories, including 6 cities, 2 settlements, and 22 villages. By November 1st of this year, the return of 5256 families comprising 20879 people to Karabakh and East Zangazur has been ensured. Considering also the individuals temporarily residing here for restoration and construction work and other professional activities, as well as students studying at Karabakh University, the total number of residents currently settled in the liberated territories is approximately 62,000 people.
It should be noted that restoration and construction work in our liberated territories began with the construction of roads and energy supply. The transport projects implemented here in the last 5 years once again demonstrate the power and determination of the Azerbaijani state, both in terms of scale and number. Over the past 5 years, work has commenced on the construction of 3501.6 kilometers of roads across 60 projects related to the transport infrastructure of Karabakh and East Zangazur. Of these projects, 16 have been fully completed, and 1 has been partially completed.

We must also specifically mention the construction of international airports in Fuzuli, Zangilan, and Lachin. Regarding railways, design and construction work has been carried out for the Barda-Aghdam, Horadiz-Aghband, and Aghdam-Khankendi railway lines. The Barda-Aghdam railway line has been fully commissioned.
Regarding energy supply, 14 electrical substations have been built, and over 1000 kilometers of high-voltage power transmission lines have been laid, connecting 12 new substations in a chain. All of this fully meets the energy needs of the liberated territories. Furthermore, 38 hydroelectric power plants with a total capacity of 307 MW have been built in Karabakh and East Zangazur. The construction of these HPPs, integrated into Azerbaijan's unified energy system, demonstrates the successful realization of calls for a transition to "green" and renewable energy in our country.
The laying of 6 main gas pipelines in the liberated territories is also a significant event in the field of gas supply. To date, 9 gas distribution stations and 1 gas regulating point have been built, and gas supply has been ensured to 8 cities, 20 villages, and 1 settlement.

It should also be noted that the Azerbaijani state has carried out all these works using its own resources. To date, President Ilham Aliyev has participated in 569 events in the liberated territories, laid the foundation for a total of 177 projects of various purposes, and inaugurated 167 facilities and infrastructure projects.
Green Energy Zone (GEZ) in the Liberated Territories
In the course of economic development defined by the President of the Republic of Azerbaijan, Ilham Aliyev, regarding the liberated territories, the transformation of these territories into a “green energy" zone is considered one of the main directions. Following the 44-day Patriotic War, at a meeting on the economic outcomes of 2020 held on January 6, 2021, President of the Republic of Azerbaijan, Mr. Ilham Aliyev, put forward a strategic vision for the creation of a Green Energy Zone in the liberated territories, stating that there is sufficient renewable energy potential in these areas for this purpose.
The Decree of the President of the Republic of Azerbaijan No. 2620 dated May 3, 2021, “On measures related to the creation of a ‘green energy’ zone in the liberated territories of the Republic of Azerbaijan,” envisaged the involvement of an international consulting company. In line with the implementation of the Decree, cooperation with Japan's TEPSCO company has begun, and a relevant Concept document has been prepared.

The purpose of the Concept is to provide the territory with environmentally friendly green energy by utilizing the high renewable energy potential existing in the liberated territories, and to formulate proposals by exploring the prospects for applying environmentally friendly and energy-efficient green technologies. For this purpose, energy demand models for the territories have been developed by applying various scenarios.
Within the framework of creating a Green Energy Zone, measures such as electricity generation from renewable energy sources, energy efficiency measures, use of electric vehicles, installation of renewable energy facilities (especially solar panels) on building roofs, as well as the use of solar-powered LED lamps for street and road lighting, utilization of renewable energy technologies for heating, cooling, and hot water supply, implementation of smart energy management technologies, and energy-purpose waste management are envisaged in the liberated territories.
In addition, the Azerbaijani government declared its intention at the UN Climate Change Conference (COP26) held in Glasgow in November 2021 to reduce greenhouse gas emissions by up to 40% by 2050 compared to the base year and to create a "net-zero emission" zone in the liberated territories. This, in turn, will contribute to the transformation of the liberated territories into a green energy zone.
Preliminary observations indicate that favorable potential exists for solar energy projects in Gubadli, Zangilan, Jabrayil, and Fuzuli districts, and this technical potential is estimated to be over 7200 MW. At the same time, based on preliminary studies, a technical potential of 2000 MW for wind energy has been identified in the mountainous areas of Lachin and Kalbajar. Additionally, significant hydropower potential exists in the Tartarchay, Hakari River, and their tributaries.
As an important component of the restoration process of the liberated territories, special importance is attached to the establishment of energy infrastructure and the ensuring of energy security. In line with this goal, within the framework of restoring electricity generation capacities, 4 hydroelectric power plants with a total capacity of 20.2 MW, restored in Lachin, Kalbajar, and Sugovushan, have already been put into operation:
“Gulabird” HPP - 8 MW;
“Sugovushan-1” SHPP - 4.8 MW;
“Sugovushan-2” SHPP - 3.0 MW;
“Kalbajar-1” SHPP - 4.4 MW.
At the same time, the construction of two hydroelectric power plants with a total capacity of 140 MW for the Azerbaijani side (100 MW "Khudaferin", 40 MW "Giz Galasi") is currently underway in Jabrayil district, on the Araz River.
Furthermore, the implementation of a planned wind power plant project with an approximate capacity of 100 MW in the Lachin/Kalbajar area will provide an additional contribution to the creation of a “Green Energy Zone” in the liberated territories.
In addition, on June 3, 2021, an Implementation Agreement was signed between the Ministry of Energy of the Republic of Azerbaijan and bp company for the evaluation and implementation of a project for the construction of a 240 MW solar power plant in the Zangilan/Jabrayil zone.
Shusha
Large-scale restoration and reconstruction works are being carried out in the territories liberated as a result of the Second Karabakh War in 2020. This process is not limited to the construction of settlements and infrastructure. The restoration of destroyed historical, religious, and cultural heritage samples in Karabakh is one of the main directions of the state program.
During the long years of occupation, hundreds of monuments were destroyed or severely damaged. Currently, complex projects are being implemented with the participation of local and international experts for the restoration of these monuments.
Historical monuments restored in Shusha:

Yukhari Govhar Agha Mosque
The Yukhari Govhar Agha Mosque is one of Karabakh's most famous architectural monuments, built in the 19th century. This mosque, severely damaged during the occupation, has been restored and recommissioned after liberation.
Saatli Mosque
The Saatli Mosque is another historical religious monument in Shusha. The architectural style of the mosque is considered one of the classic examples of Karabakh architecture, and restoration work has now been completed.

Vagif Mausoleum
The Vagif Mausoleum is an architectural complex dedicated to the memory of Molla Panah Vagif, an 18th-century Azerbaijani poet and statesman. Although the monument was subjected to vandalism during the occupation, it has been restored after liberation.
After the occupation, Shusha quickly became one of the main centers of Azerbaijan's cultural and public life. The declaration of the city as the cultural capital of Azerbaijan in 2021 gave new momentum to this process.
International forums, festivals, and conferences held in Shusha in recent years not only revive the city's cultural life. These events also serve as an important component of the strategy to transform Karabakh into an international cultural and diplomatic platform.
Kharibulbul Music Festival: Presenting Karabakh Music to the World
One of the most famous cultural events restored in Shusha is the Kharibulbul Music Festival.
The festival was first held in 1989 and served to introduce Karabakh musical traditions to the world. However, due to the occupation of the region, the festival was not held for many years. After the liberation of Shusha, the event was restored and is now organized in the format of an international music festival.
Main objectives of the festival:
-bringing together musical groups from various countries
-presenting Azerbaijani music to an international audience
-promoting Karabakh's rich cultural heritage to the world.
This event holds strategic importance in terms of transforming Shusha back into one of the region's significant music and cultural centers.
Vagif Poetry Days: The Return of Literature to Shusha
Another important cultural project restored in Shusha is the Vagif Poetry Days.
This event is dedicated to the memory of Molla Panah Vagif, an 18th-century Azerbaijani poet and statesman, and is mainly held around the Vagif Mausoleum.
Main directions of the event:
-promotion of Azerbaijani literature
-literary discussions with the participation of poets and writers
-development of international literary relations
-Vagif Poetry Days also highlight Karabakh's place in the history of Azerbaijani literature once again.
Shusha Global Media Forum: International Media Dialogue
One of the platforms holding a special place on Shusha's international events map is the Shusha Global Media Forum.
The forum brings together journalists, media leaders, and experts from various countries. Key issues of the modern information environment are discussed on this platform.
Main topics of the forum:
-global information security
-media transformation
-combating disinformation
-regional communication policy
This event demonstrates that Shusha has become an important platform for international information and media discussions.
Cultural Platform of the Turkic World
Shusha is also becoming one of the cultural cooperation centers of the Turkic world. In this direction, various concerts, exhibitions, and cultural events are held through TÜRKSOY.
These events:
-strengthening cultural ties among Turkic peoples
-promoting common historical and cultural heritage
-strengthening Karabakh's role as a symbolic place for the Turkic world.
Shusha – Regional Diplomacy Platform
International conferences and forums held in Shusha are not limited to the cultural sphere. The city has increasingly become a venue for regional diplomacy and political dialogue.
The main topics of discussion at these events have been:
-cultural diplomacy
-regional cooperation
-restoration and development of Karabakh
-tourism and investment opportunities
Such events indicate Shusha's growing role in the system of international relations.
New Business Opportunities in the Liberated Territories
Extensive business opportunities are emerging in various sectors for the restoration of economic activity and the development of the region in the liberated territories. Industrial zones, agricultural projects, tourism infrastructure, and large construction programs created by the state are transforming these regions into one of Azerbaijan's new economic development centers.
Industry and Manufacturing Sector
Special economic zones have been established in the liberated territories to foster industrial potential. In this regard, Aghdam Industrial Park operates as one of the region's main industrial centers. The park envisages the establishment of enterprises for the production of construction materials, furniture industry, agricultural product processing, and other manufacturing facilities.
Furthermore, the Araz Valley Economic Zone is being developed as an important platform for logistics and industrial activities. This zone is particularly focused on the development of manufacturing enterprises, logistics centers, and export-oriented industrial sectors.

Agriculture and Agrarian Business
The Karabakh and East Zangazur regions possess great potential for agriculture with their fertile lands and extensive cultivated areas. In this direction, agrarian projects based on modern technologies are being implemented.
One of the most notable projects in this area is the “smart village” model implemented in Aghali village. This model is based on the application of digital technologies in agriculture, the automation of irrigation systems, and energy efficiency principles.
At the same time, the commissioning of large grain fields, the establishment of livestock complexes, and the restoration of viticulture traditions are planned in the region. These projects will contribute to the region's agricultural production and food security.
Tourism and Service Sector
The liberated territories possess great potential for tourism with their natural landscapes and rich historical and cultural heritage. In this regard, tourism infrastructure is being rapidly developed in the region.
International-standard hotels, cultural centers, and tourism services are being established in Shusha city.
At the same time, the creation of hotel complexes, recreation centers, and cafe-restaurant networks for mountain tourism, health tourism, and ecotourism is planned in Lachin and Kalbajar districts. These projects create conditions for the region to occupy an important place on the tourism map.
Infrastructure and Construction Sector
Large-scale restoration and construction works carried out in the liberated territories also create significant opportunities in the construction sector. New highways, tunnels, bridges, and residential complexes are being built in the region.
Within this process, a wide scope of activity is being formed for road construction companies, enterprises producing concrete and construction materials, asphalt plants, and companies involved in engineering infrastructure.
Thus, these projects implemented in the Karabakh and East Zangazur economic regions serve not only the restoration of the region but also its long-term economic development and the formation of a new business ecosystem.
New Master Plans for Karabakh Cities: Modern Urbanism and the “Smart City” Model
One of the most important directions of the reconstruction work carried out in the liberated territories is the preparation of new master plans for cities. These plans envisage not only the restoration of destroyed infrastructure but also the establishment of a completely new urban model based on modern urban planning principles.
The Azerbaijani government aims to transform the Karabakh and East Zangazur regions into one of the most modern urban spaces in the South Caucasus by implementing “smart city” and “smart village” concepts. The new master plans have been prepared taking into account international architectural and urban planning experience and are based on a number of strategic principles.
Ecological City Model
One of the main directions of the new master plans is ecological sustainability. The principle of minimum intervention in nature is taken as a basis during the design of cities. Within this framework, the creation of extensive park and recreation zones in settlements, the increase of green areas, and the protection of the urban ecosystem are envisaged.
At the same time, the use of renewable energy sources, the construction of energy-efficient buildings, and the establishment of waste management systems are envisaged as key elements of the ecological city model.
Reduction of Vehicular Traffic
The reduction of vehicular traffic in city centers holds a special place in the new urbanistic concept. City plans envisage the optimization of traffic flow, the development of public transport, and the expansion of pedestrian zones.
This approach serves both to improve the city's ecological condition and to create a more comfortable and safe urban environment for residents.
Extensive Green Zones and Recreation Areas
The new plans for Karabakh cities include the creation of an extensive network of parks, gardens, and public recreation areas. Green zones not only serve an aesthetic purpose but are also considered important elements for maintaining the balance of the urban ecosystem and revitalizing the social life of residents.
Within this framework, city parks, boulevards, walking zones, and open public spaces are planned as an integral part of the modern urbanistic approach.
Pedestrian and Bicycle Infrastructure
Another important feature of the new master plans is the promotion of alternative modes of transport. Cities envisage pedestrian paths, bicycle lanes, and safe travel routes.
This approach serves both to promote a healthy lifestyle and to create balance in the urban transport system.
Application of “Smart City” Technologies
Digital technologies play an important role in the new master plans for Karabakh cities. Within the framework of the “Smart City” concept, the application of innovative solutions such as digital management systems, smart management of energy and water resources, security and surveillance systems, and electronic service infrastructure is envisaged. These technologies aim to increase the effectiveness of urban management and create more comfortable living conditions for residents.