The Republic of Azerbaijan and the Islamic Development Bank (IsDB) signed two agreements aimed at enhancing water security and strengthening development cooperation during the 2026 IsDB Group Annual Meetings in Baku. The signing took place in the presence of President of Azerbaijan Ilham Aliyev and IsDB President and Chairman of the IsDB Group Mohammad Al-Jasser.
The agreements were signed by Azerbaijan’s Minister of Economy and Chairman of the IsDB Board of Governors Mikayil Jabbarov and IsDB Vice President (Operations) Dr. Rami Ahmad. They mark a new step in strengthening the long-term partnership between Azerbaijan and the IsDB in support of sustainable development, climate resilience, and economic transformation.
The first agreement covers the Karabakh Irrigation Canal Project and includes IsDB financing of $436.67 million. The project will support the reconstruction and modernization of approximately 168 kilometers of the irrigation canal and introduce smart water-management systems to improve efficiency, strengthen climate resilience, and expand irrigated agricultural land. It is expected to reduce water losses by around 30%, improve the reliability of water supplies, and increase agricultural productivity in the region.
The second agreement is a memorandum of understanding on the preparation of Azerbaijan’s Member Country Partnership Strategy for 2027-2031. The framework aims to align future IsDB-supported investments with Azerbaijan’s national priorities and Vision 2030 objectives.
Source: Riyadh Daily