Infrastructure Development in Reconstruction of Karabakh / Media

The Second Karabakh War ended with the return of one of Azerbaijan’s most important economic regions – Karabakh. Although the Karabakh zone is now destroyed because of years of occupation, the area has high economic resource potential that can contribute to national economic growth. Before the occupation, Karabakh was one of the most prosperous parts of Azerbaijan’s economic welfare. Manufacturing industry and agriculture made up a large portion of the economy in the zone; several industries operated and produced goods and services. Tourism also was a part of the economy in the region; Karabakh has been an exciting destination for locals and tourists due to its nature, culture, and geographic location. Factories, commercial facilities, tourism attractions, social housings, and other city infrastructures of pre-war Karabakh indicate how economically valuable the region is.

The pre-war state of the infrastructure shows that real estate played a critical role in the socio-economic life of the zone. However, after years of destruction and neglect caused by the occupation, the majority of the infrastructure in the region is now unusable. To revive Karabakh’s urban life and economy, substantial investment in infrastructure building is required. Thus, real estate development plays an irreplaceable role in rebuilding the Karabakh mission, considering the importance of an infrastructure-based economy.

Infrastructure-driven economic development

The past decade in Azerbaijan has marked remarkable improvements in urban and rural infrastructure development. With the number of growing successful projects and opportunities, the real estate market in Azerbaijan is on its way to becoming one of the significant contributors to nonoil GDP. The real estate potential in Karabakh should be explored and improved for efficient and long-term socioeconomic growth. The infrastructure-based economic development theory combines key policy characteristics from Rooseveltian progressivist tradition, neo-Keynesian economics, and Scandinavian social democracy. The idea focuses on the principle that a considerable portion of the country’s resources should be utilized on long-term assets, such as economic and social infrastructures to bring sustainable economic growth and social equity. The successful outcomes of infrastructuredriven economic development are indicated in the analysis of the US economic history. According to the study by D. A. Aschauer, there are positive and statistically significant relations between infrastructure development and economic growth. The research shows that substantial investment in infrastructure improves the country’s quality of life and labor productivity. Karabakh’s successfully executed infrastructural investment will lay a foundation for a well-planned regional map while improving social housing, tourism, manufacturing, agriculture, and other economic sectors.

PMD Group and Infrastructure development in Karabakh

PMD Group profoundly cares about the prosperity of socioeconomic life in Azerbaijan. For that reason, PMD Group joined the cause of rebuilding Karabakh and directed its resources to be part of this noble purpose. Under the leadership of PMD Group, PMD Projects has started the construction of two significant projects in Agdam. During the occupation, city infrastructures, residential buildings, cultural and historical monuments, including The Great Mosque of Agdam and Agdam Bread Museum, were destroyed. The scope of destruction is so severe that, in the foreign press, Agdam was often referred to as “Hiroshima of the Caucasus”. However, with the construction of the first residential complex in Agdam city center, the face of the city will start to change. The complex will include six residential buildings in a total area of 1.55 hectares. Moreover, another project by the company, “Park Forest Hotel Agdam”, also is in the construction process. The hotel complex will have 110 rooms and cover 2.16 hectares of territory. After completion of the project, the hotel will accommodate both residents and tourists in Agdam. On February 13, the President of the Republic of Azerbaijan, H.E. Ilham Aliyev, attended the groundbreaking ceremony and laid the foundation stone for both projects.

Sustainable Infrastructure

As part of its sustainability strategy, PMD Group implemented a special approach and incorporated its core values of sustainability in the ongoing projects in Agdam. During the project initiation phase, all factors related to sustainability are carefully considered to develop energy-efficient projects and contribute to Karabakh’s zero-emission voluntary goals set by our government. The architectural design of the projects prioritizes the core characteristics of sustainable infrastructures. Moreover, the surrounding areas of the projects will be renovated with parks, forests, and other green infrastructure to increase the share of green areas in the city. We believe that these projects will add value to the region, especially to efficient city planning, housing, and economic opportunities in the tourism sector. The construction of city infrastructure such as transportation systems, bicycle roads, more business facilities, and residential buildings are also planned to be executed in the future. Looking forward with more faith, PMD will keep up with the contribution to the rebuilding of Karabakh and help its economic reintegration process to Azerbaijan. In conclusion, the demand for infrastructure building and real estate development make up a large portion of socioeconomic redevelopment in Karabakh. Once again, history shows that Karabakh has always been an economically resourceful and culturally rich region of Azerbaijan with high potential for innovative developments and opportunities. The return of the historical lands by outstanding diplomatic leadership creates a remarkable chance to reintegrate it into Azerbaijan’s economic and social life. For swift and efficient restoration of Karabakh, cooperation of all sectors of the economy in both public and private fields is exceedingly essential. By collaboration and sharing diverse expertise, we can make this process successful and deliver outstanding results to the socio-economic welfare of the region.

Author’s biography: Mr. Dayanat Sadullayev is Chief Executive Officer of PMD Group, one of the leading real estate management and development companies in Azerbaijan. Mr. Sadullayev started his journey at PMD Group LLC in 2015, and since then, he has held multiple positions such as CFO, Deputy CEO, and CEO. Before joining PMD Group, he worked in both local and international companies and had experience creating and developing business strategies, managing business operations, corporate management, stakeholder engagement, and public accounting. Besides real estate, his professional experience includes oil and gas, credit union, health services, and investment management spheres. Mr. Sadullayev completed the “Real Estate Management” Program of Harvard Business School, he is also a Certified Public Accountant from the State of Alaska and a permanent member of the American Institute of Certified Public Accountants.