Nakhchivan's sustainable socio-economic development and closer integration into Azerbaijan's overall development processes have always been in the spotlight, Report informs.
This goal is being implemented under the State Program on the socio-economic development of the Nakhchivan Autonomous Republic for 2023-2027.
The measures carried out have produced positive dynamics. Compared with 2023, Nakhchivan's gross domestic product grew by 7.6% in real terms in 2025, industrial production by 4.6%, transport and warehousing by 25.7%, and information and communications by 2.1%.
During the reporting period, investment in fixed capital increased 2.5 times, including construction and installation work, which rose 2.1 times in real terms.
One of the important directions of Nakhchivan's new economic development model is expanding entrepreneurs' access to financial resources and creating a favorable business environment.
From 2023 through the first half of 2026, 342 entrepreneurship projects in Nakhchivan were financed through the Entrepreneurship Development Fund, with a total of 27.2 million manat ($16 million) in concessional loans issued through authorized banks and non-bank credit organizations.
Against the backdrop of a rapid increase in the number of projects, the decline in the average loan amount per project shows that concessional financing is covering a broader group of entrepreneurs and that support for small and medium-sized businesses and family farms has strengthened.
Industrial promotion increases investment attractiveness
Expanding industrial production is an important element in ensuring the sustainability of Nakhchivan's economy. It also has a supportive effect on increasing the region's investment potential.
The creation of the Nakhchivan Industrial Park, which will become the largest industrial zone after the Sumgayit Industrial Park, is of special importance in implementing this strategic vision. The foundation of the park was laid yesterday with the participation of President Ilham Aliyev.
The park, located in the southwestern part of Nakhchivan city, south of the Nakhchivan-Sadarak highway, will cover an area of 310 hectares.
To organize its activities, the area will first be made suitable for use. At the next stage, external and internal infrastructure will be created, including electricity and heat supply, gas, water, communications, transport, production, administrative, social and other facilities.
Negotiations are already underway on a number of projects to attract potential entrepreneurs to the park.
A 300-megawatt thermal power plant will also be built as part of the park. As President Ilham Aliyev noted yesterday, this single plant alone will increase Nakhchivan's generation capacity by 1.5 times.
"Of course, this station has two purposes: first, to provide the Nakhchivan Autonomous Republic with sustainable energy, and second, export issues," the president said.
Energy sustainability becomes a strategic goal
Against the backdrop of complex geopolitical processes in the region, Nakhchivan's energy security is becoming increasingly relevant.
As the head of state said, it is necessary to ensure that Nakhchivan's continuous and sustainable energy supply is never disrupted.
A consistent and systematic state policy is being implemented to diversify Nakhchivan's energy supply and form modern energy infrastructure. A number of hydroelectric and solar power plants, as well as a modular power plant, have been built in the region.
The construction of the Regional Digital Management and SCADA Center in Nakhchivan city, the 110/35/10 kV Nakhchivan substation, the 154/110/10 kV Babek substation, the 132/110/10 kV Julfa substation in Julfa district and the 110/35/10 kV Cheshmabasar substation in Babek district has been completed.
Preparatory work is also underway for the construction of the 400/330/110 kV Nakhchivan converter hub substation, while construction continues on the 36 MW Ordubad and 15.6 MW Tivi hydroelectric power plants.
As President Ilham Aliyev said, Nakhchivan has very large solar energy potential. Monitoring and precise analyses show that Nakhchivan is the most favorable location in Azerbaijan for solar electricity generation.
A total of 688 hectares in Nakhchivan have been identified as renewable energy areas for the construction of solar power plants.
The Shams 1 and Western Horizon solar power plants, with a total capacity of 50 MW, are currently being built in Nakhchivan city. Under the 25 MW Shams 1 project, the installation of solar panels with a capacity of 10 MW has already been completed. Construction and installation work is planned to be completed in November this year.
After the station is commissioned, it is planned to produce about 57 million kilowatt-hours of electricity annually and supply energy to nearly 19,000 households.
Topographic work on the construction of the Western Horizon Solar Power Plant has already been completed, while geological research is ongoing. Construction work is expected to begin by the end of this year.
After commissioning, the station will produce about 61 million kilowatt-hours of electricity annually, which will make it possible to supply energy to nearly 21,000 households.
The head of state believes that solar electricity production alone in Nakhchivan could reach at least about 500 megawatts.
New agricultural development model
Global processes related to the depletion of water resources are also relevant for Azerbaijan, as the country has limited water resources.
According to long-term data, Azerbaijan's surface water resources amount to 30 billion cubic meters. Only 30% of these resources are formed within the country, while 70% come from neighboring countries.
In recent years, climate change and prolonged droughts have sharply reduced the flow of Azerbaijan's main water arteries, the Kura and Araz rivers, while many internal rivers have completely dried up.
Considering Nakhchivan's natural and geographical features, ensuring water security, using existing water resources efficiently, reducing water losses and creating modern irrigation infrastructure are of great importance.
Work in this direction is defined by the Action Plan for 2026-2030 on ensuring the efficient use of water resources in the Nakhchivan Autonomous Republic.
The planned measures do not only cover the restoration of individual water management facilities. They also provide for the renewal of the entire water management chain from source to consumer.
This will contribute to forming the long-term foundations of water security in Nakhchivan and improving the quality of life of the population, while also making an important contribution to the sustainable development of agriculture.
As the president said, water will be supplied to lands that are not irrigated today.
Along with strengthening water security, strategic targets have also been set for more efficient use of the autonomous republic's rich agricultural potential, modernization of the agrarian sector and introduction of modern production models.
The State Program for 2026-2030 on the development of production and processing of agricultural, fishery and aquaculture products was approved by an order signed on May 20, 2026.
Under the program, the pilot project will be implemented in the autonomous republic, where a model cooperative will be created with state support.
The program also provides for the creation and support of agricultural production cooperatives and their unions in areas such as milk, meat, sheep breeding and other fields.
This approach is expected to expand market access for small landowners and strengthen the processing chain.
Roads to the Middle East will pass through Nakhchivan again
Major transport projects being implemented in the region will increase Nakhchivan's strategic importance.
The passage of key trade routes and logistics lines through Nakhchivan means that large volumes of cargo will move through the region.
A significant role in this process belongs to the Zangazur Corridor, or the Trump Route for International Peace and Prosperity, TRIPP, initiated by the head of state.
As part of this project, the autonomous republic's railways are being reconstructed. Construction work is currently underway on the first seven-kilometer section from the Azerbaijan-Armenia border toward Ordubad.
The first stage of construction covers the Salammalik, Ordubad, Aza and Julfa sections.
A total of 814 engineering structures are planned to be built and reconstructed along the railway, including 10 stations, three platforms, 29 bridges, 11 overpasses and various crossings.
Earthworks have already been completed on a six-kilometer section, and new rail-sleeper grids have been installed on a 700-meter section starting from Salammalik station.
The railway network being reconstructed in Nakhchivan will connect to the Zangazur Corridor from the Ordubad side, while the Horadiz-Aghband railway line will connect from Azerbaijan's main territory.
This is expected to form a direct railway link between Azerbaijan's main territory and the Nakhchivan Autonomous Republic.
At the same time, this route will create a direct railway connection with Türkiye.
The new link will expand the capabilities of the Middle Corridor, contribute to the development of cargo transportation between Europe and Asia, and strengthen access to the markets of Türkiye and Europe.
The Zangazur Corridor will also be strategically important in terms of connection with the North-South transport route.
This promises Nakhchivan the prospect of becoming a corridor linking Central Asia and Europe, with a cargo-handling capacity of 15 million tons.
Thus, Nakhchivan's strategic geographical position, which it has had for centuries, will be transformed into an economic advantage through new transport opportunities.
Under the order signed today by President Ilham Aliyev on accelerating the socio-economic development of the Nakhchivan Autonomous Republic, 258 million manat ($151.8 million) has been allocated to the region.
Of this amount, 66 million manat ($38.8 million) will be spent on continuing construction and installation work at the Tivi Hydroelectric Power Plant with a total capacity of 15.6 MW on the Gilanchay River in Tivi village of Ordubad district.
Overall, the allocated funds will strengthen Nakhchivan's infrastructure base, increase employment, improve living standards and further strengthen the autonomous republic's contribution to the country's overall development.
This decision is a concrete manifestation of the head of state's policy of balanced regional development and special attention to Nakhchivan.
It is clear that the construction of new power plants in Nakhchivan, the creation of the Nakhchivan Industrial Park, ensuring the efficient use of water resources, improving drinking water supply, ensuring the sustainable development of the agrarian sector, and reconstructing and restoring the autonomous republic's distribution electricity network will significantly accelerate Nakhchivan's integration into the national economy and turn it into an important contributor to overall economic development.