Speech by Ilham Aliyev at the opening of the Takhtakorpu water reservoir, the Takhtakorpu hydro power plant and the Takhtakorpu-Jeyranbatan water canal built in Shabran District

- Dear friends, it is a very remarkable day in the history of our country today. I can actually say that it is a historic day.

A very large infrastructure project is being implemented in Azerbaijan. The commissioning of the Takhtakorpu water reservoir and the reconstruction of the Samur-Absheron irrigation system is a historic achievement. As you know, the Samur-Absheron irrigation system has been in operation since 1940. In the 1950s, a canal to Jeyranbatan water reservoir was built. But, of course, this infrastructure became outdated over time and the need emerged for the reconstruction of the Samur-Absheron irrigation system.

It is no coincidence that on the initiative of great leader Heydar Aliyev specific steps for the reconstruction of the Samur-Absheron irrigation system were taken in the 1990s and a new scheme started to be prepared on its basis.

And we began specific work as early as in the 2000s. In 2006, by building the Khanarkh canal, we actually put one component of the system into operation. Then, in 2007, we laid the foundation of the Takhtakorpu water reservoir. I remember that day very well. There was a completely different picture here. And today, looking down at the lake from above, from this dam, I become further convinced that where there is a will and professionalism, we can implement any project. This project is a miracle. A lake has emerged among these mountains. This lake is twice as big as the Jeyranbatan lake in terms of its capacity.

This is Azerbaijan’s large water reservoir. It has 270 million cubic meters of water which will be used by Azerbaijani citizens and entrepreneurs. In 2007, we laid the foundation for this great project, and I am very happy that all the issues required for its implementation have been resolved. As you know, this project consists of several components. The Khanarkh canal, the Valvalachay-Takhtakorpu canal, which was a project aimed at collecting water. The construction of the Takhtakorpu water reservoir and the Takhtakorpu-Jeyranbatan canal is also a part of this project. Thus, the length of the canals built in recent years is 150 kilometers.

As I noted, a large water reservoir and a hydro power plant have been built, and we are commissioning them today. This is also a very important issue because despite the fact that Azerbaijan has fully ensured its energy security and plays a role in ensuring the energy security of many countries, we are working on the creation of alternative energy sources, and the construction of hydro power plants is a very important step in this direction. Over the past period we have built a number of hydro power plants – in Fizuli with a capacity of 25 megawatts, the Bilav power plant of about the same capacity in Ordubad. We have almost completed the reconstruction of the Arpachay hydro power plant. The construction of the Takhtakorpu hydro power plant is, of course, an important step in the construction of large hydroelectric power stations. At the same time, hydro power plants with a capacity of 1 megawatts, 4 megawatts and 5 megawatts are built on small rivers. Currently, a hydroelectric power plant with a capacity of 25 megawatts is under construction on the Shamkirchay water reservoir – it will be the second largest after the Takhtakorpu water reservoir.

Thus, by implementing this large project, we, along with this, will ensure our energy security to an even greater extent. Suffice it to say that thanks to the capacity of this station we will be able to provide the entire northern zone of the country with cheap electricity. If we consider that the “Shahdag” power plant was built a few years ago, the future development of the region will be facilitated by continuous power supply. This region is also growing very fast. The tourism potential of the northern region is very large. We are creating new tourism infrastructure here. In Gusar District we are creating the most modern sports and leisure infrastructure in our country. Last year we commissioned the Shahdag ski resort, and thousands of people are already using these opportunities. Several five-star hotels are currently under construction there. While visiting Guba this month, I reviewed the construction of a five-star hotel there as well. In other words, the tourist and agricultural potential of this region is quite broad. Thus, the construction of power plants is necessary, and we have practically resolved this issue.

As for the reconstruction of the irrigation system, as I said, it is a historic project. As a result of the launch of the Takhtakorpu water reservoir, the Valvalachay-Takhtakorpu and Takhtakorpu- Jeyranbatan canals, the irrigation of 150,000 hectares of land will be improved, while 30,000 hectares of land will become suitable for crops again. Much of this land, about 11,000 hectares, is located in Shabran District. Thus, excellent opportunities are emerging for agricultural development.

In parallel, the construction of the Shamkirchay water reservoir is continuing, and I hope that this ambitious project will be realized by the end of next year. As a result of the inclusion of new land into circulation and the supply of drinking water, both social and economic issues will be addressed there. The operation of the Shamkirchay reservoir will provide irrigation of 75,000 hectares of land.

So these are historic projects. These projects will always serve the people of Azerbaijan and the Azerbaijani state. We have succeeded in establishing new man-made lakes on the map of Azerbaijan. The Takhtakorpu lake is about 9 km long. These are events that have been made possible by the hard work and talent of the Azerbaijani people. It is a miracle! Thus, as a result of the implementation of these projects, we are pursuing several major goals. In the first place, we are creating a modern infrastructure meeting the highest standards. Azerbaijan has taken a very important step towards creating alternative energy sources. A few years ago, on my instruction, we identified all potential sources of water in Azerbaijan. Their map was developed. The establishment of this plant is also part of this process. New opportunities are being created for the development of agriculture in Azerbaijan because farmers and entrepreneurs will cultivate the irrigated land. Thus, we will fully ensure food security of our country.

As you know, we are taking serious steps in this regard and are already implementing pilot projects. In Beylagan and Agjabadi Districts, about 5,000 hectares of new cultivated lands have been included into the circulation.

All the technical conditions and irrigation opportunities are available. The results of this year show that it is a very effective and successful way. Whereas grain yield per hectare is 26 quintals in the country, the new lands will have this indicator at the level of 55 quintals. So if we apply new technologies, provide agronomic services and, of course, if the machinery is at the desired level, we can get twice as much yield. The inclusion of new acreage in the turnover will provide farmers with greater opportunities and ensure the development of our agriculture.

The development of agriculture depends largely on infrastructure projects. Of course, Azerbaijan will fully meet its needs for food commodities in the coming years. We have already come close to that. This, too, will be a historic achievement, and then we need to think more about exports. We are already thinking about that and taking steps to expand into new markets. Thus, agriculture will be developing rapidly in Azerbaijan as well.

Thus, the establishment of the Takhtakorpu and Shamkirchay water reservoirs and irrigation systems will provide us with 250,000 hectares of new lands in two years. This would be a historic achievement. These projects will also provide for the water security of our country. We are paying constant attention to these issues because the main sources of water supplying our country are located outside Azerbaijan. Therefore, the rational use of water resources, the realization of new projects, the construction of new canals and the creation of water reservoirs are matters of strategic importance.

Thanks to the establishment of the Takhtakorpu water reservoir we will achieve this strategic goal. Our waters come from the rivers Kura, Araz and Samur, which originate from other countries. Thus, water security is an issue of strategic importance for us, and water resources will be of strategic value to each country in the future.

There is a struggle primarily for oil and gas resources in the world today. Fortunately, Azerbaijan rational uses these resources for the benefit of the people and in the name of development. But there will come a time when the struggle for water resources will get even tougher. We are already seeing manifestations of this struggle. Under such circumstances, water security in Azerbaijan should be fully ensured. The achievement of this goal is facilitated by the Takhtakorpu water reservoir and the Samur-Absheron irrigation system, the Shamkirchay reservoir and other water projects implemented in the country.

Drinking water projects are implemented in every city now. In some cities they have already been implemented, while in others they are still under way. The process of drilling artesian wells is ongoing. A few months ago, on my order, funds in the amount of 6,000,000 manats were allocated for this purpose. The project will cover 104 villages. My order lists the villages, so that our fellow citizens living in them know that these wells will be drilled in their villages and their water problems will be resolved. We are building modular water treatment plants in Azerbaijan. These plants have been installed in about 400 villages, in the villages located along rivers. So water security is a matter of strategic importance, and the implementation of this project helps us address these issues as well.

Major investment was attracted for the implementation of this project. The investment climate in Azerbaijan is very positive. The inflow of foreign investment continues. But domestic investment has been exceeding foreign in recent years. There is approximately a 70/30 ratio in favor of the domestic investment. This is also a very positive development.

So far the bulk of domestic investment is formed on the account of public investment, which is perfectly natural because the state should give a strong impetus to all economic and social projects, and we are doing just that. The investments made in infrastructure today herald a new period in our development. Over the past 10 years, our economy has grown three to four times. This is also an unprecedented result in the world. Over the last 10 years we have resolved many social issues, built about 500 hospitals and nearly 3,000 schools, increased pensions nine times and the average salary six times. We have implemented infrastructure and investment projects. We can say that our country has made considerable progress and grown stronger. But in the next 10 years we will ensure our development largely due to the non-oil sector. Under such circumstances, the expenses on infrastructure in recent years and the public investments create perfect conditions. In subsequent years domestic investment will certainly be higher than foreign investment.

But I would like to see the dominance of investment coming from the private sector. I am sure we will achieve that. The government will continue to pursue its investment policy and all the projects necessary for our country and people will be implemented. The Azerbaijani people are well aware that even the global financial and economic recession has had no impact on our investment and social projects – salaries and social benefits have been increased and investment projects implemented every year.

The investment in this project has been made through the State Oil Fund. This, I think, is also a remarkable and memorable event which bears a symbolic meaning. The State Oil Fund finances only the most important projects, the projects of top priority for our country. The central of these projects are associated with the settlement of the IDPs. Every year, we spend 300 million manats only on the construction of houses for the displaced persons, thus providing 20,000 IDPs with new houses and apartments each year. We can say that a whole new city is built for the IDPs in Azerbaijan every year, and this process continues. Through the State Oil Fund we are resolving issues of education and the education of Azerbaijani students abroad. The strategically important projects are financed from the fund.

This being the case, our economic development will be even more rapid, of course. Our economic concept is based on sound policies and bears fruit. The best measure of what I have said is the work done in Azerbaijan in the past 10 years.

Over the past 10 years, our country has covered a long and glorious road, people’s well-being has improved, ambitious investment projects have been implemented and social programs have been fully secured. I am confident that these positive trends will be continued in the coming years too.

Of course, the establishment of the Takhtakorpu water reservoir and the reconstruction of the Samur-Absheron irrigation system will give a new impetus to private sector development. The private sector accounts for nearly 85 per cent of Azerbaijan's economy. This suggests that the principles of a market economy are implemented fully in Azerbaijan. In the first eight months of this year, our non-oil sector grew by 10.3 per cent. This is also the highest indicator in the world. I am confident that we will maintain this high growth rate and ensure the implementation of all the provisions of the "Azerbaijan 2020: vision for the future" concept.

We have overfulfilled two regional development programs in Azerbaijan over the last 10 years. The third program is scheduled for adoption at the beginning of next year. The "Azerbaijan-2020" and the next "Azerbaijan: 2014-2018" programs will be implemented.

The implementation of this project draws our attention to another issue. Such ambitious projects can only be realized by an independent country. We can only implement them when our destiny is in our own hands. This project and the entire work done in our country in recent years reflect the benefits of our independence again. Independence is our great value and biggest asset. The future of the Azerbaijani people is in their own hands now. Today, Azerbaijan is one of the most rapidly and successfully developing countries of the world. I am confident that we will retain the development momentum in the coming years and ensure a successful future for our country.

I want to congratulate the people of Azerbaijan on the completion of these wonderful projects. I greet all the citizens who have taken part in the construction of the Takhtakorpu water reservoir and the reconstruction of the Samur-Absheron irrigation system, and express my gratitude to you. I can say that such large infrastructure projects will be implemented in Azerbaijan in the future too. We already have vast experience. I am very pleased that Azerbaijani companies were involved in this project. I congratulate you again and wish you continued success. Thank you!