Construction sector of Azerbaijan develops quite dynamically. This sector grew almost by 8 times over the past 10 years. Approval of the town-planning and construction code of Azerbaijan opens new horizons for the development of the construction sector. Big infrastructure projects bearing regional significance are realized in Azerbaijan, modern buildings are erected, necessary construction materials and equipment are produced.

Infrastructure 

Construction and infrastructure projects that are implemented in Azerbaijan changes the appearance not only of the capital but also regions. Investment expenditures on construction and reconstruction of science, education, healthcare, culture, sports and other social-cultural facilities totaled 514.0 mln AZN within the first 6 months alone. 

1 bln 476.0 mln AZN was spent on the construction and reconstruction of energy, water and gas supplying facilities, transport, communication and melioration infrastructure, including 405.0 mln AZN  on construction and reconstruction of road-transport infrastructure, 118.0 mln AZN on fulfillment of the State program of development of Baku subway for 2011-2015, 150.0 mln AZN on provision of gas supply measures envisaged within the framework of the State Program of Social-Economic Development of Regions of the Republic of Azerbaijan for 2009-2013, 154.0 mln AZN on restoration and reconstruction of water supply and sewage system (Azersu OJSC), 156.0 mln AZN on measures for improvement of water supply of lands and melioration (Melioration and Water Industry of Azerbaijan). 

118.0 mln AZN was spent within the first half of 2012 on financing of investment projects that are under implementation in the Nakhchivan Autonomous Republic, including 29.0 mln AZN on the construction of water power plants Arpachay and Ordubad, 44.0 mln AZN on construction of the water supply and sewage systems of the city of Nakhchivan and 7 districts, and 13.0 mln AZN on reconstruction of Nakhchivan-Julfa highway. 

Along with the investment expenditures allocated by the state budget for the construction and reconstruction of the road infrastructure, water industry and melioration, agriculture, social and other infrastructure in our country the government of Azerbaijan spent 348.0 mln AZN at the expense of credits attracted from abroad. 

133.0 mln AZN was allocated within the first half of the year by the Reserve Fund of Azerbaijan President Ilham Aliyev for the implementation of a number of social and infrastructure projects, as well as 215 mln AZN spent on the construction of vicinal roads over the past 2 years. 

The head of the state has recently allocated another 20 mln AZN for the construction of medical institutions. 

Following the results of the IV session of the three-sided coordination council for construction and operation of the Baku-Tbilisi-Kars railroad Azerbaijan, Georgia and Turkey reached (in July) an agreement on acceleration of solution of technical issues in order to commission the line in 2014. Turkish Minister of Transport, Shipping and Communications Binali Yildirim said that the parties agreed to conduct operations round the clock in summer season in order to accelerate construction work. 

New code

Town planning and construction code approved by President of Azerbaijan Ilham Aliyev in September 2012 also makes a contribution to the revival of the construction market. The guidelines for its fulfillment will be ready during 3-6 months. The government was assigned to submit proposals for bringing the legislation to conformity with the new code and ensure such conformity for its normative and legal acts within 3 months. The Cabinet of Ministers was ordered to develop and submit the draft laws to the President within 4 months. The bills will determine the types of responsibility for the violation of the Code, as well as the civil and administrative responsibility for the damage caused to the construction facility as the result of false conclusion of structures engaged in examination of construction projects. The document also envisages development of projects of rules for conduction of state town-planning control, examination of construction projects, clearance of construction facilities, etc. 

From now on permissions will be given not only for frame-systems of residential facilities (up to 12 floors or 39 m tall) but also to 16-storey facilities 58m tall. Besides, the concrete resistance should not be lower than B25 mark. Much taller buildings may be designed on basis of technical regulations recommended only by special science-research institutes. 

All of these changes will bring to the growth of amount of applied armature and concrete. It promotes the growth of cost price of construction. However, these measures will enable to increase resistibility, longevity and safety of residential buildings. 

Special attention was paid to the market of construction materials as well. Cement production in Azerbaijan totaled about 1mln tons several years ago because such construction, creation of industrial enterprises demanded cement. 

“Nowadays, the demand for cement totals 3.3 mln tons. We meet about 70% of it. However, projects that are under implementation will increase cement production in Azerbaijan up to 5 mln tons in several years. It should happen approximately in 2014-2015. Thus, we meet domestic demand for this product”, President of Azerbaijan Ilham Aliyev said at the governmental session dedicated to the outcomes of social-economic development in the first half of 2012. 

Conceptual development scheme 

State Committee for Urban Planning and Architecture of Azerbaijan presented a Conceptual scheme of development of Big Baku till 2030 in summer. 

According to the State Committee, the area of Baku, neighboring Sumgayit and the Absheron peninsula will occupy 213,000 hectares, 8,000 hectares and 32,000 hectares by 2030 respectively. Besides, sanatoria and health zones consisting mainly of Boyuk Zira and Gum Adasi islands with an area of 300 hectares will appear in Baku. The coastal national park (Baku Boulevard) will extend by 33km and include the shore from Bibiheybat settlement to the State Flag Square, from the Government House to Zygh settlement inclusive. 

Olympic sports-health improving facilities will occupy 700 hectares and extend around the Boyuk Shor Lake. 700, 1600, 500, 1550, 1400 and 1000 hectares will be allocated for campuses of higher education institutes, forest parks, parks, public infrastructure of culture and resort, new low-rise construction and 5-floor residential buildings respectively. 

The main purpose of the project is to create an efficient system of urban planning management of Big Baku as well as all other cities and dwelling settlements of Azerbaijan. The work on the plan concept is currently underway. The representatives of the World Bank will join the project late in October for consideration of results of initial assessment of the situation. 

President of Azerbaijan Ilham Aliyev also signed an order on construction of the grandiose complex for water types of sports in Baku which would meet world standards. The complex will be built in the area of Keroghlu subway station and occupy an area of 5-6 hectares. It will meet both European and world standards and commissioned in 2014-2015. 

The Ministry of Education of Azerbaijan completed construction of 50 new school buildings by the beginning of the school year. State Oil Company of Azerbaijan (SOCAR) also proceeds with its active promotion of its shipbuilding yard. 

Finally, experts from CIS countries will get a chance to get familiarized with grandiose constructions of the capital this autumn. Baku will host the XXXIV session of the intergovernmental council for cooperation in the construction activity of CIS countries.