A very interesting and beautiful project is underway in Azerbaijan. Construction of the new city called Khazar Islands began on the artificial archipelago in the Caspian. 1 mln people will be residents of the city. Khazar Islands will consist of 55 different size islands with total area of 3,500 ha and 19 micro-districts. In general, the archipelago will occupy 35 km2. The length and the width will total 8km and 3km respectively. The total length of the boulevard will reach 150 km. President of Avesta Concern Haji Ibrahim Nehramli who developed and is implementing this unique project worth $100 bln, tells our readers about this project. 

Caspian Energy (CE): Mr. Nehramli, could you please tell our readers about the establishment of Avesta concern? What were prerequisites for creating such a strong enterprise in Azerbaijan and what was the cause to call it Avesta? 

Haji Ibrahim Nehramli, President, Avesta Concern: Avesta Concern combined all our separate assets. It was far in 1989 when I first created a cooperative named Ilkan after the collapse of the former Soviet Union. The second firm was founded in 1991 and named Gunel. I named both of the enterprises in honor of my daughters who were born in those years. The companies began developing and increasing their potential as the time went by. At that period we opened an office in the center of Nakhchivan, a bank in Baku city and its branch in Nakhchivan. We carried out a number of charity activities during 1994-1995 by building 5 mosques, water pipelines to 10 villages, renovated schools and hospitals, and built bridges. 

In general, we performed charity activities worth $15.5 mln in Nakhchivan. All of the mentioned work was performed at the expense of our own resources. 

I have started developing business in Baku since 1995. Our initial plan was to build one mosque and one high-rise building. Though our companies were developing but they were still not that big. Therefore, a decision to combine all the firms and other enterprises I have mentioned under a single brand was made in 1996. Thus, Avesta Concern was established to combine all our enterprises and companies. 

As you know, Avesta means collected holy texts of Zoroastrians. It means purity and right track. We decided to reflect these qualities in our business as well. It was a successful startup indeed.  The confidence let our company Gunel to successfully construct a high rise building in Baku during 1995-1997. 

We are currently engaged in building of the trade center Gold City in the downtown of the capital. The internal area of the center totals 320,000 square meters. 40% of the project related work has already been executed. We hope to complete and commission it by the end of the following year. The project costs 500 mln AZN. Half of this sum has already been invested into the project. 

New companies engaged in different business directions have been created within the concern. The concern enterprises built residential buildings in different parts of Baku. Now we are completing the construction we commenced. There are almost 250,000 square meters of residential area still to be commissioned. This work is on verge of completion. 

We started seeking for new directions of our business development after the global crisis of 2008. Meanwhile, it must be assumed that there is no demand for residential estate. Nowadays, Baku needs 100 mln square meters of residential space. The government agencies develop proposals to reduce interest rates for mortgage credits and simplify this process. 

CE: How did the idea of building a unique project Khazar Islands arise?

Haji Ibrahim Nehramli: Revenues, gained from the oil sector, have been flowing into the development of the non oil sector. Basic importance in this aspect is also attached to the development of the tourism sector. The government is considering on further simplification of the visa regime in order to develop this sector. 

So, we were in search for unordinary solutions and projects to be  realized in Azerbaijan. My son once told me in 2010: “one will find projects enough for three cities if he looks inside of your head”. I assume it was Allah’s message conveyed to me through my son. I have a house on the island and I thought why I should not build a city in the sea. 

Two serious problems (waves and the wind) should have been solved in order to build a city in the Caspian Sea. I started picturing the project during my return from Dubai on March 15, 2010. I decided to create a lake in the sea as well as channels linked to it so that to ensure regular change of water. Buildings will be 20 meters tall, placed as on a chess-board and make 3-4 rows. Thus, this is the way we solve the wind and waves problem. I also decided to build a boulevard and lay a tram line. The draft project was submitted to the State Committee for Architecture and Town-Planning. 

It took 7 days to develop the project. Further changes covered only modernization since new islands and roads were added. According to the latest version, 55 islands designed for 1 mln residents will be built. We created an unordinary project and we currently work on it. 

CE: What operations have been fulfilled so far within the framework of the city construction in the sea? 

Haji Ibrahim Nehramli: 4 islands are currently under construction within the framework of our project. We have built restaurants, laid the foundation of the boulevard, proceed with construction of buildings and have completed construction of the tram bridge. Construction of one out of 6 bridges has been completed. Construction of two more is underway. We will have completed building of the tram bridge by the end of the following year. Trams will run along a 20km long boulevard consisting of 6 bridges. The islands will be linked to one another by bridges designed for vehicles, pedestrians and trams. The boulevard length totals 150km. The residents when leaving a building with 4 exits find themselves in the park. There will be no garages in buildings. The garages will be placed in the water. Half of the garage will be under the water and the other half above the water. The close location of garages to buildings will enable people to reach the garage through the underground crossing. They will be smart, cosy and fully repaired apartments providing everything for comfort. Prices at restaurants will be very acceptable and let visitors feel at home. 

Highways to be laid on islands shall have 7 lanes in both directions. 

Apart from residential estates and restaurants, we also build schools, a stadium, golf-yard, rack track, rally area, hospitals, 5 universities, a motor coach terminal, a mosque with an area of 10 ha, as well as buildings for employees. 

600,000 working places are expected to appear. 400,000 of those people will rent apartments in a certain part of the city. People will be able to move in the city by trams passing every two minutes. 

Our conditions on sale of apartments will be attractive for clients. Apartments will be sold with a discount for mortgage (lets suppose for 15 years and 6% of annuals) so that people could afford them. If an owner decides to move, at least 80% of the sum will be returned. 

Separate treatment facilities and power plants are planned to be built on islands as well. Water and gas lines will be laid to them. 

The capacity of power plants will total 300 MW. Each island will have a modular power plant operating on gas. Electricity generated in non-peak hours will be sold. 

Buildings are built 200m away from the sea. The first, second and third stages of the project envisage settlement of 100,000, 400,000 and 500,000 people respectively. 19 micro-districts will be built in the city. 

An airport is planned to be built not far from this area in future because 20 mln tourists will come here every year. 

The project is very interesting – dirty cars will not be allowed in the city. 

Office buildings for the city administration and buildings for departments of ministries will be built in the city. 

Construction of a bridge and a restaurant complex (including a beer plant) has been completed. Their opening will take place this summer. We have earlier opened another restaurant. 

A 3, 4, 5 and maybe a 7 star hotel will be built in the city. The number of hotels will reach 18. They will consist of 30-85 floors. The area of the smallest room will total 25 m2. There will be hotel numbers with an area of 45, 65 and 100 m2. From the very beginning we planned our hotels to differ from world standards and be capacious. 

CE: What is the scope of project investments?

Haji Ibrahim Nehramli: In general, the project investments will total $100 bln. However, $10 bln will be invested at the initial stage. 19 bridges will be constructed on islands.  The first stage envisages construction of 6 mln square meters including lodging, hotels, schools, kindergartens, restaurants, etc. I would like to note that the residents will not see the construction. Dwelling in the city will start from 2014. 

The concern has already invested $1 bln 200 mln from its own resources. Now the construction of Khazar Islands is carried out at the expense of own resources of Avesta. However, foreign investors are planned to be attracted soon. 

CE: Which advanced technologies are used in construction of the city?

Haji Ibrahim Nehramli: We have been building our city for many centuries. The islands are built by stone filling. We drive in lots of piles in order to build one road. Each pile costs 1200-1600 AZN. The distance between piles is 120 cm. The piles go 35-40 meters deep in the earth. Some 998 piles were driven in for the construction of only one 5-block building. 

Our buildings and constructions do not fear earthquake. No subsidence  even by 1 mm can be observed in the boulevard as it was built by piles and concrete. It may bear the load reaching 1,000 tons. 

Construction of 4km of the sea front boulevard has already been built. The service life of the boulevard is 1000 years at least. Our concrete starts becoming harder only in 100 years. Plain concrete starts decaying 100 years later. Our major roads are built of granite. 

Movement will be arranged without traffic lights, and it is another successful achievement.  There will be no road crossing in the city as tunnels and bridges are being built for that.   

CE: What could you tell about the ecological constituent of the project? 

Haji Ibrahim Nehramli: It will be an ecological city.  Facing glasses of buildings will generate electricity. A corresponding program has been worked out for realizing these ideas. Apart from this, a project on desalination of the sea water and other works will be done. One interview will not suffice for covering all the project related information. 

I would like to note that we applied all efforts for completing the construction of the ecological city in the sea by 2025-2030.