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Irregularities Found in Hydropower Plants Built by Azerenerji in Karabakh and East Zangazur

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According to an audit report by the Chamber of Accounts, a number of serious irregularities were identified during the review of state investments allocated to Azerenerji OJSC for the construction of Small Hydropower Plants (SHPPs) in the liberated territories.

The report states that state investments were allocated for the construction of seven SHPPs during 2022–2024 without carrying out technical and economic feasibility studies for the projects. The audit covered more than 255.8 million manats in total.

The inspection found that after the plants were commissioned, only 14.7% to 46% of their generating capacity was utilized. As a result, profitability indicators declined and production costs increased.

The audit also determined that the estimated costs of the Shayifli, Sariqishlaq, Zangilan, Jahangirbeyli, Aghbulaq, Mishni, and Alkhasli Small Hydropower Plants were later increased.

The Chamber of Accounts noted that the requirements of legislation regulating public procurement and construction standards were not observed. Documentation related to construction, installation works, and the procurement of materials and equipment was not conducted in accordance with legal regulations.

In addition, although six SHPPs were completed and commissioned in 2023, and one in 2024, the formal acceptance procedures required for their official operation have not been finalized.