Azerbaijan awards $36 million stadium contract to company linked to president’s family
The Azerbaijani government’s decision to award a $35.6 million contract for the reconstruction of a football stadium in the war-scarred city of Aghdam has reignited long-standing concerns about transparency, conflicts of interest, and the concentration of economic power among elites closely tied to President Ilham Aliyev’s family. The contract, granted by the Ministry of Youth and Sports to PMD Projects LLC, highlights a recurring pattern in Azerbaijan’s postwar reconstruction drive: large public projects repeatedly flowing to companies linked to the country’s ruling family and its inner circle.
According to public procurement records published on Azerbaijan’s official procurement portal on Monday, PMD Projects LLC was selected to rebuild Imarat Stadium, the historic home ground of Qarabağ FK, one of Azerbaijan’s most prominent football clubs. The club has gained international visibility in recent years and is now competing in the 2025–26 UEFA Champions League. The stadium reconstruction is framed by authorities as part of the broader revitalization of territories retaken from Armenian control following the 2020 Nagorno-Karabakh war, a conflict that left large swathes of the region devastated.
On paper, the project appears to be a straightforward public investment in sports infrastructure. In practice, however, the corporate ties behind PMD Projects have raised uncomfortable questions. PMD Projects is a subsidiary of PMD Group LLC, which operates under the umbrella of PASHA Holding, one of Azerbaijan’s most powerful and diversified conglomerates. PASHA Holding’s interests span construction, banking, insurance, tourism, and retail, making it a central player in the country’s economy.
What makes PASHA Holding particularly sensitive from a governance perspective is its ownership structure. Public financial disclosures and investigative reporting have identified the ultimate beneficiaries of the conglomerate as members of President Aliyev’s immediate family and close relatives. These include his daughters, Leyla and Arzu Aliyeva; his father-in-law, Arif Pashayev; and his wife’s cousin, Mir Jamal Pashayev. While such arrangements are not illegal under Azerbaijani law, critics argue that they blur the line between public authority and private profit, especially when state contracts are involved.
The Imarat Stadium project was publicly unveiled in September 2024 during a high-profile ceremony in Aghdam. President Aliyev personally presided over the laying of the foundation stone, accompanied by his son, Heydar Aliyev, and Minister of Youth and Sports Farid Gayibov. Official statements described an ambitious 19-hectare complex featuring an 11,700-seat stadium, training pitches, VIP areas, and commercial facilities. The event was widely covered by state media and presented as a symbol of national revival and progress in the formerly occupied territories.
Yet the symbolism of renewal contrasts sharply with the concerns raised by civil society groups and independent media. Azerbaijan has long struggled with accusations of systemic corruption, cronyism, and weak oversight. President Aliyev himself has, on multiple occasions, publicly criticized corruption among state officials and emphasized the need for discipline and accountability in government institutions. These statements, however, sit uneasily alongside procurement decisions that benefit companies linked to his own family.
The Ministry of Youth and Sports did not respond to requests for comment regarding the selection process for the stadium contract, nor did it clarify whether other bidders were considered or how potential conflicts of interest were assessed. The lack of transparency fuels skepticism about whether the procurement process was genuinely competitive or merely a formality.
Further complicating the picture is the role of Design Bureau LLC, which is overseeing the design work for the Imarat Stadium complex. According to a LinkedIn post by the company, it is responsible for architectural and planning aspects of the project. Investigative outlet Abzas Media has previously reported that Design Bureau LLC has shared office addresses and personnel with PMD Group and PASHA Holding. The outlet also documented that the firm has received multiple government reconstruction contracts, raising questions about whether a closed network of interconnected companies dominates the lucrative postwar rebuilding effort.
Since the end of the 2020 war, Azerbaijan has embarked on an expansive and expensive reconstruction campaign in Nagorno-Karabakh and surrounding districts. Roads, airports, housing developments, cultural sites, and sports facilities are being rebuilt with public funds. The government portrays this as a historic national project, essential for the return of displaced populations and the integration of the region into the country’s economic life. Billions of dollars have been allocated, making reconstruction one of the largest public spending initiatives in Azerbaijan’s recent history.
However, watchdog groups argue that the scale of spending, combined with weak institutional checks, creates fertile ground for favoritism and misuse of public resources. When contracts repeatedly go to companies with direct or indirect ties to the ruling family, it undermines public trust and raises doubts about whether the best value for money is being achieved.
The stadium contract also highlights a broader issue: the intertwining of political power, business interests, and national symbolism. Football clubs like Qarabağ FK carry deep emotional and political significance in Azerbaijan, particularly given their association with territories affected by the conflict. Investing in a modern stadium is not just a sports project; it is a statement about national pride, victory, and renewal. Awarding such a project to a family-linked company risks turning a symbol of collective achievement into a reminder of elite privilege.
International observers have long flagged Azerbaijan’s governance challenges. Transparency International consistently ranks the country poorly on its Corruption Perceptions Index, and independent journalism faces significant pressure, with reporters and outlets often subjected to legal harassment or worse. In this environment, revelations about state contracts and elite-linked companies are difficult to scrutinize fully, let alone challenge through legal or political channels.
As Azerbaijan continues to rebuild its reclaimed territories, the Imarat Stadium project serves as a case study in the contradictions of the country’s development model. On one hand, there is undeniable progress: new infrastructure, renewed cities, and high-profile investments. On the other, there is a persistent concentration of economic opportunity among those closest to power.
For President Aliyev, who has positioned himself as a reformer committed to rooting out corruption, the optics of the stadium contract are problematic. Without greater transparency, independent oversight, and clear safeguards against conflicts of interest, such projects risk reinforcing the perception that in Azerbaijan, the boundaries between the state and the ruling family’s business empire remain firmly blurred.
