Roads are inadequate and deteriorating. The electrical generation and distribution system is in poor condition. Eighty percent of arable land is irrigated, but the irrigation system is collapsing. Baku experiences shortages of gas, water, and electricity. Elsewhere in the country electricity supply is inadequate, and gas is almost nonexistent.
Public utilities are financially crippled by their inability to secure payment from their customers.
Crude production had fallen from 12.5 million tons in 1990 to 9 million tons, 1997. Roughly 94 percent offshore. New reserves discovered. The Government of Azerbaijan's policy is to encourage and welcome foreign investment, with legal, tax, and regulatory reforms to facilitate this investment. Investment of Azerbaijani citizens in 1998, and during January-April of this year, has fluctuated between 14 and 16 percent, mainly to construction sector.