Work on a seven-billion dam project in northern Pakistan is in jeopardy as the World Bank has blacklisted a German contractor currently conducting the feasibility study and engineering design of the project, Sunday's DAWN newspaper reported.

The World Bank has blacklisted Lahmeyer International GmbH ( Lahmeyer), a German company, for a period of seven years on corruption and bribery charges, said the report.

The German company will be ineligible to be awarded World Bank- financed contracts during the period from Nov. 3, 2006 to Nov. 3, 2013 because of its corrupt activities in a project in African state of Lesotho, according to a statement issued by the World Bank.

The DAWN report said that Pakistani government will have to expel the German company from the project immediately to save the project, as the Asian Development Bank and the Islamic Development Bank among other international lenders normally adopt the World Bank decisions on corruption related matters.

The proposed Bhasha dam project, located in Pakistan's Northern Areas, reportedly can generate up to 4500 megawatt electricity and will take at least 10 to 12 years (from 2006 to 2016 or 2018) to build.

Pakistan has formally approached the major multilateral and bilateral creditors including Asian Development Bank, World Bank, Islamic Development Bank for securing multi-billion dollar loan for the construction of Bhasha dam.

Source: Xinhua