The World Bank announced on Friday that it had canceled a loan for the Bisri Dam in Lebanon, AFP reported.

According to ecologists, the dam could destroy the biodiversity-rich valley. Construction of the Bisri Dam was partially suspended in June when a Washington-based lender said it raised concerns about the project and gave the Lebanese government until September 4 to finalize key agreements related to operations and maintenance, as well as the environment.

In its statement, the WB notes that it notified the government of the withdrawal of funding due to the incompleteness of work, which is a precondition for the start of construction.

The canceled part of the loan is $ 244 million, and the cancellation takes effect immediately, the organization said in a statement.

The dam site is located 30 km south of Beirut and was intended to provide drinking water and an irrigation system to 1.6 million people.

However, environmentalists and some farmers have repeatedly expressed concerns that a dam built in a seismic zone could increase the risk of earthquakes.