The International Boundary and Water Commission has halted plans for a U.S. government-financed plant to treat sewage that flows north from Tijuana, Mexico, into United States.
Commissioner Carlos Marin sent a letter to California officials Tuesday saying work on the proposed $700 million Bajagua plant is suspended pending court review.
The project has been dogged by criticism that it would fatten developer's pockets at the expense of U.S. taxpayers. Government watchdog groups have questioned generous campaign contributions from the private company's investors to members of Congress.
Marin's letter says Bajagua notified the commission in late April that the company would not be able to get the plant running by a court-ordered September 2008 deadline.
Bajagua says progress on the project has been slowed by the IBWC.