The Canadian government has chosen SNC Lavalin to lead a $50 million project to repair a dam in Afghanistan that, when completed, should create thousands of jobs for locals and provide irrigation for about 10,000 hectares of land.

On a surprise visit to Kandahar Sunday, Minister of International Co-operation Bev Oda announced that the Quebec-based firm had been selected to carry out the repairs to the Dahla Dam.

The dam, located in Kandahar City, is Afghanistan's second-largest, but had fallen into a state of disrepair after decades of war.

In addition to the dam, repairs will also be made to a series of irrigation canals.

Oda said the project was evidence of how the Canadian government can work with the Afghan government and people to make a difference in the country.

"There's going to be 10,000 hectares of agricultural land brought back to its full potential and 10,000 seasonal employees and work for the local Afghan people, so this is major project and we're very, very pleased," Oda told reporters.

The project is set to be completed by 2011, the year that Canada's military mission in Afghanistan is scheduled to end.

Oda made the announcement, alongside Kandahar Governor Tooryalai Wesa, at the Canadian Forces forward operating base Frontenac, which is near the dam.

Wesa said that infrastructure projects create jobs, which in turn will reduce violence in the country.

"That will reduce the amount of insurgencies here, because one of the main reasons for the insurgency is unemployment," Wesa told reporters.

Later Sunday, Oda helped open an exhibit of photographs taken by Afghan children in Kandahar city.

The project was partly funded by the Canadian government.