The apparent meaning of the Qur'aan indicates that zakaah should not be spent on this project, because it is not one of the groups on which zakaah is to be spent, as mentioned in the aayah (interpretation of the meaning):
As-Sadaqaat (here it means Zakaah) are only for the Fuqaraa' (poor), and Al-Masaakeen (the poor)â¦[al-Tawbah 9:60]
The Council of Senior Scholars issued a statement saying that zakaah money should not be given to this project, as stated above.
And Allaah knows best.
Reproduced from Islam QA