The Yusufeli dam in Turkey has suffered a setback with Spie, the French engineering group, pulling out of the scheme.

Critics of the project say the dam would displace 30,000 people by flooding the area around Yusufeli in north-east Turkey, destroy the habitats of endangered species and submerge archeological sites. Spie was leading the group of contractors hoping to build the dam under a proposal that was formulated about five years ago.

Spie is currently in the process of merging with UK group Amec.