Balfour Beatty, the British construction firm hired to build the controversial Ilisu dam in Turkey, has pulled out of the project.
"The decision follows a thorough and extensive evaluation of the commercial, environmental and social issues inherent in the project," the firm said in a statement.

"With appropriate solutions to these issues still unsecured and no early resolution likely, Balfour Beatty believes that it is not in the best interests of its stakeholders to pursue the project further."

British involvement in the Ilisu dam has been highly contentious.

Environmentalists, who have campaigned fiercely against the project, say it would affect the lives of 60,000 people.

Previously, the UK government had thrown its whole weight behind the project, arguing that it was good for relations with Turkey.

Although environmentalists will be cheered, the move will be seen as a blow to Turkey, which has struggled to attract major foreign investment projects in recent years.

Balfour Beatty's contract was worth nearly £200m.