An appeals court in Chile has suspended development of the Punta Alcalde dam project citing environmental concerns.

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According to newswire reports, the court upheld concerns of local fishermen that the project – which is currently in the development phase – could have significant adverse environmental affects and compromise the fishing industry.

Being developed by Endesa, the Punta Alcalde project is expected to have an output of 740MW. Endesa is expected to appeal the decision, and in a statement said the court’s ruling would not effect the project’s construction