Turkey's prime minister has vowed to press ahead with the construction of dams and roads in the country's mainly Kurdish southeast, saying Turkey would not bow to Kurdish rebel threats.

Kurdish militants have threatened to resume attacks, accusing Turkey of "preparing for war" by continuing to build military outposts as well as dams and roads they claimed would be used by the military. They warned the constructions were a violation of a two-year old ceasefire brokered as part of Turkey's fragile peace process with the Kurdish rebels.

Ahmet Davutoglu said Monday: "Governments build roads and dams. They don't back down through threats."

He accused the Kurdish rebels of reneging on a pledge to withdraw armed fighters from Turkish territory.

The rebels have fought a three-decade long bloody battle for autonomy.