The chief executive of Colas SA (RE.FR), Bouygues SA's (EN.FR) infrastructure unit, said Tuesday he still sees a risk that the giant Tram-Train project on the French Indian Ocean island of Reunion could be shelved.

Colas announced late last year its planned involvement in the development, on the condition that the full envelope of funding for the project is forthcoming. Colas' share of the studies and work would generate EUR682 million in revenue over several years.

Bouygues' construction unit also is part of the consortium hoping to execute the project. But Bouygues and its companies won't book the Tram-Train as an order until it is for sure.

"If it's not signed by the end of the year" the project is unlikely to go ahead, CEO Herve Le Bouc told reporters at a presentation of Colas' earnings and outlook. The question mark now hangs over state funding.

-By Adam Mitchell, Dow Jones Newswires, +33 1 40171756; adam.mitchell@dowjones.com
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