The 45-year public-private partnership contract to build, operate and
maintain the line was awarded last December to the Tram-Tiss
consortium, which comprises Bouygues, Colas, Bombardier, operator
Veolia, and financial partners including Axa and Société Générale.
Tram-Tiss has warned the Réunion government that the contract is
legally-binding and the consortium could therefore seek compensation if
the project is abandoned.
Had it gone ahead, the tram-train would have been the first PPP project
to be guaranteed by the French state. Construction was due to start
this year with the first section opening in 2013.