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President Premchai Karnasuta said yesterday that construction was set to start in 2015, but Egat has asked the company to put off negotiations pending a clearer picture of relations between Thailand and Cambodia.

"The delay of the power plant project could possibly make construction begin after 2015," Premchai said.

Demand for electricity has been lower in the wake of the economic slowdown, resulting in the suspension of power purchases by Egat, he said.

The construction company is still waiting for confirmation of the project's construction from Egat.

Italian-Thai had formed a joint venture with Ratchaburi Electricity Generating Holding for the 2.4-gigawatt power plant.

While this construction project will be delayed, the company still has a backlog of more than Bt100 billion and other projects overseas, Premchai said.

It has won three contracts in India worth Bt100 billion for a mass-transit system in Hyderabad, Bt10 billion for a subway and Bt20 billion for the terminal at the Kolkata airport.

It has been in talks with the Indian government for an elevated ring road project worth more than Bt100 billion.

Overseas jobs account for 60 per cent of its total revenue.

Yesterday it signed a Bt21.89 billion contract with Egat to excavate and deliver lignite for Egat's Mae Moh coal-fired power plant in Lampang for 12 years, starting in December.

The company's cost of funds is expected to rise next year due mainly to the credit crunch brought on by the global financial crisis.

It might miss out on a net profit this year from its joint ventures for the Nam Theun 2 and Kol hydroelectric dam projects, due to cost overruns.

Italian-Thai posted a net loss of Bt468.27 million in the second quarter and a net loss of Bt401.46 million in the first half.

"We expect to see a net profit in the first quarter next year," Premchai said.

The company forecasts Bt40 billion in revenues this year and an increase of 20 per cent next year from realising revenues on projects overseas.

The company would have to focus on foreign work because most local mega-investment projects are held hostage by the political uncertainty, he said.