CONTRACTS worth at least £5 billion have been awarded in principle by Network Rail to several engineering firms.

The deals for infrastructure work, including track, points, overhead lines and signalling, cover at least five years, and could be extended to 10. If so, they would span two Control Periods. CP6 starts in April, and CP7 will follow in 2024.

The preferred bidders are Colas Rail and AECOM in the south of England and Babcock Rail, Arup and Arcadis in Scotland. All the contracts are provisional at this stage, and will depend on final terms being agreed.

Nationwide infrastructure contracts like this are now being divided between three Alliances based on Routes. These are North Alliance (Scotland), Central Alliance (London North West, London North East & East Midlands) and South Alliance (Anglia, South East, Wales, Wessex and Western).

Central Alliance has yet to be awarded. Network Rail said: ‘The Central alliance bidding process continues and a preferred bidder will be announced in due course.’

Network Rail’s programme director Track, Steve Featherstone, said: ‘Reaching this important milestone ensures we will have a stable foundation for the delivery of Great Britain’s core railway infrastructure for the next decade. Our new strategy allows us to better align to the routes and ultimately, deliver for customers.’