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Network Rail has announced two teams that will deliver £5bn worth of track and rail systems over the next decade. Following an extensive tender period Network Rail has awarded the track and rail system alliance in the south of England to Colas Rail and Aecom.

For the north alliance in Scotland, the winning team is Babcock Rail, Arup and Arcadis. Scope of works includes track, points, overhead lines and signalling.

The 10 year contracts (an initial five-year period with an option to extend) are divided into three new geographically-focused alliances between Network Rail, designers and construction suppliers: north alliance (Scotland route), central alliance (London North West, London North East and East Midlands route) and south alliance (Anglia, South East, Wessex, Western and Wales routes).

The central alliance bidding process is still going on.

Network Rail programme director Steve Featherstone said: Reaching this important milestone ensures we will have a stable foundation for the delivery of the 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.”

Colas Rail chief executive Jean-Pierre Bertrand said: “We are extremely proud of our team being recognised for the quality of the tender submission. We are fully committed to delivering major improvements to the UK railways in the south working together with our partners Aecom and Network Rail over the upcoming 10 years.

Babcock International chief executive Archie Bethel was also chuffed. “Building on our long term relationship with Network Rail, we are delighted to have been selected as preferred bidder for this major programme of railway systems work, with our alliance partners Arcadis and Arup”, he said. “We look forward to working with Network Rail in the new alliance”.

Network Rail said that these framework awards were among the most substantial of its control period six (CP6) contracts to be let following the Office of Rail & Roads final determination, which confirmed £35bn of funding for rail maintenance and renewals.

Final contract signing remains subject to contract terms being agreed, with procurement currently operating a standstill period.