A Franco-Spanish consortium consisting of Bouygues and Dragados has been selected for preferential negotiations on a 50-year concession to build and operate a 45km long, US$714M cross-border high-speed rail link between Figueres, in Spain, and Perpignan, in France.

Known as Euroferro, it beat off bids from Ferrovial/Vinci, Acciona/Sacyr, FCC/OHL/Comsa/Proser/Spie, ACS/ Eiffage and the French and Spanish infrastructure rail authorities.

If Euroferro is eventually awarded the contract, it will have to be ratified by both governments, although Paris is said to be opposed to private sector operation of the line.

The line, which is due to open in 2005, includes an 8.2km twin bore tunnel beneath the Pyrenees, of which 7.3km will be wholly within France. In its first full year in service, the rail link is forecast to carry 3.5m passengers and four million tonnes of freight.