Eiffage Beats Vinci,Bouygues To EUR3.4 Billion French Rail Track Deal

French construction and concessions company Eiffage SA (FGR.FR) has beaten cross-town rivals Vinci SA (DG.FR) and Bouygues SA (EN.FR) to become the preferred bidder for a EUR3.4 billion high-speed rail infrastructure project, France's rail network RFF said Tuesday.

RFF, or Reseau Ferre de France, said it has selected Eiffage for the public-private partnership contract to build new track in the Brittany and Loire regions.

The rail network company said it aims to sign a full public-private partnership contract in the first half of 2011.

"The contractor will have the task of building and maintaining the new line for a total of 25 years and, in return, will receive public funding as well as allowances from RFF," the rail grid operator said, adding that it will retain responsibility for organizing train movements.

RFF said it scored the rival bids on the five criteria of cost, "financial robustness," the technical and environmental quality of the project, line construction times and involvement of small and medium-sized businesses.

-By Adam Mitchell, Dow Jones Newswires, [phone]; [e-mail]