Amey Rail has taken over a number of Carillion's Network Rail contracts for projects in the East Midlands, London and North West England.

The deal will safeguard over 700 jobs and provide security for many other companies within the rail industry supply chain.

Network Rail said it continues to work closely with the Official Receiver's special manager - PwC - to seek long term transition arrangements for the remaining contracts and staff.

"Whilst this process is ongoing, the remaining contracts continue to be delivered under our arrangement with PwC to enable an orderly transition," the company said.

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Matthew Steele, commercial director Network Rail said: "This is a positive step for the industry, ensuring the delivery of a number of major rail projects across the country whilst safeguarding an expected 700 jobs and the wider supply chain. We look forward to working with Amey to enable a smooth transition and ensure the ongoing safe working on our sites.

"We do recognise that this has been a very unsettling period for the employees of Carillion and would like to thank them for the continued commitment to the delivery of these projects. We remain focused on the transfer of remaining projects and employees to new arrangements over the coming weeks and months."

Last month, it was agreed that PwC will pay Carillion employees' wages for work done on and supporting Network Rail's contracts until after Easter and many of the construction companies smaller rail suppliers were paid the arrears they were owed to ensure the continued delivery of important projects.

(LM)