The Western Australian (WA) Government has finalised negotiations to design, build and maintain the Forrestfield-Airport Link in Perth.

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A joint venture between Italian company Salini Impregilo and local company NRW (SINRW) entered negotiations with the Public Transport Authority (PTA) of WA in February this year.

It has now been awarded the A$1.176bn ($897m) contract to deliver the main work on the rail line to Perth’s eastern foothills. The government recently contributed A$490m ($374m) towards the project.

Western Australian Premier Colin Barnett said: "SINRW are contracted to build the 8km rail tunnels and three stations for the Forrestfield Line, as well as maintenance of the tunnel and civil structures for ten years after completion.

"SINRW are contracted to build the 8km rail tunnels and three stations for the Forrestfield Line, as well as maintenance of the tunnel and civil structures for ten years after completion."

"This is a huge milestone on the path to delivering this project, which will change the face of Perth’s eastern corridor and give people direct access to the airport by public transport.

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"It’s the biggest expansion of the city’s rail system since the Mandurah rail line was completed."

The new rail link will connect Forrestfield to the city and open up Perth’s eastern suburbs to the rail network for the first time.

Claimed to improve transport connections to and from Perth Airport, the eastern suburbs, and regional centres, the new rail link will connect with the existing Midland line near Bayswater Station and will run to Forrestfield through underground tunnels.

Early work worth A$370m ($282m) is already underway, including geotechnical work, contract management, and land purchases.

Western Australia’s Transport Minister Dean Nalder said: "Various forward works have been underway at Forrestfield since November 2015 and I expect the joint venture to mobilise on site in the coming months. The project’s direct employment is expected to peak at about 600 workers."

Scheduled to open in 2020, the 8.5km Forrestfield-Airport Link will have two stations, which have been renamed Belmont (formerly Airport West) and Airport Central (formerly Consolidated Airport).