The agreement will lead to the implementation of a new financing and operational model, the details of which will be finalised in the coming months.
Under the new agreement, the operation of day to day rail services will become the responsibility of a new publicly owned subsidiary of Transport for Wales.
James Price, Chief Executive at Transport for Wales said: “I’m pleased with this agreement, which will allow Transport for Wales to continue to deliver the transformation of the Wales and Borders rail network over what’s an incredibly difficult period for the industry, with a huge reduction in passenger journeys and revenue. KeolisAmey have made a significant contribution to transport in Wales over the past two years and I’ve welcomed their collaborative approach to securing this agreement, which has allowed us to achieve a positive way forward for the Wales and Borders contract .
“We will continue to benefit from the international industry expertise of both Keolis and Amey whilst giving TfW and Welsh Government more control to deliver our key transport objectives, as we look to sustain the good progress of the rail network and ensure it plays a vital role in helping Wales to be well-placed in a post pandemic environment.”
“There is no doubt that there will be difficult decisions in the future as we adapt to the realities of a post-covid era, but this agreement will give us a stable base from which to build back better.”
Kevin Thomas, Chief Executive of KeolisAmey Wales, Operator and Development Partner of Transport for Wales said:
“Our partnership with TfW will always have the passengers and the communities we serve at its heart - finding the right solutions to improve services across Wales and the border areas.
“In light of Covid-19, we recognise the need for Welsh Government to have a sustainable way forward for delivering its ambitious objectives for rail and we are pleased to have agreed and put in place robust principles as we work on the details of a new agreement."
The partnership says it has introduced of more modern and reliable trains across the network and delivered the groundwork for the introduction of new trains from 2021/22.