A Costain/Skanska joint venture has been announced as the preferred bidder to design and build the Paddington link tunnel.
The tunnel, which is a vital part of the Crossrail project, will connect Crossrail and Bakerloo line platforms at Paddington station.
Paddington currently welcomes 85,000 passengers a day from the Bakerloo line and this number is expected to rise to more than 115,000 from 2018 when Crossrail officially launches.
The £40 million tunnel will be completed by the end of 2018.
A consortium of Morgan Sindall and Bemo Tunnelling and Dragados was also shortlisted for the contract.
Simon Wright, Crossrail programme director, said: “Crossrail is now 60 per cent complete and we are on time and within budget.
“The Bakerloo line link, being delivered by London Underground, is an integral part of Crossrail. When complete, Crossrail will significantly reduce journey times from Paddington to the West End, the City and Docklands.
“From Paddington, passengers will be able to reach Tottenham Court Road in four minutes, Liverpool Street in ten minutes and Canary Wharf in 17 minutes.”
