A joint venture between French and Spanish companies has been given a contract to run rail services in Wales.

Keolis/Amey was awarded the 15-year contract ahead of Hong Kong-based MTR.

Arriva, which has been operating the franchise for 15 years, pulled out of the bidding last year.

A statement by the Welsh Government said: "Final tenders were received from three companies in December 2017.

"One of those tenders was subsequently withdrawn and the two remaining bids were evaluated, with each bid being assessed for its quality, robustness and ability to deliver on the Welsh Government's policy priorities, as set out in 'Rail Services for the Future'.

"Throughout the procurement process we have prioritised investment in the quality of trains, stations and services for the Wales and Borders Rail Service and South Wales Metro."

Rail, Maritime and Transport union general secretary Mick Cash said: "RMT policy is for a national integrated railway under public ownership, and the Welsh Government has made it clear that this is their aspiration as well if they did not have to work under the pro-privatisation legislative straitjacket imposed by the UK Government.

"The fact that rail privatisation is being enforced on the people of Wales by Whitehall is even more galling when the Tories have been forced to nationalise East Coast and the Westminster cross-party Public Accounts Committee have said the rail franchising model is broken.

"However, RMT welcomes the fact that despite these constraints the Welsh Government has committed to keep a guard on every train alongside other commitments to work with RMT to protect jobs and conditions of rail workers in Wales."

The move continues the awarding of contracts to run rail services in the UK by foreign firms, often state owned.

Keolis is three-quarters owned by French state railway SNCF.

Keolis/Amey already runs the Docklands Light Railway in London and the Manchester Metrolink. Keolis also runs Nottingham's trams.

Upon successful completion of a 10-day standstill period, the contract will run from June 4, 2018, to October 14, 2033, with rail services transferring on October 14, 2018. This standstill period is normal procurement practice.

Alistair Gordon, chief executive of Keolis UK, said: “This will be a transformative new rail service for Wales and its borders which will see Keolis once more combine its worldwide expertise in passenger operations with Amey’s engineering excellence.

“We look forward to the successful completion of the procurement process - this exciting contract will deliver for all of Wales. The procurement process was rigorous, resulting in transformative solutions for the benefit of all in Wales, and indeed, future generations.

“While the proposed changes won’t happen overnight, the railway will be unrecognisable in five years thanks to the vision of the Welsh Government.”

Andy Milner, Amey’s chief executive, said: “Building on our successful partnership with Keolis, which already sees us deliver two high performing services – the Greater Manchester Metrolink and London’s DLR – we are honoured to be asked to operate the Wales and Borders service.

“This is a great opportunity for us to use our joint capabilities to deliver a first-rate service for Wales. We will be focused on working with Transport for Wales to transform the existing infrastructure and introduce new trains to significantly improve the passenger experience, as well as creating hundreds of new jobs and apprenticeship opportunities."

Jeremy Long, chief executive of European business at the MTR Corporation, said: "Congratulations to Keolis/Amey, we wish them every success with the franchise.

"MTR is very disappointed not to have been chosen to run the Wales and Borders franchise, and not to have the opportunity to bring our proven record of providing excellent passenger service, and of successfully delivering railway infrastructure, for the benefit of passengers and the wider community in Wales."