Babcock and McLaughlin & Harvey have scooped the contracts to complete re-signalling works and a passing loop on the Coleraine to L'Derry railway line.
Babcock will deliver the signalling scheme and McLaughlin & Harvey will build the passing loop at Bellarena.
Transport Minister Danny Kennedy said: "My commitment to the Coleraine to Londonderry rail line has always been clear and I have worked hard to ensure that this line remained open.
"The project is a key Programme for Government (PfG) commitment and is evidence of the Executive's determination to invest in our rail network. It also signals our continuing commitment to invest in the North West and improve connections and frequency of service between Belfast and Londonderry."
(CD/JP)
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