NEW REPORTS suggest that the Department for Transport will reach 'commercial close' with Siemens over the £1.4 billion Thameslink rolling stock deal before Christmas.
However, the essential 'financial close', when banks agree the terms of private sector funding, is unlikely before the the New Year and is not yet guaranteed.
Even so, the reports are being seen as a fresh setback for Bombardier in Derby, which is still officially reserve bidder for the contract to build some 1,100 vehicles for the Thameslink Programme.
Derby North MP Chris Williamson has continued to criticise the Government's determination to complete the deal with Siemens because it is seen as a major factor in deciding the future of train-building in Britain.
He said: "It's been obvious from the start that the government's original decision was wrong. But successive transport secretaries have ploughed on regardless, seemingly blind to the wealth of evidence and deaf to the strength of feeling against the decision."
In a related development, there is growing speculation that the Intercity Express Programme could be pared down after leasing company Eversholt unveiled proposals to refurbish and upgrade the East Coast fleet of Mk4 coaches.
The Agility Trains consortium, which includes Hitachi, has already signed a £4.5 billion contract to supply 596 IEP vehicles which are to be assembled at a new plant in County Durham.
But it is now being suggested that the Government may not proceed with an option for a further 270 vehicles for East Coast, and decide instead to keep the existing Mk4 coaches for another 20 years or so, saving at least 60 per cent.
Rail minister Simon Burns has insisted that the Government remains committed to a modern East Coast fleet, but also warned that “as part of our commitment to secure the best deal for passengers and taxpayers, we are also looking at a range of options".
Hitachi has conceded that new IEP vehicles would be more expensive than refurbishing the Mk4s, but also claimed that new trains would be more reliable.