The agreement covers Carillion’s small rail suppliers arrears from Christmas time through to 15th January when the company went into liquidation. It affects around two-thirds of Carillion’s rail supply chain, Network Rail said.
This is in addition to last week’s announcement that all certified work after 15th January to all suppliers on rail projects will be paid until further notice and that Carillion rail employees will be paid until at least mid-April.
Network Rail commercial director Matthew Steele said: "We recognise how challenging this period has been for our small suppliers. We hope that this will be some positive news to the hundreds of smaller companies up and down the country who have been worried about the impact on their business. These small organisations are a critical part of our supply chain both now and in the future.
"PwC, together with our in-house task force and the Carillion teams, are carefully managing this difficult period to keep all our rail projects going, and are working hand-in-glove to find ways to support staff and suppliers alike."