Two firms will compete to build the Supertram system in Leeds.

Bidding closed for the �500m project on Monday.

The two groups in the running for the contract to design, build and run the transport system are Momentis and Airelink.

The formal contract will be awarded at the end of 2003, with construction starting 2004 and the first trams running 2007.

Strong bids

Momentis includes the FirstGroup, which runs bus services throughout the country.

Airelink has among its partners the Arriva train company.

Two other groups, Leeds Tramways and Leeds Tramlink, dropped out of the bidding earlier this year.

Councillor Mick Lyons, chairman of passenger transport operator Metro, said: "The board has received two strong bids from consortia which include some of the world's leading public transport and civil engineering organisations."

The two bids for the 28km of track will now be considered by the Supertram board.