Two big Canadian pension funds have won a GBP2.1 billion contract for a high-speed rail link connecting London with the Channel Tunnel.

Borealis Infrastructure, the infrastructure investment arm of Ontario Municipal Employees Retirement System, or OMERS, and Ontario Teachers' Pension Plan (OTP.YY) said early Friday they were the winning bidders in the British government's auction for the rail network, called High Speed 1.

The contract is a result of a process that started in June when the British goverment announced the start of a competition to sell a 30-year concession to own and operate the 68-mile high-speed rail network.

People familiar with the matter had told Dow Jones earlier this week that at least two other groups had submitted offers. One was to have included Eurotunnel PLC (GET.FR) and two of its shareholders, Infracapital and Goldman Sachs Group Inc. (GS). Another was said to include Morgan Stanley's (MS) infrastructure fund, 3i Group PLC's (III.LN) infrastructure fund and the Abu Dhabi Investment Authority.

Websites: www.omers.com, www.borealis.ca

-By Judy McKinnon, Dow Jones Newswires; 416-306-2100; judy.mckinnon@dowjones.com