Berwin Leighton Paisner (BLP), Denton Wilde Sapte and Dickinson Dees are among the firms advising as three bidders compete to win a £300m operating contract for the Tyne & Wear Metro.

BLP has been drafted in to advise the current management team of the Tyne & Wear Metro as it bids to retain the contract from Tyne & Wear Passenger Transport Executive, Nexus, for 2010 to 2019. The City firm is fielding a team under London project finance partner Richard Lucas.

Denton Wilde Sapte is advising one of the other bidders – Deutsche Bahn – on its tender under the lead of transport partner Matthew Hanslip-Ward. It is unclear who is advising the third bidder, Serco Rail.

Nexus has turned to Newcastle's Dickinson Dees as it attempts to find a new operator. Projects chief Tim Care is leading the team for the firm, with assistance from corporate finance partner Paul Coleman.

The bidding process comes after Nexus received funding from the Government to finance improvements to its tracks, trains and communications over the next 10 years. It is expecting to spend £300m upgrading the Tyne & Wear Metro system.

The light rail network, which carries more than 40 million passengers each year, serves as a key transport link through the centre of Newcastle, Gateshead, Sunderland, North Tyneside and South Tyneside linking Newcastle airport to the coast.

Commenting on the bid, Lucas said: "Advising an in-house bidder against private sector opposition undoubtedly raises some interesting issues, the likes of which have not been encountered in the rail industry since the first franchises were let on privatisation in the mid-1990′s.

"This transaction raises all the issues and complexities that one would expect to come across on a heavy rail franchise bid."

The successful bidder is expected to be appointed in January 2010.