The engineering company responsible for delivering improvements to the Oxford to Bicester railway line has gone into administration.

Last month, railway maintenance contractor Jarvis landed a £55m contract from Chiltern Railways to work on the mainline phase of the Evergreen 3 project.

That phase is already under way and includes improvement works to increase train speeds between London and Birmingham via the north of Oxfordshire.

The contract also contains the exclusive option to extend the works, subject to relevant approvals, to cover the £96m upgrade of the Bicester to Oxford line which is due to commence in spring next year.

This second phase of the Evergreen 3 Project upgrade would enable a high-speed link from Oxford to London Marylebone, via Bicester, which is expected to be operational by 2013.

The second phase would see two new platforms provided at Oxford station and a new station built at Water Eaton park-and-ride centre, just outside Kidlington.

Bicester Town and Islip stations would also be rebuilt as part of the project, which would allow trains to run at up to 100mph between Oxford and Bicester on double track, in place of the existing single track.