Chinese telecommunications giant Huawei will continue to work on a digital radio system for Perth's rail network after the West Australian government was assured the company could deliver the contract.
The privately-owned company won a $205 million contract in July to build and maintain a 4G communications system for WA's Public Transport Authority.
But transport minister Rita Saffioti ordered a review of the deal after the United States in January brought criminal charges against Huawei.
"Senior PTA staff met with eight senior Huawei and UGL staff including John Lord, Huawei Australia chairman, to discuss the delivery of the contract," Ms Saffioti told parliament on Wednesday.
"The Huawei/UGL representatives confirmed they would be able to source equipment required for the project.
"The state government will continue to monitor this contract with the involvement of other key state agencies."
Opposition spokeswoman Liza Harvey said the minister failed to address the security issues or what would happen with the next stage of the communications network for the PTA.
"(Huawei) can't fulfil the add-on requirements of automated train control or an emergency phone network because they are prohibited by the Commonwealth," she told reporters.
"So the problems with Huawei as a company are still there (and) the prohibitions from the Commonwealth are still there."
Australian Associated Press