Aug 22 (Reuters) - Webuild's U.S. unit Lane is

part of a joint venture that won a $466 million contract to

build railway tunnels as part of the Hudson Tunnel Project in

the New York City area, the Italian construction group said on

Thursday.

Lane has a 35% stake in the deal while Schiavone and

Dragados, both part of Spanish group ACS, have stakes

of 35% and 30% respectively, Webuild said.

Webuild shares were up 2.21% at 0849 GMT on the Milan bourse

following the news.

The Hudson Tunnel links Amtrak rail and state commuter lines

between New York City and New Jersey and the project is expected

to cost about $17.2 billion.

The contract involves the design and construction of two

twin rail tunnels, each about 1.6 kilometres long with an

internal diameter of about 8 metres, the statement said.

They will be part of the new Palisade Tunnel, which is one

of the three sections of the new Hudson Tunnel.

The project, which has suffered long delays, will also

repair an existing tunnel, it said.

Completion is scheduled for 2027.