Controversial Chinese company Huawei has been awarded a $136 million telecommunications contract by the WA Government, raising concerns the deal could compromise Australia's security.

Huawei is in a joint venture with UGL to build 4G communications systems for voice and data services on Perth trains, including the yet-to-be completed Forrestfield Airport Link.

WA Opposition Leader Mike Nahan said there were significant security concerns about the deal.

"There are serious strategic issues related to this contract," he said.

He said the main security concern was that the project would be integrated with data from emergency services within a year, creating "serious strategic issues with Huawei's ownership and operation of that facility".

Intelligence agencies and some politicians have long raised concerns about Huawei's technology enabling access to Australian infrastructure.

Intelligence community services have told the ABC the company is considered a cyber espionage risk to critical infrastructure and it is likely to be blocked from taking part in the 5G mobile network.

It was previously blocked from building the National Broadband Network on the advice of the Australian Security Intelligence Organisation (ASIO), and several MPs have called for the company to be banned from the 5G network over similar national security concerns.

A decision about locking certain companies out of the 5G network is expected to be made by the National Security Committee of Cabinet soon.

Australia also stepped in to torpedo a contract Huawei had signed to build a 4,000 kilometre undersea internet cable between the Solomon Islands, Papua New Guinea and Australia over concerns about national security and China's rising influence in the Pacific.

Cost triumphs over security: Opposition

Dr Nahan said the contract should have gone to local firms, and he believed Huawei had won the deal on a cost basis, with little regard to other issues.

In a statement, Huawei said the project would "deliver a total end-to-end digital radio solution across the PTA's [Public Transport Authority's] 180 kilometre electrified rail network and the new Forrestfield Airport Link twin tunnels".

Sorry, this video has expired Perth Airport borers break through ( Eliza Laschon )

"The Huawei UGL joint venture will design, install and commission the service and maintain the new digital radio system for an initial period of five years from completion with options for a further five plus five years.

"We have been providing similar communications technology services to Sydney Trains and Ambulance NSW safely and securely for nearly a decade".

It said more than 50 WA staff would be employed during the design and building periods of the contract.

Tender cleared security hurdles: Premier

WA Premier Mark McGowan said he did not expect security problems with the contract and accused the Opposition of politicking on the issue.

"We sought advice from the Federal Government, from essentially federal security agencies on two separate occasions about whether or not there was any security issue whatsoever," he said.

"And the Federal Government advice is there was no security issue whatsoever involved in this decision.

"We provided that security advice to the State Opposition, for them now to ignore that I think shows just how low they'll go."

The Premier said there was an open tender for the project, and it was ultimately a PTA decision.

Prime Minister Malcolm Turnbull confirmed the WA Government had consulted with the Department of Home Affairs.

"The decision to award the contract is obviously one for the WA Government, but we don't go into security dimensions in any more detail than that," he said.