Turkey's state railway company TCDD signed on Monday a contract with South Korean railway systems provider Hyundai Rotem to buy 80 electric locomotives and a simulator for $312.7 million.
TCDD Director-General Suleyman Karaman told a signing ceremony that $220 million of the financing for the project would be provided by the Islamic Development Bank (IDB).
First eight locomotives will be built at Hyundai-Rotem plants and the rest of the order will be produced in Turkey in the next four years.
The deal includes licensing and technology transfer, Karaman said, adding that TCDD secured all rights to use technical information, produce locomotives in Turkey as well as all IDB-member countries, and sell them for 10 years.
Hyundai Rotem outstripped seven other companies competing in TCDD tender for 80 electric locomotives which will replace old ones.