French rolling stock manufacturer Alstom has signed a €700m framework contract with the Department of Transport Victoria in Australia for the delivery of 100 Flexity low-floor Next Generation Trams (NGTs).

The scope of the contract includes the supply of rolling stock, as well as 15-year maintenance for what is claimed to be the ‘largest urban tram network in the world’.

The contract was awarded under the Victorian Government’s A$1.85bn ($1.37bn) Next Generation Trams Project.

Alstom Asia-Pacific region president Ling Fang said: “We are very excited to be awarded this significant contract for the Melbourne Tram Network. This is a strong validation of our commitment to deliver mobility solutions that meet the specific requirements of our customers.”

The project is anticipated to help create 1,900 local jobs in the manufacturing and supply chain segments. It will lead to the construction of a new depot and maintenance facility.

According to Alstom, the contract covers a local content quota of 65%, with the new trams being built at the firm’s Dandenong facility in Victoria.

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Alstom is planning to begin the delivery of new trams in 2025.

The new trams will replace some of Melbourne’s high-floor trams to better serve passengers in the region.

Victoria Premier Daniel Andrews said: “We’re proud to build trams and trains in Victoria, by Victorians – supporting thousands of jobs and improving our public transport network.”

Since 2015, the Victorian Government invested over A$7.5bn ($5.5bn) in upgraded rolling stock and supporting infrastructure for safer transportation of passengers.