Bombardier Inc.’s (BBDb.TO) rail division and a consortium partner have won a US$156-million contract to supply 40 low-floor trams to Sweden’s second-largest city.

Berlin-based Bombardier Transportation and partner Vossloh Kiepe won the contract to supply the trams to the city of Gothenburg in a European-wide public tender, BT said.

BT’s share of the contract is valued at about $109-million. Vossloh Kiepe, of Germany, will manufacture the propulsion system.

The contract includes an option for the supply of up to 60 more trams, valid until 2026, BT said.

The new vehicles are adapted to Gothenburg’s existing light-rail infrastructure and all types of climate and environmental conditions, it said.

The first two trams are scheduled to be delivered to Gothenburg in the spring of 2019 and the plan is for them to run and be tested for more than 20,000 kilometres each before final acceptance.

BT has experienced problems on two major orders for public transit vehicles in the Toronto area.

The Globe and Mail reported last month that the Ontario government had privately signalled it is open to having other companies produce about two dozen of 182 vehicles ordered from Bombardier, sufficient to supply a planned light-rail line on Finch Avenue West in Toronto.

Bombardier president and chief executive officer Alain Bellemare said last month the company is making the necessary changes to correct production problems after it failed to meet a series of deadlines on the delivery of streetcars to the Toronto Transit Commission. It has also been slow on delivery of the first LRT vehicle in a major order for Metrolinx, the regional transit agency.