Spain-based construction firm CAF has been awarded a £40 million contract to build a fleet of replacement trams for the Midland Metro.

Birmingham transport authority Centro said that while its preferred bidder was based in Zaragoza, the new trams project will be delivered through the firm’s Coventry operation.

Up to 25 Urbos 3 trams will be built by CAF and once completed, will replace the current fleet of 16 Ansaldobreda T69 trams, which were built by an Italian company.

Centro has opted to go for an expanded trams fleet due to the surge of passengers expected when the existing network is extended by almost a mile between Snow Hill and New Street via Bull Street, Corporation Street, and Stephenson Street is open.

Geoff Inskip, chief executive of Centro, said “This is an important milestone in the delivery of a world-class integrated transport network. Linking the £600 million investment New Street station with the Jewellery Quarter, and the Black Country will stimulate our local economy.”