A deal to buy new trains for Auckland has been expanded and the fleet will become entirely electric.
The Government will lend Auckland Council the money to buy 57 three-carriage units instead of the earlier plan to buy 38, allowing the ageing diesel fleet to be retired.
Transport Minister Steven Joyce says the improved deal will see the Government provide a $500 million loan and a $90 million grant.
Auckland mayor Len Brown says the changes will put electric trains on all three of the region's lines and believes the $37 million annual repayment cost is a good deal.
The contract for construction of the fleet should be concluded later in August and the first of the new electric trains will enter service in two years.
