An agreement on the procurement of four new three-car diesel passenger multiple units (DMUs) and two new three-car electric passenger multiple units (EMUs) was signed Tuesday by the Macedonian government and China's CSR Corporation Ltd - one of world's leading companies in the production of freight and passeger wagons and locomotives.

The first multiple units, expected to arrive next year, have a capacity for 1,200 passengers, will be fully air-conditioned and equipped with vacuum toilets and constructed to be energy efficient meeting all safety standards.

The investment of 25 million euros have been provided by the European Bank for Reconstruction and Development (EBRD) and comes 35 years after the procurement of the last passenger rolling stock in Macedonia.

Additionally, the procurement of freight wagons is being financed with 15 million euros and rehabilitation of existing locomotives is funded with 10 million euros, thus the investment for the renewal of the entire rolling stock of Macedonian Railways company totals to 50 million euros.

After signing the document, Deputy PM and Finance Minister Zoran Stavreski said he expected the agreement to be completed as planned enabling new, modern and economical wagons and locomotives to be used in Macedonia in the summer of 2015.

The procurement of new wagons, he added, is part of a large-scale investment cycle in Macedonia's railways, including the construction of railroad tracks toward Bulgaria and the overhaul of the Skopje Railway Station.

"The four-year investment cycle is estimated at 250 million euros. This investment will entirely transform and modernize the railroad transportation in Macedonia," he said.

The procurement agreement was welcomed by Minister of Transport and Communications Mile Janakieski and Oliver Derkovski - CEO of Macedonian Railways Transport - saying it turned over a new leaf in the development of rail transportation in Macedonia. 

Xu Zongxiang - Vice President of CSR Corporation Ltd - thanked the Macedonian government for its trust pledging to justify it by abiding by the contract.

The Chinese company manufactures and services locomotives and passenger coaches and freight trains. In 2013, CSR Corporation Ltd recorded a revenue of 16 billion US dollars and signed contracts with countries around the world in amount of 2.2 billion dollars.