JERUSALEM, Aug 6 (Reuters) - Canada's Bombardier Inc has been chosen to supply 62 electric locomotives to Israel for 1 billion shekels ($263 million), state-owned Israel Railways said on Thursday.
Israel is in the middle of a multi-billion-dollar process to electrify the country's 420-km (260-mile) railway system to reduce noise and pollution.
Israel Railways said it would take delivery of the locomotives in 2017 and that they were mainly for use on a new fast rail line between Tel Aviv and Jerusalem. It has an option to buy 32 more.
The locomotives each have an output of 6 megawatts and will be able to pull up to eight double-decker carriages or 12 single carriages, containing 1,400 passengers, at speeds of up to 160 km per hour.
Bombardier, which has been supplying trains to Israel for more than a decade, beat out France's Alstom and two Chinese companies, CSR and CNR, to win the deal, said Israel Railways, which is also holding a tender for 294 new electric double-decker carriages.
$1 = 3.8079 shekels Reporting by Steven Scheer; Editing by Pravin Char