The City of Zagreb will buy 20 new trams worth €37.8 million, not including VAT, and the delivery of the first trams is expected in two years, city administration officials said at a news conference on Tuesday.

Mayor Tomislav Tomasevic said that in the coming years the city would buy another 40, possibly 60 trams, for which the demand is great as no investments in Zagreb trams were made over the past 20 years.

One tram costs slightly less than two million euros, and it will be a major investment for the city, he said, noting that the only bidder was the Koncar company.

The city administration is also negotiating with the European Investment Bank to secure funds for the energy renovation of several hundred public buildings, it was said.