Polish manufacturer PESA is likely to win the tender to provide the country's capital Warsaw with a network of low-floor trams by 2010.
A number of proposals to provide the 186 air-conditioned trams were submitted by companies such as Stadler and Alstom, but it was only PESA that did not exceed the limits set by the Tramwaje Warszawskie (TW) authority.
TW has allocated about €405m for each vehicle and PESA's proposal comes under budget at €338m.
If successful, PESA will manufacture and deliver 30m-long trams that can accommodate 201 passengers.
