The Scottish Government is being given the option to buy a multi-million-pound fleet of 70 new ScotRail trains for just £1.
The peppercorn price tag will, however, only come into play after 25 years of the rolling stock being in daily use on Scotland’s railways.
The “industry-first” deal has been signed by new ScotRail franchisee Abellio and train builder Hitachi Rail Europe.
It will ensure the trains are available for Scottish public transport requirements long after the Dutch firm’s 10-year franchise agreement, which begins next month, comes to a close.
Scottish Transport Minister Derek Mackay will today meet Abellio chief executive Jeff Hoogesteger and Hitachi production director Jon Veitch to mark the signing of the contract.
First images of how the new trains being built by Hitachi, which are set to come online from the summer of 2017, will look have also been released.
The new trains will operate on Scotland’s busiest route the Edinburgh-Glasgow via Falkirk High line and will provide around 50% more capacity than is now available.
They will also run on the Stirling-Alloa-Dunblane line and on south Glasgow suburban routes.
The new contract guarantees the use of the trains on Scotland’s rail network for at least 25 years and includes a 10-year maintenance deal, with plans to stable and service the trains at depots in Edinburgh.
Mr Mackay said: “Passengers will love using these new trains with many more seats, but the benefits go far beyond that.
“The use of electric trains on Scotland’s busiest route will help reduce our carbon footprint.
“The improved journey times and connection can only be good for our two biggest cities.
“And the innovative contract has reduced the cost of the finance, as well as guaranteeing a great deal for Scotland in the longer term.”
The deal will see 46 three-car and 24 four-car AT200 EMU units built, all of which will be in service by early 2019.
The first seven trains are scheduled to be constructed at Hitachi’s Kasado factory in Japan, with the remainder to be assembled at the firm’s new train manufacturing plant in north-east England.
Mr Hoogesteger said: “This is an important deal for passengers and for Scotland.
“New trains for Scotland were a key feature in Abellio’s bid for the franchise and we are excited to be pressing the button on the delivery programme.”
Mr Veitch said: “We are delighted to be signing this contract, which will see the supply of rolling stock and maintenance services for the new ScotRail franchise.
“This forms the start of a long-term partnership to boost passenger services in Scotland, and we will be working closely with the operator to ensure services are kept to a very high standard across this period.”