The Next Generation Trams project, which went out to tender at the end of April, will involve a company designing, building, and maintaining a fleet of more accessible trams.

Alstom, its recently absorbed subsidiary Bombardier, and UGL-CAF, were selected to submit bids for the project following a 12-month "interactive development process", according to a Department of Transport webinar.

READ MORE: Alstom staff to work from Bombardier as plans are finalised for new trains

This involved consultants working with the department to thrash out capabilities, components, and priorities, before the companies began their bids.

It was noted that strict measures will separate the Alstom and Bombardier bids, as Bombardier's design work began before its acquisition.

Alstom has a large factory at the historic Ballarat Rail Workshop on Creswick Road, which was used to build X'Trapolis metropolitan trains until recently - when that project finished, workers were reassigned to other jobs nearby, including at the Bombardier V/Locity maintenance facility in Ballarat East.

It's understood Alstom has completed design work on the next-generation X'Trapolis 2.0 trains.

UGL also has a large facility in Ballarat, on Gregory Street West.

The Department of Transport confirmed the $1.48 billion project is under way, with a contract to be awarded by late-2021, and trams set to hit the network by 2025.

As well as accessibility - the intention is to replace high-floor A, Z, and eventually B class trams with low-floor trams - the new designs may use on-board battery systems.

In the webinar, NGT engineers noted using batteries or other on-board energy systems would reduce the need to update substations and other electrical infrastructure.

The local content requirements for the project will be increased to 65 per cent, and it was noted there could be a technology export opportunity if a new solution is found to increase accessibility.

"We're building 100 brand-new next generation trams right here in Victoria, which will be more accessible, comfortable and energy efficient," a spokesperson said in a statement.

"Shortlisted suppliers have been invited to submit bids to design, build and maintain Melbourne's newest trams - to progressively retire some of our oldest, high floor trams and create a more accessible network for all passengers."

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"This project will support almost 2000 local jobs throughout the supply chain and set the standard for modern public transport."

UGL and Alstom both declined to comment, citing the ongoing tender process.

In the webinar, Public Transport Minister Ben Carroll said an expressions of interest process is also under way for new zero-emissions buses - a number of diesel buses were manufactured in Ballarat following an announcement in 2019.

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