The Massachusetts Department of Transportation (MassDOT) board of directors approved a $222.2 million contract for the manufacture and delivery of 325 new MBTA buses.

According to the MBTA’s website, the contract is with New Flyer Inc. of Winnipeg, Manitoba, and calls for 40-foot Low Floor Hybrid and Compressed Natural Gas buses to begin in July 2016, with all buses in service by June 2017. The buses will replace a current fleet of CNG buses nearing the end of their expected 12-year service life.

The contract is expected to be funded with 80 percent federal formula funds and 20 percent MBTA revenue bond funds. The MBTA funds are included in the current MBTA Capital Investment Plan.

“This is a wise investment that meets an urgent need to retire an aging portion of our bus fleet that has presented significant maintenance challenges and deliver new, top quality replacements that will serve thousands and thousands of our customers each day,” MBTA Interim General Manager Frank DePaola said in a statement.