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The South Australian Government is to spend $120 million on 160 buses over the next five years.

Most of the buses will be used on the O-Bahn and inner city routes where the fleet is near their 25 year age limit.

Premier Mike Rann hopes to have the contract finalised by June 2007, with the first bus to be delivered in 2008. The contract does not specify if the buses will be diesel or gas powered.

This will replace the current $90 million contract for 170 buses won by Scania with Custom Coaches from 2001 over five years.

With the new contract, Adelaide expects to be at 89 percent diability accessible by 2013 and fully accessible by 2022.

But the contract will mean that all Adelaide's buses will be air conditioned by 2013.

The South Australian government has a target to double weekday travel by public transport by 2018.