The Metropolitan Transportation Authority (MTA) is slated to sign a $3.7 billion contract with Kawasaki for 1,612 new subway cars, The New York Times reported late last week.

The agency has committed $1.45 billion for more than 500 cars and has agreed to purchase the remainder if the company meets the contract’s expectations, according to the newspaper. The agreement includes clauses to assess a penalty if Kawasaki fails to meet the schedule.

The order would include units with an “open gangway” design to improve capacity and enable riders to move between cars. The first batch of cars would be delivered in July 2020.

The MTA board’s transit committee approved the contract Monday, while the full board is slated to vote on it tomorrow, according to a Patch.com report.

Late last year, the MTA offered tours of a prototype of its latest-generation subway cars.