The Manitoba government is investing $1 million to develop a model for an all-electric transit bus that the province says could one day be used all over North America.

Premier Greg Selinger says Manitoba is aiming to be a leader in developing electric vehicles to help cut greenhouse gas emissions.

He says the bus should be ready within 12 months and will be tested in the province for two years.

The $3-million project includes Winnipeg-based bus manufacturer New Flyer Industries, Mitsubishi Heavy Industries, Manitoba Hydro and Red River College.

New Flyer already has experience building hybrid and hydrogen fuel cell buses.

The province is also putting up $100,000 to create an electric-vehicle learning and demonstration centre at Red River College.

"This is exciting. We are working together to develop an entirely electric bus to get families around in cities all over North America [and] we're also creating opportunities for young people right here in the province to become leaders in developing and building clean, electric vehicles and helping cut greenhouse-gas emissions," Selinger stated in a news release.