TTC staff are recommending that Bombardier manufacturer new light rail cars to replace Toronto's aging streetcars. (Gary Graves/CBC)

A Toronto Transit Commission staff report is recommending that Bombardier build its new fleet of streetcars — a contract worth about $1.5 billion.

The recommendation to buy 204 new light-rail cars over the next 10 years will now go to the TTC board for approval.

The sleek light-rail vehicles would be larger, quieter and lower to the ground than today's streetcars, making them wheelchair accessible.

The new streetcars are to start running in 2012 with the entire fleet replaced by 2018.

Right now, more than 260,000 people ride Toronto's streetcars each day. But the existing cars are approaching what TTC spokesman Brad Ross calls the end of their useful life.

"We need new streetcars in this city," he said.

The new streetcars will be able to carry double the number of riders and improve the ride.

"The new streetcars will carry even more passengers, they'll be quieter, they'll be more comfortable, they'll be air-conditioned."

The $1.22 billion [excluding taxes] contract won by Bombardier, which is headquartered in Canada, is the biggest single contract the TTC has ever awarded.

The other competing manufacturer was the German firm Siemens.

Under the terms of the agreement, at least 25 per cent of the new streetcars' content must be made in Canada. Labour groups had been hoping for much more Canadian content.

The TTC said if the content requirement were any higher it would have effectively eliminated all competitors except Bombardier.

Originally, the TTC hoped to make its decision by the summer of 2008 but that was pushed back after the bids it received failed to meet the commission's technical requirements.

Last year a new tender process was undertaken.

The TTC board will discuss and vote on the staff recommendation at its meeting on April 27.