The Business Secretary Vince Cable will show his support for a new research project in County Durham. He is due to visit the Caterpillar factory in Peterlee, which will receive a share of £40m.
Researchers at the plant will look at energy efficiency in heavy goods vehicles, and hope eventually to build and sell a new, cleaner engine for big vehicles.
More top news
Nominations are now open for the ITV Fundraiser of the Year Award 2019
The contract includes designing and building a new train fleet and maintenance depot. The winning bid will be announced in January 2020.
Councils say they want to create new rail services, improve stations and build walk and cycle routes across the region.