Daewoo Bus Corp., spun off from defunct Daewoo Motor, will supply 265 compressed natural gas buses worth $US29 million to Santiago, Chile, by 2007, South Korea's Ministry of Commerce, Industry and Energy said on Thursday.

A ministry official said Subus Chile has won a contract to use Daewoo buses one new routes being established by the city of Santiago.

In a first phase, Daewoo Bus is expected to provide 110 CNG vehicles by the end of August 2005, with the additional 115 buses being delivered by 2007, the official said.

Peter Chang