Volvo Monday said it has signed a framework agreement with bus operator Bashi Group in Shanghai, China, to supply around 1500 buses before the opening of the World Expo next May, reports Dow Jones International News.

The deal, valued at SEK1.3 billion, will be carried out by Volvo Bus' subsidiary Sunwin Bus, a 50-50 joint venture between Volvo Buses and Shanghai Automotive Industry Co.

Of the framework agreement's 1,500 buses, about half will be Volvo B7RLE and Volvo B6R bus models, and the remainder of the Sunwin brand, according to the report.

The agreement also implies that the Bashi Group would make suborders each month. Bashi has made orders for 300 buses so far and will complete the whole transfer by the time of the opening of the World Expo in Shanghai during May 2010.