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The Massachusetts Department of Transportation’s board recently approved a $114.6 million contract with MotivePower Inc. to supply 20 new diesel-electric locomotives for the Massachusetts Bay Transportation Authority (MBTA).

The contract will enable MBTA to remove its 20 oldest and least-reliable locomotives from service to help eliminate mechanical failures. MotivePower will deliver a pilot locomotive within 29 months from a notice to proceed; production would begin in about 32 months and locomotives would be delivered at a rate of three per month.

The accelerated delivery of the locomotives is a critical component in improving commuter-rail service, said MBTA General Manager Richard Davey in a prepared statement. The authority operates a fleet of 80 locomotives, the oldest of which were manufactured between 1978 and 1980. By fiscal-year 2013, 68 percent of the fleet will be scheduled for retirement based on a 25-year service life, according to MBTA.

The new locomotives are designed to reduce emissions and cut fuel usage by about 730,000 gallons annually.

MotivePower plans to use the Providence and Worcester Railroad Co.’s locomotive shop in Worcester, Mass., to provide pre-delivery inspection, preparation and commissioning support services, establish a parts inventory and conduct warranty repairs.