The deal is aimed at importation of 200 big buses to Azerbaijan.

Azeri Transport Minister Musa Panahov said the move came after a presidential decree on improvement of transportation system in Baku.

Baku-based Transgate Ltd. intends to buy 1,000 Daewoo buses while the agreement covers the first phase of 200 buses, APA reports.

"As per the $11mln agreement, 200 buses will be sent at the first phase, of which 50 ones in May delivery," he said.

South Korean ambassador to Azerbaijan Lyu Kvang Chol said the cooperation between the two countries not only in energy but also in transportation, construction and other fields is developing vertically.