The contract also includes an option to equip an additional 34 trains.
Alstom will supply its Atlas system, with the 40-month project expected to start in January 2019.
The new system will enable IR to increase capacity on the congested Ayalon line from 14 to 17 trains per hour in both directions without the need to build additional tracks.
The overall project to install ETCS Level 2 and GSMR, which includes three separate contracts covering track equipment and on-board equipment, is expected to be completed in 2022.
