Is Naza-Berjaya consortium the choice for govt’s fleet contract?

Spanco’s 25-year concession for fleet management ended last year but was extended until the end of 2019

by RAHIMI YUNUS/ graphic by MZUKRI

THE Naza Group of Cos-Berjaya Corp Bhd consortium is said to be leading the pack to secure the multimillion vehicle fleet concession contract from the government, according to two sources.

The selected company, which will provide vehicles and management of vehicles to the government, is expected to be announced soon after more than 10 months of rigorous bidding process and deliberation.

Spanco Sdn Bhd’s 25-year concession for fleet management ended last year but the company has been given an extension until the end of the year.

The government concluded the request for proposal on the concession last February.

The race for the lucrative fleet contract has been intense in the past few months with at least four major parties tendering for the project. They are Spanco, Naza-Berjaya consortium, DRB-Hicom Bhd and Sime Darby Bhd.

“Spanco’s concession will not be renewed. Naza-Berjaya is likely to take over from the company. The government is expected to make an announcement this month,” a source with the knowledge of the matter told The Malaysian Reserve (TMR) but asked not to be named as the discussions are confidential.

The source said Spanco will continue to service all assets under their concession agreement and the changes are not expected to have a major impact on the company.

Another source said Spanco is expected to continue servicing the current assets until June or July next year before the newly appointed company takes over the concession.

In a document previously sighted by TMR, Putrajaya seeks between 1,600 and 2,730 vehicles for the next six years, including Proton X70, Persona and Saga, as well as Honda Accord and Toyota Vellfire.

But the vehicles listed are not in the Naza-Berjaya consortium list of vehicles. Both Naza and Berjaya have their stables of vehicles.

Another source said new vehicle purchases could start in the second quarter of next year to kick off the new concession.

The source said the new fleet concession would not be more than 20 years.

It was reported that a 15-year concession will involve 12,500 vehicles, with an estimated value of RM300 million annually starting after the fifth year.

In November, Deputy Finance Minister Datuk Amiruddin Hamzah said the value of the new concession would be comparable to the previous one.

“The priority is to replace police cars. 70% of the new government vehicles will be Proton cars, which is owned by DRB-Hicom,” the source added.

The source also said Naza- Berjaya consortium’s in-house brands such as Kia or Mazda are not part of the new fleet.