The 128 Ford Transits and 82 Citroen Berlingos are being funded through a contract hire non-maintenance operating lease basis, with Newcastle City Council handling servicing and maintenance.
Brian Fothergill, engineering services manager at Newcastle City Council, said: 'Lloyds TSB autolease was selected ahead of seven other companies because it demonstrated the best value and an ability to work closely with our in-house team.
'Newcastle City Council outlined its commitment to the environment in 2000 with a green transport plan and this influenced our vehicle replacement policy. '
Malcolm Noyle, public sector development manager at Lloyds TSB autolease, said: 'This deal underlines our commitment to green fleet innovation and to forming strong partnerships with local authorities.'
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