In the 2014 Budget, the Government’s Infrastructure Growth Package set aside funding contributions towards two road projects proposed by state governments:
The East West Link project included two main sections (see Figure C.1). Stage one was a six-kilometre eastern section connecting the Eastern Freeway with the CityLink motorway, while stage two was a 12-kilometre western section running from the Port of Melbourne to the Western Ring Road.
In May 2014, the Australian Government decided to approve an advance payment of $1.5 billion for the project, comprising $0.5 billion for the eastern section and $1 billion for the western section. This was paid in June 2014.
Construction on the eastern section was expected to commence in late 2014, and early works on the western section were expected to commence in late 2015, with the overall project being completed in 2023. However, in February 2015, the Victorian Government notified the Commonwealth that the East West Link project was to be cancelled and the two governments have since agreed to redirect the payments to other Victorian road projects.
The WestConnex project is designed to deliver 33 kilometres of new and upgraded motorways linking western and south-western Sydney with the Central Business District, Kingsford Smith Airport and Port Botany precincts. Construction of the project is to be completed by 2023. Figure C.2 shows that the project is largely based in the existing corridors provided by the M4 and M5 roads and is being built in three stages.
In May 2014, the Australian Government decided to approve an advance payment of $0.5 billion for WestConnex project planning, development, procurement and construction costs. This was paid in June 2014. The remaining $1.0 billion allocated for the project was paid in three milestones between June 2015 and November 2016.
In addition to grant funding, the Government also committed to providing a concessional loan of up to $2.0 billion. This was aimed at accelerating the delivery of stage two of the project by up to two years. The 2014–15 Budget noted that the loan would be available for drawdown during the stage two construction period, from 1 July 2015 to 31 December 2018, with full repayment by 2029.