Western Distributor hits pothole as Greens, Coalition threaten to block project funding

THE $5.5 billion Western Distributor is under threat because a complex funding deal to sting motorists on CityLink for an extra decade can be overturned by State Parliament’s upper house.

THE $5.5 billion Western Distributor is under threat because a complex funding deal to sting motorists on CityLink for an extra decade can be overturned by State Parliament’s upper house.

The major new road, which would provide an alternative route between the West Gate Freeway and the CBD, was adopted by Premier Daniel Andrews after being proposed by tolling giant Transurban.

To help pay for a third of the project, the government agreed to extend Transurban’s lucrative CityLink concession deed — which ­enables it to charge motorists on those roads — until at least 2044.

The bombshell is contained in legal advice about how to extend the Citylink concession deed, which was set up by the Kennett Government and allowed Transurban to slug motorists until 2034.

It is understood there are fears the Coalition and Greens could use their numbers in the Legislative Council to block the extra slug on motorists in Melbourne’s southeast.

This would leave a funding black hole of more than $1.5 billion, but also raises questions for Transurban about the value of the project to its shareholders without a lucrative toll extension.

MATT JOHNSTON ANALYSIS: ANDREWS SWEATING ON DISTRIBUTOR DEAL

A Labor source said Treasurer Tim Pallas was now “looking at all options” in relation to getting a deal secured, as the state opposition renewed attacks on the government’s plans.

Any disruption to the Western Distributor project would be a major embarrassment for Mr Andrews after he dumped the East West Link and wasted $1.2 billion of taxpayer money in his first weeks as premier.

The project is also a larger version of his West Gate Distributor project, which was billed as a “shovel ready” project to get trucks off the West Gate Freeway.

Mr Pallas last night promised the “desperately needed second river crossing”, which will cut travel times by 20 minutes and create 5600 jobs, would be built and open by 2022. “Contracts are set to be signed by the end of the year,” he said.

“We expect that building a second river crossing and taking thousands of trucks off local streets will have support across the political spectrum.”

Concept plans of the Western Distributor river crossing. Picture: Supplied

Under the proposed deal between Transurban and the government, the tolling giant would pay two thirds of the road cost upfront, with the rest coming from state coffers.

In return, Transurban would get to keep toll revenue from the Western Distributor, as well as an extra decade of CityLink tolls.

In a sign the coalition is unlikely to support extending Transurban’s concession deed, opposition roads spokesman Ryan Smith said “until Daniel Andrews is upfront with Victorians and transparent about the (road’s) true cost, the project cannot be supported”.

“The only beneficiary from Daniel Andrews’ rushed road project is Transurban, who stand to make billions from the pockets of Melbourne motorists,” he said.

Greens Western Metro MP Colleen Hartland said the party had “real concerns about this project”.

“There’s been a total lack of transparency and we’ve had to take the government to court to try and uncover basic information,” she said.

Transurban said last night: “We’re pleased with the progress being made on the Western Distributor project”.

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