Federal funding to boost Victorian road link by $3.25 billion
The federal government will commit an extra $3.25 billion to developing the North East Link, the blown-out infrastructure project linking major arterial roads in Melbourne.
The boost from the Commonwealth will bring its total contribution to $5 billion for the project, which last year blew out by more than $10 billion from its original cost.
Infrastructure Minister Catherine King.
Infrastructure Minister Catherine King said the “smart infrastructure” will improve traffic flow across Melbourne.
“This has been a really missing link in our road network,” she told ABC Radio Melbourne on Thursday.
It would take 15,000 trucks off suburban roads, and would get the city moving “as best we can”, the minister said.
She added the federal government money would go to the non-toll parts of the road.
Prime Minister Anthony Albanese said the boost, which will be included in next week’s budget, would ensure the city’s fast-growing northeast had the infrastructure it needed.
The link will be built between the Eastern Freeway and the M80 Ring Road in Greensborough and is expected to open in 2028.
The North East Link – which includes 6.5 kilometres of tunnels – will stretch from Bulleen to Greensborough. It will widen the Eastern Freeway by up to 20 lanes.
Premier Jacinta Allan revealed in December that the 10-kilometre road toll had more than doubled in cost since it was first announced.
The project originally had a budget of $10 billion. The cost estimate is now $26 billion. This means interest repayments are expected to reach $8.8 billion a year by 2027, the equivalent of $16,700 in interest every minute.
Victoria is already the most indebted state in the nation. The state’s debt pile is projected to hit $156.2 billion next financial year, rising to $187.7 billion by June 2028.
The premier will make the announcement alongside the Prime Minister in Melbourne later today and this story will be updated regularly.
-With Broede Carmody
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