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Transurban and the Victorian Government (Australia) have reached an agreement for the progression of the Western Distributor project in Melbourne.

More concretely, the government and Transurban have signed an agreement on processes for the tender, planning and engagement stages and announced the establishment of the Western Distributor Authority to get the project done.

This announcement comes after the state government determined in December 2015 to progress with the project through exclusive negotiations between the parties. The project is currently in stage 4 of the Victorian Government’s five-step Market-Led Proposals Guideline process. 

The project includes the following works:

• Webb Dock Access improvements: an early works package of the Western Distributor project at a cost of approximately $60 million, improvements will be delivered as part of the existing CityLink Tulla Widening project.
• Western Distributor: a tunnel and elevated motorway connecting the West Gate Freeway with the Port of Melbourne, CityLink and the CBD.
• West Gate Freeway widening: two additional lanes in each direction between the M80 Ring Road and the West Gate Bridge.
• Monash Upgrade: in partnership with VicRoads, improvements to safety and travel time reliability along 44 kilometres of road, including an additional lane in each direction for 17 kilometres.

The total project investment is estimated at $5.5 billion. The project scope and exact construction costs will be confirmed following the statutory planning process, which will conclude in 2017. Transurban's proposed funding structure for the project includes:

• tolls for motorists using the new tunnel;
• tolls for heavy vehicles using the upgraded West Gate Freeway/Western Distributor corridor;
• tolls integrating into the existing CityLink tolling structure;
• extension of the current CityLink Concession Deed by approximately 10 to 12 years; and
• government contributions, expected to cover approximately one third of the total project costs.

Premier Daniel Andrews commented:

“We will build the long-overdue second river crossing, and cut travel time from Geelong by 20 minutes.”

“Although we will continue to advocate for the Turnbull Government to partner with us on this project, we simply cannot wait to get on with delivering it, and we’re getting it done with or without their support.”

Treasurer Tim Pallas stated:

“We’re getting on with the Western Distributor to cut congestion, take thousands of trucks off local streets in the inner-West, and create 5,600 Victorian jobs.”

Minister for Roads Luke Donnellan added:

“We want to hear from residents, industry and local councils, to help understand what’s important to them to get the design right.”