West gate tunnel dispute escalates

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A day after its builders gave notice that they intend to terminate their contract with Transurban, Daniel Andrews’ $6.7 billion West Gate Tunnel project is in chaos with the Premier threatening to tear-up Transurban’s lucrative 10-year toll extension if it does not find away to dispose of tonnes of toxic soil discovered at the build site:

Premier Daniel Andrews has warned the government would renegotiate Transurban’s deal to toll drivers on CityLink for another 10 years given the “silly games” at play that are delaying the flagship road project…

The construction companies… have been arguing for months with Transurban and the state government over who is responsible for storing, treating and dumping the contaminated soil.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.