Make Transurban pay for West Gate Tunnel

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Last month, the Victorian government advised that the $6.7 billion West Gate Tunnel project would not be completed in 2022 as originally intended, instead pushing the project back to 2023 over a dispute around the disposal of contaminated soil.

Now it has been revealed that Transurban has sought to tear up the contract to build the project over a force majeure event – an unforeseeable circumstance that makes it impossible to fulfil the terms of a contract:

Transurban asked the state government if it could legally rip up its contract to build the $6.7 billion West Gate Tunnel if the builders’ attempts to dump the project were deemed valid, court documents allege.

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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.