The Australian Government and the East West Link consortium have reached an agreement in which the consortium will retain the $339 million already invested in the project.
Premier of Victoria Daniel Andrews announced last week that the $10.7 billion East West Link will not proceed and no compensation will be paid to the consortium.
The $339 million of net costs that have been paid to the consortium for the bid process, and design and pre-construction will not be retrieved.
“The Labor Government and the consortium are on the same page and have come to a good faith agreement. The Government will now get on with building the projects our state needs and Victorians voted for,” said Premier Andrews in a statement.
A further $81 million of fees were incurred to establish the Project Co credit facility of $3 billion. The state intends to negotiate with the banks to take over that facility to contribute to funding for the Melbourne Metro Rail Project.