A previously secret document which guarantees compensation for the consortium behind the East West Link if the project is scrapped has been released by the Victorian Opposition.

The so-called "side letter" was signed by the former Victorian treasurer Michael O'Brien in September and accompanied the contract awarded to the East West Connect consortium.

Labor's Daniel Andrews won the Victorian election in November after promising to dump the project.

He suspended all work on the toll road upon assuming power and released the previous government's business case for it shortly afterwards, however had not yet made the "side letter" guaranteeing compensation public.

The letter stated that compensation would be paid to the consortium even if a court subsequently found that the contract was "void or otherwise unenforceable".

The letter acknowledged that there was a "significant opportunity cost" for the consortium members if they committed to the toll road.

It also said that "Victoria's leading reputation as a place to do business ... would be compromised" if the project was dumped.

Now shadow treasurer, Mr O'Brien said that "the state of Victoria absolutely has the right to enter into contracts".

"We knew that, the consortium knew that, the community knows that, the only person pretending otherwise was Daniel Andrews," Mr O'Brien said.

"And Daniel Andrews has now put Victorians at risk."

Government says EWL letter is a 'disgrace'

Victorian Treasurer Tim Pallas said the letter showed that the previous government had sought to perpetuate a "fraud" against the Victorian people.

"Today Victorians have every right to question exactly who Michael O'Brien and the State Opposition think they're working for," Mr Pallas said.

"Let's be very clear about this, this is an act of treachery against the interests of the Victorian taxpayer.

"He's got every Victorian's interest put to one side and is asserting only his own and the Liberal Party's."

The letter stands at odds with Mr Andrews's assertion that the state is only liable for costs incurred by the consortium, not compensation.

Mr O'Brien maintained that the letter had not provided any extra benefits to the consortium.

"All the letter of guarantee does is simply state that the State Government will stand behind the contract," he said.

"That is normal commercial business practice, and in fact you would have to go to a banana republic before you'd find any government that looked at ripping up contracts."

But Mr Pallas said the letter was a "disgrace".

"The language in this side letter is an obscenity, it talks about avoiding responsibility in terms of illegal, invalid or unenforceable action," he said.

The State Government appointed financial advisor John Wylie and commercial litigator Leon Zwier to carry out confidential negotiations with the East West Connect consortium over the termination of the contract.

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