Mr Perrottet said about $5.3 billion of the sale price would be spent delivering the final third stage of WestConnex, a tunnel under Sydney's inner west linking the M4 and M5 motorways. "That will unlock over $4 billion which we in NSW can now invest in schools and hospitals, road and rail, across our great state," the Treasurer said. Transurban will pay $9.3 billion for 51 per cent of WestConnex Credit:Steven Siewert Loading "This project means people will be able to travel from the west and south west of Sydney with ease, spend less time in traffic and get home to their families faster."

To fund its share of the deal, Transurban, which already owns seven of the nine toll road concessions in Sydney, will undertake a $4.2 billion equity raising and a $600 million securities placement to some of its consortium partners. “WestConnex is a critical component of the NSW government’s long-term, transport and planning solution and is strategically significant for Sydney Transport Partners," Transurban chief executive Scott Charlton said in a statement. The deal was immediately criticised by Opposition Leader Luke Foley, who said it was "not a happy day for Sydney motorists." "Very sadly the Liberals have locked future state governments into tolling arrangements for several decades to come," Mr Foley said. But the government said that without the sale, the funds for the motorway would have to come from debt, imperilling the state's credit rating.

Under the terms of the deal, tolls across WestConnex will rise at 4 per cent per year or inflation, whichever is the higher, until 2040. From 2040 to 2060 tolls will increase at the rate of inflation. The transaction also includes the right to toll the M5 West motorway, which is not part of WestConnex, from 2026. The government defended the use of toll-roads as a fair way to pay for infrastructure. "I don't believe its fair that the people of Wagga Wagga or Woy Woy should pay for people to use a toll-road that they themselves are not using," Mr Perrottet said. The acquisition is expected to close in late September, subject to Foreign Investment Review Board (FIRB) approval. Loading Replay Replay video Play video Play video

The equity raising will comprise a 10-for-57 securities offer priced at $10.80 per security, representing a 10.4 per cent discount to Transurban’s closing price of $12.06 on August 30. The placement to consortium members will be made at $10.85 per security. The Transurban-led consortium and another spearheaded by one of Australia's largest infrastructure investors, IFM, have been duelling for more than a year for WestConnex. The Australian Competition and Consumer Commission's (ACCC) chief concern had been that Transurban’s ownership of WestConnex as well as its existing toll roads would give it an advantage when bidding to build future motorway projects. But ACCC chairman Rod Sims on Thursday said the regulator found there would not be a substantial lessening of competition for future toll roads in Sydney following Transurban's undertaking to release detailed traffic data if it won control of WestConnex. Mr Perrottet said once the ACCC allowed Transurban to participate in the transaction, it was not for the government to rule the company out.