"I spoke to him about another matter and said I'd like to catch up and at the other end of the phone was silence." Mr Andrews is furious the letter from Mr Abbott about the project was leaked to the media before he had received it. "I don't think leadership is defined by sending letters to the media two hours before you send the letter to me. This is about politics and not much more than that," Mr Andrews said. "It was hardly a personal missive from the PM." Mr Abbott is visiting Melbourne on Thursday after spending the morning in Horsham.

"I'm always happy to meet with the Premier, but at the moment, I have a very clear message for the Premier: don't tear up this contract. Don't go into the Parliament to abrogate people's rights," he said on Thursday. In an emailed letter to the Premier, immediately leaked to the media after being sent on Wednesday afternoon, the Prime Minister warned Victoria's treatment of the East West Link project "risks setting a dangerous precedent" that could jeopardise private sector investment not only in Victoria but across the nation. "Any legislation to abrogate contractual rights would raise sovereign risk issues and have implications for not only Victoria but the rest of the nation," Mr Abbott writes. "I urge you in the national interest to reconsider your plans to cancel the project and introduce such legislation. "National and international infrastructure companies and financial institutions are already raising their concerns about your actions with both of our governments as well as with other state and territory government around the country." Mr Abbott says he looks forward to advice on the issue from Mr Andrews "as a matter of urgency".

Mr Andrews, who before the November 2014 election claimed the contract to build the $6.8 billion road was not worth the paper it was written on, remains adamant it will not be built, referring to the former state government's own original business case, which found the toll road would generate a loss making return of just 45 cents for every $1 invested. The Abbott government has promised $3 billion for the toll road, a decision which is now being investigated by the federal auditor after concerns were raised about a lack of rigorous analysis before the funding commitment was made. In a strongly worded response, also provided to the media, Mr Andrews pointed out that Mr Abbott had characterised the state election as "a referendum on the East West Link". "While I note you have broken significant election promises, including savage cuts to health and education and changes to the aged pension, my government will be one that honours its election commitments in full," Mr Andrews writes. "As you are well aware, the Victorian government has an aggressive infrastructure agenda which includes projects of national significance such as the Melbourne Metro Rail Project and the level crossing removal project. These two projects alone will create 8000 jobs and were overwhelmingly supported by the Victorian people at last year's state election."

The state Labor government remains locked in negotiations with the consortium contracted to build the road, with Victoria facing a compensation bill of up to $1.1 billion for breaking the deal. The state government is trying to settle for a lesser amount, but if the talks fail it is threatening to legislate its way free of the project. It is believed to have drafted legislation which would provide "reasonable costs" already incurred, but with no money for lost future projects or the "opportunity cost" of the hours spent working on the project by the consortium. On current polling, the federal coalition is facing the loss of up to six seats in Victoria. Mr Abbott said he was happy to consider additional funding support for Victorian government priorities, confirming the state would be eligible for additional funding under the federal asset recycling program.