A PEAK business group urges the State Government to consider borrowing to pay for a $5.5 billion link between the West Gate Freeway and Citylink to avoid motorists being locked into decades of tolls.

The new road to provide an alternative Yarra crossing to the West Gate Bridge is being considered by the Andrews Government.

The new tollway would connect the West Gate Freeway to CityLink via a tunnel.

Premier Daniel Andrews said he was making the unsolicited Transurban plan public today because it had progressed to the third stage of negotiations.

The new proposal, which would generate 3500 direct jobs and 4500 indirect jobs, is being assessed by the Department of Treasury and Finance.

The road could be completed by 2020 if work began this year, helping to relieve congestion in the western suburbs.

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Proposed second crossing

Mr Andrews said it was an outstanding proposal but hoped a third of the funding would be provided by the Federal Government.

“I think this fits the bill,” he said.

“This is exactly the type of project the Federal Government should be and will be interested in.

“No final decision has been made, but as you see it has moved from the second stage to the third stage. We think it is an outstanding proposal.”

The proposed Western Distributor project would widen the West Gate Freeway in each direction between the M80 Ring Road and the West Gate Bridge.

Trucks would be tolled up to $13 to pay for this widening.

A tunnel would run under Yarraville for more than 2km at depth of up to 20m.

The tunnel would connect to an elevated road that will run over the Maribyrnong River and continue on to CityLink.

The truck toll would continue, and cars using the road would be charged approximately $3.

Transurban CEO Scott Charlton promised no tolls would be added to the West Gate Bridge and said the project would not require any home acquisitions.

However, it may affect some land titles if they were granted before 1891 whose freehold title runs to the centre of the earth.

Mr Charlton said the project would mean less travel time and millions of dollars in savings for the Victorian economy.

No direct contribution is expected from the State Government, with tolling from Transurban expected to provide the other two-thirds of the project.

The plan is also expected to replace the original West Gate Distributor project with a tunnel.

Loans an option in new road link

But Tim Piper, Australian Industry Group’s Victorian director, said the State Government should consider borrowing money to build the road itself instead of relying on Transurban’s proposal.

He said the State Government should investigate whether the cost of the tolls paid by road users would be more than the cost if the government borrowed money for the project.

“We have to get the best bang for our buck,” he said.

“They should look at all options available to the government. They should consider borrowing as long as it does not cause a problem to our AAA rating.”

Lend Lease and construction giant Leighton, which has just changed its name to CIMIC, are expected to bid for the job.

The bid will be tightly contested after Leighton won a $570 million contract to build the Tullamarine Freeway extension for Transurban today.

But Lend Lease will also be a player after it had its East West Link contract ripped up by the Andrews Government.

A Lend Lease spokesperson said: “These projects are important in meeting Australia’s infrastructure needs. We assess each project on its merit.”

Unions back massive project

The Australian Workers Union has backed plans for the western distributor, saying it will help get thousands of workers out of unemployment queues.

AWU secretary Ben Davis said the project was a sorely needed jobs boost.

“It hits a couple of key infrastructure needs, it’s a great day,” he said.

“The industry needs the work desperately.”

He said that the AWU would discuss the jobs on the project with the militant CFMEU.

The unions were involved in ugly brawls over jobs on the West Gate Bridge upgrade in 2009.

Mr Davis said he would work with the CFMEU.

“I’m sure we will work it out either inside or outside trades hall,” he said.

Mr Davis said that the $5.5 billion project was a smart political move.

“There are lessons that the previous government can learn from this announcement,” he said.

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alex.white@news.com.au