Preferred bidder Spark consortium has inked a $11.1 billion deal with the Andrews government to build, operate and maintain the tunnels of Melbourne’s long-awaited North East Link over the next 25 years.

The project will include a tunnel almost two kilometres longer than initially planned, which Transport Infrastructure Minister Jacinta Allan said would simplify the interchange’s design and preserve open space.

The Premier, Daniel Andrews and the Minister for Transport Infrastructure, Jacinta Allan.Credit:Joe Armao

“This is another really good example of how, when we have the opportunity to do more after listening to the local community, whilst we’re in the local area undertaking these works, we grab those opportunities,” Ms Allan said.

“The tunnel’s the missing link that fills that gap in our road network that’s been talked about for the best part of 60 years.”

The $15.8 billion project, co-funded by the Andrews and Morrison governments, is tipped to cut travel times between Melbourne’s north and south-east by more than half an hour and take 15,000 trucks off the road per day.

The stretch of road will link Metropolitan Ring Road to the Eastern Freeway and include road upgrades, the creation of Melbourne’s first busway and 25 kilometres of upgraded walking and cycling paths.

Greensborough Road will also be transformed into a tree-lined boulevard.

Premier Daniel Andrews said the tunnelling package would create 8000 jobs and help repair the economic damage created by the COVID-19 pandemic.

“A project the size of the North East link doesn’t come around very often. It’s been long talked about and is the largest ever investment into Melbourne’s north-east – supporting 10,000 jobs and we’re getting on with it,” he said.

No extra properties will need to be compulsorily acquired as part of the design changes, but a voluntary purchase scheme will be available for affected homes.

The project will be completed by 2028.

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