The tunnel links Darling Harbour on the western fringe of the central business district to Rushcutters Bay in the Eastern Suburbs.

In early 2002, a year before construction began, transport planner Michelle Zeibots was quoted in local newspapers saying the tunnel would not reach its traffic targets.

"[2] Despite the warnings of a traffic shortfall, in 2002, the government of Bob Carr awarded Cross City Motorways the contract to build, own and operate an east–west tunnel underneath the Sydney CBD.

[8] At the same time, the operators announced a freeze on toll increases for twelve months and the fee for casual (non-electronic tag) users was waived.

[citation needed] This was shortly followed by a report from the NSW Upper House committee headed by MP Fred Nile recommending that the toll be reduced, and surface road closures reversed.

Attendees called for greater investment in public transport and cycle paths, with partygoers occupying the tarmac and enjoying performances by the ShittyRail Transit Cop dance troupe.

[citation needed] Equity of $220 million was provided by three international companies, Cheung Kong Infrastructure (50%), DB Capital Partners (30%) and Bilfinger Berger (20%).

On 27 December 2006, a syndicate of 16 Australian and International banks appointed the insolvency firm KordaMentha as receivers and managers for Cross City Motorway Limited after the project accrued debts exceeding A$560 million.

[12] On 20 June 2007, ABN AMRO (94%) and Leighton Contractors (6%) were chosen as preferred purchasers of the Cross City Tunnel Group for $700 million.

[13][14] On 13 September 2013, the new owners placed itself in voluntary administration, saying that it was unable to refinance its debt due to action by the New South Wales government to claim $64 million in stamp duty on the original sale.

In May 2006, in the first two months after the tunnel operators announced a temporary halving of the toll, media reports indicated that usage had increased to approximately 34,000 per day.

[citation needed] In September 2005, as part of the media attention surrounding these criticisms, a local newspaper commissioned an audit of the usage of the tollway by independent surveyors who found that on a single day, around 21,000 vehicles had used the tunnel.

[citation needed] In September 2006 the Sydney Morning Herald reported that the operator had not pursued for 12 months motorists who had not paid the toll[35] (along with the M2 Hills Motorway) due to a lack of agreement on a system for passing of the details to the RTA.