The Napthine Coalition Government signed a $5.3 billion contract with the East West Connect consortium in September 2014, just prior to the November 2014 state election, to begin construction on the eastern tunnel segment of the project.
[19] However, the plan's freeway construction program would have required the compulsory acquisition of an enormous number of inner-city properties, and its publication coincided with a swelling of anti-freeway sentiment, led by academics from the University of Melbourne and residents of the inner suburbs.
[20] In 1973, under increasing political pressure, the government led by Premier Rupert Hamer "pruned" the inner-city elements of the planned network; nevertheless, and despite continued public protest, the Eastern Freeway was constructed eastwards from Hoddle Street and opened in 1977.
[22] In 1997, with construction underway, the CityLink consortium, by then known as Transurban, publicly stated its interest in building more inner-urban roads, and named a link between the Eastern Freeway and the Tullamarine as one of its preferred options.
Because the route travelled along sensitive areas including densely populated inner suburbs, the Melbourne General Cemetery and the large Royal Park, it was proposed as a tunnel for its entire length.
Instead, it directed the Department of Infrastructure to conduct a Northern Central City Corridor Study to examine options for transport in the area, including the possibility of a tunnel along the entire route.
"[32] In the following years, Transurban continued to support the road, which it called the Northern Tunnel, and argued it should be completed in tandem with a second crossing of the Yarra River, which it said was necessary to take pressure off the West Gate Bridge.
Eddington identified two possible routes to link the Eastern Freeway with Melbourne's western suburbs, both of which formed an alternative to the West Gate Bridge and provided connections to the port and CityLink.
[39] In December 2008 the Brumby Labor government released its Victorian Transport Plan, which included a commitment to start work on the western end of Eddington's overall proposal: building an alternative to the West Gate Bridge—"a new tunnel from Geelong Rd/Sunshine Rd to Dynon Rd/Footscray Rd in the Port of Melbourne precinct."
[57] On 30 June, planning Minister Matthew Guy announced he had approved the project with some modifications, deleting the Elliott Avenue interchange and instead including access to Flemington Road.
[60] By August, a third legal challenge to the East West Link was also under way, with Labor's shadow road minister, Luke Donnellan, pursuing the Government in the Victorian Civil and Administrative Tribunal to force the release of the project business case.
Andrews said Labor had obtained legal advice that if the court declared invalid the Planning Minister's decision to approve the project, "any contracts entered into will be beyond power and unenforceable".
[69] Prime Minister Tony Abbott criticised the Andrews government's stance, telling the National Press Club: "Surely, it is the very midsummer of madness to pay $1.2 billion not to build a road ...
"[70] A group of federal Liberal MPs from Melbourne's outer eastern suburbs announced in January 2015 it would launch a public campaign, with billboards, advertising and social media, to lobby for the road's construction[71] and in April two federal MPs from Geelong, Sarah Henderson and Andrew Katos, launched a "Just Build It" campaign and petition, claiming that stage two of the project should be fast-tracked for the sake of jobs and the Geelong economy.
[72] On 15 April 2015 the government announced the road project would not proceed and said it had reached agreement with East West Connect to pay the consortium $339 million to cover costs it had incurred to that point.
[75][76] The Victorian Liberal opposition pledged to restart the project if it regained power in the 2018 state election[77] and in April 2017 the Lonsdale Consortium, the private operator of the Port of Melbourne, said the entire western section of the East West Link would be needed "in the short to medium term" to overcome road congestion.
The Eddington report also highlighted the "very substantial" and growing west-to-east travel demand, resulting from the imbalance between population growth and employment opportunities in the city's western suburbs.
[90] Some $500 million of the federal contribution to stage two of East West Link was diverted from commonwealth funds previously allocated to upgrade the Western Ring Road.
[91] In February 2015 the federal Auditor-General, Ian McPhee announced he would investigate the Abbott government's decision to commit $3 billion for East West Link construction without a rigorous cost-benefit analysis.
Mayor Jackie Fristacky said more than 80 percent of all inbound vehicles on the Eastern Freeway would still seek to exit at Hoddle Street and other inner roads to reach their inner-city destinations.
[99] Public Transport Users Association president Tony Morton said the project would not solve Melbourne traffic problems and that the 2013 state Budget should have focused on badly needed rail upgrades.
[107] A November 2013 Age/Neilsen poll of 1000 voters found that 74 percent believed improving public transport was a bigger priority than building the East West Link tunnel.
[120] Two contributors to the study, Sophie Sturup and Nicholas Low, suggested the large profits flowing to private consultants during the planning phase created a moral hazard—"because those who will make money from the road are not those who will invest in it or use it.
Knowing that their employer and cash cow has committed itself to the construction, there is a strong incentive for consultants to invent reasons for the project from which they can walk away when the financial architecture they have created collapses like a house of cards.
Andrews said the Government had ignored congestion problems in Melbourne's western suburbs and threatened Victoria's economic growth with commuters and freight carriers losing time in traffic.
[128] Demographer Bernard Salt criticised the decision to focus on the eastern end of the project and said Melbourne's most pressing traffic issue was the second river crossing into the city from the west.
[130] G21 chairman Ed Coppe commended the decision to commit to the project, but said congestion on the West Gate Bridge and in the western suburbs had become a major and growing hindrance to commuter and business traffic between Geelong and Melbourne.
[127] Criticism over the project also included the effects on Melbourne Zoo, Royal Park and Koonung Creek Reserve,[94][104][131][132][133] prospect of high tolls,[120] the lack of emergency lanes,[134] concerns that consequent Eastern Freeway widening would take up land in the freeway median earmarked for the Doncaster railway line,[100][104] the loss of homes and property values because of construction[135][136] and concerns that it would cast a shadow on the community gardens and create noise pollution for residents in Flemington public housing.
[137] Cabinet documents and the previously secret business case and construction contract details were released by the incoming state government in December 2014, revealing for the first time the costing rationale for the project.
Cabinet documents showed the Napthine government opted not to submit the business case to Infrastructure Australia, fearing it could reject the project because of the poor cost-benefit ratio.