The consortium contracted to build the East West Link has taken the Victorian government to court, demanding it sign off on a construction plan to build the $6.8 billion toll road.
The demand – the clearest sign yet that the consortium is fighting hard to maximise its payout from Victoria – comes despite the Andrews government’s pledge not to build the road. Money would flow from signing off on the construction plan.
In response to the court action, acting planning minister Robin Scott has told East West Connect that, under the terms of a secret contract signed by the Napthine government, the consortium has already been instructed to stop work on the project.
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In a case to go before the Victorian Civil and Administrative Tribunal later this month, East West Connect has demanded Mr Scott explain why the construction plan for the project has not been approved.
“Our client has not been given any reasons as to why the Construction Environment Management Plan has not been approved by the Minister for Planning,” Tim Power, a partner at law firm Herbert Smith Freehills, said in a statement filed at the tribunal.
The Napthine government signed Victoria up to the project in September, just eight weeks before the state election.
The contract – and a secret side deal signed by then treasurer Michael O’Brien guaranteeing East West Connect a payout if the project was cancelled – was sealed despite Labor leader Daniel Andrews’ promise to abandon the project.
Victoria now faces the prospect of paying East West Connect hundreds of millions of dollars without any construction work being done.
In response to the consortium’s court demand, lawyers for the Planning Minister have told East West Connect that its demands are “misconceived” and “purely theoretical”.
In the government’s court response to East West Connect, filed at VCAT last week, Mr Scott’s lawyers argue that the consortium has already been instructed to stop work on the project.
And it says the consortium “have acknowledged the suspension notice in a letter of response dated 17 December 2014. [East West Connect] confirmed that they have acted on the suspension notice and provided corresponding notice to their downstream contractors,” the statement for Mr Scott said.
A spokesman for the East West Connect consortium said in a statement on Tuesday that the VCAT action “is due to the contractual requirement for the consortium to be ready, willing and able to perform if the suspension is lifted”.
“The VCAT application does not impact on discussions with government and given the confidentiality obligations under the contract we will not be commenting further at this time,” he said.
Yarra and Moreland councils have also responded to the demand from East West Connect to approve a construction management plan for the project.
The councils have told the tribunal that the Napthine government’s approval of the East West Link was invalid. This was the subject of a Supreme Court action the councils launched.
The councils argue that, because then planning minister Matthew Guy’s approval of the East West Link was invalid, so is the need for a construction plan to be signed off by the Andrews government.
