TREASURER Mike Baird announced an "exciting" and "innovative" way of funding the WestConnex project after reticence by the private sector to get involved at this stage.
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He said the government would fund the initial sections of the motorway and private funding would be sought after traffic usage levels were established.
"Financial markets have changed significantly since the GFC [global financial crisis]," Mr Baird said."We have seen a marked reduction in the amount of private capital available and the level of risk the private sector is prepared to take.
"We wanted to develop a funding proposal which minimises the impact on the state's balance sheet and any further pressure on our credit rating."
Mr Baird allocated $111 million of the government's $1.8 billion commitment over four years to the 33-kilometre motorway, which will ease congestion and improve travel times on the major transport routes between Sydney's west and south-west and the Sydney Airport and Port Botany precinct.
Development and construction was expected to take about 10 years and cost $10 billion to $13 billion.
The project's final profile is expected to be delivered to the government in coming weeks.
Mr Baird said NSW would continue to call on the federal government to provide funding for WestConnex without unrealistic conditions.
But Opposition Leader John Robertson said the funding proposal for WestConnex was "just ridiculous", with only 1 per cent of the total cost allocated in this year's budget.
"That's not even enough to do the design work and employ consultants . . .," he said.
"WestConnex is a project that, based on what we can see, could take decades and decades to ever be completed."
RELATED WORKS
WestConnex enabling works: $282 million for road upgrades to improve connectivity around Sydney Airport and Port Botany, including the removal of the rail level crossing at General Holmes Drive.
M5 West widening: $400million to widen 21 kilometres from Camden Valley Way at Prestons to King Georges Road at Beverly Hills, with an additional lane in both directions.
