Victorian motorists are facing more a than half a billion dollars in higher tolls as the enormous financing costs of the North East Link are revealed.
The North East Link State Tolling Corporation (STC), a public agency established to finance, operate and collect future tolls on the North East Link, has incurred $3.9 billion in total borrowings since March 2021 and is currently paying $145.3 million a year in interest repayments.
By the time the project opens in late 2028, financing costs associated with the North East Link are on track to be well in excess of half a billion dollars.
This cost comes on top of the already blown out $26 billion budget cost to construct the project, which excludes financing costs, meaning motorists are set to pay even more in tolls once the road eventually opens.
In June 2023, Treasurer Tim Pallas approved a near quadrupling of the STC borrowing limit on the understanding that future toll revenues would repay this debt.
Shadow Minister for Finance, Jess Wilson, said: "The financing costs of this blown out project will be a hidden hit on motorists for years to come.
"The North East Link is already tens of billions of dollars over budget and now motorists will be picking up the tab for the extraordinary debt and financing costs the Allan Labor Government has incurred.
"Labor cannot manage money, cannot manage major projects and Victorians are paying the price."
