The New South Wales (NSW) Government has entered into an agreement with Transurban and the Westlink M7 shareholders to construct the NorthConnex motorway.

The $3bn NorthConnex motorway comprises twin 9km tunnels that will connect the southern end of the M1 Motorway at Wahroonga to the Hills M2 Motorway at its Pennant Hills Road interchange.

According to NSW Premier Barry O’Farrell this project will become a reality under Liberal & Nationals Federal and NSW Governments.

"This link will provide a continuous motorway between the Hunter and Central Coast and Western and South Western Sydney."

O’Farrell said: "NorthConnex will significantly ease traffic congestion in Sydney by taking up to 5,000 trucks a day off Pennant Hills Road, while vehicles using the tunnel will bypass 21 sets of traffic lights.

"This link will provide a continuous motorway between the Hunter and Central Coast and Western and South Western Sydney, and be a quicker alternative for journeys between the Central Coast, Hunter and Sydney’s CBD."

Transurban and the Westlink M7 shareholders have submitted unsolicited proposal to design, build, operate, maintain and finance NorthConnex in March 2012.

The project’s construction budget of $2.65bn, along with land and project delivery costs, will be funded through toll charges with a contribution from the NSW and Australian Governments.

A joint venture between Lend Lease and Bouygues has been selected as the preferred tenderer for the design and construction of the motorway in Sydney.

According to roads minister Duncan Gay the project will now go out for the next stage of community consultation and a formal Environmental Impact Statement (EIS), which is expected to be on display for comment by the middle of this year.

Subject to planning approval, the construction is expected to start within one year and will be completed in 2019.