The State of New South Wales (NSW) in Australia has announced that the proposed A$2.65bn ($2.54bn) motorway connecting the F3 with the M2 has progressed to the final stage of the assessment process, Stage 3, with work expected to start in 2014.

NSW received the unsolicited proposal from Transurban, a private motorway operator, and Westlink M7 shareholders in 2012, to build the 8km road link along the Pennant Hills Road corridor.

Expected to open in 2018, the link has now been approved to the final stage of the state government’s unsolicited proposals assessment process.

NSW Premier Barry O’Farrell said: "This is an important missing link in Sydney’s motorway network; it has the potential to cut 15 minutes from travel times in each direction and remove thousands of trucks from Pennant Hills Road."

"Expected to open in 2018, the link has now been approved to the final stage of the state government’s unsolicited proposals assessment process."

The proposed road link will be jointly-funded by Transurban and the Westlink M7 shareholders, the NSW and Federal governments, as well as taking returns through tolls.

NSW Minister for Roads Duncan Gay said that the F3-M2 link will provide a continuous motorway between Western and South Western Sydney and the Central Coast and Hunter.

"We have been working closely with the private sector to progress this new motorway project, to reduce congestion on Sydney’s roads and provide better and more efficient movement of freight across the State," the minister said.

NSW will negotiate a final binding offer with the proponents before making a final decision on whether to accept the proposal.