Transurban Group (ASX: TCL) shareholders can let out a sigh of relief today as it received some good news about the West Gate Tunnel Project.
This afternoon, Transurban made a market announcement that it acknowledged a Victorian House of Parliament has today voted to revoke the Planning Scheme Amendment (PSA) GC65 for the West Gate Tunnel Project.
The Victorian Government has confirmed its intention to reissue planning approval for the Project by tomorrow, allowing major construction work to recommence. Meanwhile, Transurban announced that activities that do not require the PSA will continue.
Transurban Chief Executive, Scott Charlton said that major construction works have been underway on the project since January this year, with over 800 people already employed.
He said "After nearly three years of planning, development and public consultation, we have an agreement with the State to build the West Gate Tunnel Project and are committed to providing Melbourne with this desperately needed infrastructure as soon as possible."
The West Gate Tunnel is forecast to open to traffic by 2022 and Transurban says that it will transform how people and goods are moved around the city.
Transurban will be investing around $4 billion on the construction on the West Gate Tunnel and it's predicted that it will save people up to 20 minutes of travel time. The group has spent over $530 million to date.
Foolish takeaway
This is encouraging for Transurban, although it was never in doubt. Transurban remains a solid infrastructure investment idea for investors, although it may suffer in the next year or two due to the rising interest rate.
