Ai??The Victorian Government has confirmed it will not go ahead with the East West Link project.

After several months of negotiations, it has revealed the cancelled contract would be put to rest with $339 million worth of sunk costs covered by the state.

“Todayai??i??s agreement is the best possible result we could have achieved,” Premier Daniel Andrews says.

The “good faith” agreement will see the government purchase the project-specific consortium Project Co for a single dollar.

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