The Sydney central business district metro line will go ahead, but without a Rozelle station, and the Government will expedite the $8 billion West Metro, senior government sources say.
Sources said yesterday that construction of the line through the CBD would start this year, concurrently with the West Metro.
Planning approval for the West Metro, an 11-station underground line from Westmead and Parramatta to Central station, is believed to be under way.
The Government is expected to finalise an environmental assessment in the first half of this year.
Approval for the CBD Metro is imminent and, depending on the timing of the West Metro's final approval, construction on both lines would be simultaneous. They would be expected to be completed within a year of each other.
The contract to operate the CBD Metro has been put out to tender and has been designed with sufficient flexibility to allow for additional lines.
Three parties have been shortlisted for the contract to build the project. An additional contact will be put out to tender for the West Metro.
The CBD Metro has been costed at $5.4 billion and the West Metro at $8.1 billion, which will be funded out of the Government's $180 billion Transport Blueprint. There will be no federal funding.
The Premier, Kristina Keneally, confirmed on Tuesday that the Sydney Metro Authority had stopped buying land around Darling Street, Rozelle, where the seven-kilometre line from Central was supposed to terminate. But her refusal to confirm the proposal would go ahead triggered speculation that it would be axed.
A spokesman for the Premier would not comment on CBD or West metro plans. He said an announcement would be made at the end of next month as part of the Transport Blueprint release.
One of the main criticisms of the CBD Metro is that it services areas that already have bus, light rail and ferry services. The West Metro will be a 20-kilometre line running beneath the heavily congested Parramatta Road corridor, servicing many areas that are only accessible by bus.
Government sources said together the projects made sense.
The head of Infrastructure Partnerships Australia, Brendan Lyon, said suggestions the Government would proceed with the CBD Metro and construct an extension to Parramatta would be welcomed by commuters. ''If the NSW Government was to abandon Metro, it would do significant damage to the state's reputation with the private sector, but worse, it would rob the state's residents of the opportunity to transform public transport," he said.
Mr Lyon said business had supported the CBD Metro, because it formed the first stage of a much broader network. ''A West Metro is important because it will relieve congestion and support economic and population growth in Parramatta and the west, a key employment hub to sustain growth," he said.
With Sydney's population set to increase to 5.4 million people in 2026, the Government is under pressure to build additional transport capacity.
The Opposition Leader, Barry O'Farrell, has called on the Government to axe the line to Rozelle and reallocate the money to the south-west and north-west heavy rail links.
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