The `green light' for the Geelong Bypass and the signing of the AusLink Bilateral Agreement between the Federal and State Governments is a welcome development, says VECCI.

The agreement will see Victoria receive $1.15 billion under the AusLink Investment Program over the next five years, which will progress key projects such as the Geelong and Pakenham bypasses, further upgrades to the Calder Highway, the Dynon Port rail link and the Tottenham to Footscray rail upgrade.

"It is hoped that this agreement signals an enhanced level of co-operation between Federal and State Governments on infrastructure projects", says VECCI Chief Executive Officer, Mr Neil Coulson.

"We applaud the fact that differences over the Scoresby Freeway funding issue have been put to one side so that funds can be made available for outstanding road projects.

"The Victorian economy will receive a major boost from the enhancements to these major freight routes which are key to our international trading future.

"Importantly, both State and Federal Governments have agreed that funding for other key projects, such as the Deer Park bypass, is not precluded during the life of the agreement," says Mr Coulson.