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The NSW government has called on the commonwealth to stump up more than one billion dollars to help provide the missing link between western Sydney and key commercial centres.
The new motorway to connect the west with the CBD, airport and Port Botany was described by NSW Treasurer Mike Baird as "too important to ignore".
"Port Botany along with the airport are critical to the economic future of this state, that is why this project has been prioritised today," he said.
Infrastructure NSW (INSW) on Wednesday recommended 70 projects and reforms over five-, 10- and 20-year periods.
It says they will cost about $30 billion but add $50 billion to the state's economy.
Top of the list is the 33km WestConnex motorway integrating the proposed M4 East motorway, connecting the existing M4 to the city, with a duplicated M5 East.
The O'Farrell government immediately devoted $1.8 billion to the project which INSW wants built by 2022.
It called on Canberra to help meet the $10 billion cost, which will also have to be met with tolls.
Mr Baird said the Gillard government should match the $1.5 billion pledged for the M4 East by Opposition Leader Tony Abbott.
"We ask the prime minister to come forward and endorse it and get on with the job of supporting a critical project for the future of this state," he said.
Infrastructure NSW chief Paul Broad said WestConnex was "more than a motorway project" and that the entire 20-year-strategy was affordable.
To fund its plan, the INSW has recommended a mix of state funding, private investment and user-pays such as tolls on new or upgraded motorways.
"WestConnex will improve connections between Sydney's west and key commercial centres, supporting economic growth across the city and into regional NSW," Mr Broad said.
Other recommendations include a $2 billion underground bus tunnel to be built in the next five to 10 years to take peak buses off congested Sydney CBD streets.
As part of plans to revitalise the city, INSW also wants pedestrian-only parts of George Street and to modernise Wynyard and Town Hall stations.
However, it did not recommend light rail in the city and instead called for the network to be extended from Central to Moore Park and the University of NSW in Sydney's eastern suburbs.
It said about $9 billion needed to be spent on projects in regional NSW, such as upgrading bridges and fixing rail and road bottlenecks.
The government on Wednesday committed $135 million to a Bridges for the Bush program to upgrade or replace bridges at 17 locations.
Addressing public cynicism fuelled by the failure of previous governments to deliver on their transport or infrastructure plans, INSW Chair Nick Greiner said the 20-year strategy was "practical".
"The last thing that the average person in NSW needs is another theoretical exercise, another exercise that isn't practical in the sense of being able to be achieved and having a serious likelihood of being achieved," the former NSW premier told reporters in Sydney.
The NSW government will detail its full response to the INSW strategy by the end of the year.
Federal Minister for Infrastructure and Transport Anthony Albanese described the INSW strategy as an "important piece of work".
"(Federal advisory body) Infrastructure Australia will now assess the report and provide us with advice," he said.
"Already we have more than doubled annual federal infrastructure spending in NSW from $132 to $265 per person.
"That's an unprecedented $11.6 billion over six years."
Based on information provided by and with the permission of the Western Australian Land Information Authority (2013) trading as Landgate.