Victoria will receive $1.5 billion worth of Commonwealth funding previously allocated to the East West Link in a move that will help the state avoid a fiscal black hole after funding was frozen following the cancellation of the project.

In a letter the Victorian State Treasurer Tim Pallas, Prime Minister Malcolm Turnbull agreed to channel $1.5 billion out of Tony Abbott’s $3 billion ‘locked box’ of East West Link money toward alternative projects. Whilst it is not yet clear exactly how the money is to be used, it is…