State transport officials say the long-awaited Muswellbrook bypass is on hold awaiting the outcome of the federal government's infrastructure review.
Upper Hunter Nationals MP Dave Layzell called on federal Infrastructure Minister Catherine King to end "delays" on the project after Transport for NSW officials told a budget estimates hearing the state would not proceed until the Commonwealth funding was locked in.
"Even though early works have commenced, the state government will not proceed with the design and construction tender for the bypass until the 90-day review, which was originally due to report in July, is finalised," Mr Layzell said.
"The future of the Coal Road connection between the New England Highway and the Muswellbrook CBD is also in the balance pending release of the federal government report."
The federal government has committed $268.8 million to the bypass and the state government $182.8 million.
Transport for NSW deputy secretary Camilla Drover told budget estimates the department was "obviously not in the tender phase for the Muswellbrook bypass because it's subject to that federal infrastructure review".
"We are not proceeding with that until we get confirmation from the outcome of that federal infrastructure review," she said.
Ms Drover said the federal review "doesn't necessarily mean to say there will be an actual delay".
"It will depend on when we get an outcome from the federal infrastructure review and when we go forward with a tender process."
Mr Layzell said the Muswellbrook bypass was crucial to the federal government's renewable energy plans.
"I would say to Minister King that Muswellbrook's wait must end now or the Albanese Labor government's plans for renewable energy projects will suffer because over-size over-mass cargoes like wind turbines will not be able to be transported through the town due to the limitations of the current road network," he said.
Transport officials told estimates that the federal government had confirmed funding for the Singleton bypass, and Transport for NSW would proceed to awarding the construction contract.
Three firms, Acciona Constructions, Fulton Hogan and John Holland, were shortlisted a year ago, but Mr Layzell said three of six compulsory land acquisitions taken to the Land and Environment Court remained unresolved.
