The road 'monstrosity' no-one wants to build

The New South Wales Government has rejected the only bid it has received for a key part of Sydney's $16.8 billion WestConnex project, blaming a "heated" construction market.

Following questions from the Greens, senior Liberal MP Don Harwin told Parliament the bid for the Rozelle interchange was not value for money.

"Roads and Maritime [Service] has decided not to progress the request for tender for the Rozelle interchange with the sole EOI [expression of interest] respondent as this is unlikely to deliver value for money for the taxpayer," he told the Upper House.

Mr Harwin pointed to a high level of infrastructure work in the state as the primary reason for the lack of viable interest.

The Government has also taken the responsibility of finding a tender for the interchange from the Sydney Motorway Corporation and handed it back to the Roads and Maritime Service (RMS).

'No-one wants to construct what is a monstrosity'

Labor's roads spokeswoman Jodie McKay said it had been badly handled.

"No-one wants to construct what is a monstrosity at Rozelle linking into the M4-M5 link and now we're in a situation where the Government has had to take that project back from the Sydney Motorway Corporation," she said.

Labor has accused the corporation of being incapable of delivering the project.

"We've already seem RMS take back the Sydney Gateway section which is the link from St Peters to the airport and now they've taken back control of the Rozelle interchange," Ms McKay said.

The Government is adamant WestConnex will be built within budget and delivered on time in 2023 despite a lack of a viable bidder for the interchange.