The Mt Ousley interchange is unlikely to be facing the axe from the federal government, according to Assistant Treasurer Stephen Jones.
Fears were raised about the future funding of the project after Infrastructure Minister Catherine King announced a review of almost 100 projects - including the interchange.
The previous federal government had allocated $286 million over four years for the project - that funding could be in doubt due to the review.
Mr Jones said he felt the much-needed project would have no issues in the review process.
"I have every confidence that the Mt Ousley interchange will pass muster," Mr Jones said.
"The reason I say that is it has been allocated on a priority list by the state government, so it's been through their processes [and] it is a priority for all the local MPs."
He also said the fact the state government was chipping in funds for the project was another tick for the Mt Ousley interchange.
The Jervis Bay Road and Princes Highway upgrade was also on the review list, and Mr Jones said he expected the funding for that project to remain.
Mr Jones said there was a 10-year infrastructure list and the vetting process was to ensure all the projects on the list were genuine.
"We've got a continuous pipeline of projects that are coming through - some of them funded, a whole bunch of them not funded, and a whole bunch of them frankly, were never going to be funded," he said.
"There was a hell of a lot of politics involved in the allocation of projects under the previous list. We want to ensure they all pass muster.
"On coming into government, we're looking at whether the selection of those projects was all above board and that they all stack up. If they hadn't been contracted they are in the review pile."
On Thursday, Cunningham MP Alison Byrnes said she was backing the interchange.
"The current intersection with Mt Ousley Road is no longer fit for purpose and this project is urgently needed to make sure the Princes Motorway can keep serving the needs of our community," Ms Byrnes said.
"It is of vital importance to our community that both the Commonwealth and NSW Governments work cooperatively and effectively given the local and national benefits of the project."
The proposed interchange would see a separate bypass for heavy vehicles and a northern entrance and exit for the University of Wollongong.
It is envisaged a northern exit will reduce traffic on the local roads around the university.
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Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
