The federal government’s redistribution of $1.5 billion infrastructure funding it has already given Victoria will make every Victorian a VIP, a senior federal minister says.

Prime Minister Malcolm Turnbull says federal money earmarked for the dumped East West Link will be unlocked for other road and rail projects to help Victorian producers access huge global markets opened up in free trade deals.

A third of that $1.5 billion would be committed to a $1 billion widening of the Monash Freeway under the proposal that’s been put by the federal government to the Victorian government.

• PM ‘quick’ to dismiss bank probe
• Help us find ‘man in the hat’
• Cameron held stake in fund

“And on the western side of the city we are offering to invest $350 million, again to be matched equally by the Victorian government, to upgrade the Western Ring Road,” Mr Turnbull told reporters in Melbourne.

“We need the roads and we need the rail to connect to the ports and so we are also proposing a $220 million investment, again, to be matched by the state government, to upgrade 1000km of freight rail in the Murray Basin.”

With Mr Turnbull ahead of a Liberal State Council gathering in Melbourne this weekend was a raft of senior federal MPs including Victorian and Environment Minister Greg Hunt.

The minister said the infrastructure plan “makes every Victorian a VIP under the Turnbull government”.

“This is a plan to help people in the north and south, the east and west, rural and urban Victoria.”

Upgrading the M80 Western and Metropolitan ring roads are also on the list of alternative proposals with $10 million set aside for planning and development on the Melbourne Metro.

Mr Turnbull said alternative Melbourne infrastructure projects that need funding still had more details to be worked out.

He said the Melbourne Metro Rail project had an “underdone” business case, so Victoria was getting $10 million for a plan to unlock more private funding.

“You only have to look at what has been done with the cross-city rail in London to see an example of that,” he said.

“We have been very old-fashioned in the way we’ve looked at urban infrastructure.”

The Western Distributor toll road proposal has also been put forward for federal funding, but Major Projects Minister Paul Fletcher said a concessional loan was more likely.
”

Where there’s a project supported by tolling revenue, we’re interested in providing innovative financing approaches,” Mr Fletcher said.