Healthcare and road funding worth millions on south-west Victoria's state budget wish list

Victorian Treasurer Tim Pallas has said the delayed 2020-21 state budget will have an "unprecedented investment in infrastructure and services" and deliver jobs for Victorians.

South West Healthcare has been seeking funding for a long-awaited hospital re-development for about a decade.

It comes as the government revealed to the opposition after questions in state Parliament that there was an "in confidence" feasibility study for the Warrnambool Base Hospital stage two redevelopment being considered by cabinet.

The study is the first sign of a step forward for the project in years.

The Terang-Mortlake Health Service is also seeking $6.6 million to fund a facility in Mortlake, improving access to allied health services and general practitioners.

Western Regional Alcohol and Drug Centre's Geoff Soma said state funding was being sought for the proposed Lookout residential rehabilitation centre.

A chorus from councils, opposition MP Roma Britnell and lobby groups is calling for investment in the Princes Highway, especially between Port Fairy and Warrnambool where $60 million in federal funding commitments already exist.

"The one thing that everyone in the south-west wants to see is a significant investment to bring the condition of our rural and regional roads back to a decent standard," Ms Britnell said.

"A start would be matching the federal government funds on the table."

Warrnambool City Council's chief executive and mayor have advocated for upgrades to the city's hospital, the Princes Highway and the region's rail at more than 36 meetings with politicians and regional lobby groups in the past 18 months.

"The sustained advocacy efforts have brought about positive results in recent years for Warrnambool, particularly for major projects," a city spokesman said.

The council is seeking about $10.7 million for the city's port, including $7.2 million for the breakwater and $3.5 million for the boat ramp.

Moyne Shire Council chief executive Bill Millard said the council was pushing for about $26 million worth of projects, submitted to the state treasurer in a letter leading up to the budget.

"Given the economic impacts caused by the pandemic, Moyne Shire Council has made a submission to the state government for funding for critical projects that will create jobs, build the shire's economic capacity and improve access to local healthcare," Mr Millard said.

The council's wish list includes $5 million for health and wellbeing projects, including upgrades to the Macarthur pool and improvements to walking and cycling tracks across the shire.

The council is also seeking $5 million for road projects, $6.4 million to implement the East Beach Masterplan and $3 million to make improvements to its council-managed caravan parks.

A Corangamite Shire spokesman said the council's top priority for budget funding was the Port Campbell Town Centre and Foreshore Renewal Project.

The council is seeking $10.6 million towards the $15.6 million project after major improvements to the streetscape and foreshore were identified as a priority in the Shipwreck Coast Master Plan.

The budget will be handed down next Tuesday.

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.