ACT Libs happy with Vic road cancellation

There is one branch of the Liberal Party which is cheering the Victorian Labor government's decision to tear up a controversial road contract.

The Canberra Liberal opposition says Wednesday's announcement that the Andrews government will cancel the East-West link contracts and only pay costs incurred to date sets a precedent it could follow with the planned ACT light rail.

The Liberals have strongly opposed the $780 million light rail project, which the ACT government intends to start building in early 2016 in line with the policy it took to the territory election in 2012.