Key Points:

Sydney's failed Cross City Tunnel (CCT) has been sold for nearly A$700 million.

The 2.1km tunnel opened in August 2005 and fell into receivership late last year after missing traffic forecasts.

The A$1 billion tunnel drew about 35,000 vehicles a day - just over a third of the 90,000 predicted to be using it after an initial two-year ramp-up period.

When the tunnel first went on sale, it was expected it would sell for much less than its $620 million debt burden.

The project's equity investors CKI Holdings, Deutsche Bank and Westpac Bank are expected to receive between 10 cents and 20 cents back for every dollar they invested in the tunnel.

Australian newspapers revealed that ABN Amro and construction giant Leighton Holdings trumped competition from Macquarie Bank, Babcock and Brown and Transurban to win the auction.

The deal was due to be signed officially last night.

- AAP