Measures to be taken for the Four Highway-related Public Corporations
The Japan Highway Public Corporation, the Metropolitan Expressway Public Corporation, the Hanshin Expressway Public Corporation and the Honsyu-Shikoku Bridge Authority shall be abolished. New organizational modalities replacing these corporations and the way to ensure the economic viability shall be reviewed as a whole by a "third party institution" to be established under the Cabinet based on the following basic policy. The details will be finalized during the course of 2002.
- Japan Highway Public Cooperation
The new organization shall be presupposed on its privatization, and shall be established as early as possible during the period of intensive reform until FY2005.
- No more government funds shall be injected from FY2002.
- Project costs shall be reduced through such means as the revision of standards and the introduction of competition.
- The redemption period based on the current toll rate shall be no more than 50 years and is aimed to be reduced by reflecting such factors as cost reduction effects.
- Priority for new roads to be constructed under the new organization shall be decided based on through cost effectiveness analysis, taking into account the latest demands for roads and future economic circumstances.
- Other construction of roads, for example construction through the direct administration method, shall be studied in the budget compilation of each fiscal year.
- Metropolitan Expressway Public Corporation and Hanshin Expressway Public Corporation
These two corporations shall be privatized at the same time and in similar ways as the Japan Highway Public Corporation. An appropriate cost-sharing between national and local governments shall be ensured.
- Shikoku Bridge Authority
The Honshu-Shikoku Bridge Authority shall be privatized at the same time as the Japan Highway Public Corporation. The debt held by the Authority shall be disposed of through the national highway budget and the budget of local governments concerned in order to ensure redemption. Utilization of road tolls shall also be studied.