The modalities of the four highway-related public corporations, the international hub airports and policy-based finance institutions have been the subject of deliberations at the Promotion Committee for the Privatization of the Four Highway-related Public Corporations, the Ministry of Land, Infrastructure and Transport and the Council on Economic and Fiscal Policy respectively in accordance with the Reorganization and Rationalization Plan for Special Public Institutions (Cabinet Decision of December 19, 2001). The results of these deliberations were recently compiled, and the following policies will guide the handling of the issues:

1. The Four Highway-related Public Corporations

The Government will advance the deliberations and planning required for the implementation of specific measures for reform under its policy of basically respecting the opinions of the Promotion Committee for the Privatization of the Four Highway-related Public Corporations and based on the results of the Committee thus far, while reviewing developments in the deliberations and the details of opinions, consulting the ruling parties when necessary after setting out matters that should be addressed immediately, such as the reduction of construction costs, and matters related to the FY2003 budget as well as issues for future consideration.

2. International Hub Airports

In addition to creating an autonomous business environment that will allow each airport make use of its creativity, the Government will promote greater managerial efficiency, managerial transparency and improved customer service. In regard to the business form of airports, privatization will be advanced respectively as follows:

(1) In preparation for full privatization, the New Tokyo International Airport Authority will be made a fully government-invested special company in FY2004, and to this end a bill will be submitted to the next ordinary session of the Diet.

(2) While the Kansai International Airport Co., Ltd. will retain its present form as a special company. In addition to ensuring the repayment of interest-bearing liabilities through improvement of management in order to establish a stable business foundation for the company in preparation for future full privatization, the smooth procurement of funds in the short term will be sought.

3. Policy-based Finance Institutions

The Government, based on the conclusions of the Council on Economic and Fiscal Policy and while carefully observing the economic situation, will continue its considerations, taking measures such as making executive appointments based on the principle of choosing the right person for the right post, including recruitment of those from the private sector motivated to implement reform, and steadily implementing the Reorganization and Rationalization Plan for Special Public Institutions.