Japan's Expressway Privatization Marks 20 Years: Debt Reduced by 8 Trillion Yen
Japan's expressway system underwent a significant transformation 20 years ago today. On October 1, 2005, four public corporations were privatized, leading to the creation of six private companies and an independent administrative body, the Japan Expressway Holding and Debt Repayment Agency.
The privatization, a key policy of then Prime Minister Junichiro Koizumi, saw the emergence of the Japan Expressway Holding and Debt Repayment Agency and five regional expressway companies: East Nippon Expressway Company, Central Nippon Expressway Company, West Nippon Expressway Company, Honshu-Shikoku Bridge Expressway Company, and Japan Highway Public Corporation.
The total interest-bearing liabilities of the former public corporations stood at 38 trillion yen at the time of privatization. The debt repayment scheme involves the successor private companies paying leasing fees, excluding management costs, to the agency using toll revenues. By the end of March 2025, the debts were reduced to 30 trillion yen.
Two decades on, the privatization of Japan's expressway corporations has resulted in a significant reduction of debt, with 30 trillion yen remaining to be repaid. The independent administrative body continues to oversee the debt repayment process.
Read also:
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
- EU Finds Chinese BEV Producers Unfairly Subsidized, Tariffs Loom
- Labour's Shift: Defense Takes Center Stage at Party Conference
