Finance Minister Kiichi Miyazawa and Transport Minister Chikage Ogi agreed Monday to reduce the budget in fiscal 2001 for the construction of a controversial second runway at Kansai International Airport.

After the meeting with Miyazawa, Ogi told reporters that her ministry's earlier demand for 121.1 billion yen to finance landfill works would be reduced by one-third.

But she stressed that the target for completing the second runway in 2007 will not change.

Kansai International Airport Inc. is saddled with debts of 1 trillion yen, with interest payments alone costing the firm 44.5 billion yen in fiscal 1999.

According to a statement, Miyazawa and Ogi also agreed that they will review the management of Kansai International Airport Inc., a joint private-public corporation that built and manages the airport.

Ogi did not rule out the possibility of turning the firm into a public corporation in light of the heavy debt burden.

The project to build a second runway has recently come under public scrutiny as many airlines, including All Nippon Airways Co., have reduced or withdrawn flights from Kansai airport due to high landing fees and fewer passengers than expected.