The Land, Infrastructure and Transport Ministry on Tuesday staged the first online tender for a public works project in the nation's history.

A contractor from Gifu Prefecture won the right to elevate part of a national highway currently under construction in central Japan, having submitted a bid of 495 million yen, about 27 million yen below a pre-tender estimate issued by the ministry.

Eleven contractors from Tokyo, Gifu, Fukui and Fukuoka prefectures took part in the bidding contest, according to ministry officials.

The 240-meter elevated section of the highway will be built in Minokamo, Gifu Prefecture.

The circular national highway, stretching from Toyota in Aichi Prefecture to Yokkaichi in Mie Prefecture, will be 160 km long, with a 74 km-portion scheduled to open in 2004.

The outcome of the tender appeared on a ministry computer after Chikage Ogi, minister of land, infrastructure and transport, revealed details of each bid that was submitted, the officials said.

The ministry plans to hold around 100 online tenders of this kind during the current fiscal year, then 2,000 more in fiscal 2002, in an attempt to combat bid-rigging and cut construction costs, they said.

It may adopt the system for all 44,000 state-run projects in fiscal 2003.