The land ministry on Tuesday unveiled the outlines of four bills tied to the privatization of four semigovernmental expressway corporations.
Privatization of the heavily indebted entities, scheduled to take effect in fiscal 2005, is one of the key components of Prime Minister Junichiro Koizumi's reform agenda.
Critics claim the ministry's proposals lack teeth, stating they still leave the door open for the continued construction of unprofitable roads.
The Land, Infrastructure and Transport Ministry will work out legislative details by March so that the bills can be submitted to the Diet during the current session, ministry officials said.
According to the outlines released Tuesday, one piece of legislation stipulates the establishment of six privatized entities through the regrouping of Japan Highway Public Corp., Metropolitan Expressway Public Corp., Hanshin Expressway Public Corp. and Honshu-Shikoku Bridge Authority.
They would be given special status and undertake the construction, maintenance and operation of expressways.
Japan Highway would be divided into three regional companies. One of these, tentatively dubbed West Japan Highway Corp., would merge with the bridge authority when Japan Highway gets its business operations back on track.
Another piece of legislation calls for the establishment of a separate asset-holding and debt-servicing administrative organization that would lease expressway assets to the privatized entities.
It would also repay their combined debts, worth 40 trillion yen, over a 45-year period by using the rental fees.
The privatized entities would be compelled to conclude agreements on rental fees and leasing periods with the administrative body.