## ○Making better use of the existing infrastructure stock

MLIT is committed to making better use of the existing infrastructure stock for better service delivery. For more efficient and effective management of such stock, the ministry promotes the use of an integrated assess management approach.

○Promoting ETC on the Tokyo Metropolitan Expressway to alleviate congestion

For example, the introduction of the electronic toll collection (ETC) system at tollgates on the Tokyo Metropolitan Expressway reduced traffic congestion by 70% in two years.

(ETC utilization rate: 4.8% Congestion: 123.4 kilometer-hours/day [November 2002])

→ (ETC utilization rate: 28.1% Congestion: 33.4 kilometer-hours/day [November 2004])

○MLIT focused on improving both the maintenance and operation of all government buildings and the repairs to rehabilitate or even improve the function of those buildings, in order to achieve a longer life of the existing buildings and to reduce costs in the life cycle.

○MLIT promoted the formation of broad-based railway networks through: the extension of existing lines; construction of short-distance lines that connect existing lines; and improvement of existing train stations for through services between different lines.

## ○Streamlining administrative procedures

MLIT promoted the introduction of a system that makes it possible to submit applications on-lines to government agencies, the adoption of a one-stop service system for procedures regarding import and export, port use, car ownership, and the introduction of unified standards for government buildings service.

## ○ Reform of quasi-governmental corporations

As part of reform efforts, new entities were established during 2004, including: Tokyo Metro Co., Ltd; Narita International Airport Corporation; Urban Renaissance Agency; and the Fund for the Promotion and Development of the Amami Islands. The ministry is steadily working toward the privatization of the four highway-related public corporations slated for October 2005. The government has already submitted to the Diet a set of bills designed to replace in April 2007 the Government Housing Loan Corporation with a new independent administrative institution that will also provide securitization support services.

## [New partnership between the central government on one hand and local governments and the private sector on the other]

## ☐ New partnership between the central and local governments

The central government is pressing ahead with reform that will lead to the transfer of tax revenue sources to local governments. MLIT, for its part, has been reviewing state subsidies so that local governments can enjoy more autonomy. The ministry is also phasing in flexible standards that allow for local governments to make appropriate choices in light of local realities (introduction of local rules). In July 2004, MLIT put together the Priority Policies for Social Infrastructure Development in regional blocks.

## ○Utilization of the private sector’s creativity and ingenuity

MLIT is committed to promoting the private finance initiative (PFI). As of December 2004, a total of 33 MLIT-related PFI projects were in the works. In addition, the ministry is promoting special zones for structural reform. MLIT allowed five regulatory exceptions, which were originally applied in such zones, to be applied nationwide.