of service life, results still showed that if service life is extended, the infrastructure’s loss is suppressed. Results also showed that in comparison to 2009 levels, the amount of infrastructures that would need to be retired over a 50 year period—starting in 2010—is reduced by 12.4% as compared to if service life is not extended.

Of course, these estimates are based on abstractions of each facility’s structural properties and status of utilization, and we need to give consideration to the maintenance and management cost incurred by the extending of service life. However, we can see that a reduction in mid- to long-term upgrades can be expected by extending service life through preventative maintenance work. As evident from these efforts, we need to work on reducing total costs and leveling budgets so that we can maintain the social infrastructures well for future generations, and ensure the provision of benefits.

(Note) The retirement cost which will occur in FY2010 is set at 100.

Source) Developed by MLIT from Cabinet Office "Social Capital of Japan 2012"

## 2 Planned Efforts with Future Strain in Mind

With the prospect of a decrease in the number of social infrastructure users—primarily of public facilities—due to progressive population decline and difficult financial situation, many local governments are working on planned efforts for the maintenance, management, and upgrading of existing social infrastructures, while keeping future forecasts in mind. Below, we will introduce and analyze the features of the most innovative examples of various efforts undertaken by local governments that are thinking about the future.

## (1) Preparation and Publication of White Papers regarding Public Facilities, Reassessing Public Facilities

There has been, and continues to be, efforts made towards promoting the development of regional public accounting, and many local governments are working on preparing and publishing financial statements $ ^{Note\ 65} $ . The financial statements details information regarding assets and liabilities owned by the local government, such as public assets and municipal bonds, making it possible to use the data to calculate things like the proportions of intergenerational obligation for social capital formation (Figure 2-3-14). Publishing this kind of information not only reveals the financial situation of a local government, it also clarifies the condition of each social infrastructure in that local government. They are also working on efforts to show how the social infrastructures are being used, and their maintenance, management, and upgrading costs.

Figure 2-3-15 shows which local governments have prepared and published information about the condition of the public facilities and the future prospects regarding maintenance, management, and upgrading as white papers

(Note) 1 Calculated based on published figures from FY2011 Financial Statements from each prefecture. Past and present generation's obligation rate = Net assets/Total public assets. Future generation's obligation rate = Total municipal bonds/Total public assets.

2 For prefectures that published their financial statements in accordance with the MIC system revised model

Source) Developed by MLIT from each prefecture's Financial Statements