### 43. Share of works conducted in the three major metropolitan areas

Note 1: Initial budget base of Fiscal 2000 (subsidizing works) Note 2: Three major metropolitan areas include Tokyo Metropolis and six prefectures, Kanagawa, Chiba, Saitama, Aichi, Mie, Osaka, Kyoto, and Hyogo. Note 3: Airport improvement includes directly administered projects. Note 4: Research by MLIT

## ○ How long-term plans should be formulated

Many projects to improve social infrastructure involve long-term development and require well-planned and steady progress. Long-term plans are of the same importance as before. On the other hand, long-term plans have made rapid reflection of changes in the economy on projects rather difficult, which calls for fundamental reviewing of such aspects.

## Efficiency and effects of public works and their promotion methods

There have been many opinions concerning transparency of demand forecasting, effects, costs, and procedure of individual public works. It cannot be denied that there has not been enough effort to explain the necessity and effects of certain projects until now. Therefore, it is necessary to pursuit efficiency with a new frame of mind by, for instance, by striving to clearly explain the necessity and effects of projects and attempting to prioritize them.

A method of conducting an improvement on loans and repayment by charging users (tariffs) is effective for meeting an urgent requirement of improvement under a constrained budget. However, as it has been pointed out that it will become the citizens' burden when actual demand diverges from the forecast, efforts must be made to improve the accuracy of forecasting, to verify profitability, and to further promote disclosure of information.

As for costs, even though there are still factors that may cause cost increases because of the structural characteristics of our national land, the cost difference with U.S.A. has almost disappeared when compared after equalizing the conditions. It is necessary to continue comprehensive efforts to reduce public works costs.

##### 44. (Japan-U.S. comparison of construction costs)

## [Efforts in public enterprise reform ~converting to social infrastructure improvement of the 21st century style~]

## ○ Basic philosophy and determination to tackle reform

As mentioned above, there is a mountain of challenges that MLIT must deal with in the 21st century and it is essential for social infrastructure to be part of the solution. On the other hand, reduction of investment surplus, further constrained finance, and increase of maintenance and renewal demand are forecast. Under these conditions, for the MLIT, which is largely responsible for the social infrastructure to fulfill its mission, it is essential to reform the way it hadles preparation, maintenance, and improvement of the social infrastructure through dialogue with the citizenry in general so that the best possible results can be brought out with limited resources. Furthermore, as the entire government is working on “structural reform without sanctuary,” we at MILT are determined to further promote and develop our efforts on reform by thoroughly and completely reviewing public works.

To that end, “Measures on Public works Reform by the MLIT” was prepared in June 2001. By following this guideline, we are developing public works that are appropriate to the 21st century and truly beneficial to the people of Japan: without loss or waste, speedily, and striving to reduce costs;

meeting regional needs and respecting the initiative, originality, and ingenuity of the local areas; and winning the confidence of the nation by further improving transparency.