transport securing, management and improvement projects or offering tax incentives but also the construction, etc. of new stations on those local routes that have high potential needs for railway use by implementing projects designed to activate trunk railways, etc.

## (3) Subsidizing regional bus routes

Securing and maintaining means of regional public transport, such as public buses, for the benefit of local residents, particularly those with limited access to transport, such as elderly people and schoolchildren, is of critical importance. To help secure and maintain optimal networks of regional transport tailored to specific regional characteristics and conditions, the government has a policy of providing integrated support to the availability of regional transport services (such as inter-regional bus transport networks Note or bus, demand-responsive and other forms of regional transport closely related to trunk transport networks) under a scheme of shared responsibility with local governments. For other routes, relevant financial measures are taken to enable local governments to maintain them at their own discretion.

## (4) Supporting transport to and from remote islands

To secure air transport to and from remote islands, the MLIT subsidizes aircraft purchase costs, running costs and MTSAT Satellite-based Augmentation System (MSAS) receiver purchase costs and eases landing fees and aviation fuel and fixed property taxes for common air carriers serving as far as remote islands. Running costs have been subsidized since FY2011 by regional public transport securing, management and improvement projects. Passenger fares for islanders have been newly subsidized to extend the scope of support from FY2012 onward.

Remote island sea routes, a vital means of transport to support islanders' daily living, are now extremely tough to economically manage. The running costs of those sea routes that are anticipated in the red and for which no alternative routes are available are subsidized by regional public transport securing, management and improvement projects. In addition, discounted passenger fares for islanders have been subsidized and port facilities have been developed to close gaps with other regions and to add convenience to the islanders' lives.

In FY2013, 56 remote island air routes were in service, and 297 sea routes were in service at the end of FY2012 (120 of which are government-subsided sea routes).

## Section 3 Promoting Urban Reconstruction Projects, etc

## Promoting Urban Reconstruction Projects

An urban reconstruction project is an action plan that combats a variety of urban issues that need to be solved in an all-out effort in cooperation and collaboration with the ministries concerned, local governments, private entities and so on. An action plan is selected if it:

a. Combats a basic issue relevant to an urban structure or requires in an all-out effort of the ministries concerned to combat one, with resort to a totally new method, or

b. Helps draw power from the private sector or makes for greater land mobility from a viewpoint of leading to an economic structural reform.

By the end of March 2014, 23 urban reconstruction projects had been accredited by the Urban Reconstruction Headquarters.

## 2 Promoting Urban Development by Private Sectors

(1) Promoting urban development by private sectors based on the Specific Urban Reconstruction Emergency Development Area program

While rapidly growing Asian nations have resulted in a proportionate decline in Japan’s international competitiveness,