The Japan Expressway Holding and Debt Repayment Agency was established in October 2005 with six privatized expressway companies within the privatization framework of the highway public corporations.
The missions are to hold and maintain the expressway assets in a good condition and to repay inherited debts from the highway public corporations as well as incremental debts due to new construction of expressway assets. We commit to the steady and full repayment of the debts within 45 years from the beginning as well as maintaining the safety and high quality of expressway assets by working closely with the six expressway companies. The repayment scheme is based on utilization of the fees paid by the expressway companies for the lease of the expressway assets. Further, in cooperation with the expressway companies, we exercise our authority as road administrator in a timely and appropriate manner to ensure the safe and efficient operation of the expressways. For regional assets we also oversee the detailed maintenance and management works appropriate to local conditions thus ensuring that we hand over safe and high quality expressways to the next generation.
Interest rate rises are the most critical risk for long-term repayment schedules. We have dealt carefully with the risk by effective liability management such as issuing ultra-long-term bonds during the recent historically low interest rate period in Japan. As a result, we have been outperforming the debt repayment with the current balance well below the original forecast.
Through our website we actively disclose business and operational information such as debt repayment plans, performance comparison tables, annual maintenance reports, as well as the revenue and expenditure results of each route. Our conscientious disclosures exceed the statutory requirements to ensure the transparency and accountability of our operation.
To face the changing circumstances inherent in our expressway business, we have focused on two aspects of the safety of expressways: Firstly we have amended the agreement between the Agency and expressway companies for prompt and deliberate renewals to strengthen our controls over excessively heavy vehicles to eliminate the damage to ageing expressways. Secondly we have enhanced the capability of the expressway companies to remove road obstacles, including immobile cars, and to close roads to secure access in the case of disasters such as torrential rain, typhoon, heavy snowfalls, and the high frequency of earthquakes in recent years.
We will do our utmost to realize a successful and efficient operation of the expressway business to enrich everyone's lives. With your continuous support and guidance, every efforts will be made to meet our commitments.
Japan Expressway Holding and Debt Repayment Agency