The Japan Expressway Holding and Debt Repayment Agency was established in 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 and incremental debts due to new construction of expressway assets. We commit the steady and full repayment of the debts within 45 years from the beginning as well as maintaining the safe and high quality expressway assets 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, we exercise our authority as a road administrator in a timely and appropriate manner, in cooperation with expressway companies, in order to ensure safe and efficient operation of the expressways. Also, we care for detailed maintenance and management works for the assets in accordance with each regional condition to hand over safe and quality expressways to the next generation.
Interest rate hike is the most critical risk for the repayment. We have been carefully dealing with the risk through effective liability management such as issuing ultra-long-term bonds during the recent historical low interest rate period. As a result, we have been outperforming the debt repayment all the way from the beginning. The current balance is well below its planned number.
Accountability is another important responsibility for the agency. We actively disclose business and operational information through our website such as debt repayment plan/performance comparison tables, annual maintenance reports and revenue/expenditure result of each route regardless of statutory requirements to ensure transparency of our operation.
The Shin Tomei Expressway was inaugurated on April 14, 2012 and since then, the number of incidents of heavy traffic congestion on the existing Tomei Expressway came down by more than 90%, improving the speed and punctuality, intrinsic to the expressway even further. We believe that this improvement will enable people and goods to flow smoothly, further contributing to socio-economic revitalization.
Moreover, at this juncture of aging expressways, we will continue to work together with the nation and the expressway companies to raise the management standards and further improve the safety of expressways.
The 3rd Medium-term Plan has started from FY2013. We will continue to do our best efforts to realize effective and efficient operation of expressway business. With your continuous support and guidance, we will make every effort to meet our commitments.
Japan Expressway Holding and Debt Repayment Agency