Subway Development Subsidy System
The subway network is an important facility that contributes to the improvement of urban transportation. Its great disadvantage is the high cost of construction. To promote the construction of subways, the central and local government have subsidized the costs of construction and anti-earthquake reinforcements since 1962. Of the total costs eligible for subsidies, the central and local governments provide 35% each. This is a particularly high level of subsidization among railway government assistance systems.
Private Railway Construction Program: P line interest supplementation
This is a system, introduced in 1972, for promoting the development of railway systems in the Tokyo, Osaka, and Nagoya metropolitan areas. Under this system, the Japan Railway Construction Public Corporation builds new railway lines and provides them to private railway operators. Such railway lines are called P lines (P for Private). When a P line opens, its private operator must pay compensation to the Japan Railway Construction Public Corporation each year toward the construction costs. The system stipulates that interest payments exceeding 5% are covered by the central and local governments. A total of 22 lines have already opened under this system.
