Photo/Illutration An artist’s rendering of the venue for the 2025 Osaka Kansai Expo (Provided by the Japan Association for the World Exposition)

The central government announced on Dec. 19 that the overall costs to develop infrastructure, such as access to venues, for the 2025 Osaka Kansai Expo will balloon to a total 839 billion yen ($5.8 billion).

Of the 839 billion yen, the central government-funded portion will be a total of 164.7 billion yen, and the money will mainly cover the construction costs of the expo site.

Since the cost has surged from the initial estimate, the central government will set up a panel of experts to examine if it is appropriate for the government funds to be allocated to the expo.

Hanako Jimi, state minister in charge of the expo, said at a news conference, “We will continue to listen to various voices and present them transparently to the public at the appropriate time.”

Of the 164.7 billion yen to be paid by the central government, 78.3 billion yen, the largest portion, is for the construction of the venue. The cost of constructing the venue are split equally among the central government, the Osaka prefectural and city governments, and the business community.

Thirty-six billion yen is for construction of the “Japan Pavilion,” which the Japanese government will exhibit.

Twenty-four billion yen is to cover the costs for developing countries to exhibit at the expo. In addition, safety and security expenses at the venue are now estimated at 19.9 billion yen. 

For promoting the event nationwide, 3.8 billion yen is estimated.

The last 2.7 billion yen will cover the bidding cost to host the expo and other expenses.

In addition to these costs, there will be the costs of events to raise interest and promote the expo in the coming fiscal year and beyond.

In terms of infrastructure, a total of 9.7 trillion yen will be spent on infrastructure development based on the expo-related infrastructure development plan, which was decided in 2021.

Of this amount, a total of 839 billion yen will be allocated for maintenance directly related to the expo, such as sewerage improvement and subway extension.

The remainder is for indirect infrastructure development, including countermeasures against the Nankai Trough earthquake and the construction of expressways in the Chugoku and Shikoku regions.

The cost of exhibits and programs by each ministry and agency, such as the "flying car" scheduled to operate at the venue, totals 3.4 trillion yen.

However, regarding the cost of infrastructure improvements and measures taken by government ministries and agencies, Jimi stressed that these improvements “will be implemented regardless of whether or not the expo is held,” and that the government “is not asking for new or additional burdens for the expo.”

The central government's latest presentation of a complete picture of the costs was a response to a promise made by Prime Minister Fumio Kishida, who was asked about it at a special session of the Diet.

Some opposition parties have pointed out the relationship between the huge infrastructure development costs and the casino-centered integrated resort (IR) scheduled to open there after the expo, and it is inevitable that this will be discussed in the ordinary Diet session at the beginning of the year.

At a news conference on Dec. 19, the economy minster Ken Saito said that the government will establish a panel of outside experts to inspect the costs and check the appropriateness of the execution.

(This article was written by Shinkai Kawabe and Ryo Aibara.)

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