Photo/Illutration The planned venue of the 2025 Osaka Kansai Expo extends from left to the foreground on Yumeshima island, seen here in the foreground of this photo taken from an Asahi Television Broadcasting Corp. helicopter on April 7, 2023. A casino-centered integrated resort is planned in the center background of the island. (Nobuhiro Shirai)

Osaka officials are considering doubling down on proceeding with construction of a casino-centered integrated resort (IR) during the 2025 Osaka-Kansai Expo despite pressure from an international body.

The international organization overseeing world expos is pushing for a decision by the end of September on calls to delay the IR construction, which is next to the expo’s venue.

But Osaka prefectural and city governments are reluctant to agree to a full six-month suspension.

They are concerned that halting construction could lead to additional costs of more than 10 billion yen ($70 million) for the IR operator and are looking for alternative solutions.

Osaka Governor Hirofumi Yoshimura avoided giving a clear answer on Sept. 4 when reporters asked about the timing of a resolution.

“We are making final adjustments, but there isn’t a specific time frame yet,” he said.

He indicated that discussions would continue with the Japan Association for the 2025 World Exposition, the IR operator and the central government.

The expo will be held on the artificial island of Yumeshima in Osaka Bay for six months from April next year.

Next to the venue, work to prevent ground liquefaction has already begun for the IR facility, which is scheduled to open around autumn 2030.

Construction on the main building is planned to begin around spring 2025.

However, the Bureau International des Expositions (BIE) and business leaders in Japan have raised concerns that the construction could negatively impact the expo due to noise and disruption to the landscape. 

They have called for the work to be paused during the event.

According to sources, BIE Secretary-General Dimitri Kerkentzes sent a letter in July to Masakazu Tokura, the head of the association for the 2025 expo, and chairman of Keidanren (Japan Business Federation).

The letter expressed concerns that the IR construction during the expo could face an international backlash.

Tokura told the Osaka governor during a meeting that month that “the simplest solution would be to halt construction during the expo.”

Kerkentzes visited Japan and met with economy minister Ken Saito, whose ministry oversees the expo, on Aug. 30.

Saito agreed, saying, “The success of the expo is the top priority during its run.”

After the meeting, Kerkentzes told reporters that he hopes the matter will be resolved by the end of September, ahead of Oct. 13, when the start of the expo will be just six months away.

On the other hand, Osaka prefectural and city governments are reluctant to agree to a complete halt of construction.

According to IR officials, if construction is suspended for six months, there could be additional costs exceeding 10 billion yen for compensating contractors and covering other expenses.

The local governments said they will not cover these costs.

In addition, there are concerns that if construction is halted for half a year, the necessary groundwork for the IR project might not be completed.

If the IR operator finds it too difficult to continue, it has the right to terminate its agreement with the local governments without penalty.

The local governments worry that the IR operator might exercise this right and withdraw from the project.

According to sources, the Osaka governor proposed an alternative plan during his meeting with Tokura in July to shift the IR construction by about two months instead of halting it for the entirety of the expo.

“Can we reach some sort of agreement? The project won’t be able to continue otherwise,” Yoshimura said.

But Tokura reportedly asked Yoshimura to check with the IR operator to see if it had explored all possible options. He requested further discussions to look for other solutions. 

Yoshimura and executives from the IR operator held discussions in August.

They are considering a temporary suspension of construction and the installation of noise barriers, and are rushing to finalize the details.

“We are considering various measures to minimize the impact on the expo,” said a senior city official.

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