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Publish Date : 30-Apr-2015

In order to strengthen the Japanese defense capabilities, the purchase of defense equipment must be streamlined and the limited defense budget used more efficiently.

A bill on special measures allowing the Defense Ministry to procure aircraft, vessels and other costly defense equipment through long-term deals has been approved.

The existing Finance Law sets a maximum repayment period of 5 years for "an act incurring a liability on the treasury," in which the ministry starts paying back the debt incurred from the year after the deal is concluded.

Under the new law, the maximum payment period will be extended to 10 years.

Using the new law, the Defense Ministry is planning to purchase 20 high-tech P-1 patrol aircraft at once through seven-year deals.

With the extended deals the total cost will be Ą339.6 billion. That is Ą41.7 billion less than when the same number of planes were acquired under the earlier formula, with 5 aircraft purchased in 4 split orders through four-year deals.

The legislation regarding special measures is aimed at significantly streamlining the purchase of equipment, based on FY2014-18 Medium Term Defense Program emphasizing the Nansei Islands' defenses.

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