The government will provide loans of up to 5 trillion yen (about US$ 50 billion) to the company responsible for the damaged Fukushima reactor, to be repaid over 31 years. However, the Board of Auditors warns that taxpayers might end up paying US$ 810 in increased taxes.

Tokyo (AsiaNews) - The cost of rehabilitating the environment damaged by the Fukushima disaster and compensate victims could cost Japanese taxpayers about $ 80 billion yen (US$ 810 million), over three decades, this according to estimates by the Board of Auditors.

However, the government "can gain public understanding (for its assistance to TEPCO) only by forecasting the total amount and timing of compensation with greater accuracy as soon as possible and providing a definite projection for the financial burden," the Board of Audit report concluded.

The total cost for the cleanup will be enormous. Under the plan, the government will lend the Tokyo Electric Power Company (TEPCO) up to 5 trillion yen, repaid over 31 years.

TEPCO and other power companies will pay back the principal by making "general contributions" to the fund that they will primarily finance through electricity rates.

The company will also make "special contributions" from its earnings if its financial condition improves.

This leaves taxpayers with the prospect of footing up to US$ 810 million, the Board warned, recoverable through a gradual increase in taxes, up to 8 per cent, spread over the period of loan repayment.

• japan
• fukushima
• nuclear
• plant
• cleanup
• compensation
• rehabilitation
• taxes