A key government panel on Friday formalized an interim report on ways to privatize four road-related public corporations, proposing to freeze a number of pending highway projects and minimize the financial burden on taxpayers.

But tough political battles lie ahead as the Diet, where a majority of lawmakers want to maintain the current road construction plan, has the final say over whether the laws will be revised or enacted.

The final report will merely serve as the basis for bills to be drawn up during fiscal 2003 that would enable the proposed special firms to be set up by fiscal 2005.