Japan sets up compensation plan for plant operator

TOKYO—Japan’s government has agreed on a new plan to ensure the operator of crippled Fukushima Dai-ichi nuclear plant can meet the massive costs of compensating people affected by the crisis.

Friday’s plan involves establishing a fund financed by both public money and contributions from utilities that will provide financial support to Tokyo Electric Power Co. TEPCO expects to face a deluge of damage claims in the wake of worst nuclear accident since Chernobyl.

The government will fund the scheme with special bonds, though it did not say the amount it expects to issue.

The plan must still be made into a bill and be approved by parliament before taking effect.