Two killed and thirty injured in a powerful explosion in Philippines; Vietnam, Laos aim to bring bilateral trade turnover to US$1 billion by 2015; Explosion in Thailand’s industrial park; ASEAN Infrastructure Fund launched; Indonesia to begin construction
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  • According to reports, a powerful explosion has killed two people and wounded at least 30 others outside a crowded bar in southern part of the Philippines. Investigators are trying to identify the attackers who left or lobbed the grenade that exploded on May 5, 2012 outside the El Sentro Resto Bar in Iligan city. Police found the pin of the grenade, which also damaged a number of parked cars and sent people fleeing in panic. However, it is still unclear if Muslim rebels, al-Qaeda-linked militants or extortion gangs are behind the blast or if it is sparked by feuding civilians.1

    In another development, Lao Minister of Industry and Commerce Nam Viyaketh began a four-day visit to Vietnam on May 3, 2012. During the visit, he held talks with his Vietnamese counterpart Vu Huy Hoang in Hanoi to promote trade cooperation between the two countries. The two ministers agreed to speed up the 2008-2015 Vietnam-Laos trade development plans, aiming to bring bilateral trade turnover to US$1 billion by 2015. Accordingly, both will create favourable conditions for Vietnamese and Lao businesses to meet exchange and sign contracts, organize trade promotion activities within the framework of the East-West Economic Corridor, design showrooms of Vietnamese and Lao products, and build border markets by 2020. It would be worth noting that in 2011, two-way trade turnover between Vietnam and Laos hit over US$730 million, up 50 percent compared to 2010. In the first quarter this year, bilateral trade reached more than US$230 million, up 57 percent against the same period last year.2

    According to reports, a fire caused by explosions in Thailand's largest industrial park, in Rayong province, 180 kilometers (110 miles) southeast of Bangkok killed 12 and injured more than 100 people in eastern Thailand. The May 6, 2012 blaze forced an evacuation of workers and more than 1,000 residents near the Map Ta Phut industrial estate. Meanwhile, authorities are investigating the cause of the explosions that occurred when workers were cleaning a chemical tank at Bangkok Synthetics plant, a synthetic rubber manufacturer. He said all evacuees have returned home. The fire was put under control after four hours of chemical burning that sent plumes of thick smoke over a wide area.3

    Reports noted that the member countries of ASEAN have launched their largest financing initiative, the ASEAN Infrastructure Fund (AIF), following its Board’s first meeting on the sidelines of the Asian Development Bank’s (ADB) 45th Annual Meeting in Manila on May 6, 2012. The ASEAN Infrastructure Fund will finance the development of road, rail, power, water and other critical infrastructure needs, which are estimated at about US $60 billion a year.

    ASEAN member countries and the ADB have provided an initial equity fund of US $485 million for the AIF. The fund, meanwhile, will be domiciled in Malaysia. ADB will provide additional co-financing for every AIF project. ADB will also administer the Fund. The ASEAN Infrastructure Fund will finance approximately six projects a year, with a US $75 million lending cap per project. Criteria for investments include their potential to cut poverty, increase trade and bolster investment.4

    In other developments, according to reports, Indonesia is to begin construction of the Karawang International Airport in 2015 with a capacity of up to 70 million passengers a year to support the country's existing main gateway, Soekarno- Hatta International Airport. Based on recent ministry data, the traffic of passengers in Soekarno-Hatta reached 51.1 million throughout last year, while the airport's total capacity was initially only intended to accommodate 22 million passengers. The new airport will be built on 900 hectares in Karawang, just east of Jakarta, and is expected to commence operations in 2019.5

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