ASEAN Infrastructure SPV To Start June 2012 In KL, Says Second Finance Minister

From Mikhail Raj Abdullah HONOLULU, Nov 12 (Bernama) -- A special purpose vehicle for the Asean Infrastructure Fund (AIF) to support infrastructure development in Southeast Asia will begin operations in Kuala Lumpur in June 2012, Malaysia's Second Finance Minister Husni Hanadzlah said here Thursday. The SPV will have an initial equity contribution of US$485 million. The move shows Asean's leadership in infrastruture development, and will be used as a model by the Asia Pacific Economic Cooperation (APEC), he told reporters after the APEC finance ministers' meeting here on Thursday. The meeting was held in preparation for the APEC summit, beginning on Saturday, which will be attended by Prime Minister Najib Tun Abdul Razak. Husni said the Asian Development Bank, which will contribute US$150 million to the fund, will identify suitable infrastructure projects to be implemented in countries which have not attained a high level of infrastructure development. These projects include roads, ports, and water and electricity supply, he said. Malaysia has pledged US$150 million to the fund. Nine Asean member countries excluding Myanmar will contribute a total of US$485 million to the fund. Husni said the board of the SPV will comprise a representative from each of the nine Asean countries excluding Myanmar. Husni said APEC was informed of developments on the AIF because of the interest of the Asia Pacific grouping to develop the region's infrastructure although the idea is still under discussion. Infrastructure development is important to enhance Asean's attractiveness as an investment destination and expand the middle class, a vital element in the growth of an economy. -- BERNAMA