Manila - The Philippines and Kuwait on Friday signed three agreements aimed at boosting cooperation between the two countries on health, energy and tourism.

Philippine President Gloria Macapagal Arroyo and visiting Kuwaiti Prime Minister Sheikh Nasser al-Mohammed al-Ahmed al-Haber al-Sabah witnessed the signing of the agreements.

A Philippine government statement said the agreement on health was expected to facilitate and enhance the sharing of expertise in improving the quality of health-related services in both countries.

The energy cooperation agreement is to pave the way for joint projects as well as enhance training of gas technical personnel and foster private sector cooperation, the statement added.

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Cotabato City, Philippines - A homemade bomb was found Friday in an elementary school in the southern Philippines, where security has been stepped up in the aftermath of intense fighting between government forces and Muslim rebels.

The bomb was discovered by civilians in one of the buildings of the public school in Mlang town in North Cotabato province, 930 kilometres south of Manila, said Major Armand Rico, a regional military spokesman.

"Many pupils were already at the school," he said.

Manila - Two communist rebels were killed Friday in a clash with government troops in an eastern Philippine province, an army spokesman said.

Kidapawan City, Philippines - Philippine troops on Thursday recovered a homemade bomb planted near a public market in a southern province where days of fighting with Muslim separatist rebels have displaced nearly 160,000 people, the military said.

The device was found in a bag left near a garbage collection area of an old bus terminal in Kidapawan City in North Cotabato province, 930 kilometres south of Manila, which is near the wet section of the public market.

Manila - Fighting between government troops and Muslim separatist rebels in the southern Philippines, which has displaced nearly 160,000 people, were expected to end soon, a senior aide of President Gloria Macapagal Arroyo said Wednesday.

Presidential peace adviser Hermogenes Esperon said Moro Islamic Liberation Front (MILF) rebels were moving out of the villages they occupied in North Cotabato province, 930 kilometres south of Manila, due to intensified military airstrikes and ground assaults.