The Investors’ Lease Act, and the Bases Conversion and Development Authority (BCDA) Law will govern Pax Silica’s 4,000-acre (1,618-hectare) Artificial Intelligence (AI) hub economic security zone in New Clark City, Tarlac.
This was the statement made by BCDA President and CEO Joshua Bingcang during an interview at the unveiling of the marker for the AI hub held at the New Clark City on 18 May 2026, adding that the two Republic Acts will be the basis in overseeing the business arrangement.
The Investors' Lease Act is a Philippine statutory framework designed to encourage foreign economic growth by permitting non-Philippine nationals to secure long-term leases on private land.
While the Philippine Constitution explicitly prohibits foreigners from outright land ownership, this law provides a strategic mechanism for international businesses to establish physical operations within the country.
Meanwhile, the BCDA Law or Republic Act No. 7227 established the government-owned and controlled corporation (GOCC) responsible for master-planning, developing, and managing these strategic lands to drive national growth and fund military modernization.
Bingcang said that the planned establishment of the AI hub in New Clark City will be be treated as a regular business development contract. No special treatment to be accorded to the US.
Around 20 firms have expressed their interest in investing in the said AI hub in New Clark City, with more than dozen present during United States Undersecretary of State for Economic Affairs Jacob Helberg led a delegation for an official site inspection of the area on 18 May 2026.
During the inspection, the BCDA hosted the US government, the Department of Trade and Industry (DTI), and potential investors at the New Clark City Athletics Stadium wherein Undersecretary Helberg, BCDA President Bingcang and DTI Undersecretary Ceferino Rodolfo gave a press conference.
Helberg said that every single company present during the site inspection is potentially being a part of the Pax Silica initiative. “We have over a dozen companies that are here with us, several of them are over billion-dollar companies,” he added.
Usec Rodolfo stated that five US companies and five firms based in the Middle East have also expressed plans to invest in the Philippines.
Meanwhile, BCDA President Bingcang said that heavy industry will not be allowed in New Clark City, with the area housing schools, residences for engineers, and open space. He added that technical assessments begin in June, and the groundbreaking targeted before the end of 2028.
