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BUSINESS

Palace: Pax Silica project not yet finalized

RA

Raffy Ayeng·30 July 2026, 5:40 pm·1 MIN READ

Palace: Pax Silica project not yet finalized

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Malacañang on Thursday said the United States-led Pax Silica Initiative is not yet a finalized project, stressing that its provisions may still change as the government continues consultations with stakeholders.

The clarification came amid mounting concerns from local officials and residents over the proposed technology hub, which is planned to occupy more than 162 hectares in New Clark City.

"There is a chance that there will be changes in the provisions. The government is considering the benefits to our countrymen, to our country and, of course, to our partner investors," Palace Press Officer Claire Castro said in Filipino.

Castro urged individuals and groups with concerns to coordinate with the project's lead agency, the Bases Conversion and Development Authority (BCDA), to seek clarification and raise issues.

"For those who have concerns about this project, it is better to coordinate with the concerned agencies handling Pax Silica so that whatever issues you foresee can be addressed," she said.

The Pax Silica Initiative, located within the Luzon Economic Corridor, is a multilateral economic security framework launched in December 2025 to strengthen semiconductor manufacturing, artificial intelligence technologies, critical minerals supply chains and secure data ecosystems.

The Philippines formally joined the initiative in April 2026, designating an AI-native industrial and manufacturing enclave in New Clark City.

Earlier, Capas, Tarlac Mayor Butch Rodriguez claimed the project had not been formally presented to the local government and questioned how its environmental impact would be addressed.

In response, BCDA President and Chief Executive Officer Joshua Bingcang said the agency has already conducted initial consultations with local government units and national government agencies regarding the development plans for New Clark City, including the proposed Pax Silica Initiative.

"These consultations are ongoing, and we will continue to work closely with these stakeholders as the project progresses," Bingcang said.

He added that BCDA is currently conducting ground assessment activities to ensure planning and decision-making are based on accurate on-site evaluations.

Bingcang earlier said groundbreaking is targeted for the first quarter of 2028, with full development expected to take 10 to 15 years.

The project is projected to attract between $40 billion and $70 billion in investments, create 130,000 to 190,000 direct high-quality jobs and generate 500,000 to 800,000 indirect and induced jobs once fully operational.

Meanwhile, Energy Secretary Sharon Garin said the planned technology hub would not reduce electricity supply for households and businesses outside the project area.

She said proponents are considering building dedicated power plants for the development or contracting independent power providers to meet the hub's energy requirements.

"What we want to avoid is that even if there is Pax Silica or any other data center with huge demand, consumers outside Pax Silica, whether households or businesses, will not be affected," Garin said.

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