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Philippines awaits US response on Pax Silica deal, Palace says

Palace press officer, Presidential Communications Office Usec. Claire Castro

Palace press officer, Presidential Communications Office Usec. Claire Castro

Raffy Ayeng

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Malacañang on Wednesday said the Philippines is awaiting a response from its United States counterpart on the proposed Pax Silica framework agreement, with negotiations continuing over the governance structure of the planned high-tech industrial hub in New Clark City, Tarlac.

Palace Press Officer and Presidential Communications Office Undersecretary Claire Castro said the Bases Conversion and Development Authority (BCDA) had already coordinated with the Office of the President and the Department of Trade and Industry (DTI) on the proposed agreement.

“The Bases Conversion and Development Authority (BCDA) has already met with the Office of the President through the Office of the Executive Secretary for the submitted memorandum with the Department of Trade and Industry and provided guidance that the BCDA will follow in the negotiation and finalization of framework arrangement with the US counterpart party,” Castro said during a Palace briefing.

“So, we are just waiting for the response from the US for the draft agreement. That’s the message of the BCDA,” she added.

Castro said the Palace could not confirm whether President Ferdinand Marcos Jr. had personally reviewed the agreement or whether its signing would be included in the agenda of the ASEAN Summit and Related Summits scheduled for 16 to 18 November.

“Let’s wait for the response of the US counterpart. For now, it’s only a draft agreement,” she said.

The clarification comes amid social media speculation that the agreement would be signed during U.S. President Donald Trump's expected visit to Manila for the regional gathering.

BCDA President and CEO Joshua Bingcang earlier said there was no definite schedule for the signing, although the government remained committed to pursuing the initiative.

The proposed agreement would establish the framework for developing a 4,000-acre, or approximately 1,620-hectare, industrial hub under the U.S.-led Pax Silica initiative.

The project aims to strengthen supply chains for artificial intelligence, semiconductors, critical minerals and advanced manufacturing.

Palace assures assistance to Aeta communities

Meanwhile, Castro assured Indigenous Peoples (IPs) and farmers potentially affected by the development that the government would provide relocation sites and financial assistance if displacement becomes necessary.

The assurance follows concerns over the possible relocation of approximately 200 Aeta residents from areas within the proposed development site.

Bingcang earlier said initial assessments identified about 40 structures housing an estimated 200 residents in a 10-hectare portion of the project area.

Castro maintained that the planned facilities would be located within designated buildable zones in New Clark City, which she said should minimize the impact on surrounding communities.

She added that other portions of the development area would remain reserved for residents, agricultural activities and environmental protection.

The Palace official stressed that families living within the proposed development zone would not be abandoned.

The project has drawn opposition from Indigenous communities, farmers and environmental groups concerned about ancestral land rights, displacement and the environmental impact of large-scale industrial development.

Some Aeta residents have called for the project's cancellation, citing concerns that relocation could disrupt their communities and traditional livelihoods.

The government maintains that the project will generate investments and employment opportunities while incorporating safeguards for affected residents.

The final framework agreement, including its governance arrangements and implementation conditions, has yet to be completed.