The planned establishment of a 4,000-acre property within New Clark City, Tarlac, under the Pax Silica Declaration of the United States, is expected to break ground before the term of Ferdinand Marcos Jr. ends in 2028, the Board of Investments and the Bases Conversion and Development Authority said.
The Pax Silica Declaration aims to transform New Clark City into an industrial hub centered on artificial intelligence innovation and investments, advancing the Philippine government’s goal of positioning the country as a key global player in emerging technologies.
BoI managing head and Trade Undersecretary Ceferino Rodolfo said that, to date, several companies and countries have expressed interest in investing in the industrial hub, particularly tech firms from East Asia and the United States.
“There are countries and five specific companies in AI-tech manufacturing, in transition energy, and in infrastructure that have already reached out to express the significance of Pax Silica to their investment plans,” Rodolfo told reporters during a press conference.
For his part, BCDA president and CEO Engr. Joshua Bingcang said the country’s participation in the Pax Silica Declaration could generate more than 100,000 jobs, benefiting the Filipino workforce.
The Philippines is the 13th Pax Silica signatory, joining Australia, Finland, India, Israel, Japan, Qatar, South Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom and the United States. Additional signatories are expected to follow.
Not at a disadvantage
Bingcang also said the Philippines will not be at a disadvantage in joining Pax Silica, dismissing concerns raised by some critics regarding sovereignty, economic dependency and security.
Critics, including labor and agricultural groups, have argued that the initiative may prioritize U.S. economic and military interests over local development.
“Hindi tayo lugi, of course not. We don’t have the capital, we don’t have the technology, but we have local talent, and that’s what we want to leverage. We want great jobs for our kababayans. We offer the land, and we have a very good location in Southeast Asia. We are the springboard for these kinds of businesses. This is a good opportunity for us,” Bingcang said.
Rodolfo, meanwhile, stressed that the Philippines’ participation in the Pax Silica Declaration has a legal basis, as outlined in the BCDA proposal submitted on 9 April to Jacob Hellberg, Undersecretary for Economic Affairs of the United States Department of State, to establish a 4,000-acre Pax Silica Coordination Office within the Luzon Economic Corridor.
The proposed office will operate under a lease-free arrangement for a two-year grace period as part of BCDA’s in-kind contribution to support bilateral economic security cooperation between the Philippines and the United States.
The Pax Silica Coordination Office will serve as a central facility for coordinating supply chain security initiatives, facilitating joint industrial planning and infrastructure development, mobilizing investments, and supporting workforce development and technology transfer, among other functions agreed upon by both governments.
Rodolfo said the initiative is consistent with Philippine laws, including Republic Act No. 7916, or the Special Economic Zone Act of 1995, Republic Act No. 7277, or the Bases Conversion and Development Act of 1992, and other relevant regulations governing the use of public land for international cooperation.
“This is an industrial site and not a defense manufacturing facility producing ammunition. When we define economic security, it’s using economics to add value and uplift the lives of our people, and increasing our capacity to be part of the industrial supply chain, particularly in emerging sectors such as AI. The world is moving in that direction, and we should not allow ourselves to be left behind. That is why we are willing to partner with countries like the United States, a global leader in AI technology,” Rodolfo said.
Earlier this week, Finance Secretary Frederick Go said that by joining Pax Silica, the country is ensuring that its mineral resources and strategic location are not merely supporting global industries but are actively contributing to building industries of the future.
Meanwhile, Defense Secretary Gilberto Teodoro Jr. rejected claims that the Pax Silica initiative is related to military activity, describing it instead as a key step toward strengthening the country’s economic resilience and industrial base.