The planned establishment of the 4,000-acre property within New Clark City, Tarlac, under the Pax Silica Declaration of the United States, is seen to break ground before the term of President Ferdinand Marcos Jr. ends in 2028, the Board of Investments (BoI) and the Bases Conversion and Development Authority (BCDA) said.
The Pax Silica Declaration is set to transform New Clark City into an industrial hub centered on artificial intelligence (AI) innovation and investments, advancing the Philippine government’s goal of positioning the country as a key global player in emerging technologies.
Tech companies
BoI managing head and Trade Undersecretary Ceferino Rodolfo said that to this date, several companies and countries have already sent intentions to place their investment in the industrial hub, particularly tech companies 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 in a press conference on Friday.
For his part, BCDA president and CEO, Engr. Joshua Bingcang clarified that the country’s membership in the Pax Silica Declaration would produce more than 100 thousand jobs, benefitting the Filipino workforce.
The Philippines is the thirteenth Pax Silica signatory, joining Australia, Finland, India, Israel, Japan, Qatar, South Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom, and the US. Additional signatories are expected to follow.
Not at a disadvantage
Bingcang also clarified that the Philippines will not be at a disadvantage in joining Pax Silica, belying claims raised by some critics, particularly in the concerns of sovereignty, economic dependency, and security.
Critics, including labor and agricultural groups, argue the initiative may prioritize US economic and military interests over local development.
“We will not be disadvantaged, of course not. We don’t have the capital, we don’t have the technology, but we have the local talents, and that’s what we want to take advantage. 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.
Legal basis
Rodolfo, on the other hand, stressed that the Philippines’ joining the Pax Silica Declaration has a legal basis, as stated in the submitted BCDA proposal to Jacob Hellberg, the Undersecretary for Economic Affairs of the United States Department of State, on 09 April, to establish a 4,000-acre Pax Silica Coordination Office inside the Luzon Economic Corridor (LEC).
The establishment of the said office is under a lease-free arrangement for a grace period of two years, being part of BCDA’s offer of an unconditional in-kind contribution to jointly develop and advance the bilateral economic security partnership between the governments of the Philippines and the US.
Pax Silica Coordination Office will serve as a principal bilateral facility to undertake various functions, namely coordination of critical mineral supply chain security initiatives between the two nations; facilitation of joint strategic industrial planning and infrastructure development within the LEC; coordination of allied investment and private capital mobilization for economic security projects; support for workforce development, technology transfer, and capacity-building activities aligned with bilateral economic security objectives; and such other activities as the two governments may mutually determine to be consistent with the purposes of the Coordination Office.
Consistent with Philippine laws
Rodolfo said that joining the Pax Silica Declaration is consistent with the Philippine laws, including Republic Act No. 7916, otherwise known as the Special Economic Zone Act of 1995, Republic Act 7277, otherwise known as the Bases Conversion and Development Act of 1992, and such other Philippine laws and rules that govern the use of public lands for purposes of international cooperation.
“This is an industrial site and not a defense manufacturing 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 the emerging supply chain, namely AI. The world is going there; let’s not allow ourselves to be left behind. So, we are willing to associate with countries, in this particular case, the US, which is a global leader in AI technology,” Rodolfo explained.