Key details of the proposed Pax Silica industrial hub in New Clark City remain unsettled, with government officials telling a Senate hearing that foreign investors have yet to submit a development plan and consultations with affected communities have not been completed.
During the hearing on Friday, Aug. 14, Bases Conversion and Development Authority (BCDA) president and chief executive officer Joshua Bingcang said the Philippine government would provide the land but would not finance the construction of the facilities.
“Yung sa 1,600 [hectares] nakikita namin wala po. Ang ipo-provide lang po ang lupa po. But they want the ecosystem. Kaya mayroong iba, mag-i-invest ng power. Mayroong iba, mag-i-invest in water,” Bingcang said when Sen. Bam Aquino asked how much the government would spend on the project.
He said private investors would shoulder the capital requirements under arrangements that could involve land leases or joint ventures.
“It’s either a lease or a joint venture, but the capital will come from the foreign investors,” Bingcang said.
The BCDA official, however, acknowledged that the detailed development plan remained with prospective investors and was expected to be submitted within six months. The proposal would then have to undergo environmental and other regulatory reviews.
Bingcang also clarified that the site would not itself be an artificial intelligence hub. Instead, the development is being positioned as an industrial complex that could manufacture components and provide infrastructure supporting AI, semiconductor and other advanced-technology operations.
The disclosures highlighted how much of the project remains at the proposal stage despite government announcements presenting the hub as a major component of the country’s participation in the US-backed Pax Silica initiative.
Senate President Sherwin Gatchalian said he supported the project in principle but laid down several conditions, including compliance with the Constitution and local laws, protection of affected communities, reliable water and energy sources, and technology transfer to Filipino workers and companies.
“Ako personally, sinusuportahan ko itong Pax Silica, pero marami rin akong condition at caveats. Tulad ng mga negosyo, pagpapasok sa isang negosyo may mga risk, may mga caveats, may mga conditions, at yun dapat nating pag-usapan,” Gatchalian said.
He described the project as a possible “once-in-a-lifetime opportunity” for the Philippines to participate more deeply in AI, semiconductor and advanced-manufacturing industries.
Gatchalian said, however, that the project should not leave the country merely supplying land, water and electricity to foreign companies. Filipinos should acquire higher-level technical skills and gain access to technologies that could support the development of local industries.
He also said the government must ensure stable and sustainable sources of water and electricity without depriving surrounding communities of those resources.
Sen. Francis “Kiko” Pangilinan, meanwhile, pressed government officials to explain the project’s concrete benefits to Filipinos, including the expected jobs, revenues, technology transfer and participation of domestic companies.
Pangilinan said the development should be evaluated based on whether it would strengthen Philippine industry while protecting farmers, indigenous peoples and other communities that could be displaced or lose access to land and natural resources.
He also raised questions about the absence of prior consultations with the local government of Capas, Tarlac.
Capas mayor Roseller Rodriguez told the committee that local officials had not been formally consulted about the proposed technology hub before it was publicly announced.
“Wala po nangyaring consultation. Ang nangyari lang po, June 22, ini-invite po kami for a meeting without specifying ano po yung agenda,” Rodriguez said.
He said a meeting was held with the BCDA, but the proposed industrial hub and its potential effects on Capas were not discussed in detail.
Pangilinan said potentially affected communities should receive complete and understandable information and be allowed to participate meaningfully in decisions concerning the project.
“We will thoroughly scrutinize the details of the Pax Silica project in a Senate hearing. We will examine it through the lens of the ordinary Filipinos’ interests. We will ensure that, in this matter, the people and the Philippines come out the winners,” he said.
Aquino similarly called for full disclosure of the project’s terms, investors, government obligations and possible effects on local communities and natural resources.
“Hindi pwedeng mayroong maiwan,” Aquino said as he sought meaningful consultations with residents, farmers, indigenous peoples, and local officials.
He said the public should know the development’s expected demand for electricity and water, environmental footprint, employment impact and contribution to Philippine technological development.
Aquino also asked whether Filipino companies and workers would participate meaningfully in the project instead of merely providing land and basic services to foreign investors.
Bingcang said an earlier consultation had been canceled. The BCDA scheduled a consultation with affected communities on Aug. 19 and a separate meeting with governors and mayors in Central Luzon on Aug. 26.
The hearing also exposed differing estimates of the number of people who could be affected.
Bingcang said the proposed site was not classified as ancestral land but acknowledged the presence of occupants. He estimated that the number had grown from about 14 households to possibly 30.
Petroniza Capriz-Muñoz, chieftain of Sapang Kawayan, disputed the figure and said their census showed that roughly 1,000 indigenous people were living in the area.
“Mahigit po kami na 1,000 talaga, so ang lahat-lahat po, ang census namin talaga doon sa Sapang Kawayan, nasa 1,000 po kami,” she said.
Sen. Raffy Tulfo, chair of the Senate Committee on Environment, Natural Resources and Climate Change, called for a comprehensive study of the project before the government enters into binding agreements.
Tulfo said the assessment should cover the hub’s economic, environmental, social, technological and national security implications, including its land requirements, electricity and water consumption, workforce needs and effects on indigenous peoples and other communities.
“While such investments may contribute significantly to economic growth, technology transfer, innovation, and job creation, they have likewise generated public concerns and policy questions,” Tulfo said.
He said lawmakers must also determine whether existing laws are adequate to regulate large-scale developments involving AI, semiconductors, digital infrastructure and other emerging technologies.
“The concerns expressed by citizens, local communities, indigenous people, members of the scientific community, civil society organizations, and other stakeholders underscore the importance of ensuring that public participation and meaningful consultation remain integral components of the planning, evaluation, and implementation of projects of national significance,” he said.
Pax Silica is a US-led international initiative aimed at building secure supply chains for semiconductors, AI infrastructure, critical minerals and other advanced technologies. The Philippines joined the initiative in April and later announced plans for an industrial hub in New Clark City.
The government has estimated that the development could attract as much as $70 billion in investments and create up to 190,000 direct jobs.
However, the identities and commitments of investors, the final design, resource requirements and arrangements with affected communities have yet to be fully established.
