The United States has ruled out an announcement on the proposed Pax Silica Economic Security Zone during the upcoming Asean Summit in Manila, as opposition groups raise concerns over the project’s potential impact on water resources, agricultural livelihoods, and Indigenous Peoples’ communities.
US ambassador to the Philippines Lee Lipton clarified on Nov. 7 that no announcement had been scheduled, contrary to media reports suggesting that an agreement on the proposed industrial development would be unveiled during or after the summit.
“No such announcement on the Pax Silica Economic Security Zone was ever planned. Decisions will be made in full consultation with the government of the Philippines at the appropriate time. As stated previously and as part of this process, we expect rigorous discussions on impacts to all stakeholders,” Lipton said.
The clarification comes amid growing scrutiny of the proposed industrial hub in New Clark City, Capas, Tarlac, particularly its projected requirements for water and electricity.
The Network Opposed to Pax Silica, led by physicist Giovanni Tapang, has questioned whether the development could affect irrigation supplies, displace local communities, and place additional pressure on natural resources.
In an interview with Channel NewsAsia published Oct. 16, Tapang warned that the project’s water requirements could compete with the needs of farmers who depend on rivers for irrigation.
“If you’re going to take the rivers away from irrigation, then they will actually lose productivity and will be even more vulnerable to drought,” Tapang said.
According to the Bases Conversion and Development Authority (BCDA), the proposed development could consume between 60 million and 90 million liters of water daily and require up to three gigawatts of electricity once fully developed.
The BCDA has maintained that the project would draw from surface water sources rather than groundwater and would not compete with existing water supplies used by surrounding communities.
However, opposition groups have called for more detailed assessments of the project’s water and energy requirements, particularly their potential effects on agricultural production and environmental sustainability.
The network has also raised concerns over the possible displacement of Aeta communities and farmers, as well as the extent of consultations with residents who could be affected by the development.
On Nov. 4, Malacañang said project facilities would be confined to designated buildable areas to avoid displacing Indigenous Peoples and local farmers.
The Palace also said remaining areas would be reserved for Aeta residents, while financial assistance would be provided in cases where displacement becomes unavoidable.
The BCDA estimates that Pax Silica could attract between $40 billion and $70 billion in investments and create 130,000 to 190,000 direct jobs at full development.
The government has positioned the proposed economic security zone as part of efforts to expand the Philippines’ role in global semiconductor production and advanced manufacturing supply chains.
The initiative is expected to support industrial activities that require substantial infrastructure, including reliable electricity, water, and other utilities.
Despite the projected economic benefits, critics are seeking clearer commitments on environmental safeguards, water allocation, land use, and the protection of communities within and around the proposed development site.
They have also called for greater transparency in the project’s planning and meaningful consultations with affected farmers and Indigenous Peoples before any final agreement is reached.
For now, the US clarification leaves the timing of any formal agreement uncertain, with the proposed development still facing questions over how its projected economic benefits would be balanced against its environmental and social costs.
