By Erika Mae P. Sinaking, Reporter
THE Bases Conversion and Development Authority (BCDA) expects the proposed Pax Silica technology hub in New Clark City to attract between $40 billion and $70 billion in investments at full development, with the project projected to generate up to 190,000 direct jobs and $200 billion in exports, as the government on Thursday unveiled its first detailed economic projections for the initiative.
The proposed 1,620-hectare industrial and innovation district has an initial investment target of $10 billion.
Negotiations with prospective partners are scheduled this year, followed by planning in 2027 and the start of construction in 2028, BCDA President and Chief Executive Officer Joshua “Jake” M. Bingcang said during a Palace briefing.
“This year is for contract negotiation, next year is the planning stage, and then by 2028, we can already begin construction,” he said.
“At full development, we see the potential at $40 billion to $70 billion. We studied that based on science; it is not based on conjecture but on scientific study,” he added.
Mr. Bingcang said participation in the project has expanded to more than 30 countries from fewer than 15 in April.
Pax Silica will integrate semiconductor design, fabrication and advanced packaging, artificial intelligence computing, critical mineral processing, energy and data infrastructure, research and development (R&D), logistics, offices, housing, and commercial facilities as part of the Luzon Economic Corridor.
BCDA estimates the project could generate 130,000 to 190,000 direct jobs and 500,000 to 800,000 indirect and induced jobs, while exports could reach $200 billion at full development.
The agency also projects P68 billion to P75 billion in annual withholding tax collections and P60 billion in lease income over 25 years.
Mr. Bingcang said the project seeks to move the Philippines up the manufacturing value chain by processing critical minerals domestically instead of exporting raw materials.
“Our goal is to have these raw materials processed at the source and at the Pax Silica site, where they will be created into final products for export,” he said. “This will provide a high-value chain contribution to our economy.”
He said the initiative also aims to create more opportunities for Filipino engineers and computer science graduates.
“Instead of being bystanders to these highly sought-after industries that usually pass us by, we will become builders; we will be the center of these activities ourselves,” he said.
The industrial hub is expected to require about three gigawatts of power at full development.
Mr. Bingcang said BCDA is prioritizing embedded clean energy to meet the project’s electricity requirements without competing with residential demand.
A 500-megawatt (MW) solar project with Saudi Arabia’s ACWA Power is underway in New Clark City, while BCDA is evaluating a proposal from an American company to develop a dedicated liquefied natural gas plant and pipeline linking Subic and Clark.
“The Korean and Japanese companies have also signed an initial understanding with us to study how to provide the needed support [for power],” he said.
For water supply, the project will rely on surface water harvesting, storage, treatment, and recycling instead of groundwater extraction.
The initial system is designed to supply 120 million liters per day, with capacity expandable to 300 million liters per day.
Addressing concerns previously raised about the project, Mr. Bingcang said Pax Silica would remain a commercial undertaking governed by Philippine law.
“The Ambassador asked if they would manufacture defense-related products, and the answer was no. It is purely commercial,” he said.
Mr. Bingcang also rejected claims that the project would displace indigenous peoples or involve mining activities, saying the site is public land classified for industrial use under the Bases Conversion and Development Act of 1992 and lies outside titled ancestral domains.
He added that investments would remain subject to Philippine laws and environmental regulations.
“The ownership will always remain with the Philippine government under BCDA,” he said, adding that while the agency may grant leases of up to 99 years under existing laws, it will not sell land to foreign entities.
