The Bases Conversion and Development Authority (BCDA) and its United States counterpart are targeting November to sign the master agreement that will govern the Pax Silica AI industrial hub in New Clark City, Tarlac, trade officials said.
The agreement will be signed between BCDA, which owns the 1,619-hectare site, and a US counterpart entity, rather than directly between the Philippine and US governments. Department of Trade and Industry (DTI) Undersecretary Ceferino S. Rodolfo said the US side could be another government-owned corporation or any entity able to commit on its behalf. “It’s government-corporation to government-corporation, or anyone that can commit on their side,” he said in an interview last week.
BCDA President and CEO Joshua Bingcang said the agreement will function like a standard business contract, going through negotiation, planning, and regulatory approval even after signing. He said that construction could realistically begin within two to three years.
The contract includes a termination clause if the US agency or future locators fail to meet their commitments, which Bingcang said protects BCDA’s interests as the landowner.
The hub will operate under the Investors’ Lease Act, BCDA’s charter, and standard Philippine foreign-investment rules. BCDA had earlier confirmed that a US request to operate the site under US common law, including a diplomatic immunity provision, was not accepted; locators entering the site will be required to comply with Philippine laws and standards before starting operations.
US Senior Advisor for Economic, Energy, and Business Affairs Ambassador Heather Variava said in a press briefing last week that it remains premature to discuss specifics while the agreement is still being deliberated, describing Washington’s goal as bringing added power, water, and infrastructure benefits to the Philippines.
The hub is one of several projects planned under Pax Silica. Rodolfo said the government is also developing a national integrated circuit design hub in Metro Manila and a separate industrial hub focused on data centers under the same initiative. All three fall within the Luzon Economic Corridor, the Subic-Clark-Manila-Batangas development belt the Philippines launched with the US and Japan in 2024.
Consultations on safeguards for the master agreement are ongoing.
