The Bases Conversion and Development Authority (BCDA) said the Philippine government is negotiating for terms that would be “most beneficial” to the country in the final framework agreement for the Pax Silica project in New Clark City, Tarlac, with a signing target set for November.
Pax Silica is the flagship initiative of the US Department of State on artificial intelligence and supply chain security. The Philippines formally joined the program in April, becoming one of 24 signatories that include the European Union, Japan, India, Singapore, South Korea, and the United Kingdom. Under the initiative, Manila and Washington are working to build a 4,000-acre industrial hub within the Luzon Economic Corridor, envisioned to house semiconductor and microchip manufacturing rather than data centers.
“Most beneficial” negotiating position
Speaking at the Kapihan sa Manila Hotel, BCDA President and CEO Joshua “Jake” Bingcang said the government is aiming to sign the comprehensive framework agreement by November, though he acknowledged the timeline is not fixed.
“Negotiations can always take longer,” Bingcang said, adding that the target date “is not cast in stone as long as the two [parties] will come up with mutually agreed arrangement.”
He said the Philippine panel is pushing for terms that would be “most beneficial sa’tin (to us)” as talks continue, noting that business contracts of this kind are typically structured to favor the host country.
Legal framework and incentives
Bingcang said the project will operate under the BCDA’s own governing legal framework rather than a separate arrangement. “It would be covered by two Philippine laws – the BCDA law and CREATE MORE – so the incentives provided will be covered by these two laws,” he said, adding that no other framework will be adopted for the initial arrangement.
Jobs, land use, and industrial scope
Bingcang reiterated that the hub is intended as an industrial and manufacturing complex – described as a modern science park or “AI-native industrial hub” – rather than a cluster of hyperscale data centers. He said the site could accommodate up to 200 factories and generate 180,000 direct jobs, calling it a “once in a lifetime opportunity” for the country.
On infrastructure, Bingcang said Pax Silica proponents intend to build a dedicated power plant so the facility does not draw from supply meant for nearby residential communities. BCDA estimates the project could require up to 3 gigawatts of power at full development, with solar farms among the options under consideration for clean energy. To meet water requirements, the agency is looking at impounding tanks to collect rainwater for industrial use.
Opposition and government response
The project has drawn criticism from environmental groups over its projected energy and water consumption, with some groups alleging it could displace agricultural land and indigenous communities. The Marcos administration has said no farmers will be displaced, noting the site in Tarlac has been classified as a “buildable zone” since 2019.
Framework negotiations between the Philippine and US panels are ongoing, with the November signing target subject to change pending mutual agreement between both sides.
