By Erika Mae P. Sinaking, Reporter
THE Bases Conversion and Development Authority (BCDA) expects the proposed Pax Silica technology hub in Recent Clark City to draw between $40 billion and $70 billion in investments at full development, with the project projected to generate as much as 190,000 direct jobs and $200 billion in exports, as the federal 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 goal of $10 billion.
Negotiations with prospective partners are scheduled this 12 months, followed by planning in 2027 and the beginning of construction in 2028, BCDA President and Chief Executive Officer Joshua “Jake” M. Bingcang said during a Palace briefing.
“This 12 months is for contract negotiation, next 12 months is the starting stage, after which by 2028, we are able to 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 just not based on conjecture but on scientific study,” he added.
Mr. Bingcang said participation within the project has expanded to greater 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 business facilities as a 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 maneuver the Philippines up the manufacturing value chain by processing critical minerals domestically as a substitute of exporting raw materials.
“Our goal is to have these raw materials processed on the source and on the Pax Silica site, where they shall be created into final products for export,” he said. “It will provide a high-value chain contribution to our economy.”
He said the initiative also goals to create more opportunities for Filipino engineers and computer science graduates.
“As an alternative of being bystanders to those highly sought-after industries that typically pass us by, we are going to develop into builders; we shall be the middle of those activities ourselves,” he said.
The commercial hub is anticipated to require about three gigawatts of power at full development.
Mr. Bingcang said BCDA is prioritizing embedded clean energy to fulfill 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 Recent 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 corporations have also signed an initial understanding with us to check tips on how to provide the needed support [for power],” he said.
For water supply, the project will depend on surface water harvesting, storage, treatment, and recycling as a substitute of groundwater extraction.
The initial system is designed to produce 120 million liters per day, with capability expandable to 300 million liters per day.
Addressing concerns previously raised in regards to the project, Mr. Bingcang said Pax Silica would remain a business undertaking governed by Philippine law.
“The Ambassador asked in the event that they would manufacture defense-related products, and the reply was no. It is solely business,” he said.
Mr. Bingcang also rejected claims that the project would displace indigenous peoples or involve mining activities, saying the positioning 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 at all times remain with the Philippine government under BCDA,” he said, adding that while the agency may grant leases of as much as 99 years under existing laws, it would not sell land to foreign entities.