Philippines, US to sign master deal for New Clark City Pax Silica industrial hub

The agreement covers the BCDA leasing the property to the US agency, which may also be another government-owned or -controlled corporation.

“It’s government-corporation to government-corporation, or anyone that can commit on their side,” Rodolfo said in an interview last week.

He also said that both sides remain optimistic about signing the framework agreement in November.

BCDA President and Chief Executive Officer (CEO) Joshua Bingcang said in an interview with ANC that the agreement would be treated similarly to a regular business contract.

This means the deal will still go through the usual contract negotiation, planning stage, and regulatory approvals even after the signing, he said.

“So we see the actual construction happening in the next two to three years,” Bingcang said.

As negotiations are still ongoing, he said the state-run firm wants to guarantee that the project would be a “big win” for the country in terms of its contributions to industrial and economic development.

The contract, he said, must require the US agency to deliver on its commitments for the project and maintain compliance with the country’s guidelines and standards.

Earlier, the BCDA confirmed that the US government requested to operate the project under US common law, including a provision on diplomatic immunity, but the request was rejected by the Philippines.

The industrial hub will be subject to the Investors’ Lease Act and the law granting powers to the BCDA, alongside other policies governing foreign investors.

Bingcang said the US agency and future locators of the site would have to comply with these laws “before they can hit the ground.”“Otherwise, if they will not be able to secure all those requirements and they will not be able to deliver their commitment, there’s always a reason to terminate the contract without demand,” said Bingcang.

“It’s a fair provision in the contract for each of the parties to make sure that the interest of the landowner, especially in this case BCDA, is always protected,” he added.

US Senior Advisor for Economic, Energy, and Business Affairs Ambassador Heather Variava said in a press briefing last week that it is premature to talk about the agreement since it is still being deliberated.

“However…the goal of the United States is always to be additive, to bring more power, to bring water, to bring more benefits to the Philippines,” she said.

The Philippines and the US are jointly developing the 1,619-hectare industrial hub under the Pax Silica initiative, which is aimed at securing the global supply chain for artificial intelligence (AI).

The project is envisioned to be an investment acceleration hub that brings in companies in the advanced manufacturing sector, particularly those engaged in the production of semiconductors and other electronic products.

Rodolfo recently said that this is just one of several projects that are expected to be developed under Pax Silica.

He said a national hub for integrated circuit (IC) design in Metro Manila and an industrial hub that would have only data centers as its primary locators are also being planned. — Dexter Barro II