Pax Silica hub to bring P180 billion in gov’t income, 190,000 jobs – BCDA

Map covering Pax Silica project MANILA, Philippines — The United States-led Pax Silica hub can bring up to P180 billion in total revenues per year and generate almost 200,000 jobs for Filipinos should it become fully operational in after a decade. This projection comes from Joshua Bingcang, president and chief executive officer of the Bases Conversion and Development Authority (BCDA). In a briefing on Malacañang on Thursday, Bingcang said that there are currently “more than 30 countries” which have joined the coalition. Article continues after this advertisement This number is more than double from the 14 countries back in April when the Philippines signed the declaration and became the 13th participant in the initiative. “Many nations want to be part of this initiative because it pools the resources, talent and competitive advantages of member countries to build these industries,” Bingcang said. “The Philippines has much to contribute, given our rich natural resources and highly skilled local workforce,” he added. Bingcang did not disclose which nations have become part of the project, but the US Department of State listed 23 signatories of the declaration. These countries are Argentina, Australia, Chile, Costa Rica, El Salvador, European Union, Finland, Germany, Greece, India, Israel, Japan, Kazakhstan, Netherlands, Norway, Panama, Philippines, Qatar, South Korea, Singapore, Sweden, United Arab Emirates and United Kingdom. Article continues after this advertisement Taiwan is a non-signatory participant, but it has endorsed the Pax Silica declaration principles via the Joint Statement on the Pax Silica Declaration and US-Taiwan Economic Security Cooperation. “Many nations want to be part of this initiative because it pools the resources, talent and competitive advantages of member countries to build these industries,” Bingcang said. Article continues after this advertisement “The Philippines has much to contribute, given our rich natural resources and highly skilled local workforce,” he noted. The project will bring in billions in revenues per year to the government, according to BCDA. Bingcang said that the national government and local government units can accrue between P68 billion to P75 billion in tax revenues per year. READ: Marcos, Rubio discuss Luzon development, Pax Silica Pax Silica is a US-led coalition that seeks to strengthen supply chains for critical minerals, semiconductors, AI infrastructure, advanced manufacturing, energy and logistics. The Philippines has designated a 1,620-hectare site in New Clark City in Capas, Tarlac as the proposed location of an AI and advanced manufacturing hub under the initiative. Pax Silica and the broader Luzon Economic Corridor are among the main points discussed by President Ferdinand Marcos Jr. and US Secretary of State Marco Rubio during their meeting in Malacañang on Wednesday. Rubio raised the department’s commitment, working with the US Congress, to deliver over $100 million dollars of new foreign assistance to upgrade infrastructure, and advance logistics and energy projects in Subic, as well as the upcoming inaugural LEC Investment Forum in September. According to Bingcang, the first requirement is the construction of internal infrastructure, which will require approximately $10 billion in investments, which are expected to be infused by member countries participating in Pax Silica. “Once fully developed, the project’s total investment potential is estimated at $40 billion to $70 billion. These figures are based on scientific studies—not speculation,” he said. Once the project is completed, the BCDA estimates that the hub will directly generate approximately 130,000 to 190,000 high-quality jobs, of which 90 percent will be for Filipinos. This will add to the more than 150,000 workers in Clark, and 170,000 workers in Subic, which will serve as the hub’s logistics partner. “Our goal is to turn the country from one experiencing brain drain into one benefiting from brain gain,” Bingcang said. “We know that the Philippines has an abundance of talented professionals, yet many of our engineers and computer science graduates work abroad for major global companies,” he pointed out. “Imagine if they could instead work here in our own country, contributing to national development,” he added. READ: 50 firms keen on PH ‘Pax Silica’ hub Bingcang earlier told the Inquirer that more than 50 companies, including trillion-dollar tech titans, are keen on investing at the first site tipped to be developed for the Pax Silica hub. The BCDA recently signed a memorandum of understanding with a Korean and Japanese company. According to Bingcang, only one or two firms are dedicated to building data centers, which are low job generators. The rest will be in manufacturing and clean energy industries. The BCDA expects to finalize a framework agreement for the proposed Pax Silica initiative by November. Bingcang said that should US President Donald Trump come to Manila in November to attend the 49th Asean Leaders’ Summit, it will be one of the big announcements to mark the 80th anniversary of the Philippines-US relationship. Should this timeline be followed, construction may start as early as the first quarter of 2028. However, the full development of the Pax Silica hub is estimated to be happening in “10 to 15 years,” Bingcang admitted. /apl Your subscription could not be saved. Please try again. Your subscription has been successful.