THE Bases Conversion and Development Authority (BCDA) is expected to sign a master agreement with a United States government agency for the development of the Philippine hub under the Pax Silica initiative, Trade Undersecretary Ceferino Rodolfo said.
The agreement would provide the framework for the hub’s development and the entry of locators, Rodolfo added, noting that it will be anchored on Republic Act 7844, or the Export Development Act of 1994, and RA 7227, or the Bases Conversion and Development Act of 1992.
Pax Silica is a US-led initiative aimed at building secure supply chains for artificial intelligence, semiconductors, critical minerals and advanced technologies.
The proposed Philippine hub in New Clark City has faced opposition from civil society, environmental advocates, scientists, farmers and other groups over concerns about possible displacement, the conversion of agricultural land, heavy water and power use, environmental damage and the implications for national sovereignty.
Critics have also questioned whether the project would deliver meaningful technology transfer and quality jobs or mainly benefit foreign investors.
Rodolfo said the agreement would require locators to comply with Philippine labor and environmental laws, including the requirement to secure environmental compliance certificates.
Under the proposed arrangement, the BCDA will own the site and serve as the project’s implementing agency, while its US counterpart will act as co-developer and partner.
Rodolfo did not identify the US agency involved, but said it would be the BCDA’s counterpart and could be a government corporation, making the arrangement a government-to-government agreement.
“BCDA is a government corporation, so its partner may be a similar entity on the US side, depending on which agency is authorized to make the commitment,” he said.
Rodolfo expressed optimism that the agreement would be signed in November. He said the government would continue consulting stakeholders and addressing concerns about the project.
He assured the public that safeguards would be incorporated into the agreement and the project’s implementation to protect the interests of the Philippines and its citizens.
