PAX Silica will start small-at least by its 1,620-hectare footprint-with the first 500 hectares expected to accommodate around 10 to 20 companies beginning in 2028, according to the Bases Conversion and Development Authority (BCDA).
BCDA President and Chief Executive Officer Joshua Bingcang said the first phase could take three to five years to develop, with the remaining 1,120 hectares to be built out in succeeding stages.
‘The first phase, we see around 500 hectares out of the 1,620,’ Bingcang told reporters during a briefing in New Clark City on Friday.
The project will be developed in three phases, with semiconductor-related industries expected to account for a significant share of activity, given the development’s focus on advanced manufacturing and artificial intelligence (AI).
Bingcang said the initial phase is expected to require about $10 billion in investment, primarily for site development. The broader investment estimate of $40 billion to $70 billion, meanwhile, includes facilities and other infrastructure that locators would build within the development.
The BCDA projects that the fully developed 1,620-hectare site could generate as much as $200 billion in exports over the long term.
Yet, the agency chief clarified that the export and investment projections apply to the full buildout and not to the initial 500-hectare phase.
It also projects that the development could generate between 130,000 and 190,000 direct jobs, with another 500,000 to 800,000 indirect and induced jobs across supporting industries and supply chains.
BCDA uses a 30-year horizon in preparing financial models for large-scale developments, meaning the projections cover a significantly longer period than the initial construction phase, Bingcang explained.
He added the estimates were based partly on the agency’s experience in developing large infrastructure projects, including Bonifacio Global City and the Subic-Clark-Tarlac Expressway.
‘So we now have the figures for the cost per hectare and per square meter,’ Bingcang said.
The projected investments are expected to come largely from foreign companies that would finance and operate their own facilities, he reiterated.
Also, supporting utilities for the development are still being worked on, with facilities and contracts yet to be finalized. Bingcang said companies typically spend about two years planning their projects before construction and operations begin.
Controversies
THE project has faced questions over its impact on land use, water resources and indigenous communities as development in New Clark City expands.
BCDA has maintained that the land for the development is government-owned. It also said individuals interviewed in previous reports about alleged displacement were not part of the Pax Silica site.
About water use, the BCDA has estimated that Pax Silica could eventually require between 65 million and 90 million liters of water a day.
In its presentation, the agency said the planned water system would rely on surface-water harvesting, storage, treatment and recycling, with the initial system designed for a capacity of up to 135 million liters per day.
On the other hand, during the unveiling of a marker for the planned AI hub in New Clark City in May, Bingcang said the government has also rejected proposals that would have placed portions of it outside Philippine jurisdiction.
In a televised interview in July, he said Philippine and United States officials were targeting completion of the framework within two to three months, with a possible signing before the end of the year.