THE Bases Conversion and Development Authority (BCDA) said it expects the planned Pax Silica development in New Clark City to generate as much as $70 billion in investments over the long term, while creating hundreds of thousands of jobs and positioning the Philippines as a hub for advanced technology industries.
During a Pax Silica press briefing in Malacañang on Thursday, BCDA President and Chief Executive Officer Joshua Bingcang said the project is targeting an initial investment of $10 billion to finance core infrastructure, establish industrial zones and attract anchor locators.
Once the 1,620-hectare development reaches full buildout and becomes integrated into global supply chains for artificial intelligence (AI), semiconductors and advanced manufacturing, total investments are projected to reach $40 billion to $70 billion, according to the BCDA presentation.
The agency also projects the development will generate between 130,000 and 190,000 direct jobs, with an additional 500,000 to 800,000 indirect and induced jobs expected across supporting industries and supply chains.
Over a 25-year period, the project is projected to generate P60 billion in lease income, while annual withholding tax collections are estimated at P68 billion to P75 billion. Export potential is projected to reach $200 billion annually once the development is fully operational.
The project is being positioned as a technology-focused economic hub anchored on industries such as AI, semiconductor manufacturing and other advanced industries.
In a Facebook post published on Wednesday, the BCDA quoted Trade Undersecretary Ceferino Rodolfo as saying the project could help the country capture more value from emerging technology industries.
‘Do we want to just be observers? Do we want to just be recipients of technology, of gadgets, of computer programming capacity? Or do we want the Philippines to be there participating actively in this ecosystem?’ Rodolfo said.
‘We are open to partnering with all countries [on this]. What’s important for our Philippine interest is defined by this: being able to add more value to the resources we have. Value adding, job creation and knowledge creation,’ he added.
The BCDA also cited comments previously made by American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe, who said the Luzon Economic Corridor accounts for about 50 percent of the country’s gross domestic product.
‘As we continue to develop it, the impact on the country’s economy will be significant,’ Hinchliffe said. ‘Looking at New Clark City, for example, plans are underway to build an aerotropolis.’
‘This initiative goes beyond infrastructure such as railways, seaports, and airports-it also encompasses agriculture, food security, digital connectivity, power and power distribution, and critical minerals.’
Earlier this week, Malacañang said it supports the Pax Silica project while emphasizing that the administration will continue to uphold Philippine sovereignty.
Similarly, during the unveiling of the marker for the planned AI hub in New Clark City on May 18, Bingcang also said the government rejected proposals that would have placed portions of the project outside Philippine jurisdiction.