Pax Silica envoy signals US delegation’s interest in LEC hub

MORE than a dozen companies are exploring investments in the Luzon Economic Corridor’s (LEC) planned artificial intelligence (AI) hub in Tarlac,  officials said on Monday, on the occasion of US Undersecretary of State for Economic Affairs Jacob Helberg.

Mr. Helberg, who is overseeing activities linked to the Pax Silica initiative, visited the 9,450-hectare greenfield development, said several major US companies were in the delegation.

“Every single company who’s here is interested in potentially being a part of this historic effort,” he told reporters present during the site visit. 

He declined to identify them but noted that the delegation included over a dozen US firms, some of which are billion-dollar enterprises. 

“We actually have a much longer list of companies who are interested in coming, who simply weren’t able to make this trip work, but who are planning on coming out. They’re all American,” he said.

Mr. Helberg said the focus is on building an industrial ecosystem around an anchor tenant, preferably one involved in manufacturing.

Trade Undersecretary Ceferino S. Rodolfo said at least eight companies are part of the immediate investment pipeline, while about 10 more potential investors from Dubai have also expressed interest.

The companies are looking to investment in robotics, electronics manufacturing, AI training, power, renewable energy, and water management systems, he told reporters. 

Mr. Rodolfo said the initiative is an opportunity for the Philippines to move toward value-added processing of critical minerals, such as nickel, transforming them into “green” or “tech” metals for use in chipsets and connectors within the AI hub.

He specified that the hub will house manufacturers of “connectors, gold-plated, with copper pins” required for chipset solutions.

Joshua  M. Bingcang,  president and CEO of the Bases Conversion and Development Authority (BCDA), said Pax Silica project design standards will be aligned with environmental, social, and governance goals.

“The BCDA will be the one approving their concept plan, master plan. And they will have to abide by our design standards and guidelines,” Mr. Bingcang said.

He added that heavy industry will not be allowed within the zone, which is being positioned as a balanced community featuring schools, residential areas for engineers, and open spaces.

To address high electricity costs, Mr. Bingcang said an agreement for an embedded 400-MW solar farm is in the works.

“An embedded power plant can offer lower cost,” he said, allowing tenants to bypass transmission charges. 

He added that the National Grid Corp. of the Philippines is expected to fund a P7-billion dedicated power connection for New Clark City by the end of 2028. 

Regarding concerns over governance, both Philippine and US officials dismissed reports that the hub would operate under US law or grant diplomatic immunity to investors.

Mr. Bingcang and Mr. Rodolfo both indicated that the project will be governed by Philippine laws, specifically the Investors’ Lease Act and the BCDA Law.

Mr. Helberg added that while the US will negotiate for robust investor protections during a two-year window, the final framework must make sense for the Philippines. 

Technical assessments and engineering site surveys are scheduled to begin next month, with Mr. Helberg predicting that “work will definitely have commenced by next year.” — Erika Mae P. Sinaking