MANILA, Philippines — The Philippines could lose the proposed Pax Silica project to other Asian countries if it fails to move forward with it, Philippine Ambassador to the United States Jose Manuel “Babe” Romualdez said on Monday.
“The concern is obviously they would prefer to have Pax Silica here, but if for some reason we drop the ball, I guess other Asian countries will take over,” Romualdez told reporters in a chance interview on the sidelines of a forum hosted by think tank Stratbase in Makati City.
Romualdez was asked whether the United States had raised concerns over opposition to the proposed project in the Philippines.
He said Washington would prefer to see the project pursued in the country but noted that other Asian nations were also interested.
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“We’re not the only game in town,” he said. “If we don’t take this one, there are many other Asian countries that are prepared to take it on.”
Diversifying supply chains
The Philippines formally joined the Pax Silica initiative in April. The government has proposed a 1,619-hectare (4,000-acre) industrial hub in New Clark City that will host artificial intelligence (AI) data centers, advanced semiconductor manufacturing, critical mineral processing facilities, and high-tech innovation ecosystems. The project aims to help diversify American and global supply chains in AI and other advanced technologies.
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While details of the proposed project are still being discussed, Finance Secretary Frederick Go earlier said that by joining the initiative, the Philippines is ensuring that its “mineral resources and strategic location are not simply supporting global industries from the margins, but are actively harnessed to build the industries of the future.”
In a briefing in July, Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Joshua Bingcang projected that Pax Silica could bring up to P180 billion in total revenues per year and generate almost 200,000 jobs for Filipinos should it become fully operational after a decade.
He also said that more than 50 companies have expressed interest in locating in the hub.
“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.
Opposing voices
Various advocacy groups and academic communities have expressed opposition to the project, citing, for one, its massive demand for resources.
Pax Silica “is expected to require about 130 million liters of water a day and 3 gigawatts of electricity, equivalent to 16 percent of Luzon’s current grid capacity. Those requirements are comparable to the water consumption of 600,000 households and the output of three coal plants or one nuclear facility,” according to UP scientist Dr. Teodoro Mendoza.
“Without strict safeguards, Pax Silica could strain Central Luzon’s water and energy systems, with consequences for agriculture, surrounding communities, and national sustainability,” he added.
Sen. Francis Pangilinan has also called for a Senate inquiry to “thoroughly scrutinize the details” of the project, especially its impact on the welfare of indigenous communities in the area.
‘A lot of misinformation’
Romualdez said there was “a lot of misinformation probably that’s being passed around” about Pax Silica, although he did not specify which claims he was referring to.
“I always caution everyone to look at the positive side first before we start looking at the negative,” he said. “All that will be thoroughly discussed and [be made] transparent.”
Romualdez said other countries were interested in Pax Silica and that the Philippines was chosen as one of the countries involved because of its close ties with the United States.
“There are many countries who would like to be part of this Pax Silica, and the Philippines was chosen as one of the few because we are a trusted ally of the United States,” he said. “This involves a lot of technology and critical minerals development, and it will be good for the country.”
Asked when the proposed project would be finalized, Romualdez said discussions were continuing and referred questions to the BCDA and Department of Trade and Industry Undersecretary Ceferino Rodolfo.
He added that the BCDA was “more or less in charge” of the discussions, along with Rodolfo.
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Romualdez made the remarks after US Undersecretary of War for Policy Elbridge Colby visited Manila and met with President Marcos. /cb