The Pax Silica embassy reflects the US delegation’s interest in the LEC hub
More than a dozen companies are exploring investment in Luzon Economic Corridor’s (LEC) planned artsfiintelligence agency (AI) in Tarlac, said officials on Monday, during the US Secretary of Economic Affairs Jacob Helberg.
Mr. Helberg, who oversees operations related to the Pax Silica project, toured the 9,450-acre greenfield development, and said several major US companies were on the team.
“All the companies there are interested in being part of this historic effort,” he told reporters present during the visit.
He declined to identify them but noted that the team includes more than a dozen American firms, some of which are billionaires.
“We actually have a very long list of companies that want to come, that couldn’t make the trip work, but are planning to come out. They are all Americans,” he said.
Mr. Helberg said the focus is on building an industrial ecosystem around the employer, preferably the one involved in production.
Commerce Department Secretary Ceferino S. Rodolfo said at least eight companies are part of the immediate investment pipeline, while another 10 potential investors from Dubai have also shown interest.
Companies are looking to invest in robotics, electronic manufacturing, AI training, energy, renewable energy and water management systems, he told reporters.
Mr. Rodolfo said the move is an opportunity for the Philippines to move toward value-added processing of precious minerals, such as nickel, to turn them into “green” or “technical” metals for use in chipsets and connectors within the AI hub.
He noted that the hub will include manufacturers of the “connectors, gold-plated, and copper pins” needed to solve the chipset.
Joshua M. Bingcang, president and CEO of the Bases Conversion and Development Authority (BCDA), said the design standards for the Pax Silica project will be consistent with environmental, social, and governance principles.
“The BCDA approves its concept plan, the master plan. And it will have to comply with our design standards and guidelines,” said Mr. Bingcang.
He added that heavy industries will not be allowed in the area, which is set as a balanced community with schools, engineer residences and open spaces.
To deal with high electricity costs, Mr. Bingcang said a deal for a 400-MW embedded solar farm is in the works.
“An embedded power plant can offer lower costs,” he said, allowing tenants to bypass transmission costs.
He added that the National Grid Corp. of the Philippines is expected to fund a P7-billion dedicated power connection in New Clark City by the end of 2028.
Regarding governance concerns, both Philippine and US officials dismissed reports that the facility would operate under US law or offer citizenship protection to investors.
Mr. Bingcang and Mr. Rodolfo both indicated that the project will be governed by Philippine laws, specifically the Investor Lease Act and the BCDA Act.
Mr. Helberg added that while the US will negotiate stronger investor protections within a two-year window, the final framework should make sense for the Philippines.
Technical inspections and engineering site inspections are scheduled to begin next month, when Mr. Helberg predicted that “the work will begin next year.” – Erika Mae P. Sinaking
