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The proposed Pax Silica Industrial Hub will not affect the energy supply of the households and businesses outside it, Energy Secretary Sharon Garin said Wednesday.Jekki Pascual, ABS-CBN News

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Manufacturing ecozone, not AI data hub to be built under Pax Silica — BCDA, BOI

Victoria Tulad

ABS-CBN News

<div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="960" height="540" src="https://www.youtube.com/embed/live?/Get3v0_PAT4?si=qePWdHIvZA7IqAhd&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span></div><p>MANILA — A manufacturing ecozone and not an Artificial Intelligence (AI) Data Hub will be built in New Clark City, Tarlac, under the Pax Silica partnership— this was the clarification of the Bases Conversion and Development Authority (BCDA) and Board of Investments (BOI) during Friday’s hearing of the Senate Committee on Environment, Natural Resources and Climate Change. </p><p>“Para sa Clark, ang akala po ay data center. Hindi po. It will be the components that go into the Data Center,” said BOI Undersecretary Ceferino Rodolfo.</p><p>According to BCDA President Joshua Bingcang, what will be built is called the Clark Advanced Manufacturing Park inside the New Clark City in the province of Tarlac. </p><p>He explained that investors will not get water and electricity from the domestic supply to power the manufacturing park. Sixty-five to 90 million liters per day [MLD] will be needed for water. </p><p>“Hindi po ito ground extraction sa mga lupa kung saan yung mga residential or agricultural. Ang gusto po natin dito ay yung surface water harvesting. Gagawa po tayo ng mga tank para yung mga surplus water po na nasa mga ilog halimbawa po ngayong tag-ulan ay i-store po, yun ang lilinisin,” Bingcang said.  </p><div><a href="https://www.abs-cbn.com/news/business/2026/8/14/pax-silica-is-opportunity-for-ph-to-rebuild-upgrade-manufacturing-mckinsey-1514" rel="noopener noreferrer" target="_blank"><strong>Pax Silica is opportunity for PH to rebuild, upgrade manufacturing—McKinsey</strong></a></div><p>Asked by Committee Chairperson Senator Raffy Tulfo if feasibility studies have been made regarding this, Bingcang said yes. </p><p>“Isang ilog pa lang po yung tiningnan namin. Yun, sapat na po yung Bangod River. Ang nakikita po namin sa initial na makukuha namin doon ay 130 to 200 [MLD] so lampas-lampas po doon sa kailangan para sa proyektong ito,” Bingcang replied.</p><p>“Yung ginawa pong initial na study ay ginawa po during dry season kaya po nakapag-yield siya, nakakuha ng ganoong resulta. Lalo na po kapag tag-ulan.” </p><p>A wastewater sewage treatment facility will also be built. As for power supply, Bingcang said there are initial investors to put up a solar farm. </p><p>“Alam po natin ang solar farm ay hindi siya baseload power, ibig sabihin ilang oras mo lang siyang magagamit habang may araw. So ang isang alternatibo po naming tinitingnan dito ay battery. Pero ang battery rin po ay hindi pa rin naman masasapatan yung 24-hour need. So isa pong tinitingnan namin ngayon ay itong mga baseload power kagaya po ng LNG,” Bingcang said. </p><p>“Di po ito kukuha sa kuryente ng general population,” he assured. </p><p>BCDA emphasized that Environmental Compliance Certificates (ECCs) will be required. </p><p>One of the reasons the Philippines joined the Pax Silica partnership is to make the economy technologically driven, according to BOI.  Direct jobs created could be from 130,000 to 190,000.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/30/biz-group-backs-pax-silica-but-eyes-guardrails-warns-vs-blind-optimism-reflexive-opposition-1112" rel="noopener noreferrer" target="_blank"><strong>Biz group backs Pax Silica but wants guardrails, warns vs &#x27;blind optimism, reflexive opposition&#x27;  </strong></a></div><p>The initial investment target is $10 billion, while the annual tax potential is from P68 billion to P75 billion.</p><p>The BOI added that basic infrastructure will be built in 2027. It said the government will not spend for the project and will only lease the land.</p><div><br/></div><div><strong>INDIGENOUS PEOPLES, FARMERS</strong></div><p>But indigenous peoples and farmers will be affected.</p><p>Petroniza Capriz-Muñoz, Chieftain of the Sitio Sapang Kawayan Aeta Community and affected farmers, said IPs number up to 1,000 in the area where the ecozone will be built.  </p><p>“Kaya po ayaw naming umalis doon dahil nandoon din po yung burial ground ng mga kanunu-nunuan namin,” she said. </p><p>According to BCDA, one option is to transfer the IPs to a different part of the village since it is big. Bingcang admitted, though, that they haven’t talked yet regarding the burial ground.  </p><p>As for compensation of farmers, Capas, Tarlac Mayor Roseller Rodriguez said the BCDA gives financial assistance but there is a limit.</p><p>“Ang sinasabi ng BCDA, even though this is public land, binibigyan pa rin sila ng financial assistance. That is 300,000 per hectare but only up to 5 hectares. So meaning to say kung farmer ka doon ang hawak mo ay let’s say 12 hectares, yung 7 hectares kukunin ng BCDA,” Rodriguez explained.  </p><p>According to Bingcang, farmers should not be paid based on the law because it is public land, but the BCDA still made a financial package for them. </p><p>Rodriguez, meanwhile, reiterated that they were not consulted regarding Pax Silica.</p><p>The BCDA said it will hold consultations with Tarlac officials on August 19 and with the governors and mayors of Region 3 on August 26.  </p><p>“Right now I think medyo yung information drive ng gobyerno ay kulang dahil maraming agam-agam ang ating mga kababayan dito. Kinakailangan ng complete and clear na mga sagot,” Senator Francis Pangilinan said. </p><p>For Senator Bam Aquino, “Pangunahing sinusulong po natin sa Senado yung full transparency at nais ho nating makita ano ba talaga yung mga plano.”</p><div><br/></div><div><strong>CONDITIONS </strong></div><p>Senate President Win Gatchalian supports the Pax Silica partnership, but said there should be strict conditions.</p><div><a href="https://www.abs-cbn.com/news/nation/2026/8/11/tulfo-seeks-senate-probe-into-proposed-pax-silica-hub-2021" rel="noopener noreferrer" target="_blank"><strong>Tulfo seeks Senate probe into proposed Pax Silica hub  </strong></a></div><p>“Marami hong mga trabaho ang mawawala dahil sa artificial intelligence, lalo yung tinatawag na entry-level jobs at low-value jobs tulad ng call center. Kaya kung di tayo maghahanap ng panibagong industriya, maraming tao ang mawawalan ng trabaho,” Gatchalian said. </p><p>“Dapat itong initiative na ito ay sang-ayon sa ating Saligang Batas at sang-ayon sa ating local laws,” the Senate leader said. “Importante po na makatarungan ang ating pagtrato sa ating mga magsasaka at sa ating mga katutubo.” </p><p>Senator Imee Marcos, meanwhile, voiced some concerns. </p><p>“Nabigyan ako ng DOJ ng isang kopya nitong tinatawag na architecture of a proposed ESZ framework in the Philippines. Ito raw ang framework na gagamitin, ang siyang draft na gagamitin para sa kasunduan ng Pilipinas at ng Estados Unidos,” Marcos stated.  </p><p>“Ano na ba ang status nitong framework negotiations? Kasi para sa atin, para sa akin at sa lahat ng pinabasa ko, ito ay tutol sa ating Saligang Batas at maaaring tutol din sa iba&#x27;t iba pang batas,” she remarked. </p><p>Rodolfo said all documents go through proper government agencies and that Philippine laws will be followed. He noted that the document Marcos has is a discussion paper and not even a negotiating document.  </p><p>Tulfo said the impact of the partnership should be carefully looked into. </p><p>“Ang hiling ko lang, magkaroon tayo ng comprehensive, multi-disciplinary study—covering not just the technical and economic aspects, but more importantly, the environmental and social impacts,” Tulfo commented. </p><p>Another hearing will be set by the committee to thresh out issues regarding Pax Silica.</p>

<p>A manufacturing plant for equipment and components that will go into artificial intelligence (AI) data centers--and not an AI data hub--will be the one built in Tarlac under the Pax Silica partnership.</p>

A manufacturing plant for equipment and components that will go into artificial intelligence (AI) data centers--and not an AI data hub--will be the one built in Tarlac under the Pax Silica partnership.

Manufacturing ecozone, not AI Data Hub to be built under Pax Silica — BCDA, BOI

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Manufacturing ecozone, not AI Data Hub to be built under Pax Silica — BCDA, BOI

Victoria Tulad,

ABS-CBN News

Published August 14, 2026 04:46 PM PHT

|

Updated August 17, 2026 07:23 PM PHT

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