Discussions on Pax Silica that will establish “economic security zone” will start next month with government authorities assuring application of Philippine laws in order to ensure high value investments into the country.
Pax Silica is a US-led multi-country partnership on use of AI, critical minerals and rare earth resources that are used in semiconductors and high technology industry. The Philippines is the 13th member following the recent signing of an accord in Washington DC between the US State Department and the Bases Conversion Development Authority (BCDA).
In a TV interview, BCDA President Jake Bingcang said the Pax Silica at New Clark City would be covered by Philippine laws — the Philippine Investment Lease Act and the Bases Conversion Development Act.
He said that the application of these laws were “accepted” during the negotiations.
“We will determine what will be most advantageous to us (Philippines),” Bingcang said.
He added that details of the agreement will be threshed out within the month when representatives from the US visits the New Clark City (NCC). Under initial arrangements, the BCDA will be allotting 1,600 hectares for the Pax Silica “representative office” at NCC.
He added that investment commitment figures will also be known as detailed discussions proceed. As mandated, the BCDA can also offer various “modalities” on the use of former baselands that include lease, joint venture, and concessions.
He assured however that the Philippines, under the agreement, will process minerals in order to “bring the country higher in the production value chain”.
“Our (mineral) resources will be processed here for high value production,” Bingcang said.
The inclusion of Philippines to the 13-nation Pax Silica partnership was signed by Trade Undersecretary Ceferino Rodolfo, also the Managing Head and Vice Chairperson of the Board of Investments in Washington DC last April 17. Present also in the trip was Finance Secretary Frederick Go who is widely credited for bringing in fresh investments into the country.
Bingcang said that processing of mineral resources and rare earth materials can be done in the Philippines and thus create more jobs and foreign direct investments.
The Philippines is rich with resources like copper, cobalt and nickel which are essential materials for AI-powered high technology projects and semiconductors.
The Philippines now joins Australia, Finland, India, Israel, Japan, Qatar, South Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom and the US in the Pax Silica coalition. Other countries are expected to also join.
The United States has welcomed the Philippines in the partnership, citing it as a “staging point for a purpose-built platform for allied manufacturing, an investment acceleration hub where specific industrial activities can be shaped by market demand, host-country comparative advantages, and the evolving needs of the Pax Silica network.
US Under Secretary of State for Economic Affairs Jacob S. Helberg said this purpose-built platform will secure inputs vital to American supply chains and transform how allies manufacture together.