MANILA, Philippines — The ambitious US-backed industrial acceleration hub in New Clark City is expected to begin operations by 2028, according to the Bases Conversion and Development Authority (BCDA). While the project marks a significant deepening of economic ties between Manila and Washington, officials clarified on Friday, April 24, 2026, that it will take at least two more years of intensive design, investigation, and surveying before construction can move into its primary phase.
The 1,619-hectare site, developed under the Pax Silica initiative, is envisioned as an AI-native industrial zone that will attract high-tech locators from around the world.
BCDA President and CEO Joshua Bingcang outlined the roadmap for the massive development:
- Two-Year Lead Time: The initial phase involves joint surveys, detailed design, and site analysis, pushing the actual “switch-on” date to 2028.
- Master Lessee Status: The United States government will act as the master lessee. As part of a “standard commercial agreement,” the US will receive a grace period on lease payments in exchange for an in-kind contribution—primarily the construction of internal roads and infrastructure.
- Sovereignty and Law: Bingcang dismissed reports that the US would “administer” the site. He clarified that the hub will operate under Philippine law, and BCDA will retain full authority to screen and approve all locators. No diplomatic immunity will be granted within the zone.
The Pax Silica hub will operate as a special economic zone, offering competitive advantages to its tenants:
- CREATE MORE Law: Locators will be eligible for tax incentives and fiscal perks under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Law.
- Global Interest: Trade Undersecretary Ceferino Rodolfo revealed that at least five major firms from the US and East Asia have already expressed interest in setting up operations at the site.
- Inclusivity: Despite the US backing, the hub will not be exclusive to American companies; it is designed to be a global center for industrial acceleration.
The partnership is expected to save the Philippine government “tens of billions of pesos” in infrastructure costs, as the US takes on significant development responsibilities. BCDA expects to sign additional agreements within the next six months to further define the operational framework of the partnership.
The hub’s strategic location—situated between the New Clark City Sports Hub and the Clark International Airport—is intended to make it a premier destination for AI development and high-end manufacturing in Southeast Asia.
- April 2026: BCDA clarifies lease and operational terms.
- Late 2026: Finalization of additional partnership agreements.
- 2026–2027: Site investigation, detailed design, and survey phase.
- 2028: Projected official “switch-on” and start of operations.
