Pax Silica Needs Senate Nod, Expert Warns on National Security Risks

MANILA, Philippines — The proposed Pax Silica high-tech manufacturing and innovation center requires Senate oversight, extensive research, and public consultation to ensure it aligns with national resilience goals and safeguards communities and fiscal sustainability, according to a retired agricultural scientist. Dr. Teodoro Mendoza, a retired professor of crop science at the University of the Philippines Los Baños, warned that proceeding without these safeguards risks undermining democratic governance and exacerbating vulnerabilities in the Philippines' water, energy, and food systems. Pax Silica aims to position the Philippines as a central player in global supply chains for semiconductors, artificial intelligence (AI), and critical minerals within the Luzon Economic Corridor. However, Mendoza highlighted potential risks including water depletion, energy strain, fiscal burdens, and government bypass. Regarding water resources, he noted that without Senate oversight, industrial demand of 500,000 cubic meters (m³) per day could lead to a net deficit of 200,000 m³ daily, potentially causing aquifer depletion and replicating "water wars" seen in India's semiconductor zones. With Senate oversight limiting usage to 250,000 m³ per day, the net balance could improve. On energy, the project's 3-gigawatt demand, equivalent to nearly 20% of Luzon's peak load, could lead to brownouts and higher electricity costs without proper planning, potentially crowding out renewable energy integration. Senate involvement could mandate integrated resource planning, including renewable offsets and grid modernization. Fiscal risks are also significant. Mendoza stated that without oversight, hidden subsidies could reach P50 billion, and debt servicing could rise to P200 billion annually, worsening the country's debt-to-GDP ratio amid currency depreciation and climate-related agricultural losses. Senate intervention, he estimated, could keep the debt-to-GDP ratio at 60% compared to 70% without it. Furthermore, Pax Silica's proposed land use, requiring an additional 18,790 to 19,180 hectares beyond its initial lease, raises concerns about converting agricultural land for energy and water infrastructure. This could significantly impact food security, increasing reliance on imported staples and vulnerability to global price shocks. Mandated cooperative participation, as suggested by the Senate's involvement, could improve food security resilience by 10%. Mendoza concluded that bypassing these safeguards risks undermining democratic accountability, exacerbating resource vulnerabilities, and compromising long-term resilience. Senate President Sherwin Gatchalian has also stressed the importance of Senate oversight in responding to the project's risks and concerns, with the Senate having commenced proceedings on Pax Silica. Information Source: Inquirer Business