New Clark City Eyes 99-Year Land Leases for Pax Silica Investors

MANILA, Philippines — Foreign investors of the planned Pax Silica industrial hub in New Clark City may be allowed to lease land for up to 99 years, giving the government a long-term pitch for a project it says could anchor the Philippines' push into AI, semiconductors and advanced manufacturing. Bases Conversion and Development Authority President and CEO Joshua Bingcang said that 1,620 hectares in New Clark City in Tarlac have been designated as an industrial area for the Pax Silica initiative. Bingcang said investors in the project may be covered by Republic Act 12252, or the amended Investors' Lease Act, which allows foreign investors to lease Philippine land for up to 99 years. "For economic zones like this, we already have a law, and we are glad that the recent 99-year lease has been passed," Bingcang said in Filipino at a Palace press briefing on Thursday, July 23. The law, signed by President Ferdinand Marcos Jr. in September 2025, extended the maximum lease period for foreign investors from an initial 50-year term, extendable by 25 years, to a single lease period of up to 99 years. It covers approved and registered foreign investments in sectors such as industrial development, tourism, agriculture and agroforestry. The law also allows the original lessee to transfer lease rights, sublease the land or use the lease as collateral for long-term financing, subject to government rules. Since its enactment, the measure has drawn criticism from groups such as the Kilusang Magbubukid ng Pilipinas, which warned that longer leases could heighten risks of land grabbing. Bingcang said the project is intended to attract high-value industries that can employ local talent. These include industrial research and development, manufacturing, data centers, semiconductor processing and critical-mineral processing, he said. BCDA estimates the project could generate 130,000 to 190,000 direct jobs, along with 500,000 to 800,000 indirect and induced jobs. "These are the potential jobs we could create, and that is based on industry practice, what we call the multiplier effect," Bingcang said. BCDA said around fewer than 10% of the target jobs could go to foreign workers, mostly for decision-making roles. "These are their top executives, but the good thing is that the majority will come from our local supply of talent," Bingcang said. The planned hub has drawn concerns from several groups over possible displacement of farmers and indigenous communities, as well as the loss of local livelihoods. Bingcang said the initial investment target for Pax Silica is $10 billion, with funding expected from participating countries interested in the initiative. Once fully established, potential investments could rise to between $40 billion and $70 billion, he said. BCDA also estimated P60 billion in lease income over 25 years, P68 billion to P75 billion in annual withholding tax potential and $200 billion in export potential at full buildout. If those estimates hold, Bingcang said investments in Pax Silica alone could contribute about 10% of the country's gross domestic product. The project is currently at the "exchange of information" stage, where investors are assessing the planned site, Bingcang said. He said this stage may last two to three months. Initial site development for Pax Silica is expected to start in the first quarter of 2028. Source: Philstar Business