Philippine Business Leaders Back Pax Silica Hub with Conditions

MANILA, Philippines — One of the country’s most influential business groups has thrown its support behind the controversial Pax Silica hub to be jointly developed by the Philippines and the United States, calling it “one of the most consequential economic development opportunities” presented to the country in recent decades. But the Management Association of the Philippines (MAP) said its backing comes with a key condition: the government must ensure the proposed 1,619-hectare hub aligns with Philippine interests and truly delivers benefits to Filipinos. READ: Teodoro: Pax Silica about building PH ‘resilience’ “The Philippines should pursue Pax Silica, if it is anchored on a clear framework of national interest, shared prosperity, sustainability and accountability,” MAP said in a statement on Thursday. While acknowledging the “legitimate concerns” raised over the project’s environmental impact and Philippine sovereignty, MAP said the debate should not center on whether the country should accept or reject Pax Silica. “Rather, the critical issue is whether the agreements, governance structures, and implementation mechanisms can be designed in a manner that maximizes value to the Filipino people while effectively managing economic, social, environmental and geopolitical risks,” it added. MAP’s statement comes amid growing public debate over the proposed artificial inteligence (AI) hub, first unveiled in April, which will be spearheaded by the state-run Bases Conversion and Development Authority (BCDA) and its American counterparts. BCDA president and CEO Joshua Bingcang has said the project could generate P180 billion in annual revenues and create 130,000 to 190,000 high-quality jobs, about 90 percent of which would go to Filipinos. Describing its position as “Proceed, but Protected,” MAP said Pax Silica should build domestic industrial capabilities instead of merely serving as a site for extraction, assembly or other low-value activities. It also called for measurable technology transfer, stronger workforce development, clear pathways for Filipino technical and managerial leadership, rigorous environmental safeguards, community participation and the protection of Philippine sovereignty. MAP stressed that the promised benefits of the Pax Silica hub “cannot be assumed” but must be “deliberately negotiated, contractually protected, and institutionally monitored.” As such, the group proposed creating an independent oversight body composed of representatives from government, business, academia, labor, civil society and technical experts. This body would monitor commitments on investments, jobs, technology transfer, environmental performance and community impact. MAP said only through such safeguards could Pax Silica deliver lasting gains to Filipinos. READ: DOE explores power solutions for Pax Silica “The Philippines should neither approach Pax Silica with blind optimism nor reflexive opposition. The country should approach it as a strategic negotiation,” it said. “If structured properly, Pax Silica can become more than a foreign investment project. It can become a platform for national development—one that helps the Philippines move up the value chain, strengthen its economic resilience and create lasting prosperity for future generations of Filipinos.” INQ