THE Philippines and the United States are targeting November for the signing of a framework agreement for the proposed artificial intelligence (AI)-native hub under the Pax Silica initiative, according to the Bases Conversion and Development Authority (BCDA).
BCDA President and Chief Executive Officer Joshua M. Bingcang said the two countries are finalizing the draft arrangement that will govern the 1,619-hectare AI-native hub in New Clark City, Tarlac.
“We are now exchanging the draft arrangement, which we see will be finalized in two or three months,” he said in an interview on ANC’s Business Outlook on Wednesday.
Mr. Bingcang said the US Department of State is targeting the signing in November during the Association of Southeast Asian Nations (ASEAN) Summit in Manila, which US President Donald J. Trump is expected to attend.
“Their target is, should President Trump come here as part of the ASEAN Summit in November, it’s one of the big announcements that they will make as part of the 80th year of the Philippine-US relationship,” he said.
Mr. Bingcang said the government would ensure that the framework agreement is “in accordance with the requirements of the Philippine side.”
The Philippines earlier rejected a US proposal to place the AI hub under American law and grant diplomatic immunity to US personnel.
Mr. Bingcang also said the US International Development Finance Corp. (DFC) had approved funding for a feasibility study on a proposed liquefied natural gas terminal and power plant in New Clark City.
The proposed project is expected to have a capacity of at least 1,200 megawatts (MW) and will be funded under the DFC’s $205-billion investment program.
The BCDA has also received an unsolicited proposal to build a dedicated pipeline that would transport jet fuel from Subic Bay to Clark International Airport in Pampanga, Mr. Bingcang said.
He said the Clark airport complex would play a key role in supporting the proposed AI hub by facilitating the transport of goods.
Mr. Bingcang also said the US Department of State has partnered with Stanford University to help prepare the workforce of Pax Silica member countries.
“When we were in Washington, DC, the State Department also told us that they signed an MoU (memorandum of understanding) with Stanford University to help and assist member countries in coming up with this plan and program for Pax Silica,” he said.
As a member of the Pax Silica initiative, the Philippines is developing an AI-native hub in New Clark City that is intended to host industrial facilities for AI, critical minerals processing, semiconductors, and advanced manufacturing.
Pax Silica is a US-led initiative involving 23 member countries that seeks to strengthen cooperation on AI, semiconductors, critical minerals, and other strategic technologies.
Meanwhile, Philippine business groups are looking at potential opportunities related to the initiative despite uncertainty over its direction, Ayala Corp. Chairman Jaime Augusto Zobel de Ayala said.
“We’ll work the Makati Business Club (MBC) and American Chamber to see if rather than wait to be given instructions, you know, we move forward and start to map a path that would allow us to harness a rare opportunity,” he said during the American Chamber of Commerce of the Philippines’ General Membership Meeting.
“I think we have a unique opportunity to bring momentum to an important area in the country, and I’m excited to participate in any way that we can,” said Mr. Zobel, who is also vice-chairman of the MBC.
