Pax Silica eyes dedicated power plant to meet energy needs—BCDA

The Bases Conversion and Development Authority (BCDA) said Sunday that proponents of the US-led Pax Silica project in New Clark City, Tarlac, are studying the construction of a dedicated power plant to ensure the facility does not compete with nearby residential communities for electricity.

Pax Silica has faced scrutiny over its projected resource requirements, with the BCDA estimating that the facility could require up to 3 gigawatts (3 million kilowatts) of power at full development.

“‘Yung kuryente, pinag-aaralan nila na magkaroon ng dedicated power plant… na hindi ito magsasapanganib sa supply ng kuryente lalo na para sa mga residential na komunidad. Ayaw rin nila ‘yon,” BCDA President and CEO Joshua Bingcang said in an interview on Super Radyo dzBB.

(Regarding power, they are studying the establishment of a dedicated power plant so that it will not jeopardize the electricity supply, especially for residential communities. They also want to avoid that.)

Bingcang said officials have discussed power and water requirements with the project's proponents and partners from the United States, Japan, and South Korea, who also want to ensure that the facility has sufficient utility supplies.

“Kasi kung nakikita nilang wala, hindi rin pupunta ‘yung mga industriya na ito. So gusto nila, ‘pag pupunta rin sila dito, is stable, reliable at maaasahan ang kuryente,” Bingcang said.

(Because if they see that there is insufficient supply, these industries will not come. So if they invest here, they want the power supply to be stable, reliable, and dependable.)

“Kaya ngayon po, kasama na po, hindi lang po sa paggawa ng mga planta doon sa New Clark City, tinitingnan din nila ‘yung ecosystem,” he added.

(That is why they are looking not only at building plants in New Clark City but also at the entire ecosystem.)

Bingcang said this ecosystem includes the availability and reliability of power and water, as well as infrastructure, airports, seaports, and other facilities.

Clean, green energy

The BCDA said Pax Silica aims to use clean and green energy, with solar farms among the primary options being considered.

“So ang una po naming tiningnan dito ay solar farms. So meron na po tayong inaprubahan na solar project po diyan—ang mamumuhunan po ay sa Saudi Arabia,” Bingcang said.

(The first option we looked at was solar farms. We have already approved a solar project there involving an investor from Saudi Arabia.)

“Susunod po, hinihikayat na rin o nire-regulate na rin ng Department of Energy magkaroon ng mga battery storage… Kasi ang solar farm po ay mga ilang oras lang po, ‘pag gabi, wala na, so kailangan meron pong imbakan o storage ng baterya para sa maipon na enerhiya sa mga solar farm,” he added.

(Next, the Department of Energy is encouraging and regulating the use of battery storage. Solar farms generate power only during the day, so battery storage systems are needed to store energy for use when solar power is unavailable.)

Bingcang said the BCDA is also considering a third option in coordination with the Subic Bay Metropolitan Authority (SBMA). Given Subic's coastal access and seaport facilities, officials are exploring the possibility of locating a power plant in the area and transmitting electricity along the Subic–Clark–Tarlac Expressway corridor.

He said ensuring adequate power and water supplies is also a major concern of Pax Silica's partners, who share the government's goal of preventing disruptions to residential utility services.

Impounding tanks

To address Pax Silica's water requirements, the BCDA is considering the construction of impounding tanks to collect rainwater for industrial use.

“Ang gusto natin ay gumawa ng mga impounding tanks. Sayang naman, at ito ay ating i-store at linisin, at ito ang gagamitin sa mga industrial na mga pasilidad na ito. At ang gagawin nila ay magkakaroon din naman sila ng recycling,” Bingcang said.

(We want to build impounding tanks so that rainwater does not go to waste. We can store and treat it for use in these industrial facilities, which will also have water recycling systems.)

“So meron pong engineering at technological solutions sa mga ito, [ang mga pangamba] ay siguradong matutugunan lalo na po kaantabay natin ang Department of Environment and Natural Resources,” he added.

(There are engineering and technological solutions to these issues, and these concerns can be addressed, especially with the Department of Environment and Natural Resources working with us.)

Science parks

The BCDA previously clarified that the Pax Silica hub is not envisioned as a cluster of hyperscale data centers but as an industrial hub that would include the manufacturing of semiconductors and microchips used in computers, laptops, electric vehicles, and other technologies.

Bingcang said that through Pax Silica, the Philippines and its partners see an opportunity to process raw materials domestically instead of exporting them in unprocessed form.

He said facilities such as those envisioned under Pax Silica could be described as modern science parks—or what US proponents have called AI-native industrial hubs—where artificial intelligence is integrated into manufacturing and other industrial processes.

“Ito po ay mga parang modern science parks. Siguro po ang ating mga kababayan ay hindi lang masyadong pamilyar sa salitang unang ginamit. Ang nanggamit kasi nito na termino ay ang Amerika, alam naman natin ang America napaka-advanced at sophisticated kasi nila sa ganitong industries,” Bingcang said.

(These are essentially modern science parks. Perhaps the public is simply unfamiliar with the terminology initially used. The term came from the United States, which is highly advanced and sophisticated in these industries.)

He said a modern science park would use AI technologies across different stages, from planning and construction to operations.

“Ang nangyari kasi nung una, akala nila mga dambuhalang data centers, kaya naglabas sila ng mga pangamba na tama naman, at ang kabutihan po ngayon ay naki-clear namin na hindi ito mga dambuhalang data centers or hyperscaler data centers,” he added.

(Initially, people thought these would be massive data centers, which raised valid concerns. The good thing is that we are now able to clarify that these are not giant or hyperscale data centers.)

Bingcang said the BCDA prefers science parks over data centers because manufacturing hubs can generate technical jobs for skilled workers, including engineers.

“So ‘yon po ang gusto natin na dito magkaroon ng oportunidad na makapaggawa tayo ng matataas na lebel o antas ng trabaho at maka-angat-angat din tayo sa value chain ng trabaho,” he added.

(That is the opportunity we want—to create high-level jobs here and move the country higher up the value chain.)

Bingcang said the government had made it clear from the outset that Philippine laws would govern Pax Silica, an arrangement accepted by its foreign partners.

“Nilinaw na po ng ating pamahalaan noon pa lang na batas po ng Pilipinas ang iiral, kahit sila naman, sinabi nila,” he said.

(Our government made it clear from the beginning that Philippine laws will prevail, and our partners agreed.)

Bingcang said projects such as Pax Silica are not unprecedented, citing established semiconductor manufacturing ecosystems in Taiwan, Singapore, and Malaysia. He said hosting Pax Silica would give the Philippines an opportunity to catch up with its regional neighbors.

“Ang nangyari nga lang po, tayo ay binibigyang pagkakataon ngayon na makasali at makapag-catch up… kasi kung hindi, lilipat na sila sa Vietnam, Indonesia, na doon sila gagawa ng maraming trabaho,” Bingcang said.

(We are being given an opportunity to participate and catch up because, if we do not, these investments could move to Vietnam or Indonesia and create jobs there instead.)

“So lahat po ng mga pangambang ito ay sinisiguro po namin na matutugunan… bago pa man ito magsimula, o bago pa man ito gumawa ng detalyadong plano,” he added.

(We assure the public that all these concerns will be addressed before implementation begins or detailed plans are drawn up.)

The BCDA said construction of the Pax Silica project has yet to begin. It has so far approved two industrial parks in New Clark City, where facilities under the initiative are expected to be located.

Bingcang said the government has also made clear that the project will operate under the BCDA's governing legal framework and applicable investment laws, which are currently being reviewed.

He added that negotiations toward a final agreement are ongoing, while the project's partners continue to evaluate the proposed site.