The planned US-backed industrial hub in New Clark City is expected to begin operations by 2028, pending the finalization of key agreements between the Philippine and US governments, according to state-run Bases Conversion and Development Authority (BCDA).
At a briefing on Friday, BCDA President and CEO Joshua Bingcang said the 1,619-hectare site, developed under the Pax Silica initiative, will be rolled out in phases. "This will take two years at least," he noted, citing the need for analysis, joint surveys, and detailed design before construction starts.
BCDA has granted the US, as master lessee, a grace period on lease payments during the initial development phase, with payments treated as in-kind contributions. Bingcang described this as a "standard" commercial agreement, similar to past projects with Japanese, Singaporean, and South Korean firms in Clark.
The project will operate as an economic zone, offering locators incentives under the CREATE MORE Law. Contrary to a Wall Street Journal report claiming the US would "administer" the site, Bingcang clarified that BCDA will screen and approve all locators, not any US entity.
The US role is limited to master lessee and developer of certain infrastructure, including roads—a move that could save the government "tens of billions of pesos," Bingcang said. Additional agreements defining the partnership are expected within six months.
Trade Undersecretary Ceferino Rodolfo revealed that at least five companies from the US and East Asia have already expressed interest in the hub, which will be located between the New Clark City Sports Hub and Clark International Airport. The hub will not be exclusive to American firms, and the agreement does not include diplomatic immunity or operation under US law.