No PH-US signing of agreement on Pax Silica during ASEAN Summit- DTI official
MANILA — The Philippines and the United States are not scheduled to sign an agreement on the proposed Pax Silica Artificial Intelligence industrial hub at the upcoming ASEAN Summit in Manila, an official of the Department of Trade and Industry said on Wednesday.
Trade Undersecretary and Bureau of Investments Managing Head Ceferino Rodolfo, however, also said that discussions on the deal are expected to conclude within the year.
He stated this in a joint meeting of the House Committee on Economic Affairs and the House Committee on Trade and Industry on Wednesday.
“Wala po kaming signing during this ASEAN Summit,” Rodolfo told the joint House panel. He said both sides have yet to sit down and fully lay out the terms of the deal.
“Ang hope natin within the year sana matapos ang discussions na ito… We’re not sure on the signing (within the year), but at least to agree on the terms,” Rodolfo added.
Kabataan Party List Rep. Renee Co and some House members raised sovereignty concerns over the proposed project, as they asked whether it will be “jointly governed” by the Philippines and the US.
The DTI and the Bases Conversion and Development Authority gave assurances that sovereignty within the proposed advanced manufacturing hub in New Clark City rests with the Philippines. Ceferino said Philippine laws will be observed within the proposed hub and that there will be no diplomatic immunity for US or other locators there.
Rodolfo cited past communication where he said the Philippines made this clear, and the US supposedly agreed.
“Ang klarong-klaro po at kung ano ‘yung mga nasa kasulatan na ibinigay natin at tinanggap ng Amerika ay ‘yung proposal natin for advanced manufacturing part. That is on record,” he said. Rodolfo also stressed that the terms are consistent with the laws of the Republic of the Philippines.
“There will be two laws that will govern this partnership moving forward. It’s the Investors’ Lease Act and then the BCDA laws, which are both Philippine laws. Sovereignty rests with the Philippines,” BCDA President and CEO Engr. Joshua Bingcang added.
Rodolfo also addressed concerns that the hub may become an “enclave” of foreign-owned facilities.
“They will fully comply with Philippine laws. Walang carving out of that area as a sovereign territory ng Philippines. It will remain that way. At walang diplomatic immunity that will be provided to the US or any other locator that will be in that New Clark City area,” he said.
ACT Teachers Party List Rep. Antonio Tinio, for his part, questioned the use of the word “Super Intelligence” instead of “Artificial Intelligence” in BOI’s plan for a nationwide AI investment corridor called Super Intelligence, Knowledge, and Advanced Technology (Sikat) Corridor.
He said US President Donald Trump used the same term in an executive order to describe AI.
“‘Yung EO pala ng US President sinusunod din pala ng DTI?” Tinio asked.
“Front-facing investors po kasi ‘yung tingin namin dito. Madali nilang maintindihan. Chineck namin if it will stick, when we present this for example to other countries. Naiintindihan naman po nila. It’s really a branding exercise. But this is in development. So hindi pa po final,” Rodolfo replied.
Asked whether US support for the Pax Silica initiative will continue beyond Trump’s term, Rodolfo expressed optimism it will.
BCDA reiterated that there will be no data center in the proposed advanced manufacturing hub in New Clark City. It also allayed concerns about the initiative’s possible impact on the area’s water and power supply.
“Mayroon kaming ginagawang development plan. Ito po ay full development. Nakikita namin by the next five years, baka 500 megawatts, and then 10 years one gigawatt. Ang gusto natin dito mostly ay embedded power plant, para mas mura, nasa loob na, parang lang siyang backyard generator,” Bingcang said.
He added that there are technologies like sub-surface water harvesting and recycling, as well as desalination that are being considered.
Co questioned why the joint House panel meeting wasn’t livestreamed. House Committee on Economic Affairs Chairperson and Negros Occidental 1st District Rep. Jules Ledesma attributed it to scheduling issues, but committed that the next meeting will be livestreamed.