No Pax Silica deal at ASEAN Summit, says US envoy

Pax Silica decisions ‘will be made in full consultation’ with the Philippines, says US Ambassador Lee Lipton ahead of the ASEAN Summit in Manila

MANILA, Philippines – A United States envoy dismissed  reports on Saturday, November 7, that a framework agreement for the US-backed Pax Silica Economic Security Zone would be signed during the  49th Association of Southeast Asian Nations (ASEAN) Summit in Manila this month.

“No such announcement on the Pax Silica Economic Security Zone was ever planned. Decisions will be made in full consultation with the government of the Philippines at the appropriate time,” US Ambassador to the Philippines Lee Lipton said in a statement.

“As stated previously and as part of this process, we expect rigorous discussions on impacts to all stakeholders.”

Lipton’s clarification came after the Bases Conversion and Development Authority (BCDA) earlier floated that the signing of the initiative — which aims to transform the Philippines into a hub for artificial intelligence, semiconductor manufacturing, and advanced industries — could be among the major developments during the summit from November 16 to 18.

US President Donald Trump will be among the global leaders expected to attend the regional event. 

Envisioned as a massive 1,620-hectare industrial hub in New Clark City, Capas, Tarlac, the Pax Silica development is estimated by the BCDA  to attract up to US$70 billion in investments and create as many as 190,000 direct jobs.

The project, however, faces mounting criticisms in the Philippines, with many noting that the hub could harm the country’s environment, displace indigenous communities, and strain the Luzon energy grid because of its massive power and water needs, among others. 

“We look forward to working alongside the government of the Philippines about this exciting initiative to secure supply chains and attract quality investment in support of economic growth and jobs at home for the people,” Lipton said. – Rappler.com