Philippines races to turn Pax Silica into reality before political changes derail dreams

The Philippines faces a tight deadline to turn its ambitious Pax Silica project into a functioning industrial hub before a potential change in government could derail its future. The project, backed by the US, aims to diversify US supplies of critical minerals and semiconductors as part of President Donald Trump's administration strategy.

Philippine President Ferdinand Marcos Jnr is set to leave office in 2028, and the US midterm elections next year may change control of Congress. Jonathan Ravelas, a former chief market strategist at BDO, said the project needs to move quickly to establish agreements and infrastructure that can survive political change. The US accepted Manila's offer to rent a 1,600-hectare plot of land for two years to set up the "Pax Silica coordination office" inside New Clark City.

The site is part of a larger master-planned development that includes government offices, sports facilities, and major infrastructure. While nearly everything in the project is still in the planning stage, a company has signed an agreement to lease the land and start hiring local engineers by October. Experts believe Pax Silica can withstand political change due to the BCDA's history of pursuing major projects across administrations. However, investors are concerned about energy costs, infrastructure, and regulatory certainty.