What Pax Silica Means for Philippine Land
Pax Silica is an initiative to establish an artificial intelligence and advanced manufacturing hub in the Philippines, with land allocated inside New Clark City in Tarlac. The Bases Conversion and Development Authority has designated approximately 1,619 to 1,620 hectares within New Clark City as the industrial area for the initiative.
This article sets out the documented position: what has been allocated, what lease terms have been indicated, what the existing legal framework permits, what has been confirmed and what remains pending, and what landowners and investors in the surrounding region should verify.
The Land Allocation
The designated area is approximately 1,619 hectares within New Clark City, the 9,450-hectare development administered by the Bases Conversion and Development Authority across the municipalities of Capas and Bamban in Tarlac.
New Clark City has a developable area of roughly 40 percent, with the remaining 60 percent designated for green and eco-tourism uses. It is located north of the Clark Freeport Zone and forms part of the Luzon Economic Corridor.
The site has direct access to Clark International Airport, Subic Bay, and the major Luzon expressways. BCDA has described the location as a gateway for trade, investment, logistics, advanced manufacturing, and technology-driven industries.
The designated area has been described as an economic security zone. The stated target sectors are semiconductors, advanced manufacturing, and digital infrastructure supporting the artificial intelligence supply chain.
Indicated Lease Terms
BCDA has indicated that foreign investors in Pax Silica may be permitted to lease land for up to 99 years. BCDA has stated that the property would operate under the Investors' Lease Act and the legislation granting powers to BCDA.
The following provisions establish how this compares with arrangements generally available.
Article XII of the 1987 Constitution reserves land ownership to Filipino citizens and to corporations at least 60 percent Filipino-owned. Foreign nationals and foreign-controlled entities cannot hold land title, and no commercial exemption exists.
Republic Act No. 7652, the Investors' Lease Act, permits a qualifying foreign investor to lease private land for an initial period of up to 50 years, renewable for a further 25 years, a maximum of 75 years. The leased area must be used for the investment purposes agreed by the parties and approved by the relevant government agencies.
A 99-year term would therefore exceed by 24 years the maximum ordinarily available under the Investors' Lease Act.
Separately, BCDA has previously offered land within New Clark City for long-term lease on 25-year terms renewable for a further 25 years, in offerings directed at real estate developers, industrial park builders, and solar power plant developers.
Power and Utility Development
The United States Development Finance Corporation has approved funding for a feasibility study on a proposed liquefied natural gas terminal and power facility. BCDA has stated that this addresses investor questions regarding energy supply for the site.
A feasibility study is a preliminary stage and does not constitute a committed power facility. For prospective locators, power capacity and cost are matters to be confirmed directly and in writing against a specific load requirement.
New Clark City: Committed Investment and Locators
New Clark City hosts approximately ₱274.53 billion in pledged investments from locators, with projected employment generation exceeding 150,000 jobs, according to BCDA.
Named locators include Filinvest Land, Hann Development, and StB Giga Factory, Inc., the last operating the country's first manufacturing plant for advanced lithium iron phosphate batteries.
Hann Reserve and Vista Country Club are located within New Clark City and were included in a strategic tour conducted for prospective investors during a joint PEZA, BCDA investor briefing.
The National Government Administrative Center is located within New Clark City, established to relocate government functions from Metro Manila. The Supreme Court of the Philippines has signed a memorandum of understanding with BCDA for the allocation of a 5.8-hectare lot for a Judiciary Complex.
Affordable housing under the national 4PH program has broken ground within New Clark City, with BCDA stating that the complex will include utilities, stormwater drainage, fire protection infrastructure, and open green spaces.
Pledged investment figures represent commitments rather than deployed capital.
The PEZA and Incentive Framework
PEZA and BCDA have signed a memorandum of agreement establishing a coordinated investment facilitation framework for New Clark City. A joint investor briefing for locators and developers was held on 14 May 2026 in Capas and Bamban.
As of December of the preceding year, the wider Clark area hosted five PEZA-registered ecozones with 24 locator companies and combined investments exceeding ₱62 billion.
Incentives available to qualifying enterprises fall under two frameworks.
Under the CREATE framework, developers and locators may apply for preferential corporate income tax treatment and for tax and duty-free importation of raw materials and capital equipment.
Under PEZA registration, qualifying export enterprises may access an income tax holiday, value-added tax zero-rating on qualifying local purchases, and duty-free importation of capital equipment. PEZA incentives attach to registered activities conducted at registered locations, so both the activity and the specific site must qualify.
Land Tenure Structure
BCDA generally makes land within New Clark City available through long-term lease rather than freehold sale.
The practical consequences for an investor are as follows.
- The interest acquired is a leasehold interest together with ownership of the improvements constructed on it, rather than a Transfer Certificate of Title to the land.
- Exit is effected by assignment of the leasehold interest or by sale of the operating entity, subject to any consent required by BCDA under the lease.
- The value of a leasehold interest amortizes over the term unless renewal is secured.
- For foreign investors, leasehold is the applicable route in any event, since the constitutional restriction on foreign land ownership makes freehold unavailable.
Confirmed and Pending
The distinction below is material for anyone assessing the initiative.
Confirmed: the land allocation of approximately 1,619 hectares; the existing locators and pledged investment at New Clark City; the PEZA–BCDA memorandum of agreement; the DFC approval of feasibility study funding; and the government facilities committed to the site.
Pending: the intergovernmental framework agreement, for which a signing has been discussed for later in 2026; the outcome of the LNG terminal and power facility feasibility study; and the specific locators for the artificial intelligence hub component.
Lease terms, incentive packages, and site availability have varied between BCDA offerings and are subject to change. Figures and terms stated here reflect published information as at mid-2026.
Land in the Surrounding Region
Land within New Clark City is administered by BCDA and is not available for freehold purchase. Privately held land in the surrounding corridor, including areas of Capas, Bamban, and the wider Tarlac and Pampanga region, is governed by ordinary Philippine property law.
Industrial development at scale generates demand for uses typically located outside a designated industrial area, including logistics and warehousing, workforce accommodation, retail and services, healthcare facilities, and educational institutions.
Infrastructure investment serving a development of this scale generally improves access along the same corridor, which affects parcels regardless of their relationship to the initiative.
Holding costs accrue throughout any period before demand arrives. Real property tax is a recurring cost, and under Republic Act No. 12001, the Real Property Valuation and Assessment Reform Act, local government units are required to conduct general revisions of property assessments every three years.
Philippine provincial markets have shown that new commercial supply delivered ahead of committed demand can result in extended vacancy. Provincial business district vacancy has been running near 18 percent nationally, with individual markets including Iloilo at approximately 32 percent following the delivery of new Grade A supply.
Verification Steps for Locators
For enterprises considering locating within New Clark City:
- Transact directly with BCDA or its designated partners, and confirm current lease terms rather than relying on published announcements.
- Establish the exact tenure offered — lease term, renewal mechanics, assignment and consent provisions, and the treatment of improvements at expiry.
- Confirm the PEZA registration status of the specific zone and whether the intended activity qualifies for incentives.
- Obtain written confirmation of power and utility capacity against the specific requirement.
- Take Philippine counsel on the lease structure, which is governed by BCDA's enabling framework and differs from ordinary commercial leases.
Verification Steps for Surrounding Land
For investors evaluating privately held land in the corridor:
- Obtain a certified true copy of the title from the Registry of Deeds, dated close to the intended offer.
- Read the memorandum of encumbrances on the reverse of the title. Mortgages, adverse claims, notices of lis pendens, easements, and agrarian reform annotations appear there, and an annotation without a cancellation entry remains live.
- Confirm zoning and land classification with the local government unit. A title conveys ownership, not the right to a particular use.
- Establish agrarian reform status. Central Luzon carries substantial agrarian reform coverage, and land under it requires Department of Agrarian Reform conversion before non-agricultural development.
- Commission a relocation survey by a licensed geodetic engineer to confirm that registered boundaries correspond to occupation on the ground.
- Verify the seller's authority to convey, including corporate registration and the board resolution authorizing the sale where the seller is a corporation.
Verified title, confirmed classification, and clear boundaries are what allow a landowner or investor to transact when an opportunity arises. You can explore land and commercial property across Central Luzon and the country's growth corridors, with property records confirmed at source, at The Grid Property Ventures, the Philippines' smartest real-estate platform.
