The Market Monitor Minding the Nation's Business
Private businessmen and bidders are not interested in the plan of the Philippines and the United States (US) State Department to develop a ₱2.5-billion information and communications technology (ICT) infrastructure in New Clark City, Capas, Tarlac.
The IT hub and microchip processing plant are at the heart of the US-sponsored Pax Silica project to rationalize its supply chains of important minerals and microchips, in an effort to compete with China.
This development clearly delayed the implementation of a planned artificial intelligence (AI) industrial hub in the Luzon Economic Corridor, an area that extends from Subic Bay to Batangas, comprising the whole of Central Luzon.
In a notice dated June 25 but made public on July 2, the Bases Conversion and Development Authority (BCDA) said it had declared a failure of bidding in its pursuit of a joint venture (JV) partner for its passive ICT infrastructure project.
This came after the BCDA received no required bidding documents from any interested company during the 13-month bidding process for the project, which ran from May 23 last year to June 25 this year.
The bidding for the project was first launched in 2023, but the state-run firm also declared it a failure after the sole bidder was found ineligible to proceed with the development.
The BCDA relaunched the bidding in February 2025, but it was suspended just over a month later to align the project with the processes and requirements of the Public-Private Partnership (PPP) Code and its implementing rules and regulations.
The BCDA’s latest notice did not disclose its future plans following the declaration of a failure of bidding. However, the agency may opt to relaunch the bidding soon, especially since the ICT project is expected to support connectivity in New Clark City and its future AI hub.
As part of the country’s commitment under the United States (US)-led Pax Silica initiative, the BCDA has allocated more than 1,600 hectares in New Clark City for the development of an AI industrial hub.
The industrial hub is expected to attract high-value investments such as semiconductor and data center projects, which require high-quality connectivity for their operations.
The proposed ICT project, which will be implemented under an Open Access Fiber model, is the BCDA’s response to these needs.
Under this model, the JV partner will operate and lease access to a shared fiber network for data transmission providers (DTPs), aiming to encourage competition and make ICT services more affordable.
The term of the JV agreement will be 25 years, extendable for a maximum period of another 25 years, with a preliminary project cost estimated at ₱2.5 billion.
Earlier this year, BCDA President and Chief Executive Officer (CEO) Joshua Bingcang said the project would pave the way for fast, reliable, and affordable internet connectivity for all residents and businesses in New Clark City.
“This initiative will significantly boost the city’s competitiveness, attract high-value, and technology-driven industries, generate highly skilled jobs for Filipinos and ultimately, improve the overall quality of life,” he said.
Meanwhile, Filipinos in Canada, particularly in British Columbia, held a demonstration protesting the Pax Silica project in time for President Marcos’ visit in that country.