Investment approvals by the Bases Conversion and Development Authority (BCDA), the government agency that develops former US military base lands such as Clark and Camp John Hay for civilian commercial use, are on track to surpass P100 billion by the end of the year, driven by rising investor interest in New Clark City and a pipeline of projects tied to the United States-led Pax Silica initiative.

"If we count the whole year, we will breach P100 billion in investments," BCDA President and Chief Executive Officer Joshua Bingcang said during a forum hosted by the Foreign Correspondents Association of the Philippines on Monday. "In a few years, we might be at the same level of the BoI (Board of Investments) in terms of investments generation," he said, referring to one of the Philippines' main investment promotion agencies.

Clark Airport and Project Pipeline

Much of the pipeline centers on Clark International Airport, where the BCDA has concentrated its buildout of an aviation and logistics ecosystem. The BCDA's project pipeline includes a P25-million expansion of the logistics apron and access roads, as well as the construction of a P155-million runway at Clark International Airport (CIA). Also in the pipeline is a P1.4-billion apron to support logistics firms within the airport, along with a P10-billion runway and taxiway project.

"Last week, we approved the procurement for the construction of the apron. It will serve as the parking space for FedEx and UPS planes, and other logistics companies going to put up business in Clark," Mr. Bingcang said.

He also noted that Science Park of the Philippines, Inc. is building a 106-hectare industrial park in New Clark City, with construction expected to begin in the fourth quarter of the year. In addition, the BCDA plans to sign a memorandum of agreement with the Home Development Mutual Fund (Pag-IBIG Fund) to build economic housing in New Clark City for workers based in the area.

Separately, Mr. Bingcang said the National Commission on Indigenous Peoples (NCIP) has issued a no-objection letter for the North-South Commuter Railway (NSCR). "So, we're seeing now the greenlight for this project to extend all the way to New Clark City," he said. The 147-kilometer NSCR will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. Once extended, the railway would place New Clark City on the same commuter line spanning Metro Manila, Bulacan, and Laguna.

The BCDA is also looking to bid out four hectares of land near the Market! Market! commercial property in Taguig City by the first quarter of 2027. "Only the mall was renewed by Ayala Land, Inc. The rest will be open for public bidding… that will be the site for the Mega Manila subway station in BGC (Bonifacio Global City)," Mr. Bingcang said, noting that about four Japanese developers are interested in the property.

Pax Silica and the Philippine Technology Corridor

Trade Undersecretary Ceferino S. Rodolfo, speaking at the same event, said the artificial intelligence (AI)-native industrial hub in New Clark City, Tarlac, under the US-led Pax Silica bloc is one of several "nodes" that will build the "Philippine technology corridor," connecting the technology value chain across manufacturing, minerals, talent, and digital infrastructure.

"Viewed separately, they are projects, but viewed through the AI lens, they become an ecosystem that creates long-term competitive advantage," Mr. Rodolfo said. He added that the corridor also includes the National Capital Region (integrated circuit design hub), Batangas (an AI compute hub), Bulacan (wafer fabrication facility), and Mindanao (minerals).

Mr. Rodolfo also acknowledged that some investors are concerned by rising negative sentiment toward the proposed Pax Silica hub in the Philippines.The investors are kind of — maybe too strong a word — but they are being spooked by what is happening," he said. "But for the investors, we really, really need to do a lot of confidence-building and explanations and of course, attracting their interest."

First-Half Surge

BCDA-approved investments surged by 535.11% in the first six months of the year to P49.98 billion, up from P7.87 billion in the same period a year earlier — a pace that means the full-year target would require second-half approvals to exceed everything booked in the first half. Investment activity was concentrated mainly in the Clark Freeport and Special Economic Zone (CFSEZ), which spans Pampanga and Tarlac provinces, as well as Camp John Hay in Baguio City, according to the BCDA. The CFSEZ is composed of New Clark City, Clark Freeport Zone, Clark International Airport, and Clark Global City.

The aviation sector accounted for 68% of BCDA-approved investments as of end-June, equivalent to P33.91 billion — more than half of the total. The BCDA attributed this to major foreign aviation and logistics companies expanding in Clark, including Lufthansa Technik Philippines, Inc., Federal Express Corp., and UPS International.

"Global companies are making larger and longer-term commitments to the Philippines because they see the potential to serve both the domestic market and the wider Asia-Pacific region from here," Mr. Bingcang said.

The BCDA said the trend aligns with its push to bolster Clark's aviation ecosystem to serve the Asia-Pacific region across aircraft maintenance, repair and overhaul, cargo and logistics operations, and other aviation-related activities. Other BCDA-approved investments are in residential (P5.9 billion), government and sports (P500 million), and hospitality (P30 million). — Beatriz Marie D. Cruz

Source: BusinessWorld