The potential displacement of farmers from the site of the proposed Pax Silica artificial intelligence (AI) hub in New Clark City is not expected to happen anytime soon, according to the Bases Conversion and Development Authority (BCDA).

Amid claims that the state-run firm is buying land to evict farmers and make way for the ambitious project, BCDA President and Chief Executive Officer Joshua Bingcang categorically dismissed the reports as “fake news.”

“How are we supposed to buy it when it's our land? In the first place, it's government land,” he told reporters on Thursday, Aug. 6.

Earlier reports claimed the BCDA was offering to buy farmers’ land for only ₱30 per square meter, or roughly ₱300,000 per hectare.

Bingcang stressed that the title to the more than 1,600 hectares of land slated for the industrial hub has long belonged to the BCDA, adding that farmers living and working on the property have simply been permitted to do so by the government.

Still, Bingcang noted that the government will eventually have no choice but to displace the farmers once the project is fully developed.

“Some of the farmers there would already be retired by the time we need this additional land. But we'll provide assistance—they won't be neglected,” he said.

The BCDA earlier stated that it has already allocated “hundreds of hectares” within New Clark City in Tarlac for agricultural developments and relocation areas to support affected farmers.

The proposed AI industrial hub is a joint initiative overseen by the United States and the Philippines under Pax Silica, a program aimed at securing supply chains for key materials critical to global AI infrastructure.

Dubbed an economic security zone, the project is expected to attract investment in sectors such as advanced manufacturing, critical mineral processing, and digital infrastructure, including data centers.

While details remain under evaluation, the project is already drawing criticism over its potential strain on energy and water resources, as well as its exposure to geopolitical risks.

In a separate interview, Philippine Exporters Confederation Inc. (Philexport) President Sergio Ortiz-Luis Jr. urged the government to resolve all public concerns before committing to a framework agreement with the US.

Beyond environmental impacts, Ortiz-Luis said the government must clarify whether the facility could turn into a US military installation or be used for weapons manufacturing.

He added that the Philippines must ensure the project remains viable over the long term, warning that the Trump administration could shift its priorities at any time.

“We're moving faster than transparency and answering concerns,” Ortiz-Luis said.

To address community pushback, Bingcang said he has been consulting with local leaders to address their concerns directly.

“We explained that this is a good project. We're assuring them we will address all the concerns of all stakeholders. And it's good that these are coming out now because it's part of the consultation that we're doing,” Bingcang said.

Negotiations between the Philippines and the US are ongoing to establish a long-term framework covering the technical, legal, and commercial policies governing the AI hub, with a target signing set for November.

Once finalized, both parties will proceed to detailed project planning, which will involve further consultations with local communities, the private sector, and relevant government agencies.