Converge eyes ₱2.5-billion New Clark City ICT project
The long-delayed ₱2.5-billion information and communications technology (ICT) infrastructure project in New Clark City may have found new life, as Converge ICT Solutions Inc. looks to participate in the proposed Pax Silica artificial intelligence (AI) hub.
Converge Chief Executive Officer (CEO) Dennis Anthony Uy said the telco is interested in being one of the companies involved in the development of the industrial hub in New Clark City in Tarlac province, which he described as “good for the country.”
“Because this is mostly manufacturing AI components, it’s not my stake. Maybe I can provide the connectivity, provide the AI infrastructure for manufacturing facilities,” he told reporters.
When asked whether Converge is interested in the government’s ICT project that covers the site of the industrial hub, Uy said the company is already “looking into it.”
“If there’s no infrastructure, how can you become Pax Silica?” he emphasized.
State-run Bases Conversion and Development Authority (BCDA) has been working on advancing an ICT project to upgrade connectivity in New Clark City.
The project will be handled by a joint venture (JV) partner that will operate and lease access to a shared fiber network for data transmission providers (DTPs), aimed at encouraging competition and making ICT services more affordable.
The term of the JV agreement is set at 25 years and is extendable for a maximum period of another 25 years, with a preliminary project cost of ₱2.5 billion.
BCDA has attempted to bid out the project three times to attract potential investors, but it has yet to find a private partner for its development.
The state-run firm most recently declared a failure of bidding for the project last June after receiving no interest from any company during the bidding process.
Securing the necessary partner to develop the ICT framework of New Clark City is more important than ever, as BCDA is also laying the groundwork for the Pax Silica AI industrial hub.
Spanning a 1,619-hectare (ha) site, the industrial hub is part of the Philippines’ commitment under the Pax Silica partnership, which was established to bring allied countries together to secure the global supply chain for AI.
The project is expected to attract high-value investments, particularly in the production of semiconductors and other electronic products.
To ensure that investors locate in the industrial hub, Uy said having strong connectivity is equally vital alongside high-capacity energy resources and infrastructure.
He noted that Converge’s potential involvement in the ICT project would not be a challenging commitment for the company, especially since it already knows the area, having provided connectivity during the Southeast Asian (SEA) Games in 2019.
Beyond New Clark City, Converge is looking to deepen its efforts to bridge connectivity gaps in the country through a nationwide subsea cable project alongside telco rivals PLDT Inc. and Globe Telecom Inc.
Department of Information and Communications Technology (DICT) Secretary Henry Aguda earlier told reporters that the three companies would invest $500 million, or roughly ₱30.63 billion, in the project.
Uy said he personally proposed the project during a recent meeting of the Private Sector Advisory Council (PSAC) with President Ferdinand Marcos Jr.
He said the three companies are more than ready to initiate the project, whose full buildout is expected to be completed within 24 months.
The subsea system is expected to support the country’s growing connectivity needs, particularly amid rising demand for AI.
It would also benefit the government’s security and disaster response efforts through its digital acoustic sensing system, which turns the cable into a monitoring system for seismic activity and vessel movements.