Senate President Sherwin Gatchalian on Friday, August 14 said he supports the planned Pax Silica Industrial Hub in Capas, Tarlac but stressed the need to meet several environmental and displacement conditions.

Gatchalian made the remark during the committee hearing of the Senate Committee on Environment and Natural Resources and Climate Change on the proposed Pax Silica Initiative.

“Personally, I support the Pax Silica, but I also have many conditions and caveats,” Gatchalian said.

“First, I see this as a once in a lifetime opportunity for our country… At a time when our economy is growing very slowly, having investors come into our country is a big thing for our long-term growth,” the Senate leader said.

Gatchalian said pushing through with the project would be one of the country’s biggest industry shift. Because if the Philippines fails to keep pace with the Artificial Intelligence (AI), it could wipe out jobs, particularly entry-level and low-value positions in the business process outsourcing (BPO) sector.

But like any business model, the Senate chief said “there are risks, caveats and conditions.”

“We should discuss those, and you are right that our committee should also monitor them. These risks and caveats, first of all, include that this initiative should be in accordance with our Constitution and local laws. There is no compromise on that. We cannot neglect our sovereignty,” he also said.

The government, he said, must address Pax Silica’s environmental concerns, particularly its water requirements, as well as the electricity needed to support the project amid existing power-supply concerns.

Likewise, Gatchalian stressed that farmers and indigenous peoples (IPs) should not be displaced by the project, saying their concerns must be addressed fairly.

He also called for a clear technology transfer, as the Filipinos must learn from the industries entering the country.

For his part, Sen. Raffy Tulfo said a comprehensive, multidisciplinary study of the proposed Pax Silica Initiative should first be conducted, particularly on the project’s potential environmental and social impacts.

“We don't want this to become Chuangxing part 2. And so, we want to take up during this hearing the concerns that are being raised against Pax Silica. We want to hear from our government agencies what actions are being taken to prevent the fear of the people,” Tulfo said.

Tulfo earlier raised concerns over Chuangxing after a building at the steel plant collapsed, killing more than 30 people. The National Bureau of Investigation (NBI) also raided the facility amid repeated complaints over alleged environmental and other violations.

Tulfo said that while he supports economic progress and recognized Pax Silica’s potential to create jobs and contribute to digital transformation, these opportunities should come with proper safeguards and strict compliance with environmental regulations.

“My only request is that we have a comprehensive, multidisciplinary study, covering not just the technical and economic aspects, but more importantly, the environmental and social impacts,” Tulfo said.

“We must examine its effects on local ecosystems, water and energy consumption, waste management, and how it will affect the lives of the communities surrounding the proposed site,” he added.

Sen. Paolo “Bam” Aquino IV also echoed the same sentiment, saying he believes “there has to be a better way forward.”

“Our goals regarding industrialization, job creation, and advanced manufacturing—as Senate President Sherwin mentioned—are all positive and represent our shared aspirations. However, we must ensure there is a better path forward for our country's progress,” Aquino said during the hearing.

“We aspire to modernize and expand our industries without leaving anyone behind or, worse, causing setbacks for anyone. History has shown us that without proper oversight, progress can occur while marginalized groups continue to suffer,” he stressed.

“So, what I am saying is that as we strive to push for progress in our country, let us ensure that no one is left behind. After all, a nation's true progress is measured by how it treats its poorest and most needy citizens,” he pointed out.