US investment arm keen on Pax Silica, Luzon Economic Corridor

MANILA, Philippines – The US International Development Finance Corp. (DFC) has expressed interest in financing major American-backed projects in the Philippines, including the planned Pax Silica hub in New Clark City and the Luzon Economic Corridor (LEC).

This comes as the DFC—the US government’s international investment arm—recently secured an expanded investment capacity of $205 billion, which it can deploy through loans, equity investments, political risk insurance and other financing tools for private sector projects.

READ: 50 firms keen on PH ‘Pax Silica’ hub

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At a media briefing on Wednesday, DFC chief policy officer Caroline Vik said the agency was “excited” to support both the Pax Silica hub and the LEC, which she noted had generated “a lot of enthusiasm” in the Philippines.

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“In terms of the Luzon Corridor, I think we’ve identified a bunch of potential projects for financing, and are looking for more,” Vik told reporters from the Asia-Pacific region. “There’s a sort of wide range.”

Now an 11-country partnership, the LEC was initially launched by the Philippines, Japan and the United States to accelerate the development of the Subic-Clark-Manila-Batangas growth corridor.

Specifically, the initiative seeks to mobilize financing and technical support for transport, energy, digital connectivity and manufacturing infrastructure projects across western Luzon.

Apart from the LEC, Vik said the DFC was working closely with the US State Department on the Pax Silica hub, a proposed 1,619-hectare industrial enclave focused on artificial intelligence and the development of the country’s critical minerals industry.

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READ: US deepens Luzon corridor partnership

This hub is being co-developed by the Bases Conversion and Development Authority and is expected to break ground on its first phase in 2028, with Foxconn, the world’s largest contract electronics manufacturer, serving as its anchor locator.

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“When the time is ready, the DFC stands ready to help the State Department advance the Pax Silica economic zone,” Vik said.

As of the end of the first quarter, the DFC had six active projects in the Philippines, mostly providing financing for small and medium enterprises, economic development initiatives and agricultural activities. INQ

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