Cebu City mayor refutes endorsement of Pax Silica

CEBU CITY — Cebu City Mayor Nestor Archival clarified that the city’s push to prepare its workforce for an artificial intelligence (AI)-driven economy does not mean it has endorsed the proposed Pax Silica initiative in New Clark City, Capas, Tarlac. Archival issued the clarification after reports and social media posts linked his statements about AI investments to possible city support for the US-led initiative. In a Facebook post, Archival said his statement in an earlier press conference focused on preparing Cebuanos for future jobs through AI education, digital skills development and innovation. He said the city’s AI efforts should not be interpreted as an endorsement of Pax Silica and stressed that Cebu City has not made any official declaration of support to the project. Archival said any major investment or development that could affect the city would have to undergo objective evaluation, legal review, public consultation, environmental safeguards and transparency before the city makes a decision. He cited the city’s partnership with the Department of Science and Technology (DOST), AI training for returning overseas Filipino workers through Technical Education and Skills Development Authority-accredited institutions, and digital skills programs for city government employees as part of its preparations for technological changes. Archival also said AI is already reshaping industries, particularly the information technology-business process management sector, making workforce retraining necessary to keep Cebuanos competitive. Earlier, Archival expressed openness to AI-related investments if the national initiative expands beyond New Clark City. He pointed to the city’s ongoing collaboration with DOST as part of its preparations for emerging technologies. The clarification came amid concerns from labor and environmental groups about the possible effects of AI-related developments on workers, utilities and the environment. City councilor Joel Garganera, chairman of the City Council’s Committee on Environment and Energy, questioned whether Cebu City should consider participating in Pax Silica while it continues to deal with recurring flooding, solid waste management problems, watershed degradation, and limited water and power supplies. “While investments in AI and advanced manufacturing can create opportunities, I believe Cebu City should not pursue participation in the Pax Silica initiative unless we first address our existing environmental challenges,” Garganera said. Garganera also pressed the city executive for an update on the proposed citywide moratorium on upland development, which he first raised on Dec. 16, 2025. He said 232 days had passed without an update from the executive department. He warned that large-scale technology investments could put additional pressure on the city’s environmental resources if existing problems involving water, power, flooding and waste management remain unresolved. The BPO Industry Employees Network-Cebu also raised concerns over the impact of AI adoption on employment, particularly if companies use automation to reduce their need for workers in the information technology-business process management sector. The Alliance of Concerned Teachers Cebu likewise opposed efforts to position Cebu as part of the Pax Silica initiative and called for workers, academics, scientists and civil society groups to participate in discussions on AI development. Pax Silica is a US-led economic security framework intended to strengthen global supply chains for artificial intelligence and semiconductors. The Philippines is among 24 countries that signed the agreement. The proposed industrial hub in New Clark City covers about 1,620 hectares and is expected to support AI processing, semiconductor and high-tech component manufacturing, and critical mineral processing. The national government estimates that the project could attract between $40 billion and $70 billion in investments and generate up to 190,000 jobs. Environmental groups have raised concerns over the project’s potential demand for electricity and water, as well as possible noise pollution and effects on wildlife. Groups have also raised concerns over the possible displacement of about 20,000 Aetas and farmers in the project area.