Cebu City is positioning itself as a potential regional hub for artificial intelligence (AI) and high-tech industries under the U.S.-led Pax Silica initiative, but the plan has sparked debate over whether the city’s existing infrastructure can support resource-intensive developments.
Mayor Nestor Archival Sr. said on Monday, Aug. 3, that the city government is preparing its workforce and operations for AI adoption and is open to expanding the national technology corridor into Cebu.
However, Councilor Joel Garganera, chairperson of the City Council’s Committee on Environment, raised concerns over the city’s readiness, citing persistent flooding, waste management problems, and watershed degradation that could worsen with the demands of advanced industries.
The push aligns with national investment plans that identify Cebu as a priority location for AI, semiconductor, and electronic research development under the 2026 Strategic Investment Priority Plan of the Board of Investments and Department of Trade and Industry.
Archival said the city has already partnered with the Department of Science and Technology through a memorandum of agreement focused on smart technologies and AI integration.
“So i-continue ni nato. Because we understand that AI is the future. In fact, dinhi sa atong Mayor’s Office, akong gi-request ang atong mga tawo nga kinahanglan gyud sila maka-attend ani nga seminar para ma-upgrade ilang kahibaw regarding ani nga AI,” Archival said.
The mayor said the city is also supporting AI-related training programs, including TESDA-accredited courses for displaced overseas workers, while encouraging government employees to improve their digital skills.
He said early adoption is necessary as some business process outsourcing firms have started using automation tools that could affect entry-level jobs.
“We want to be more proactive on this, because in the future, kung dili ta makahibalo ani, mabiyaan ta,” Archival said.
Garganera, meanwhile, said Cebu City must first address existing environmental and infrastructure concerns before pursuing developments that require large amounts of power, water, and waste management capacity.
In a statement, he questioned the city’s readiness to participate in Pax Silica while a proposed moratorium on upland development remains unresolved.
“Two hundred thirty-two days have passed since that proposal was made, yet we have not received an update. At the same time, we are now seeing the City express interest in participating in the Pax Silica initiative,” Garganera said.
He warned that high-tech manufacturing facilities could add pressure to the city’s already strained resources.
“We continue to face recurring flooding, a worsening solid waste management crisis, and the degradation of our watersheds,” Garganera said. “We should not put the cart before the horse.”
The discussion follows President Ferdinand R. Marcos Jr.’s mention of the Pax Silica Industrial Hub during his fifth State of the Nation Address on July 27, where he identified the project as part of the Luzon Economic Corridor.
The Philippines joined the U.S.-led Pax Silica initiative in April as its 13th member, a partnership focused on strengthening critical mineral and high-tech supply chains.
The Bases Conversion and Development Authority estimates that the development of Pax Silica hubs nationwide could attract $40 billion to $70 billion in foreign investments and create up to 190,000 high-skilled jobs in engineering, research, and technology fields.
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