Silay City in the Philippines could be about to get a new PHP600m (US$12m, €11.1m, £9.5m) theme park after its mayor confirmed development plans following months of speculation.

Rumoured to be operated by Enchanted Kingdom – the Philippines’ largest theme park – details of the 430,000sq ft (40,000sq m) park were first revealed in November, when third district representative Albie Benitez said plans were in the works.

Enchanted Kingdom, which is based several hundred miles away in Santa Rosa City and headed by former IAAPA chair Mario Mamon, rejected claims that it would operate the park, though did admit to playing a part in its development.

“Enchanted Kingdom is continuously planning for its redevelopment and expansion in the coming years but all of this will take place at its expanded current site in Santa Rosa,” said a statement from the park in November.

“However, Enchanted Kingdom, in its desire to promote the development of the amusement industry in the country, has been approached by different groups to study the feasibility of opening an amusement facility to boost tourism and leisure in their area.”

Silay City mayor Mark Golez confirmed that the proposed park is expected to open during 2018, with investors of Enchanted Kingdom, along with other backers, covering development costs.

“It will be a big boost to tourism, it will generate income for the city as well as jobs,” said Golez speaking during a briefing at city hall. “It won’t be named Enchanted Kingdom. Negotiations are ongoing and I have already met with the people who are going to plan to set up the theme park.”

The park itself will feature numerous rides following a carnival theme. The development is expected to boost tourism in the Negros Island Region and District 3 where the park will be located.

In 2014, Mario Mamon, announced a 10-year PHP5bn ($100m, €92.5m, £79.4m) expansion plan for Enchanted Kingdom to draw foreign tourists, with the developments set to double the park’s size from its existing 150,000sq m (1.6 million sq ft) to accommodate hotels, new attractions, convention facilities and water parks.