Missing context
Honduras Próspera Inc. Files ICSID Claim: Incomplete Context
By Próspera Team2 min read
In response to the press release issued today by the Office of the Attorney General of the Republic (PGR) of Honduras regarding ongoing international arbitration between Honduras Próspera Inc. and its affiliates (HPI) against the Republic of Honduras, we wish to provide clarity on the facts.
The case is being heard before the International Centre for Settlement of Investment Disputes (ICSID), a World Bank institution responsible for resolving disputes between investors and States. HPI filed the lawsuit to defend its rights and ensure that the commitments made by the Honduran State are respected, with the objective of resuming normal operations and continuing with the legitimate development of the project.
HPI's recent presentation exposes a solid claim for breach of the CAFTA-DR treaty and the Legal Stability Agreement. between the company and the State of Honduras. The measures adopted by Honduras violate its 50-year guarantee of legal stability of the ZEDE legal framework, which the Honduran State itself established to attract investment and encourage the creation of Employment and Economic Development Zones.
The initial damage estimate in the Request for Arbitration was up to US$10.7 billion in the event of a total loss of the investment. HPI hired the renowned valuation expert firm Berkeley Research Group, which confirmed that the intrinsic value of the 30-year business plan of the company and its affiliates averages US$10.6 billion, and could reach up to US$26.4 billion by September 30, 2025.
HPI's preferred resolution to this dispute has always been to partner with Honduras to continue generating investment, economic growth and jobs.. HPI seeks as its primary remedy the restitution of all of its rights under the ZEDE legal framework, so that it can continue to develop the project as guaranteed.
The compensation is requested only as an alternative, and has been currently quantified at US$1.6 billion, with a total value of US$1.6 billion, This is a highly conservative figure that does not represent the intrinsic value of the business plan and is subject to change based on developments in Honduras.
HPI's recently filed brief sets forth the legal and factual basis for the claim and will be published shortly.. The public will see the strength of the case, HPI's genuine commitment to Honduras, and the important contribution to shared prosperity that will be possible once a settlement agreement is reached.