Failure to vote on the constitutional reform opens the door to a constructive dialogue to reach a win-win solution for the people of Honduras.
By Próspera Team2 min read
Honduras Próspera reiterates its willingness to resolve the dispute consensually
The official position of the Executive Branch is that the 2023 ordinary session of the National Congress ended on October 31, 2023. There was no vote on the ratification of the proposal to repeal Articles 294, 303 and 329 of the Constitution related to ZEDEs (the so-called “ZEDE Constitutional Provisions”). While political discussions continue, the decision not to have voted for the proposed repeal of the ZEDE Constitutional Provisions creates a window of opportunity for a win-win resolution.
Honduras is currently facing several international arbitration claims. A consensual resolution of the case brought by Honduras Prospera, Inc. (US-Delaware), the promoter and organizer of Prospera ZEDE, and its subsidiaries St. John's Bay Development Company LLC (US-Delaware) and Prospera Arbitration Center LLC (US-Texas) (“Honduras Prospera”), could eliminate an international liability of up to $$10.7 billion for acts of expropriation being committed by the Government of Honduras. It would also open the door to attracting billions of dollars in foreign direct investment to Honduras to generate hundreds of thousands of well-paying jobs and opportunities for Hondurans. This would empower the Republic of Honduras to gain a greater market share of the rapidly growing nearshoring opportunities.
National and international law recognize the vested rights of Honduras Próspera. The impact of Honduras' damaging efforts to repeal the ZEDE legal framework without reconfirming existing legal stability rights are the subject of an international arbitration initiated by Honduras Próspera. The arbitration is currently ongoing before the International Centre for Settlement of Investment Disputes (ICSID).
Honduras Próspera and its affiliates hereby reiterate their willingness to explore the possibility of a consensual solution, and are willing to discuss if there can be a way forward that can be acceptable to the various stakeholders. They invite the Government of Honduras to confirm as soon as possible whether it is interested in engaging in a productive dialogue.
Upon confirmation from Honduras and in the absence of further action against investments or individuals affiliated with the Prospera project (whether by management or other segments of the Honduran government), Honduras Prospera is prepared to instruct its legal team to work with Honduran representatives to establish a framework to facilitate discussions, consistent with appropriate conditions of formality and transparency. Honduras Próspera and its affiliates are ready, willing and able to participate in good faith and we expect Honduras to do the same.
Contact: medios@prospera.hn