Honduras has no intention to negotiate but Próspera seeks to move forward

Roatán, Bay Islands, February 1, 2023. Honduran President Xiomara Castro has said in a televised public statement that Honduras has “nothing to negotiate” with the ZEDE investors. Despite the Castro government's refusal to negotiate, Grupo Próspera reiterates that its objective is to find solutions and move forward with its investments in Honduras, protected by Honduran and international law.

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Ms. Castro's comments come after Honduras has taken steps to repeal aspects of the legal framework for special economic development zones (ZEDEs) even though Honduras previously guaranteed that the ZEDE legal framework would remain in place for existing ZEDEs for many decades.

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The conduct of the Honduran State generated an international dispute with the U.S. investors of the Prospera Group. After repeated efforts to find an amicable solution, Honduras Próspera Inc. and its affiliates filed claims with the International Centre for Settlement of Investment Disputes (ICSID) against the State of Honduras to protect their investments and acquired rights. However, the Prospera Group claimants have repeatedly reiterated their willingness to negotiate within an internationally accepted framework.

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According to Erick A. Brimen, Executive Director of Honduras Prospera, Inc:

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“Prospera regrets Honduras” refusal to enter into negotiations. What we seek is to continue investing in Honduras in order to bring prosperity and new opportunities to the country. Prospera has the full right to continue operating in Honduras under the ZEDE legal regime for the full 50-year legal stability period as guaranteed by Honduras. Our desire is that acquired rights and the rule of law be respected and we call on the government to comply with its obligations, which would both avoid lasting damage to the economy and enhance Honduras' international reputation. Hundreds of millions of dollars in additional investment and tens of thousands of additional Honduran jobs remain on hold due to the government's continued and unfounded hostility to U.S. investment in Prospera ZEDE. We want to work with the Government and if dialogue is not possible then our differences will have to be resolved under international arbitration handled by our lawyers at White & Case LLP."

For more information, please contact medios@prospera.hn.