The official position taken by the executive branch of the Honduran Government is that the 2023 ordinary session of the National Congress ended on October 31, 2023. There was no prior vote on the ratification of the proposed repeal of Articles 294, 303 and 329 of the Constitution related to ZEDEs (the so-called “ZEDE Constitutional Provisions”). While political arguments continue, the decision to forgo a vote on the proposed repeal of the ZEDE Constitutional Provisions creates a window of opportunity for a win-win resolution.
Honduras currently faces a number of international arbitration claims. An amicable resolution of the case brought by Honduras Próspera Inc. (US-Delaware), the promoter and organizer of Próspera ZEDE, and its affiliates St. John’s Bay Development Company LLC (US-Delaware) and Próspera Arbitration Center LLC (US-Texas) (“Honduras Próspera”), could eliminate an expropriation liability for the Government of Honduras of up to $10.7 billion. 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 win an increased market share of rapidly growing nearshoring opportunities.
National and international law recognize Honduras Próspera’s acquired rights. The impact of Honduras’ wrongful efforts to repeal the legal framework for ZEDEs without acknowledging the legal stability rights of existing ZEDEs led to an international arbitration commenced by Honduras Próspera. The arbitration is currently ongoing before the International Centre for Settlement of Investment Disputes (ICSID).
Honduras Próspera hereby reiterates its openness to exploring the possibility of an amicable resolution. It is prepared to discuss whether there may be a way to move forward that could be acceptable to the various stakeholders. It invites the Government of Honduras to confirm promptly whether it is interested in engaging in a productive dialogue.
Upon confirmation from Honduras, and absent further measures against its investments or individuals affiliated with the Próspera project (be it from the administration or other segments of the Honduran Government), Honduras Próspera is prepared to instruct its legal team to work with Honduras’ representatives to put in place a framework to facilitate discussions in accordance with the appropriate conditions of formality and transparency. Honduras Próspera and its affiliates are ready, willing, and able to participate in good faith and we hope that Honduras will do the same.