Tegucigalpa, Honduras. Yesterday, representatives of the Honduran government made false, defamatory, and misleading public statements concerning the pending international arbitration brought by U.S. investor Honduras Próspera Inc. and its affiliates (Honduras Próspera) before the International Centre for Settlement of Investment Disputes (ICSID).
We hereby set the record straight:
- The merits of Honduras Próspera’s arbitration case are very strong. Honduras is liable under CAFTA-DR for its refusal to honor the 50-year legal stability guarantee that was promised by contract, statute, and treaty. Honduras repeatedly consented to arbitrate such investment disputes before ICSID, including in accordance with CAFTA-DR, and investors are entitled to seek full compensation. There is no requirement to exhaust local remedies.
- The Republic of Honduras is attacking ICSID for the consequences of its own refusal to participate in the arbitration. ICSID is a highly respected arbitral institution created and subscribed to by 165 countries. The Honduran government has refused to make its arbitrator appointment for months. In accordance with the ICSID rules and CAFTA-DR, ICSID may appoint the arbitrators that are not appointed in time. An arbitrator appointment for Honduras has not yet been made in the pending arbitration case, but may be made at any time.
- Honduras Próspera is defending itself from uncompensated expropriation and other breaches of Honduran and international law with legal representation from White & Case LLP, a global leader in international arbitration representing both states and investors. The lawfulness and high integrity of Honduras Próspera’s investment operations under U.S. anti-corruption law have been confirmed repeatedly (for example by Deloitte after compliance audits in 2021 and 2023). No Honduran politically exposed person has ever been a direct or indirect owner or officer of Honduras Próspera.
Honduras Próspera respects the international arbitration process before ICSID and will continue to abide by the applicable rules and procedures. We once again invite the Republic of Honduras to do the same, and otherwise to refrain from further comments that aggravate the dispute.