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$10.775 billion claim filed against Government of Honduras

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Prospera | 20 December 2022

$10.775 billion claim filed against Government of Honduras

December 20 2022 - US investors 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 themselves against violations of international and Honduran law. Honduras Próspera did everything reasonably possible to avoid filing the claims, but the Government of Honduras continues to refuse to cooperate with our sustained efforts to find a negotiated solution within an internationally-accepted framework.

Depending on how the Government of Honduras chooses to proceed, the amount of damages will be at least several billion US dollars, and as high as US$10.775 billion if Claimants’ entire investment is lost.

The Request for Arbitration filed by Honduras Próspera and its affiliates under the Dominican Republic – Central America – United States Free Trade Agreement (CAFTA-DR) serves to protect a U.S. investment in Honduras. It also gives the Government of Honduras an opportunity to show the world that it handles investment disputes reasonably.

Whether the Government of Honduras is ultimately held liable for the entire US$10.775 billion remains substantially in its own hands. Honduras Próspera and its affiliates would still welcome Honduras honoring the 50-year legal stability guarantee it made to U.S. investors in Próspera ZEDE. The Government of Honduras could mitigate the substantial liability it faces under international law by providing clear assurances that Honduras has no intention of expropriating investments in Próspera or blocking the creation of tens of thousands of new jobs or hundreds of millions of dollars in nearshoring investments in Próspera. Honduras Próspera and its affiliates remain willing to discuss a negotiated resolution.

Hopefully, today’s filing will lead to a more positive outcome for all sides of the dispute. In the meantime, Honduras Próspera and its affiliates will continue their efforts to operate in accordance with their clear legal rights to legal stability in Próspera ZEDE, and create jobs and economic opportunities as best they can under the ambiguous circumstances wrongfully created by the Government of Honduras.

 source: Prospera