Description

Próspera is a special economic zone in Honduras modeled as a private free city.

Discussion

Próspera is a Zone of Employment and Economic Development « Zona de Empleo y Desarrollo Económico » or, ZEDE.

ZEDEs in Hoduras came by way of an amendement to the Honduran constitution in 2013.

The city operator models Próspera to replicate Dubai International Financial Centre and Hong Kong.

By law, at least 90% of all employees in Próspera must be Honduran nationals.

Implementation

Constitutional authority

Decree No. 236-2012 (extracts)

[amending articles 294, 303 and 329] … CONSIDERING: That the creation of Employment and Economic Development Zones has as its purpose, among others, to guarantee that the existing Free Zones in our country, which have generated hundreds of thousands of jobs, continue to compete at a regional and international level and guarantee their permanence regardless of whether the regime that gave them life ends in the coming years, in accordance with the commitments assumed by the State of Honduras … ARTICLE 294.- The national territory is divided into departments. Their creation and limits must be decreed by the National Congress. The departments are divided into autonomous municipalities administered by corporations elected by the people, in accordance with the law. Without prejudice to what is established in the two previous paragraphs, the National Congress may create zones subject to special regimes in accordance with Article 329 of this Constitution.” … Employment and Economic Development Zones The State may establish zones of the country subject to special regimes which have legal personality, are subject to a special fiscal regime, may incur obligations as long as they do not require the guarantee or joint guarantee of the State for this, celebrate contracts until the fulfillment of their objectives over time and during several governments, and enjoy functional and administrative autonomy which must include the functions, faculties, and obligations that the Constitution and laws confer on municipalities… The authorities of the zones subject to special regimes have the obligation to adopt the best national and international practices to guarantee the existence and permanence of the adequate social, economic, and legal environment to be competitive at an international level. For the resolution of conflicts within the zones of the country subject to special regimes, the Judicial Branch through the Judiciary Council must create tribunals with exclusive and autonomous competence over them. The judges of the zones subject to special jurisdiction will be proposed by the special zones before the Judiciary Council, who will appoint them after a competition from a list proposed by a special commission integrated in the manner indicated by the Organic Law of these regimes. The Law may establish the subjection to mandatory arbitration for the resolution of conflicts of natural or juridical persons who inhabit within the areas covered by these regimes for certain matters. The tribunals of the zones subject to a special legal regime may adopt legal systems or traditions from other parts of the world as long as they guarantee equally or better the constitutional principles of protection of Human Rights, prior approval by the National Congress.

ZEDE Organic Law

Article 1. - The Zones for Employment and Economic Development, hereinafter referred to as ZEDE, are an inalienable part of the State of Honduras, subject to the Constitution of the Republic and the national government regarding matters related to sovereignty, administration of justice, territory, national defense, foreign relations, electoral matters, issuance of identity documents and passports… Article 3. - ARTICLE 3.- The Zones for Employment and Economic Development (ZEDE) enjoy functional and administrative autonomy that includes the functions, faculties, and obligations that the Constitution of the Republic and laws confer on municipalities. They will have autonomous and independent courts with exclusive competence within them, which may adopt legal systems or traditions from other parts of the world, provided they guarantee the constitutional principles of protection of Human Rights. Acts and contracts executed or issued within the Zones for Employment and Economic Development (ZEDE) have full validity in the rest of the country and abroad in accordance with reciprocity statutes. Article 8.- The regulatory hierarchy applicable in the Zones for Employment and Economic Development (ZEDE) shall be the following:

The Constitution of the Republic where applicable;
International Treaties celebrated by the State of Honduras where applicable;
The present Organic Law of the Zones for Employment and Economic Development (ZEDE);
The laws indicated in the Final Provisions of this Organic Law; and,
The internal regulations emanating from the authorities of the Zones for Employment and Economic Development (ZEDE) or incorporated by them. …

Dispute resolution

Próspera’s Agrement of Coexistence designated disputes to be brought before an independent arbitrator, the Próspera Arbitration Centre.

Resources

The Gazette - REPUBLIC OF HONDURAS - TEGUCIGALPA, M. D. C., January 24, 2013 No. 33,033
Te Gazette - REPUBLIC OF HONDURAS - A. Section A TEGUCIGALPA, M.D.D, September 6, 2013 No. 33,222 (Decree No. 120-2013).