Prospera counterattacked its neighbouring community of Crawfish Rock
The control of the crypto-friendly charter city of Próspera in Honduras has hit back at reports it is facing a counterattack from residents of the neighboring community of Crawfish Rock over its enlargement plans. Reports claim that some residents have told the crypto-friendly city of Próspera to “go home” following the Honduran government’s repeal of the ZEDE legislation which allowed it.
A report from The Guardian reveals the special economic zone, touted as an island paradise with low taxes / fiscal concern, luxury homes and crypto-friendly regulation has seen pushback from some residents of the Crawfish Rock community.
Some residents are worried about being displaced from their homes due to Próspera’s potential enlargement plans, with the article describing the project’s headquarters as sitting “amid a landscape scarred by a bulldozer and deep holes dug for the foundation of the next phase of construction.”
It’s another attack against the Bitcoin-loving city, which has been fighting with the Honduras government after it repealed a Zones for Employment and Economic Development (ZEDEs) legislation in April, which was a key piece of legislation that would permit it to function as a self-governed fully autonomous zone.
A prolonged Twitter thread from Próspera and article by general counsel Nick Dranias on July 6 however, claimed that articles such as the one from The Guardian as just another example of a “barrage of lies and misinformation from the mainstream media.”
Drani plans three key myths supposedly being distributed by mainstream media.
Próspera Global claims on Twitter that the imaginary bulldozer scraped lands are structural sites for environmentally friendly “low-cost housing available to any islanders,” with the building jobs serving as a source of employment for the local community.
Próspera has been locked in a legal standoff with the government since President Castro repealed the ZEDE law in April, which would give the project 12 months to roll under a different framework such as a “Free Zone” which would offer tax cuts but not allow self-governance.
At the start of June, Próspera bow to a request for government consultations under the Investment Chapter of the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR), in a proposal to maintain its ZEDE status under the legal terms of the initial agreement.
Honduras Próspera Inc. has endured staunch that its registration as a ZEDE has a valid “legal stability” for at least another 50 years due to the legal framework of the agreement it signed with the government back in 2017. In a June 4 blog post, the firm said that:
“A failure to uphold these commitments would constitute a breach of international and Honduran law, as well as wrongful and unfair treatment of Honduras Próspera. Moreover, it would send a message to the world that no foreign investment in Honduras is secure.”
The company stated it expects to avoid an “international investor-state arbitration” and hopes that the government will act in “good faith” to the initial ZEDE agreement. The firm campaigns to “invest hundreds of millions of dollars more in the coming years,” and In April, Honduras Próspera Inc. raised $60 million to invest in the project despite the ZEDE repeal.
They added that the government is “yet to formally respond to our request for official consultation.”
Próspera is a privately-managed clearance in Honduras managed by Honduras Próspera Inc. The initial size of the Próspera Village is 58 acres and covers areas for its headquarters, housing, and areas for businesses to set up shop. Its size can grow over time if local landowners agree to join in their properties into the ZEDE territory.
