In accordance with Article 10.16 of the Dominican Republic-Central America-United States Free Trade Agreement ("CAFTA-DR"), Honduras Próspera Inc. ("Honduras Próspera") and its affiliates St. John's Bay Development Company LLC ("SJBDC") and Próspera Arbitration Center LLC ("PAC" and, jointly with Honduras Próspera and SJBDC, the "Próspera Group" or "Claimants"), respectfully submit to the Republic of Honduras ("Honduras") this written notice of their intention to submit claims to arbitration.
This notice is delivered pursuant to Annex 10-G of the CAFTA-DR.
The Próspera Group previously delivered a Request for Consultation and Negotiation dated June 3, 2022 to Honduras pursuant to Article 10.15 of the CAFTA-DR, to which Honduras has not responded. This letter followed letters dated April 26 and May 11, 2022 to President Castro and various other Honduran officials, which also sought constructive dialogue and also remain unanswered.
The Próspera Group remains willing to pursue a constructive dialogue seeking to resolve the dispute amicably and hereby reiterates its commitment to working with Honduras to find a mutually advantageous solution that, in addition to resolving this international dispute, would also be an opportunity for Honduras to enhance competitiveness, foster creativity and innovation, create opportunities for economic and social development, and enhance worker's rights, among other goals of the CAFTA-DR, and which would send a positive message to other international investors and institutions. The next 90 days present an opening for settling this investment dispute and avoiding the commencement of an international arbitration proceeding. Claimants sincerely hope that consultation and negotiation in good faith will take place.
In the event that the investment dispute still cannot be settled within 90 days, Claimants intend to submit their claims to international arbitration pursuant the CAFTA-DR and Honduras will be required to compensate the Próspera Group for the full value of their losses in accordance with international law.