The Special Development

Regions of Honduras

In the middle of the Americas…

…in the middle of the World

An exciting opportunity is opening…

In January of this 2011 the Honduran Congress amended the country’s Constitution to allow for

the establishment of Special Development Regions.

This amendment will be ratified by Congress within the next twelve months to become

effective.

What are they?

The Special Development Regions are created in order to attract high-value-added services and industries to the country.

They can be use to accommodate the needs of one or more industry clusters.

There will be at least two of them. They will be developed as private public

partnerships. Their size will vary. Ideally they will cover an area

between 200-1,000 km2. They will be established in isolated and unpopulated

areas were urban infrastructures, ports and airport facilities can be built.

A region created to do business…

The Special Development Regions will issue their own rules, more efficient and investment friendly than the ones used today in the rest of the country.

The rules applicable in these regions will incorporate the best practices available today for each of the different industries that decide to operate in that area.

…governed by a Charter

Each Special Development Regions will be governed by a Charter with unlimited duration.

The Charter will be approved by a supermajority of the Honduran Congress.

Each Charter can only be amended, changed or repeal if it’s authorize by the people living in the Special Autonomous Region.

As a public private partnership investors can be involved in the drafting of the charter to make sure international standards are met.

…with administrative and judicial autonomy

The Special Development Regions will enjoy a high degree of autonomy, including the authority to appoint their own administration, their own judges and their own police force.

All those officials will be appointed in an open and competitive process that guarantees the selection of the best persons.

Incentives

• Complete foreign ownership of land and companies will be allowed.

• Tax incentives.

• A business oriented local authority that facilitates obtaining all kinds of licenses to operate.

• Use of international best practices to regulate, when needed, certain industries (i.e., banking, telecomm, etc).

Opportunities for Investors

• The Special Development Regions will be developed as a public private partnership. It will offer opportunities in:

• Investment, building and operating utilities companies.

• Port expansion, airport building and operation.

• Financing and building other types of Infrastructure.

Possible sites

Port of Castilla / Sico-Paulaya Valley

• Deepest natural port in Central America.

• Mostly uninhabited.

• Most of the land is owned by the government.

• 1,000 km2.

Port of Amapala / Southern Cone

• Deepest port in the Central American Pacific.

• Between El Salvador and Nicaragua.

• Most of the area is owned by the government.

• 650-1,000 km2

Possible developments

Special Development

Region

Special Development

Regions

Special Development

Region

Special Development

Region

Country Advantages

A unique geographical position. No seismic or volcanic activity. Honduras is one of the ten countries in the world

with coasts on more than one ocean. Enough land to allow for several of these Special

Development Regions. The largest bilingual (Spanish/English) population

in Central America. Deepest ports in Central America. 500 miles away from the USA (2 hour flight, 3 days

by ship).