Leaders of the town of Próspera, in Honduras, have responded to reports that they are facing backlash from residents of the neighboring community of Crawfish Rock over their expansion plans.
An article published in The Guardian on Tuesday reported that the special economic zone, touted as an island paradise with low taxes/fiscal responsibility, luxury homes and crypto-friendly regulation has seen backlash from some residents of the Crawfish Rock community.
Apparently, some residents are concerned about being displaced from their homes due to Próspera’s possible expansion plans, and the article describes the project’s headquarters as being “in the middle of a landscape marked by a bulldozer and deep holes dug for the foundations of the next phase of construction.
It’s another salvo against the bitcoin-loving city, which has been battling the Honduran government after it repealed the Employment and Economic Development Zones (ZEDE) legislation in April.a key piece of legislation that would allow it to operate as a fully autonomous zone.
However, in a lengthy Próspera Twitter thread and in an article by General Counsel Nick Dranias, on Wednesday, it was claimed that articles like the one in The Guardian are just another example of a “media barrage of lies and misinformation”:
“Not surprisingly, given the shocking nature of our project, we have been faced with a barrage of lies and misinformation from the mainstream media.”
Drani highlights three key myths allegedly spread by the mainstream media:
“Myth #1: The Próspera team did not adequately socialize the project before its launch.”
“Myth #2: Próspera is an ideological/cryptocurrency/libertarian project.”
“Myth #3: In Honduras, Próspera’s ZEDE expropriated land from locals.”
Learn the truth about Prospera ZEDE & unplug from the propaganda. https://t.co/juiRMHgBum @usembassyhn @GovernmentHN @ProsperaGlobal @SenTedCruz @chiproytx @marcorubio @RyanBergPhD @exjon @RepMarkGreen @SenatorRisch @kyrsteninema @timkaine @USDOJ_Intl @USSOCOM @VP @SenBillCassidy
— Nick Dranias (@NickDranias) July 6, 2022
Know the truth about the ZEDE of Próspera and disconnect from the propaganda. https://t.co/juiRMHgBum @usembassyhn @GobiernoHN @ProsperaGlobal @SenTedCruz @chiproytx @marcorubio @RyanBergPhD @exjon @RepMarkGreen @SenatorRisch @kyrstensinema @timkaine @USDOJ_Intl @USSOCOM @VP @SenBillCassidy
A Próspera representative told Cointelegraph that, In general, the response from the community has been positive except for a select few:
“We have a fantastic relationship with the local community, we are the largest employer in the community and generally work well with them. In fact, we are only disliked by two members of the community, but the media always talks only about those two individuals.”
Prospera Global also claims on Twitter that the alleged bulldozer scrapped land that is the site of construction of “environmentally friendly low-cost housing available to any islander.”and that construction jobs serve as a source of employment for the local community.
8/Next, Jeff alludes to “disputes over land rights” & “displacing local residents.” Can Jeff name 1 resident we have displaced? Of course not; the statement is false & misleading. pic.twitter.com/OLvy44u6lB
— Prospera Global (@ProsperaGlobal) July 5, 2022
8/ Furthermore, Jeff alludes to “land rights disputes” and “displacement of local residents”. Can Jeff name 1 resident we have displaced? Of course not, the statement is false and misleading .
Próspera has been in a deadlock with the government since President Castro repealed the ZEDE law in April, which would give the project 12 months to register under a different regulatory framework as a “Free Zone”, which would offer tax cuts but would not allow self-management.
Begining of June, Próspera submitted a request for consultation to the government within the framework of the investment chapter of the Free Trade Agreement between the Dominican Republic, Central America and the United States (CAFTA-DR), in an attempt to maintain its status as ZEDE under the legal terms of the agreement. initial.
Honduras Próspera Inc. has been adamant that its registration as a ZEDE has “legal stability” valid for at least another 50 years due to the legal framework of the agreement it signed with the government in 2017. In a June 4 blog post, the firm noted that:
“A breach of these commitments would constitute a violation of international and Honduran law, as well as improper and unfair treatment of Honduras Próspera. Also, it would send a message to the world that no foreign investment in Honduras is safe.”
The company said it hopes to avoid “international investor-state arbitration” and expects the government to act in “good faith” in light of the initial ZEDE agreement. The company plans to “invest hundreds of millions of dollars more in the coming years.” In April, Honduras Próspera Inc. raised USD 60 million to invest in the project despite the repeal of the ZEDE.
The representative added that the government “has not yet formally responded to our request for official consultation.”
Próspera is a privately managed settlement in Honduras managed by Honduras Próspera Inc. The initial size of Próspera Village is 58 acres and contains areas for its headquarters, housing, and areas for businesses to set up. Its size can grow over time if local owners agree to integrate their properties into the territory of the ZEDE.
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