HONDURAS Trends and Developments Contributed by: Benito Zelaya, Alejandro Cáceres, Juan Carlos Benítez and Luis Ernesto Cruz Gamero, Lexincorp
Conclusion and future prospects In conclusion, the evolution of the construction indus- try in Honduras requires a definitive abandonment of traditional litigation in favour of proactive and techni- cal risk management. The integration of conciliation and commercial arbitration within infrastructure con- tracts is not only a procedural benefit, but also a guar- antee of operational continuity and financial viability for domestic and foreign investors. The strategic use of staggered clauses and the strengthening of local institutional centres ensure that technical disputes are resolved with the speed that the sector’s cash flow demands, consolidating an environment of absolute legal certainty that safeguards the profitability of pro- jects in the face of uncertainty. Going forward, the trend points towards a further insti- tutionalisation of DBs and the use of digital tools to streamline on-site decision-making. Likewise, Hondu- ras’ recent re-entry into the ICSID convention signals a new stage of confidence for cross-border capital, offering a depoliticised and robust international forum for the protection of large-scale investments. The technical specialisation of arbitrators and the partici- pation of qualified experts will be the pillars enabling the country to position itself as an efficient and com- petitive venue, transforming conflict resolution into a strategic asset that enhances the development of national and regional infrastructure.
islation, principally the Ley de Conciliación y Arbitraje (Decree No 161-2000) and its subsequent reforms, further establishes the procedural pathway for the homologation and execution of foreign awards before the competent civil courts, providing a complemen- tary domestic framework aligned with the Conven- tion’s objectives. II) Honduras’ return to ICSID Of particular significance for foreign investors is Hon- duras’ re-accession to the Convention on the Set- tlement of Investment Disputes between States and Nationals of Other States (the “ICSID Convention”), administered by the World Bank Group’s International Centre for Settlement of Investment Disputes. Hon- duras had previously denounced the ICSID Conven- tion in 2011 but formally rejoined the ICSID system, restoring investor-state arbitration as a forum avail- able under applicable bilateral investment treaties (BITs) and free trade agreements containing invest- ment chapters ‒ including, most notably, the Domini- can Republic–Central America Free Trade Agreement (DR-CAFTA). This development substantially enhanc- es the legal certainty available to US and other qualify- ing foreign investors engaged in large-scale infrastruc- ture projects in Honduras, as it reinstates access to a depoliticised, internationally supervised mechanism for the resolution of investment disputes against the Honduran state ‒ one whose awards enjoy the benefit of direct enforcement in all ICSID member states with- out the need for domestic homologation proceedings.
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