Honduras deal sets stage for investors to build three privately run cities to host new industries
Sep. 6, 2012 -- TEGUCIGALPA, Honduras (AP) -- Investors can begin construction in six months on three privately run cities in Honduras that will have their own police, laws, government and tax systems now that the government has signed a memorandum of agreement approving the project.
An international group of investors and government representatives signed the memorandum Tuesday for the project that some say will bring badly needed economic growth to this small Central American country and that at least one detractor describes as "a catastrophe."
The project's aim is to strengthen Honduras' weak government and failing infrastructure, overwhelmed by corruption, drug-related crime and lingering political instability after a 2009 coup.
The project "has the potential to turn Honduras into an engine of wealth," said Carlos Pineda, president of the Commission for the Promotion of Public-Private Partnerships. It can be "a development instrument typical of first world countries."