Honduras had planned to appoint five international experts, including the driving force behind the concept, economist Paul Romer, to form a transparency committee, to ensure the necessary safeguards to protect Honduras and its workforce, and to enforce good governance in the "private cities".

However, in a statement posted on the Internet, Romer tried to clarify that the group was not involved in the agreement signed with NKG, and confirmed that the decree formalizing his appointment and the establishment of the commission has not been published in the official newspaper, because the Supreme Court of Honduras is considering a constitutional motion against the law that allows the creation of Special Development Regions.

"So there are no conditions for the Transparency Commission to play the role envisaged for this ambitious and important project", said Romer.

Source: Tax-News

More on this topic

Honduras: Way Cleared for "Private City"

September 2012

The Commission for the Promotion of Public-Private Partnerships has signed an agreement with the international consortium MKG Group who will initially invest $15 million.

The first Special Development Region (RED, by its acronym in Spanish) will be built in Trujillo on the north coast of Honduras.

Honduras Approves Law on Charter Cities

July 2011

Congress has approved a law governing the Special Development Regions (REDs in Spanish).

The law states that the REDs are allowed to have their own budget, the right to collect and administer their own taxes, to determine the rates they charge for their services, to hold all types of contracts that extend to the next period of government, and manage their own internal and external debts as long as they have the approval of the State of Honduras.

Honduras Discusses Statute to Regulate 'Charter Cities'

July 2011

A constitutional statue law on the Special Development Regions (RED’s by Spanish initials) has been approved in the first debate in Congress.

The new law defines RED’s as autonomous cities, which will be led by an "executive governor", a "policy board" and a "constitutional council".

Koreans to Conduct Feasibility Studies for Charter City

May 2011

The Government of Honduras signed an agreement with the Korean company Posco, to carry out feasibility studies for the construction of the first "charter city".

The agreement states that the Korean company will perform the necessary analysis to determine whether it is possible to build the charter cities in selected regions.