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.
According to the agreement signed on Tuesday, the new cities will have their own legal and tax systems.
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.
The Government of Honduras announced an aggressive plan for legal reform and a campaign to promote the country as an investment destination.
With the launch of web portal "Honduras is open for business" and a video of a speech by President Porfirio Lobo the Honduran Government announced the National Investment Promotion program 2010-2014, named "The high point of a deep institutional and legal reform to position Honduras as the most attractive investment destination in Latin America.”