Honduras: Offshore prison plan falters after bidding process fails

The project to build an offshore prison complex in the Cisne Islands off the north coast of Honduras has suffered a setback after authorities announced the failure of the first tender process to award the construction contract.

“The criminals and their allies should not be happy after the first tender process was declared a failure, because all processes should be transparent,” Honduran Defense Minister José Manuel Zelaya was quoted as saying by the daily newspaper El Heraldo. The Defense Ministry is overseeing the construction.

Without giving further details, Zelaya added that the reason for the failure of the procedure was the lack of guarantees from the companies involved.

“Since the companies have not presented the guarantees, the law provides that the tender is declared invalid and a new tender must be announced immediately so that all companies can submit offers, as the law provides,” Zelaya added.

Details of the tender process have not yet been disclosed as the notice was not published on Honducompras's public tender website and the ministry invited only 12 unnamed companies to participate.

This is the latest in a series of obstacles the project has encountered since the prison plans were announced in 2023. Previously, there were delays in the tender process and in obtaining environmental approval, which was reportedly granted last month.

Despite these problems, Zelaya said the project would continue in 2023 as ordered by President Xiomara Castro, following gang clashes at a women's prison near the capital Tegucigalpa in June last year that left 46 inmates dead.

The minister added that by isolating dangerous prisoners on the Cisne Islands, about 250 kilometers off the country's northern coast, the government could reduce the likelihood that they would acquire weapons or drugs or have links to organized criminal gangs.

Zelaya also said that certain prisoners could also be involved in the construction of the complex.

“I do not rule out making 'trustworthy' prisoners available to help with the work. In this sense, the company that wins the contract must use 100% of its logistical and financial resources to complete the job within the allotted time,” he was quoted as saying by La Tribuna.

Engineers and construction experts estimate that the project will cost at least $800 million due to the cost of transporting materials and workers to the islands, which could put a heavy strain on the state's coffers.

However, Zelaya claimed that “the construction [estimated] at 1–1.5 billion Lempira (40–60 million US dollars).”

The project has also been heavily criticised by environmentalists because the construction site is located in a protected area whose ecosystems are home to dozens of endemic species. The works could destroy these habitats and pollute the surrounding waters. These concerns have not been fully taken into account by the authorities.

“I do not agree with the project. Ultimately, it is in the government's interest to build the prison at any cost and it is doing so ruthlessly, whatever it has to do,” engineer Jorge Paz of the Honduran Association of Civil Engineers told BNamericas.

Most information related to the project remains confidential after the Department of Defense requested that its release be kept under wraps, citing national security concerns.