Vreed-en-Hoop Shore Base project: US$25M financing secured through New Hayven Merchant Bank

The content originally appeared on: INews Guyana
The artificial island being constructed as part of the Vreed-en-Hoop shorebase

The Vreed-en-Hoop Shore Base Incorporated (VEHSI) has received financing to the tune of US$25 million, approved through the New Hayven Merchant Bank for a landmark project.

This disclosure was announced by the Bank on Thursday. New Hayven said it was a leading financial institution committed to fostering economic development.

This financing marks a significant milestone in facilitating VEHSI’s first-of-a-kind oil and gas infrastructural project in Guyana. Collaborating closely with an external financial entity, New Hayven Merchant Bank spearheaded the structuring and deployment of this financing arrangement, tailored specifically to meet the unique requirements of VEHSI’s project.

“The collaboration underscores New Hayven’s dedication to providing innovative financial solutions and supporting transformative initiatives that drive economic progress. Guyana’s emergence as a pivotal player in the global energy landscape presents unparalleled strategic investment and development opportunities,” the Bank shared.

New Hayven Merchant Bank said it recognised the immense potential of the Guyanese economy and remained steadfast in its commitment to empower businesses operating within the Region.

Floyd Haynes, Founder and Chairman at New Hayven Merchant Bank, stated, “Our partnership with VEHSI in this landmark project exemplifies our commitment to fuelling growth and fostering sustainable development. As Guyana undergoes profound transformation, we are proud to serve as a trusted financial partner, providing tailored financing solutions and expertise to enable businesses to thrive in this dynamic environment.”

The Bank added that its commitment extended beyond this collaboration, as it continues to actively engage with other providers of risk capital to deliver bespoke financing solutions and deploy capital across diverse sectors within Guyana. By facilitating access to capital and fostering strategic partnerships, New Hayven aims to catalyse growth and drive economic prosperity throughout the Region.

VEHSI is a joint venture between a fully Guyanese-owned consortium – NRG Holdings Incorporated, and Jan De Nul Group, the Belgium-based company undertaking the project that specialises in offshore, marine, civil, environment, and project development.

The consortium includes Nicholas Boyer and Eddie Boyer of National Hardware Guyana Limited, and Andron Alphonso of ZRN Investments Inc. NRG holds a majority stake of 85 per cent in VEHSI, while the remaining 15 per cent is owned by Jan De Nul – the company that constructed the facility.

The shore base project started in June 2022, with the dredging of the access channel in the Demerara River, including the deepening/widening of the existing nautical channel, berth pockets, and turning basin.

In April 2022, ExxonMobil Guyana and the VEHSI signed a 20-year agreement for shore base services to be provided at the port of Vreed-en-Hoop facility to support the US oil giant’s operations offshore Guyana. The sod was subsequently turned in June of that year on the US$300 million facility.

The multi-billion port was expected to feature an offshore terminal; fabrication, umbilical and spooling yards; a dry dock facility; a wharf and berths, and administrative buildings, among other facilities spanning 65 hectares.Last November, the Shore Base received its first commercial ship, the MV Virtuous Striker.

Additionally, with a cargo of over 26,900 metric tonnes, it was one of the largest payloads to ever be offloaded. The docking and offloading of the vessel marked a major milestone for the facility.