EPA grants permit for US$600M Vreed-en-Hoop shore base project
Harvesting underway at Better Success, in Region Two, where farmers remain hopeful that they will receive a good price and prompt payment from millers for their yields. See story on page 23.
The Environmental Protection Agency (EPA) has granted an environmental permit to NRG Holdings Incorporated, clearing the way for the start of its projected US$600 million Vreed-en-Hoop oil and gas shore base development.
NRG Holdings Incorporated yesterday confirmed that on Monday, September 6, it received an Environmental Permit from the EPA, which paves the way for the commencement of the “Port of Vreeden-Hoop Project.”
With the issuance of the permit, the company said it will now have to submit an Environmental and Social Management Plan to the EPA within four months.
“The Plan will outline the mitigation measures for any impact that the project will have within the proposed area and surrounding communities,” it said in a statement.
“The permit also guides the hours of construction, as well as the authorization protocol for use of the land,” it added.
NRG Holdings Inc. is a consortium of three local entrepreneurs, comprising gold miner Andron Alphonso, of ZRN Investment Inc; Nazar ‘Shell’ Mohammed, of HADI’S World Incorporated; and Nicholas Deygoo-Boyer of National Hardware Guyana Ltd.
The EPA has stated that the Best Village shore base would not require an Environmental Impact
Assessment, noting that the project was screened and categorised as having no significant impacts. And while the EPA did not state that the proposed facility would be in an area with mangroves, it noted that “detailed specific mitigation measures” should be explained. The EPA’s decision to not require EIAs for large oil and gas projects has raised concerns.
According to the EPA, it will also prescribe in its authorisation robust measures and safeguards to ensure compliance with its
Act and that an Environmental and Social Management Plan is required to be prepared to address specific issues identified in the screening process.
The project summary states that the project “is estimated to cost approximately US$200 to 600 million,” which shall include geotechnical and environmental studies, engineering
works, dredging operations, reclamation, and the construction of wharf, storage, warehouse, and safety facilities.
It describes the proposed initiative as “an industry leading shore base facility for the oil & gas sector including the possible environmental and social impacts” and with an overall goal “to develop this
landmark facility as a means of equipping and bringing tremendous value to locals in the management and operation of the emerging oil & gas sector while directly meeting the high standards of overall industry needs.” It continues, “This space will be developed into sustainable and industry leading facilities showcasing what can be done through local content, investment, and international partnership.”
This was reiterated by NRG in a statement yesterday where it said that “the project will see an investment of up to US$600
Million by the 100-percent Guyanese-owned consortium.”
“The port facility is expected to generate massive employment and revenue opportunities for Guyanese. Located at Vreed-en-Hoop, Region Three, it will occupy some 400 hectares of coastal land. Approximately 150-200 persons are expected to be hired during construction and 50-100 persons for the basic operation and maintenance of the base port facilities indicated in phase one,” it added.
According to the investors, the facility will also see services previously provided out of Trinidad now being carried out in Guyana, with the local economy benefitting from employment, duties and taxes, ancillary goods and services and capacity-building.
Deygoo-Boyer was quoted as underscoring that the project will not service the oil and gas industry only but will also cater to all sectors that require a port facility. He said, “We aim for this project to be transformative, not only for the oil and gas sector, but also for the ordinary person on the street as we seek to reduce shipping costs with this new container terminal.”
Nazar Mohammed’s son, Azruddin, according to the statement, expressed appreciation that the government is creating an enabling business environment, allowing for the project to create employment for thousands of Guyanese.
For his part, Secretary of the consortium, Alphonso, said, “NRG Holdings Inc. is committed to pursuing this development in a manner that is beneficial to all stakeholders. We want to ensure that as we contribute to local content development and provide opportunities for Guyanese in the oil and gas sector, we also do so in a way that is also responsible and sustainable. At the end of it, it must be wholly beneficial not just to us as the investors but to the citizens in the surrounding communities and other stakeholders as well.”
NGR said that the Port of Vreed-en-Hoop project is a direct result of opportunities that are arising from the development of the oil and gas sector and its demands. “It takes into account the untapped opportunities in terms of services that are required by the sector, but are being provided outside of Guyana’s territory, leading to revenue leaks for the country,” the statement added.