ADB and Meghna Group Sign $20M Loan for Energy-Efficient Flour Milling Plant in Bangladesh
The Asian Development Bank (ADB) has signed a $20 million loan agreement with Tanveer Dal Mill and Flour Mills Limited, part of the Meghna Group of Industries (MGI), to develop an energy-efficient flour milling plant in Bangladesh. The new facility, with a production capacity of 660,000 metric tons of wheat flour annually, will double MGI’s output and reduce electricity use by 37%. It will also cut carbon emissions by 8,200 tons annually, contributing to Bangladesh’s sustainability goals
The Asian Development Bank (ADB) has entered into a $20 million loan agreement with Tanveer Dal Mill and Flour Mills Limited, a member of the Meghna Group of Industries (MGI), to support the development of a state-of-the-art, energy-efficient flour milling plant in Bangladesh. This new greenfield facility will significantly boost the country’s wheat flour production and contribute to improved energy efficiency and environmental sustainability.
The new plant will have the capacity to produce 660,000 metric tons of wheat annually, effectively doubling MGI’s existing wheat flour output. By incorporating cutting-edge energy-efficient technologies, the facility will reduce electricity consumption by 37% compared to current plants. This improvement is expected to lower operational costs while reducing carbon dioxide emissions by approximately 8,200 tons each year, aligning with Bangladesh’s goals of enhancing industrial sustainability.
“This project is a pivotal step in advancing sustainable industrial development in Bangladesh,” said Suzanne Gaboury, Director General for Private Sector Operations at ADB. “By integrating energy-efficient technologies and enhancing product quality, ADB and MGI are contributing directly to the country’s food security, economic resilience, and environmental goals.”
Bangladesh’s wheat demand has been steadily rising, but domestic production has not kept pace with consumption. In 2022, the country consumed about 8.8 million tons of wheat, while local production exceeded only one million tons. This imbalance highlights the urgent need for increased domestic milling capacity. The new plant aims to bridge this gap by expanding the country’s milling infrastructure and reducing dependency on imported wheat.
In addition to enhancing food security, the project will create employment opportunities for 160 people and foster relationships with 150,000 small and medium-sized enterprises (SMEs) in the region. It is also expected to support market creation and industrialization, contributing to sustainable GDP growth in Bangladesh’s economy.
“The project will not only ensure food security but also create new jobs, stimulate SME growth, and contribute to industrialization,” said Mostafa Kamal, Chairman and Managing Director of MGI. “We are proud to collaborate with ADB, and this project reflects our commitment to compliance and due diligence in all our operations.”
MGI, established in 1976, is one of Bangladesh’s largest and most diversified conglomerates, with investments in various sectors such as consumer goods, building materials, chemicals, energy, packaging, and logistics. This latest initiative underscores the group’s ongoing efforts to support the country’s economic growth and environmental sustainability.
The ADB-funded project represents a major milestone in Bangladesh’s agro-processing sector, marking a crucial step towards a more energy-efficient and resilient economy.
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Source : Devdicourse
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