The Asian Development Bank and Tanveer Dal Mill and Flour Mills Limited, a member of the Meghna Group of Industries, have signed a $20 million-loan agreement to support construction of a greenfield state-of-the-art, energy-efficient flour milling plant in Bangladesh.
This new facility will double MGI鈥檚 wheat flour output and enable the production of quality wheat products while consuming 37 per cent less electricity than existing plants.
The improved energy efficiency is expected to lower operational costs and reduce carbon dioxide emissions by approximately 8,200 tonnes annually.
The plant will produce 6,60,000 tonnes of wheat, contributing to domestic agriculture production and enhancing food security, said an ADB press release on Thursday.
鈥楾his project marks a significant step toward the advancement of sustainable industrial development in Bangladesh. By promoting energy-efficient technologies and improving product quality, ADB and MGI are directly contributing to the country鈥檚 food security, food safety, economic resilience and environmental sustainability,鈥� said ADB director general for private sector operations Suzanne Gaboury.
鈥楩urthermore, the project is aligned with the Government of Bangladesh鈥檚 goals of strengthening domestic agro-processing and reducing the energy intensity of key industries,鈥� added Suzanne.
The demand for wheat in Bangladesh has been steadily increasing, but domestic production has not kept pace. In 2022, the country consumed about 8.8 million tonnes of wheat, while local production exceeded only one million tons.
This reliance on imported wheat highlights the urgent need to expand domestic milling capacity. With the anticipated rise in demand for flour milling, investing in energy-efficient technologies will foster environmentally sustainable growth in this sector.
鈥楾he project will ensure food security, create additional employment opportunities for 160 individuals, foster relationships with 1,50,000 vendors in the SME sector, support market creation and industrialization, and more importantly, contribute sustainable GDP growth in the Bangladesh economy,鈥� said MGI鈥檚 chairman and managing director Mostafa Kamal.
鈥榃e are enthusiastic about working with ADB and this project demonstrates the group鈥檚 commitment to due diligence and compliance,鈥� added Kamal.
