ADB, Meghna Group ink $20m deal for green flour mill project
The facility is expected to consume 37% less electricity compared to existing plants, reducing operational costs and carbon dioxide emissions by around 8,200 tons annually, according to an ADB press release
The Asian Development Bank (ADB) and Tanveer Dal Mill and Flour Mills Limited – an entity of Meghna Group of Industries (MGI), have signed a $20 million loan agreement to establish a state-of-the-art, energy-efficient flour milling facility in Bangladesh.
This new greenfield plant, designed to double MGI's wheat flour output, will produce 660,000 tonnes of wheat annually, enhancing the country's food security.
The facility is expected to consume 37% less electricity compared to existing plants, reducing operational costs and carbon dioxide emissions by around 8,200 tonnes annually, according to a press release issued on 4 December.
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ADB Director General for Private Sector Operations Suzanne Gaboury described the initiative as a "significant step toward advancing sustainable industrial development in Bangladesh."
She said, "By promoting energy-efficient technologies and improving product quality, ADB and MGI are directly contributing to the country's food security, food safety, economic resilience, and environmental sustainability."
The project aligns with Bangladesh's goals of bolstering domestic agro-processing while reducing energy consumption in key industries.
Bangladesh's wheat demand has been steadily increasing, with consumption reaching 8.8 million tonnes in 2022. However, local production remains at just over one million tonnes, underscoring the country's reliance on imports and the need to expand domestic milling capacity.
"The project will ensure food security, create additional employment opportunities for 160 individuals, foster relationships with 150,000 vendors in the SME sector, support market creation and industrialisation, and more importantly, contribute to sustainable GDP growth in the Bangladesh economy," said MGI's Chairman and Managing Director Mostafa Kamal.
Founded in 1976, MGI is one of Bangladesh's most diversified conglomerates, operating across sectors including fast-moving consumer goods, chemicals, packaging, energy, and logistics.
ADB, established in 1966, aims to foster inclusive and sustainable development across Asia and the Pacific, working toward eradicating extreme poverty in the region.
