The Asian Development Bank (ADB) and the Meghna Group of Industries have signed a $20-million loan agreement to support the construction of a greenfield, state-of-the-art, energy-efficient flour-milling plant in Bangladesh.
This new facility will double the group's wheat flour output and enable the production of quality products while consuming 37-per cent less electricity than existing plants, reads an ADB statement.
Tanveer Dal Mill and Flour Mills Limited, a subsidiary of Meghna Group, entered into the deal with the lender on Thursday.
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 660,000 metric tonnes of wheat, contributing to domestic agriculture production and enhancing food security.
"This project marks a significant step towards the advancement of sustainable industrial development in Bangladesh," said ADB Director General for Private Sector Operations Suzanne Gaboury.
"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."
"Furthermore, the project is aligned with the Government of Bangladesh's goals of strengthening domestic agro-processing and reducing the energy intensity of key industries," according to the ADB executive.
The demand for wheat in Bangladesh has been steadily increasing, but domestic production has not kept pace.
In 2022, Bangladesh consumed about 8.8-million tonnes of wheat, while local production exceeded only 1.0-million tonnes. 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, according to the Manila-based lender.
"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 sustainable GDP growth...," said MGI chairman and managing director Mostafa Kamal.
"We are enthusiastic about working with the ADB and this project demonstrates the group's commitment to due diligence and compliance," he added.
Established in 1976, Meghna Group is one of Bangladesh's leading and most diversified conglomerates, with interests spanning fast-moving consumer goods, building materials, chemicals, energy, packaging and logistics.
The ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
Established in 1966, the ADB is owned by 68 members-49 from the region.
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