The Asian Development Bank (ADB) and Tanveer Dal Mill and Flour Mills Limited, a member of the Meghna Group of Industries (MGI), 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 MGI’s wheat flour output and enable the production of quality wheat products while consuming 37% less electricity than existing plants, said ADB on Thursday.

The improved energy efficiency is expected to lower operational costs and reduce carbon dioxide emissions by approximately 8,200 tons annually.

The plant will produce 660,000 metric tons of wheat, contributing to domestic agriculture production and enhancing food security.

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"This 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's food security, food safety, economic resilience, and environmental sustainability," said ADB Director General for Private Sector Operations Suzanne Gaboury.

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 tons of wheat, while local production exceeded only one million tons.

“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 industrialization, and more importantly, contribute sustainable GDP growth in the Bangladesh economy,” said MGI’s Chairman and Managing Director Mostafa Kamal.

Established in 1976, MGI is one of Bangladesh’s leading and most diversified conglomerates, with interests spanning fast-moving consumer goods, building materials, chemicals, energy, packaging, and logistics.