DHAKA, BANGLADESH — The Asian Development Bank (ADB) and Tanveer Dal Mill and Flour Mills Ltd., a member of the Meghna Group of Industries (MGI), announced on Dec. 4 that they have signed a $20 million loan agreement to support the construction of a greenfield state-of-the-art, energy-efficient flour mill in Bangladesh.

The new facility will double MGI’s wheat flour output while consuming 37% less electricity than existing plants. The company said improved energy efficiency is expected to lower operational costs and reduce carbon dioxide emissions by approximately 8,200 tonnes annually. The mill will process 660,000 tonnes of wheat per year, contributing to domestic agriculture production and enhancing food security.

“This project marks a significant step toward the advancement of sustainable industrial development in Bangladesh,” said Suzanne Gaboury, ADB’s director general for private sector operations. “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.”

Wheat demand in Bangladesh has been steadily increasing, but domestic production has not kept pace. In recent years, the country consumed around 8 million tonnes of wheat while producing a little over 1 million tonnes, according to the Foreign Agricultural Service of the US Department of Agriculture.

This reliance on imported wheat highlights the urgent need to expand domestic milling capacity, the ADB noted. With the anticipated rise in demand for flour milling, investing in energy-efficient technologies will foster environmentally sustainable growth in this sector, it said.

“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 Mostafa Kamal, chairman and managing director of MGI. “We are enthusiastic about working with ADB, and this project demonstrates the group’s commitment to due diligence and compliance.”