📋 Tender Overview
Project Number: 48468
Company Name: MEGHNA GROUP (TFL AND GUARANTORS)
Date ESRS Disclosed: Aug 13, 2024
Country: Bangladesh
Region: South Asia
Environmental Category: A
Status: Pending Approval
Sector: Integrated Steel Works
Industry: Manufacturing
Department: Regional Industry - MAS Asia & Pac
Project Description
Meghna Group of Industries (MGI) has diversified business operations across multiple industrial sectors in Bangladesh. As part of its business expansion, Meghna Group is establishing a scrap steel-based, greenfield steel mill and rerolling plant (the Project) with a capacity of 1.4 million metric tonnes of billets per year and rebar capacity of 0.9 million metric tonnes per year in the Cumilla Economic Zone (CuEZ) located in Luterchar union, Meghna Upazila, Cumilla district in Bangladesh. For more information, you can visit https://www.mgi.org/.
The proposed IFC investment is for up to US$100 million ( IFC Loans ) to Meghna Re-Rolling and Steel Mills Limited ( MRSML or the Company ) in Bangladesh. The financing is proposed to include up to US$46.02 million senior-secured A loan from IFC (the A Loan ) alongside up to US$53.98 million from Managed Co-Lending Portfolio Program (the MCPP Loan ). MGI has established MRSML as a new entity for setting up and operating the scrap steel-based steel mill project.
The project is being developed on 71 acres of land (23°35'25.10N to 23°34'48.55N and 90°39'1.68E to 90°39'1.64E) located within the larger 246 acre CuEZ industrial land which is concurrently being developed with the project. This new industrial park is located adjacent to residential and agricultural areas as well as the National Highway 1 (N1), which connects the capital city of Dhaka (35 km from the project site) and the port city of Chittagong (200 km from the project site). A branch of the Meghna River flows along the northern and western boundaries of the project site where a captive wharf is proposed to receive imported steel scrap. M/s Badische Steel Engineering (BSE) (https://www.bse-kehl.de/en#) from Germany has been retained as the project’s detailed engineering consultant as well as to support MRSML during commissioning, operations, and maintenance phase in the first two years. BSE has five decades of experience in operating their own electric steel plants in Europe. M/s Danieli SPA, Italy (https://www.danieli.com/en/) has been retained to supply and establish the greenfield steel milling and rerolling plant.
The project includes 1) main production facilities such as scrap steel workshop (open-air storage yard, scrap steel shearing line, and scrap steel room); scrap processing; smelting workshop – 1150 t DC electric arc furnace, 1150t ladle refining furnace; continuous casting workshop; steel rolling workshop; and steel slag processing workshop (30 tons per hour); 2) auxiliary production facilities such as water treatment plant (WTP); fume treatment plant; 10,000 Nm3/hour capacity oxygen and other ga
