Bangladesh : Envoy Sustainable and Energy Efficient Textile Manufacturing Project

Nonsovereign Project | 56027-001

The Project involves funding the purchase and installation of spinning machinery and associated equipment for Envoy Textiles Limited's second spinning unit. The new unit will have an annual yarn production capacity of 3,600 tons which will be mainly used for in-house consumption. The borrower has its factory in Jamirdia, which is about 71 kilometers north of Dhaka.

Project Details

  • Project Officer
    Oishi, Yohei
    Private Sector Operations Department
    Request for information
  • Approval Date
    28 November 2022
  • Country/Economy
    Bangladesh
  • Sector
    • Industry and trade
Project Name Envoy Sustainable and Energy Efficient Textile Manufacturing Project
Project Number 56027-001
Borrower / Company Envoy Textiles Limited (ETL)
Country / Economy Bangladesh
Location Nation-wide
Type or Modality of Assistance
4259 Loan Ordinary capital resources EUR 10.80 million Approved
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Industry and trade / Industry and trade sector development
Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Oishi, Yohei
Project Sponsor(s)
Description The Project involves funding the purchase and installation of spinning machinery and associated equipment for Envoy Textiles Limited's second spinning unit. The new unit will have an annual yarn production capacity of 3,600 tons which will be mainly used for in-house consumption. The borrower has its factory in Jamirdia, which is about 71 kilometers north of Dhaka.
Objectives and Scope

Impact. The project is aligned with the following impacts: (i) fulfillment of domestic and export demand for textile within the country provided, (ii) export and modernization of the textile industry for creation of employment opportunities increased, and (iii) international competitiveness, and sustainable development attained.

Outcome. The project represents ADB's support to the important textile industry in Bangladesh-a key driver of economic growth, employment and exports. The project will have the following outcome: sustainable denim fabric manufacturing operations of the borrower improved. Once implemented, the project is expected to increase the borrower's annual denim fabric production, reduce wastewater hazardous sludge, and reduce electricity consumption.

Outputs. The project's outputs will be (i) energy efficient spinning production capacity of the borrower expanded with gender equality enhanced, and (ii) gender equality in the local economy enhanced. On completion, the project will lead to an increase in annual yarn production capacity by 3,600 tons.
Linkage to Country/Regional Strategy The project is consistent with the following operational priorities of ADB's Strategy 2030: (i) addressing remaining poverty and reducing inequalities, by creating jobs; (ii) accelerating progress in gender equality, by promoting gender equality through a gender action plan; and (iii) enhancing environmental sustainability, by reducing power consumption and greenhouse gas emission by installing a more energy efficient spinning unit. The project is also aligned with ADB's country partnership strategy, 2021-2025 with Bangladesh as the project aims to boost competitiveness, employment, and private sector development; and promote green growth.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects ADB has undertaken environmental and social (E&S) compliance audit and reviewed the potential E&S impacts of the project and the measures to avoid, minimize, mitigate, and compensate for the adverse impacts in the safeguard reports and plans. A corrective action plan was prepared as part of the audit to address gaps in the alignment of policies, procedures, and practices with ADB and national requirements. The environmental and social management system will be updated prior to the disbursement to address the gaps identified during the audit. The borrower has taken necessary steps to prevent pollution, including air and water pollution, reduce greenhouse gas emissions and solid and hazardous wastes management; and enhance resource efficiency in their business operations. The environmental and social measures and the institutional capacity and commitment of the borrower to manage the project's social and environmental impacts are deemed adequate.
Involuntary Resettlement The project does not involve land acquisition and no involuntary resettlement impacts are linked to this transaction. Additional spinning machinery will be installed on the existing manufacturing facility of the borrower. ADB undertook due diligence and reviewed potential social impacts of the project, and results show that the social measures and commitment of the borrower to manage the project's social impacts are deemed adequate.
Indigenous Peoples The borrower's operations have no known impacts on any Indigenous Peoples. The factory is in an industrial area and impacts on Indigenous Peoples are not anticipated.
Stakeholder Communication, Participation, and Consultation The borrower conducted a stakeholder analysis and was able to identify its stakeholders and the level of influence each stakeholder category has on this project and its overall operations. A corrective action from the ESMS audit is the development of a Stakeholder Engagement Plan, including a revised grievance management procedure for its internal and external stakeholders, as part of the ESMS enhancement.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 28 Nov 2022
Last PDS Update 06 Dec 2022

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Envoy Sustainable and Energy Efficient Textile Manufacturing Project: Gender Action Plan Gender Action Plans Nov 2022
Envoy Sustainable and Energy Efficient Textile Manufacturing Project: FAST Report Faster Approach to Small Nonsovereign Transactions Nov 2022
Envoy Sustainable Backward Integration Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Sep 2022

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Envoy Sustainable Backward Integration Project: Environment and Social Compliance Audit Report Environment and Social Compliance Audit Reports Aug 2022

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.