A feasibility study is an analysis of how successfully a project can be completed, accounting for factors that affect it such as economic, technological, legal and scheduling factors. Project managers use feasibility studies to determine potential positive and negative outcomes of a project before investing a considerable amount of time and money into it.

1. THE NEEDS ANALYSIS

Step 1: Demonstrate that the project aligns with the Institution’s strategic objectives

Step 2: Identify and analyze the available budget for project development

Step 3: Demonstrate the commitment and capacity of the Institution and other state authorities

Step 4: Specify the outputs

Step 5: Define the scope of the project

THE OPTIONS ANALYSIS

Step 1: List all the solution options the institution has considered

Step 2: Evaluate each solution option

Step 3: Choose the best solution option

PROJECT DUE DILIGENCE

Step 1: Legal issues

Step 2: Site ownership and availability issues

Step 3: Environmental Assessment

Step 4: Social Assessment including land acquisition/resettlement impacts

4. FINANCIAL ASSESSMENT

Technical definition of the project

Identifying direct costs

Identifying indirect costs

Identifying project revenue

Model assumptions

The Base Case model

The Risk Matrix

The risk adjusted financial model

Creating the model to reflect PPP project structure and sources of funding

Carry-out various sensitivity testing

Economic Analysis

VALUE ASSESSMENT

ECONOMIC ASSESSMENT

DEMONSTRATE PROJECT VIABILITY

VERIFY INFORMATION AND SIGN-OFF

PROJECT MANAGEMENT AND PROCUREMENT PLAN

REVISITING FEASIBILITY STUDY