A feasibility study is normally used in the pre-investment phase of implementation of a project. Its objective is to assess the project investment plan from all possible points of view (mostly technical, economic and environmental) and to identify and evaluate potential alternative approaches to project implementation in order to provide a basis for selecting the optimum alternative.
When preparing a feasibility study concerning an investment plan, we offer the following:
- A detailed analysis of background data and pre-conditions for implementation of the project (social, economic, legislative and environmental context).
- Analysis of the existing situation and expected development of the relevant market segment and its structure, especially as regards the existing and expected supply and demand for products or services, while taking into account the regional market aspects and expectations of the target groups.
- Analysis of the investor´s position and competitive standing in the market and the possibilities of increasing efficiency and competitiveness by carrying out the proposed project.
- Justification of the project, its objectives and expected requirements for success.
- Identification of possible alternatives for project implementation.
- Analysis of technical, technological and environmental aspects of the project.
- Assessment of alternatives and selection of the best project alternative.
- Description of the project implementation – specification of the necessary activities and of the project team and a time-table and financial structure for implementation.
- Analysis of project costs and benefits:
- Financial analysis – assessment of the profitability of the investment, determination of the contribution in case of projects co-financed from EU funds, or by other donors, examination of the financial sustainability of the project
- Economic analysis – determination of the economic net present value (ENPV), economic rate of return (ERR), ratio of benefits/cost (B/C)
- Sensitivity and risk analysis
- Project sustainability assessment.
- Assessment of environmental impacts.