Economic feasibility studies

Increasingly important economic feasibility studies on new projects under the direction of state and government to reduce the role of the public sector, and increase interest in the role of the private sector, and the private sector to seek use of available resources in the best form, and that by directing private sector resources in the best use of available, or the so-called consciousness of the term (the rational use of resources), and in order to ensure investor success of the project, it is imperative that the investor in the preparation of a feasibility study, in order to allow the investor to not only the idea of ​​the project, but does not even make a profit.

* The concept of economic feasibility study

There are two concepts in the feasibility study are the following:

1 - the first concept: it is all of the studies relating to the investment opportunity in all the different stages, and even access to the final decision to accept the idea of ​​ investment, and to consider the idea of ​​investment (Economically Justifiable),

or rejected the idea of ​​a final investment, to consider this investment idea is economically justified.

2 - The second concept: the concept is a narrow, confined to this concept in the economic feasibility study between the beginning of the project on the grounds that the project idea, and on the previous stage in the evaluation of the project, and the target the final is to reach an informed decision to accept the idea of ​​investing in the project, which started the idea.

And economic feasibility study requires conversant in many fields of knowledge, and in particular areas, management, economics, marketing and accounting and statistics and legal matters, as follows feasibility studies provide the resources and time and effort, before embarking on the implementation of the project.

* Do in economic feasibility studies

The decision to conduct a feasibility study something that should not be taken in simply, because the feasibility study cost money and time and effort, and before doing the feasibility study must be available as of information and alternatives, and that those in charge of economic feasibility study wants to examine the options and alternatives, and should also provide a great deal of data that you want to test the reliability, and this means that before doing the feasibility study should be to have as much of the initial information, and which are considered promising in the success of the idea of ​​the project, and this stage is called preliminary study or study idea,

(Pre-feasibility) and that this idea can be carried out through co-workers, friends or family or people resort to consultants or specialists, and can at this early stage of the work market study, in order to make sure there is the possibility of marketing the product, and if there is no possibility of marketing the product, here are the costs of providing the comprehensive study, (Comprehensive Feasibility Study) and if there is a possibility of marketing the product (Market Viability) consequent continuation of the economic feasibility study, and the use of what has been in the study of marketing the product in the market in the completion of the feasibility study.

* Specification economic feasibility study

Depends accept or reject the economic feasibility study to examine the feasibility study, in order to ensure the accuracy and coverage of the study, and before accepting the economic feasibility study must make sure that the study meet the following requirements:

1 - that the feasibility study be easy to read and to be understanding.

2 - that the study be clear in terms of the important things and questions about the project.

3 - Identification and discussion of all the assumptions related to the project analysis.

4 - Full project management expectations investigation.

5 - To achieve harmony and coordination among all sections of the project.

6 - To be economic feasibility study of the rules and conditions available scientific research and the possibility of Marketing

7 - To be a feasibility study containing all the required information, and that the study meets all the conditions set out in the contract or agreement with the operators of the project.

* The difference between action plan and economic feasibility study

If the feasibility study showed that the idea is acceptable or promising success, the second step is to prepare a plan to include details of what each section of the feasibility study, and in the Department of Finance feasibility study onFor example is a detailed visualization to the various sources of funding, and to develop different scenarios to the next three years at least, the plan of action and give you a chance to discover any points weakness, or any things that are not clear in the schedule, and the plan of action serve the following two objectives:

1 - the action plan is a statement to the analysis and how to implement the project.

2 - Action Plan is a written document in order to obtain loans, and are considered in the plan of action will become the (RoadMap) about how to start working and the evolution of working with the passage of time, and susp plan is in draft Coping (Blueprint) in order to implement the project.

* Preliminary study

Preliminary study also called preliminary study, (pre-Feasibility Study) or study the idea, where the detailed feasibility study are very expensive, so in order to be required at first a simple document that helps to make the decision to accept the idea of ​​the project or reject the idea of ​​the project permanently .

* The relationship between economic feasibility study and economic development

There is a close and strong relationship between the rates of development in the State, and between economic feasibility studies for the projects, as the achieved rate of development must be determined by the quality of the resources available in those country .

* Stages of economic feasibility studies

Economic feasibility studies to determine the start of the liquidation and investment ideas, and then do the preliminary feasibility studies, and these stages are the following:

1 - detailed feasibility study.

2 - marketing feasibility study.

3 - Technical feasibility study.

4 - financial and economic feasibility study.

5 - Analysis of social profitability.

6 - prepare a report on the investment proposal, and directing funding sources.

* Types of projects

Before that the investor provides the implementation of the investment project, should the investor to choose the form that will take the project from a legal point and and in a form that can distinguish between the seven main forms can the investor to select one, and are the following:

1 - individual project.

2 - Solidarity company.

3 - Limited Partnership.

4 - firm recommendation on the stock.

5 - Limited Liability Company.

6 - Company OJSC, and contribute to the company closed.

7 - quotas, the company where more than one investor.

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