Feasibility
study
Consultation seminar on the
preparation of full Application Form for
LSP
6 December 2011, Tartu
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Definition
• Single study covering the entire cross-border project
• Broader view on the operation, consider all the factors
associated with the project
• Look at the viability of the idea and identify potential
problems
• Precedes technical development and implementation
• Based upon verifiable data and contain sufficient
information
• The information from feasibility study is valuable for
further project elaboration and implementation
Feasibility factors
• Technical and operational feasibility
• Economic feasibility
• Legal feasibility
• Schedule feasibility
+ Risks analysis
+ Analysis of alternative project or situation
without project
Technical and operational
feasibility
• The capability in terms of technology, land,
operational capacity, personal and expertise or
possibility of aquiring from outside
• Estimate whether the new system will perform
adequately or not, how well it will solve the problem
• Not just whether a system can work, but also
whether it will work
• The whole operational period is considered and not
just the project timeframe
• Evaluation of any possible internal or external
resistance
4
Economic feasibility
• Justification of proposed costs and description of
benefits
• The feasibility of the project from financial point of
view and financial sustainability
• Benefits outweighting costs (not applicable in case of
non-commercial projects)
• Cost Estimate is based on real data and includes
allowances for optimisim bias, inflation and a
contingency for unexpected change during detailed
design development and implementation
• Cost Estimate includes for costs of design, tender and
supervision if these costs are not being borne by
Beneficiary or Project Partner
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FA - Financial sustainability
• A project is financially sustainable when it does
not incur the risk of running out of cash in the
future
• Cash proceeds and payments – how sources of
financing (incl. revenues and any kind of cash
transfers) will consistently match disbursements
year-by-year
• What resources the project will draw on when
the EU grants are no longer available
FA - Financial sustainability
Legal and schedule feasibility
• Analyse whether the proposed system conflicts with
legal requirements
• Analyse whether the project timetable is reasonable
and feasible, including before the project, all the
stages of the project implementation (including
warranties and maintenance periods) and postproject analysis
!!!“Contingencies” for possible unexpected delay:
*design approvals taking longer than expected
*the first round of tenders failing (re-tender)
*unexpected
events
during
implementation
*political and management changes
8
Supporting attachments
• Location permit
• Land ownership
• Building permit
• Location plans, general layout
• Architectural general plans, structural
sizes, installations
To be considered
• Estimated cost of the Feasibility study and
technical specifications
• The level of readiness in projects and time
needed for preparing it
• The modality for funding the Feasibility
studies and technical documentation
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Further Information
JOINT TECHNICAL SECRETARIAT
Phone: +371 6750 9520
Fax: +371 6750 9523
E-mail: info@estlatrus.eu
Ausekļa Street 14 – 3rd Floor,
Riga, LV-1010, Latvia
Thank You for attention!
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