The feasibility study should provide certain outcomes that are essential before proceeding with procurement activities. These outcomes include:
• Detailed understanding of all aspects of the project (physical, financial, legal and administrative);
• Output and service specifications;
• Third parties31 involved in the project and the risks;
• Any ancillary project that will have to be implemented
• Funding sources;
• Payment mechanisms;
• Risk analysis with sources, effects, likely costs and their sensitivity; and
• Due diligence.
If any of these outputs are not available, further work on them would be required before initiating the procurement process.
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31. Third party risks are those risks that arise because of failures by parties that are not involved with the main project contract but may affect the completion or operation of the project, for example, utility connections by concerned agencies.