4. Project Feasibility Stage

The project feasibility stage confirms the practicability of a project in terms of technical, financial, legal and economic aspects, whether or not a project is envisaged for development through the PPP route. It is also at this stage that various project structure options for development of the project emerge and the merits for development of the project through an appropriate PPP framework is examined (Value Proposition of projects analysis). It is usually the technical feasibility study which is carried out first, followed by the financial feasibility, the value for proposition analysis and the economic analysis of the project. The adherence of the project outline with the existing legal and regulatory compliance framework may be carried out concurrently with the other feasibility studies.

The purpose of carrying out these activities is set out in the diagram given below:

The diagram given below indicates the decisions that emerge from various feasibility studies: