Indicative contents of a financial feasibility report are given below:
1. Introduction - the project background, current status, brief about the technical feasibility study and limitations of the financial feasibility study
2. Assumptions - would include about all the key assumptions that form part of the financial feasibility analysis. This would in turn include the following:
a. General Assumptions -construction period, date of commencement of commercial operations, concession period, about the roles and responsibilities of private partner and the public entity, etc.
b. Financing Assumptions - tax rates, interest rates, etc.
c. Cost assumptions - project cost, cost of capital, debt to equity ratio, operational expenses (general and admin expenses, maintenance expenses, repairs, replacement, etc.)
d. Revenue Assumptions - user fee, rate of increase every year.
3. Financial Feasibility Analysis - findings of the financial feasibility analysis, key financial parameters (such as NPV, IRR) would be presented. This chapter would also include a section on sensitivity and scenario analysis.
4. Conclusion & Recommendation - states the following
a. Whether the project is financially viable on a standalone basis?
b. If the project is financially not viable on a stand-alone basis then, assess and recommend the financial support that is required for the project to be financially viable?