The main purpose of the project study is to consider all associated factors, to:
• Identify whether the joint project will meet the required need, describing in details the project targeted service and its nature.
• Study the project implementation viability in terms of technical, legal, environmental, social and financial aspects based on the international experiences. As for the technical aspect, the required outcomes, operation criteria, used technology and maintenance are analysed and identified in addition to studying the site. as for the legal aspect, the project implementation viability is evaluated through analysing its legislative, regulatory and contractual framework. The project environmental and social impacts are main factors in relation the project implementation viability. The project environmental impacts and social consequences on the relevant persons and communities shall be identified in accordance with the legal provisions in force in this respect. The most important and main part on which the joint project study focuses is the project implementation viability in financial terms. This part includes several pivots relating to the investors' interest, possibility of obtaining financing from banks and State ability to meet the financial liabilities associated with the project. The financial study shall include an estimation of the expected revenues and costs, including the capital costs, operational costs and maintenance costs throughout the entire project period. The financial model shall be developed after estimating the revenues and costs. This model aims at calculating the current net value of cash flows and the project internal return rate throughout the project period. Thus, the model measures the joint project safety and financial sustainability.
• Develop the best design for the project by comparing various patterns available for the private sector partnership and identify the most appropriate project structure after carrying out a comprehensive analysis of the available options and alternatives in all technical, legal, environmental, social and financial aspects. Since the risk sharing is a fundamental element of the joint projects, this study identifies the best distribution of the financial, technical and operational risks between the partners based on an accurate analysis and evaluation of such risks, their mitigation means and distribution method.
• Highlight the strategic and operational importance and benefits expected from the joint project.
• Explain the extent of the project consistency with the policy developed for the sector by the government.
• This study constitutes the cornerstone in the project preparation process. Compliance with the principles and guidelines set out in this manual when preparing the study will enable the Cabinet and the Financial and Economic Committee to get the required and sufficient information for taking the appropriate decision; whether to proceed with the project implementation or not.
It shall be noted that the project study details, dimensions and structure differ from one project to another. The study sections set out in this manual are general and for guiding purposes only, and may not apply to some projects that may require studying other aspects.