Feasibility Study

The Feasibility Study is a written document providing a detailed analysis of the proposed investment, as well as support in deciding on its feasibility and cost-effectiveness. In simple terms, the Feasibility Study provides a description of the project, demonstrating at the same time the economic justification and feasibility level, technical and technological viability, strategic and policy coherence, social acceptability, environmental acceptability and institutional/operational feasibility. It is mostly produced for major infrastructure projects. The purpose of drafting the Feasibility Study depends on its end user, as well as the reason and the time period for which it is drafted. The answers to the aforementioned questions represent a starting point for the document elaboration, i.e., affect the basic argument, content and structure. If the documents are to be prepared for the commercial bank for the purpose of obtaining a loan, they are prepared during the drafting of the loan application, substantiating the profitability of the investment in the long term. Within the context of the application for EU funding through grants, the documents represent a clear argument confirming the investment viability to the target audience, as well as its cost-effectiveness and feasibility and the need for grants. If the documents are prepared within an organization for decision makers in specific organizations with the purpose of justifying or directing further investment, the Study is used as a tool in the preparation, where the weaknesses, opportunities, options and other aspects of the investment are presented and analyzed through the document. Moreover, the elaboration level of the Study depends on the project maturity level that is reflected in the drafted project documentation (logical framework, architectural projects, cost statements, etc.). If the project is at an early stage of development and there is no project documentation provided, a Pre-feasibility Study is to be conducted. The Pre-feasibility Study helps the applicant/project coordinator in further planning/project development, while sometimes the utilization/use of the infrastructure is not completely clear, i.e. it is still being reviewed.