feasibility study rationale
TRANSCRIPT
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Feasibility Study Rationale
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Purpose Of Feasibility Study
1. PROJECT PROPONENT
- The very first user of the Report will be the
Project Owner or Proponent, or the Person or
company interested in undertaking the project
being evaluated and possibly the one footing the
bill for the study. The proponent does not have ti
be an investor, although in most instances he is.
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Purpose Of Feasibility Study
2. Equity Investors/ Leader
The proponent often does not
have the enough funds to finance
the entire project. And even if he
does, he may not be wiling to risk
all of it on this one project. So heinvites or convinces other
parties, to put in money into
project. (through a PROJECT
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Purpose Of Feasibility Study
2. Equity Investors/ Leader
In some cases, the additional
investors are the proponentsrelative (Family Business) oramong his friends (FriendlyBusiness)
Another potential group ofinvestors are the Suppliersthemselves, particularly on highly
technical items such as those
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Purpose Of Feasibility Study
2. Equity Investors/ Leader
Small and medium- sized projects
may able to obtain loan from a
local bank or financial institution.
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Purpose Of Feasibility Study
Government Regulatory feasibility
-another party that may ask for feasibility
Study that may grant tax incentives, permits or
licenses, [ includes B.O.I. Board of investments
and P.E.Z.A. Philippine Export Zone Authority.
- the role of a feasibility to them is to provide
basis for dicision,
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Objective and Scope of the Study
1. Proposal writing- If the proponentneeds a third party intervention to
undertake the study, the latter needs to
prepare and submit a formal proposal tothe former.
2. Bases for Objective Scope- as a
consultant you should use it todetermine the approach that you should
follow in meeting the objective of the
study in laying out the work out the planand timable and determinin the man
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Purpose Of Feasibility Study
3. Sources of Data- you want to know where toget information you will need to better understand
the objectives and scope of the prospective
feasibility study engagement.
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Private Sector Data Sources
Direct Client Interview- appointmentwith perspective client. This is used
to clarify his requirements.
Indirect Client Interview- though
Phone, Fax, Email Inquiry
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Public Sector Data Sources
They normally issue terms ofReference(TOR),a formal request
for consultancy service, a formal
invitation to bid, a written document
from the client to refer to in
preparing your proposal.
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Before you could submit proposal to
Public Sector you should:
1. Submit a letter of Intent (LOI) with allyour cridentials. Your qualification
should be sufficient.
2. If you are pre qualify, then the cleintmay invite you to a meeting to allow
people like you to clarify any issue that
is unclear to TOR3. The client sometimes allow qualified
bidders to submit written questions.
4. You arenow give 30 days to submit
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TIPS ON PREPARING A
PROPOSAL
Brainstorming Is a technique used to gather ones thoughts before
the start of a project.
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Everything that comes out of the
mind related to the topic, whether
trivial or important.All possible source of relevant data
that will eventually be gathered for
the purposes of the studySimilar studies that you have done in
the past
Call your Friends, your colleagues,your staff to a meeting.
New technologies may give new
approaches
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Constructing an Outline
You need an outline that will serveas your guide prior to and
throughout the study. It should give
you idea of what activities to include
to your proposal to shoe the client
that you know to conduct a project
feasibility study
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Writing the Draft Proposal
Crucial part if the proposalPreparation Activity.
You must have a very clear idea
already of the scope of the work,
the approach and work plan and the
fee you will charge.
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Proofreading and Finalizing Proposal
Stage where the quality of theproposal is checked. Errors in your
proposal is the first thing that the
client will notice when you send it
out.
Check for grammar andtypographical Errors.
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Contents of the Proposal
The Covering LetterAddressed to the clients decision
maker or authorized office who
requested for the proposalOpen your letter with an
expression of Gratitude to the
client
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Contents of the Proposal
The Covering Letter Include duplicate of the covering letter,
which should provide space at the lower
left hand side of the page where the clientcan affix his signature to signify the
acceptance of the proposal.
Once signed the Proposal binds both the
client and the consultants to terms statedtherein relation to the engagemen
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General approach to
Methodology
1. Phased Approach-relevant if theproject is relatively untried or new to
the Philippines or or on the
proposed sire and there is no proof
of assurance on the market yet.
Phase I- will normally cover the
market and the legal and some
technical aspects of the study. If is
not feasible, the client usually advise
not to pursue the project.
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Client Participation
Client involvement:
Steering Committee- This will provide
direction to the consultant on the general
conduct of the study and accept the rulespresented.
Project Coordinator- who will liaise
between the consultatns and the clientsmanagement.
Counterpart team- They will be able to
identify good sources of internal and some
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Regular Reporting to Client
Submit Progress reports orMilestones.
First mile stone is after the first
phase, covering primarily the
market, legal aspects if any.
Final phase will be Consolidatereport.
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Use Checklist and Questionnaire
The students should be quitefamiliar with this methodology for
data gathering.
These methods will ensure that all
relevant data are obtained from
various sources.
In some instances, it may be
necessary to make a follow up on
the questionnaire to clarify to some
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Work Program and Timetable
Mobilization stage of the Engagement- Adiscussion of what you normally do
before going into study proper
This Chapter discussed the step-by-stepprocedures that you need to undertake
under each aspect of the study. It also
present specific data that ewill be
required by each aspect of the project
study
Feasibility study can take from 1-3 mos,
depending on the complexibility of the
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Project Organization and
Management
You ought to identify the members of thestudy team and define their respective
roles in conduct of the study
Do not forget that the client assignedcounterpart staff and the Project
Coordinator
Support this chapter by a bar chartAppend the Curriculum Vitae of key
consultants assigned to the engagement
List of relevant studies undertaken by
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Project Deliverable and Fees
Client expect from the consultant at a specificintervals of the study and at certain points in time.
Consultancy fee are normally composed of theprofessional fees of the consultants asssigned to
the engagement. Government units and international Funding
institutions normally inquire fees per consultant,with a break down between the compensationcost of the consultant and the multiplier used forthe current proposal.
Billing and collection of professional fees andreimbursable expenses are usually tied up toprogress billing, which in turn tied up to your
progress reporting.
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