Feasibility Studies

By:

Engineer Muhammad Iftikhar Rasool

General Manager Engineering
PMDFC
May 10, 2016

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Definition
(1)
A feasibility study is defined as an
evaluation or analysis of the
potential impact of a proposed
project or program.
A feasibility study is conducted to
assist decision-makers in
determining whether or not to
implement a particular project or
program so that an
Extensive research, conducted in a
non-biased manner, will provide data
upon which to base a decision.

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 Definition
(2)

A feasibility study is an analysis and evaluation of a

proposed project to determine if it is
a. technically feasible;
b. within the estimated cost;
and c. profitable.

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 Definition
(3)

Feasibility studies are preliminary investigations into the

potential benefits associated with undertaking a
specific activity or project. The main purpose of such a
study is to consider all factors associated with the
project, and determine if the investment of time and
other resources will yield a desirable result. While
considered a preliminary study, it is not unusual for it to
be highly detailed.

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 Definition
(4)

As the name implies, feasibility study is an analysis of

the viability of an idea.
It ensures that a project is legally and technically
feasible and economically justifiable

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 Background

Some feasibility reports may require some

background discussion in order to make the rest
of the report meaningful to readers
Describe your proposed plan in sufficient detail
For many feasibility reports, you will need to
discuss the problems, need, or opportunity that
has brought about this report
 Feasibility Report

Executive Summary
Includes
Principal / salient features of technical, financial and
administrative aspects of the project
This should concise summary of the major recommendations of
the report within 6 pages so that it is quickly understood by
Senior Executive
Introduction
It states objectives of the report and of the project
It should refer terms of references
Also it should state the constraints within which it has
been conducted
Organization of study
Scope and status of report
 Feasibility Report

Study of Existing System

Proposed System and Criteria
Financial Analysis
Operation and Maintenance
Environment and Social Impact Study
Conclusion
Recommendations

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 Cost and Benefits Evaluation
It demonstrate how this proposal is feasible
It involves discussion technological feasibility,
economic practicality, social desirability, and
ecological soundness

Examples of Benefits
1. Cost reductions
2. Error reductions
3. Increased output
4. Increased flexibility of operation
5. Improved operation
6. Better (e.g., more accurate) and more timely
information.
 Overview of Alternatives

Possible Alternatives
Sticking with the current system should always
be studied as one alternative
Different business processes for solving the
problems
Different levels/types of computerization for the
solutions
Advantages and disadvantages of the alternatives
The major possible alternatives should be discussed and
compared using clearly defined criteria
 Conclusion

Summary of findings and results of Feasibility Report

Review of need
Recommended alternative scope, coverage and
components
Capital cost and tentative financing plan
Urgency for implementation
 Recommendation

The final section of feasibility reports states the

recommendation.

The recommendation section should echo the most

important conclusions & then state the
recommendations emphatically

The basis for that judgment has to be stated somewhere

in the requirements section
 Categories of Feasibility

Market Feasibility:
1. Determine facility needs
2. Suitability of Production needs
3. Availability and Suitable of Site
4. Raw Materials
5. Other Inputs
 Categories of Feasibility

Financial / Economic Feasibility

1. Estimate the total capital requirements.
2. Estimate equity and credit needs.
3. Budget expected costs and returns
Organizational/Managerial Feasibility
1. Business Structure
2. Business Founders
Environmental Feasibility
Environmental impact and their assessment
 Categories of Feasibility
Operational Feasibility
1. Useful for identifying operational problems to
be solved, and their urgency
2. The PIECES framework
P-Performance , I-Information, E-economy ,
C-control, E-efficiency , I-Information, S-
services
Legal Feasibility
1. Is the project legally feasible?
2. Legal requirements of the project
Feasibility Steps for Traffic
Management

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 Feasibility steps for Water or
Waste Water Facilities
Project area and need for the project (background)
Project Area
Geographic, topographic, climatic, religious, cultural
Descriptions
Population pattern
Estimation and analyze growth rate
Estimate probable density of population
Economic and Social conditions
Present living standards of various groups
Identification of locations according to income levels
Housing Conditions
Data on education, literacy, unemployment etc.
 Available water resources
Adequacy of surface and ground water
w.r.t quantity and quality
Development of water resources
Pollution problems
Existing water supply system
details (source, capacity, area served, hours of
supply,
number of connections, rate etc.) of existing
system
Existing drainage and solid waste systems
Need for a project
Improvement, expansion
New
Deficiencies of existing system
 Proposed project (water supply or sewerage schemes
outlines)
Details of the project
Rehabilitation of the existing facility
Construction of new facility
Alternative designs
Selection of sources
Alternative layouts of rising mains
Alternative sites of WTP & ESRs
Training modules of O & M
Components of project
Thoroughly described with necessary topo- maps
Location maps
Technical information
Engineering design Cost Estimates & Drawings
Feasibility Study for Solid Waste
Management Project

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Solid Waste Management Hierarchy

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A feasibility of Solid Waste Management System

Introduction
City history
Cultural aspects
City demography trends
Need of the town and linkage between other services of the
town
Town administration
Scope of the consulting services
Cost of the consulting services
Time scheduling and deliverables

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A feasibility of Solid Waste Management System

Study of Existing System of the project area

Un-Served Areas
Weak Institutional and Organizational System
Lack of a Proper Waste Discharge System
Collection and Transportation
Poor Final Disposal
Lack of Central Garbage Processing

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Physical Characteristics of Solid
Waste

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Performance Indicators

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 Major Suggested Measures
Adequate provision of solid waste management which meets the
objectives, expansion and improvement of collection,
transportation and safe disposal;
Provision of adequate buffer zone and boundary between the
landfill site and the surroundings,
Provision of proper drainage and leachate collection system if
involved;
Rehabilitation and repair of existing roads;
Use of well-tuned, well maintained and fully covered vehicles and
scheduled collection and disposal at the site,
Proper construction practices and regular and well selected point
source monitoring of all the operations, water spray on the
construction areas;
Monitoring of recycling operations;
Proper monitoring for methane gas and regular use of appropriate
soil cover; and

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 PLANNING AND DESIGN

Generation of solids
Composition of solid waste
Transport
Disposal
Treatment

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 Capacity of Solid Waste Tools

Density (kg/m3)
Stage
Range Preferred Value
Wheel Barrows 150300 250
5m3 Containers 400600 500
Hoist Trucks 400600 500
Tractor-Trolleys 400600 500
Disposal 10001300 1200

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 Life Cycle of Components

SWM Machinery 10
years
Tractors/Trolleys 10
years
Wheel Barrows/Hand Cart 05
years
Civil works 25
years
Machinery and electrical components of
Motor vehicles 10
years
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Per capita Waste generation

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Solid Waste Generation

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 O&M
Establishment
POL
Repair and Maintenance

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Solid Wastes Generation Rates of Different Cities
(Source: EPMC Estimates-1996)

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 Evaluation System of Various Solid
Waste Management System
Nr. Description Composting Incineration Sanitary Landfill
1 Capital Cost The capital cost will be The option will involve huge The capital cost will be lower than
significantly higher than other capital investment at the the other options
options town level
Scores + ++ ++++
2 Operation and The problems associated with the Less problems associated The problems associated with the
Maintenance Cost operation and maintenance will with O & M operation and maintenance will
be higher be lower than the other options
Scores ++ +++ +++++
3 Revenue The compost will be sold out for The revenue could be Revenue generation is not
use as fertilizer soil condition recycled materials anticipated except recycling
though scavengers
Scores +++ ++ ++
4 Environment More environmentally friendly Relatively less Relatively less environmentally
environmentally friendly friendly
Scores +++ ++ ++
5 Sub Soil Water Pollution Not involved Not involved Possibility of ground water
pollution when not operated as
required
Scores ++++ ++++ ++
6 Service Life Service life will be hardly 25 years Service life will be hardly 25 Civil works service life will be
years about 50 years whereas
mechanical components will
require replacement after about
15 years
Scores ++ ++ +++
7 Acceptance to End-User More Acceptable Less Acceptable Acceptable
Scores ++++ ++ +++
Total Scores 19 17 21

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 Other Parameters of a Feasbility
Study of SWM Project

Operation and maintenance

Financial Analysis
Environmental Studies
Social impacts Studies
Mitigation measures of any hazard
Land fill site operations
Operational Manuals
Monitoring Mechanism

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THANK YOU