Project Feasibility | Importance of Project Feasibility Studies

Project Feasibility

Feasibility studies are preliminary studies undertaken in the very early stage of a project. They tend to be carried out when a project is large or complex or where there is some doubt or controversy regarding proposed development. If an environment impact assessment (EIA) is required, this may involve assessment best undertaken as part of feasibility studies.

The feasibility study to be:

a) Established whether the project is viable

b) Help identify feasible option

c) Assist in the development of other project documentation such as business case, project execution, plan and strategic brief.

Importance of Project Feasibility Studies

1. Focus to the project and outline alternatives.

2. Narrow business alternatives

3. Indentified new opportunities through the investigative process

4. Identified reason not to proceed

5. Provide quality information for decision making

6. Provides documentation that the business venture was thoroughly investigated

7. Helps in securing funding from the lending institutions and other monetary sources

8. Helps to attract equity investment