The feasibility study carried out by DEC was organized into two (2) distinct phases, as follows:
The objective is to have complete feasibility study on the two (2) viable options separately and a comparison demonstrating that the proposed option is technically feasible and lucrative in terms of commercially and financially.
To establish the “Feasibility” of a proposed installation DEC performed the following scope of works:
Involves performance of the following works and activities:
– Local field market survey for every option;
– Study of the general economic factors and indicators;
– Demand estimation;
– Supply estimation;
– Identification of critical success factors; and
– Estimation of the demand-supply gap.
– Review and report on feasibility study of various possible options of utilizing the land and data;
– Demonstrate other options considered and the reasons & considerations for and against a proposition;
– Conceptual design alternatives; that include preparation of master conceptual plan for every options and on-site site project sub-sol investigation;
– Capital and operating costs;
– Financial analysis; and
– Implementation Plan.
– Projections are made for costs of various resources needed for the civil engineering project and the total estimated costs of the project;
– The period of estimation (assumed service life of the building/structure) is determined, and the value of the project at the terminal period of estimation is forecast;
– Financing alternatives are considered with assumptions regarding the costs of funds and repayment schedules;
– Basic workings are shown in different statements, such as interest and repayment schedule, working capital schedule and depreciation schedule;
– Other financial statements are prepared in the financial feasibility report, such as profit and loss accounts, balance sheets and cash flow statements; and
– Financial indicators are calculated using data derived in various financial statements. Main basic financial parameters used to judge feasibility of the project includes; Net Present Value (NPV) and Internal Rate of Return (IRR).
PHASE II – BUSINESS PROPOSAL
The works involve the preparation of a proper “Business Plan” for the project. After determining and demonstrating to the Client that a proposed option is technically feasible and lucrative commercially and financially, DEC commences the development of Business Plan to address the following details:
Business Plan – The plan carried out by DEC includes but not limited to the following:
– Business Concept Description
– Defined Target Market
– Detail Study Analysis
– Strategic Action Plan
– Relevant Key Market Research
– Revenue Sales Projections
– Human Resources Plan
– Operating and Marketing Plan
DEC identified and interviewed groups that are interested in a partnership with the Client in the development of the facility. Also Identified needs of each group, financial capability, management capability, and document the groups’ vision and goals for the venture. DEC’s liaised and coordinated with the organizations/companies that have expressed an interest to have a business venture with the Client and have submitted a letter of support.
Development of Strategic Partnership Plan
– Identification of the institution or organization and responsible authority
– Outlining the perceived capability experience, and demonstration of need as it relates to the optioned project.
Nature of the Partnership
– Addressed individual needs, wants and desires
– Addressed intended utilization periods, durations and types
– Documented the objectives, outputs, intended results and activities
– Documented how the partnership will be organized and coordinated
– Commented on the compatibility between each partner and Client
– Documented how each partner intends to contribute financial, human or material resources related to the implementation and/or operation of the project.
– Identified the appropriate Organizational and Management Structure.
– Identified the various Governance Models that may be suitable in a potential partnership approach with the Client.
DEC prepared the guidelines for the operation and marketing of the recommended facility including but not necessarily limited to the following:
– An operating plan for each of the major components of the facility, particularly full and part-time staffing requirements including the identification of seasonal variations, job descriptions, personnel specifications, training plans and statement of qualifications;
– A marketing strategy and plan for the market entry and build-up (first 3 years of operation) of the facility, including: marketing theme/message and facilities based on needs assessment as well as key individual components; pricing/rental and expenditures; ways and means of integrating the marketing and promotion of the facilities with other partner initiatives; and development and recommendation for a proposed organization, management and human resource structure.