Economic Feasibility Analysis for Projects Training Course

Participants can define feasible project options, scope boundaries and baseline conditions.

• Problem statements translated into measurable outputs, outcomes and project objectives
• Theory of change linking interventions to expected benefits and beneficiaries
• Do-nothing and do-minimum baselines for comparing project alternatives
• Options analysis using longlists, shortlists and weighted screening criteria
• Scope boundaries covering location, capacity, technology and operating model
• Constraints analysis for land, permits, utilities, skills and delivery capacity

Participants can prepare evidence-based demand forecasts for project outputs or services.

• Market segmentation by customer type, geography, usage and purchasing behaviour
• Demand drivers identified through demographic, income, policy and industry data
• Top-down forecasting using market size, penetration and capture-rate assumptions
• Bottom-up forecasting from customer volumes, consumption rates and service capacity
• PESTLE and Porter's Five Forces applied to market attractiveness
• Demand scenarios reflecting base case, downside case and upside case

Participants can translate technical design choices into capacity, resource and cost assumptions.

• Technology options compared through capacity, reliability, maturity and maintainability
• Capacity planning based on demand forecasts, utilisation and service standards
• Site selection criteria covering access, utilities, logistics and environmental conditions
• Process flow diagrams defining inputs, outputs, losses and operating constraints
• Bill of quantities prepared from preliminary design and technical specifications
• Implementation schedules linked to engineering, procurement, construction and commissioning

Participants can develop transparent capital expenditure estimates and contingencies.

• Capital expenditure categories for land, works, equipment, systems and professional services
• Class estimates aligned with AACE International estimate classification principles
• Bottom-up cost estimates developed from quantities, unit rates and supplier quotations
• Parametric estimates using capacity factors, cost indices and reference projects
• Contingency allowances based on scope maturity, uncertainty and risk exposure
• Escalation assumptions separating real cost changes from general inflation

Participants can estimate recurring operating costs and project working-capital needs.

• Fixed and variable costs classified by activity, volume and cost driver
• Operating cost build-up for labour, materials, utilities, maintenance and overheads
• Life-cycle costing across commissioning, operations, renewals and closure
• Maintenance plans translated into routine, preventive and corrective cost assumptions
• Working capital calculated from receivables, inventory, payables and cash buffers
• Cost benchmarks tested against comparable assets, contracts and operating data

Participants can model project revenues and quantify direct project benefits.

• Revenue models based on tariffs, sales volumes, fees, leases and availability payments
• Pricing assumptions tested against willingness to pay and competitor benchmarks
• Revenue recognition timing aligned with delivery milestones and collection patterns
• Benefit mapping distinguishes financial income from economic and social benefits
• Avoided-cost valuation for reduced losses, downtime, travel or resource consumption
• Benefit-realisation profiles showing adoption, ramp-up and operational performance

Participants can structure an auditable spreadsheet model for project feasibility analysis.

• Model design separates inputs, calculations, outputs and control checks
• Time periods set for development, construction, operations and terminal value
• Consistent sign conventions applied across costs, revenues, taxes and financing
• Input sheets document units, sources, base dates and assumption ownership
• Formula controls identify broken links, circular references and balance failures
• Model audit trails connect summary outputs to detailed supporting schedules

Participants can build project cash flows reflecting timing, taxes and operational ramp-up.

• Free cash flow constructed from revenues, costs, taxes and capital expenditure
• Construction drawdown schedules linked to milestone payments and retention amounts
• Depreciation schedules prepared using asset classes, useful lives and tax rules
• Taxable profit reconciled with accounting profit, allowances and losses
• Terminal cash flows include residual value, recovery costs and working-capital release
• Monthly and annual cash flows selected according to project decision requirements

Participants can calculate and interpret core discounted cash flow investment measures.

• Discounting converts future cash flows into present-value decision information
• Weighted average cost of capital estimated from debt, equity and risk assumptions
• Net present value calculated using relevant incremental project cash flows
• Internal rate of return interpreted alongside reinvestment and scale limitations
• Payback and discounted payback assessed for liquidity and capital recovery
• Profitability index compares value creation where capital budgets are constrained

Participants can assess how financing choices affect project affordability and returns.

• Debt and equity structures matched to project risks and cash-flow profile
• Sources and uses statements reconcile funding requirements with project costs
• Debt service schedules calculate interest, principal repayment and outstanding balances
• Debt service coverage ratio tested against lender covenant requirements
• Grace periods and repayment profiles aligned with construction and ramp-up periods
• Bankability assessment considers contracts, security, guarantees and revenue certainty

Participants can evaluate project value to society beyond direct financial returns.

• Financial analysis compared with economic analysis, fiscal effects and distributional impacts
• Economic prices derived through shadow pricing and transfer-payment adjustments
• Consumer surplus estimated where projects improve access, quality or affordability
• Externalities valued for emissions, congestion, health, safety and environmental effects
• Economic net present value calculated using social discount rates
• Distributional weights applied when policy requires equity-adjusted benefit assessment

Participants can identify decision-critical uncertainties and quantify their effects on feasibility.

• Risk registers connect causes, events, consequences, owners and treatment actions
• One-way sensitivity analysis ranks variables by impact on project NPV
• Two-way sensitivity tables test combined changes in price, volume and costs
• Scenario analysis combines coherent assumptions for downside and stress cases
• Break-even analysis identifies minimum volume, tariff or cost-performance requirements
• Monte Carlo simulation models probability distributions for uncertain input variables

Participants can incorporate environmental, social and regulatory requirements into project appraisal.

• Environmental and social screening identifies material impacts and mitigation costs
• Permit registers sequence approvals, conditions, lead times and accountable parties
• Stakeholder engagement plans address affected groups, concerns and grievance channels
• Climate risk assessment tests physical hazards and transition-related cost impacts
• Resettlement, livelihood and biodiversity considerations reflected in project alternatives
• Regulatory compliance costs included within capital, operating and schedule assumptions

Participants can prepare clear feasibility findings for approval and governance decisions.

• Executive summaries state the decision, recommendation, value case and key risks
• Investment committee papers distinguish facts, assumptions, judgments and unresolved issues
• Tornado charts communicate sensitivity rankings without obscuring decision thresholds
• Decision matrices compare options against financial, economic and strategic criteria
• Independent review protocols test model integrity, evidence quality and optimism bias
• Stage-gate recommendations define approval conditions, next actions and accountabilities

Participants can build, review and present a complete economic feasibility study with an investment recommendation.

• Project brief converted into scope, options, baseline and decision criteria
• Demand, technical and operational assumptions integrated within a coherent project case
• Capital costs, operating costs and revenues assembled into financial projections
• Discounted cash flow metrics calculated for base case and alternatives
• Economic benefits, shadow prices and externalities incorporated into appraisal findings
• Sensitivity, scenario and risk results translated into approval conditions
• Feasibility report reviewed against evidence quality, model controls and governance requirements
• Investment recommendation presented with rationale, limitations and implementation priorities