Monday 7 February 2022

Simple Project feasibility report template





The purpose of the feasibility report is to illustrate the feasibility of achieving a project in all aspects of economic, technical and social conditions, and to prepare various schemes for the rational achievement of the development objectives, and to be able to explain and justify the selected schemes. so how do you write a feasibility report? below is a template for a project feasibility report.

1. project overview


the general discussion is the first chapter of the feasibility study report, which mainly comprehensively describes the main issues and research conclusions of each chapter in the study report, puts forward final suggestions for the feasibility of the project, and provides an index for the approval of the feasibility study. generally, there are the following:

1.1 project background

1.1.1 project name


the full name of the enterprise or project shall be consistent with the name listed in the project proposal.

1.1.2 project organizer


the undertaking unit refers to the unit (or construction unit) responsible for the preparation of the project, and the full name and overall person in charge of the unit shall be indicated.

1.1.3 project authorities


indicate the competent authority to which the project belongs. or the name of the group or company to which it belongs. sino-foreign joint venture projects shall indicate the departments to which the investing parties belong. the name and address of the group or company, as well as the name and nationality of the legal representative.

1.1.4 proposed area and location of the project


1.1.5 the unit and legal representative undertaking the feasibility study

if several units cooperate to undertake the feasibility study of the project, the name of each unit and the name of the project it is responsible for, the general responsible unit and the person in charge should be indicated. if a feasibility study is carried out in cooperation with a foreign consulting agency, the names of the units of the chinese and foreign parties undertaking the research work, the legal representatives, and the projects, division of labor and cooperation relationships undertaken should be explained separately.

1.1.6 basis of research work


regulations, documents, materials, names, sources, and release dates to be used as a basis for the feasibility study. the necessary parts of it are attached in full as an annex to the feasibility study report, and these regulations, documents and materials can be roughly divided into four parts:

(1) the directive documents issued by the competent department of the project on the construction requirements of the project; approval documents for the request report of the project undertaker or feasibility study unit.
(2) work results and documents that have been formed before the start of the feasibility study.
(3) industrial construction policies, decrees and regulations of the state and the proposed area.
(4) investigate and collect basic design information according to the needs of the project.

1.1.7 overview of research work


(1) the necessity of project construction. briefly explain the status of the project in the industry, and whether the project meets the requirements of the country's industrial policy, technology policy, and productivity layout; the rationale and importance of the proposed project.
(2) project development and feasibility study work concept. describe the progress of the project proposal and feasibility study work, including the principle of technical solution selection, the principle and results of site selection, the preparation of environmental impact report, the preparation and progress of foreign-related work, etc., and ask for a brief explanation of each one.
 

Report format · conference report format · reading report format · work report format

1.2 conclusions of the feasibility study


in the feasibility study, the project's product sales, raw material supply, production scale, site technology plan, total amount of funds and financing, the project's financial benefits and national economy, social benefits and other major issues should be drawn clear conclusions, this section needs to briefly describe the research conclusions of the relevant chapters, and put forward the final conclusions.

1.2.1 market forecast and project size


(1) brief analysis of market demand.
(2) planned sales volume and sales direction.
(3) product pricing and sales revenue forecast.
(4) the proposed scale of the project (including the scale of phased construction).
(5) the main products and by-product varieties and output.

1.2.2 raw materials, fuel and power supply


(1) the main raw materials, fuels, main auxiliary materials and power quantity, specifications, quality and sources to be used after the project is put into operation.
(2) the name, specification, dosage and source of the main industrial products and semi-finished products that need to be used.
(3) the name, specification, annual dosage, source and necessity of imported raw materials and industrial products.

1.2.3 factory site


location, footprint and necessity
water sources and water intake conditions.
waste water and waste residue discharge stacking conditions.

1.2.4 project engineering and technical solutions


(1) the scope of the project, that is, the main production facilities, auxiliary facilities, public works, living facilities content.
(2) the production method and process technology adopted.
(3) the source of the main equipment, if it is necessary to introduce it abroad, briefly explain the country, technical characteristics, model, etc. of the introduction.

1.2.5 environmental protection


the types and quantities of pollutants discharged, and whether they meet the emission standards stipulated by the state.

major governance facilities and investments.

1.2.6 factory organization and labor quota


factory organization form and labor system.

the total number of personnel and various types of personnel needs of the whole plant.

labor sources.

1.2.7 project construction progress


1.2.8 investment estimation and financing

(1) the total investment required for the project. the total amount of fixed asset investment required for the project (including investment direction adjustment tax, interest during the construction period) and the total amount of working capital are respectively explained, and listed separately in rmb and foreign currency.
(2) sources of funds. loan amount, loan interest rate, repayment terms. joint venture projects should separately list the investment amount, investment method and investment direction of chinese and foreign parties.

1.2.9 project financial and economic review


(1) the total cost of the project, the unit cost.
(2) total project income, including sales revenue and other income.
(3) calculation results of financial internal rate of return, financial net present value, investment recovery period, loan repayment period, break-even point and other indicators.
(4) the calculation results of indicators such as the internal rate of return of the economy, the net present value of the economy, and the cost of economic exchange (foreign exchange savings).

1.2.10 conclusions of the comprehensive evaluation of the project

1.3 table of main technical and economic indicators


in the general chapter, the main technical and economic indicators in each chapter of the research report can be summarized, and the main technical and economic indicators can be listed, so that the approval and decision makers can have a comprehensive understanding of the overall situation of the project.

the main technical indicator table varies according to the project, generally including: production scale, annual production number, total plant quota, main raw materials, fuel, power annual consumption and consumption quota, plant-wide comprehensive energy consumption and comprehensive energy consumption per unit product, plant-wide floor space, full labor productivity, annual total cost, unit product cost, annual total output value, total annual profit and tax, financial internal rate of return, loan repayment period, economic internal rate of return, investment payback period, etc.

1.4 problems and suggestions


explain the main problems of the project presented in the feasibility study and make recommendations for their solution.

2. project background and development profile


this part should mainly explain the process of initiating the project, the reasons put forward, the development process of the preliminary work, the intention of investors, the necessity of investment and other feasibility studies. to this end, the context and development profile of the project need to be systematically described. indicate the background of the project, the reasons for the investment, the work that has been carried out prior to the feasibility study and its results, the decision-making on important issues and the decision-making process, etc. while describing the general development of the project, it should clearly indicate the focus and issues of the feasibility study of the project.

2.1 background of the project proposal


2.1.1 national or industry development plans


indicate whether the relevant industrial policies, technological policies and analytical projects of the country meet these macroeconomic requirements.

2.1.2 project sponsor and reason for initiation


(1) write down the full name of the project initiator or initiator. if it is a sino-foreign joint venture project, the details of the legal representatives, registered countries, and addresses of each party should be listed separately.
(2) put forward the reasons for the project and investment intentions, such as abundant resources, good market prospects for products, export exchange, preferential policies available for such products, and the use of existing infrastructure.

2.2 overview of project development


project development and mining refers to the work carried out by the project before the feasibility study. such as: investigation and research, trial production test, project proposal (preliminary feasibility study) writing and approval process, site preliminary selection and other important matters in the preparation work.

2.2.1 the research projects carried out and their results


1. resource survey, including raw material, water resources, energy and secondary energy survey.
2. market research, including national and regional market surveys; survey of supply and demand trends in the international market for export products.
3. investigation of social public facilities, including investigation of transportation conditions, public power supply, living welfare facilities, etc.
4. investigation of the current environmental status of the proposed area, including the main pollution sources and their discharge status in the proposed area, and the current environmental quality status of the atmosphere, water body, soil, etc. explain the way to obtain environmental status information, the providing unit, and the opinions and requirements of the local environmental protection management department, and the name of the environmental status information and documents obtained.

2.2.2 trial production work (project).


the name, content and test results of the completed and ongoing trial production work (project). these experiments include tests of building materials and tests of new process technologies to be adopted. the new process technology adopted must be certified by the relevant state departments.

2.2.3 preliminary survey and preliminary survey of the site


(1) preliminary survey, measurement, comparison and other work of each alternative construction area and site location.
(2) preliminary selection opinions and information.
(3) residual problems.

2.2.4 the process of writing, proposing and approving the project proposal (preliminary feasibility study report).


(1) the process of writing, proposing and approving the project proposal (preliminary feasibility study report).
(2) the name of the information attached to the project proposal.
(3) the document number of the examination and approval document and its main points.

2.3 necessity of investment


the necessity of investment is generally explained from the perspective of the economic benefits obtained by the enterprise itself and the impact of the project on the macroeconomy and social development. include the following.

(1) the profits obtained by the enterprise.
(2) enterprises can improve product quality and strengthen market competitiveness.
(3) expand production capacity and change product structure.
(4) adopt new processes to save energy, reduce environmental pollution, and improve labor productivity.
(5) superior conditions and competitiveness for products to enter the international market.
(6) positive impact on local economic and social development. this includes increasing taxes, increasing employment, and raising the level of science and technology.

third, market analysis and construction scale

the important position of market analysis in the feasibility study is that any project, the determination of its production scale, the choice of technology, investment estimation and even the choice of factory site, must be fully understood after the market demand situation can be solved, and the results of market analysis can also determine the price of the product, sales revenue, and ultimately affect the profitability and feasibility of the project. in the feasibility study report, the market demand forecast, price analysis, and construction scale should be determined in detail.

3.1 market research


3.1.1 survey of the use of outputs of proposed projects


the main use of this product, whether there is a substitute for other products, if the product is the basic raw material of industry, should be respectively stated in the main use of the project products in the main use of the industry and unit consumption.

discussion of the economic lifespan of products. investigate which stage of the economic life cycle this product is currently in, and the possible replacement time.

3.1.2 investigation of the existing production capacity of the product


(1) the total domestic production capacity of the project products, the operating rate of the existing production capacity; the utilization rate of production capacity of major manufacturers.
(2) the distribution and proportion of the total amount of existing domestic living capacity in this region.
(3) the production capacity of the project currently under construction of this product and its distribution, quantity and proportion among regions.
(4) the production capacity of the project to be started has been approved, and it is expected to be put into operation in the year and month.

in the construction projects and the projects that have been approved to start construction, although no comprehensive production capacity has been formed at present, it is an integral part of the production capacity.

3.1.3 product output and sales volume survey


(1) the total amount of current production in the whole country or region.
(2) the change in the output of this product over a period of time.
(3) the domestic ownership of this product is compared with the analysis of the ownership of relevant foreign countries to understand whether the domestic ownership is more or less, indicating the degree of satisfaction of the market demand of this product.
(4) the import volume and import source of this product for a period of time, which countries or regions are mainly from which; proportion of domestic production or sales; prices of imported products, etc.
(5) the export volume and export destination of this product over a period of time, accounting for the proportion of domestic production; to which countries or regions are mainly exported, the price of the exported products.

3.1.4 alternative product surveys


(1) it can replace the advantages and disadvantages of the product performance and quality of this product compared with this product.
(2) the domestic production capacity and output of alternative products; the proportion of alternative uses that can be used; price analysis.
(3) import possibilities and prices of alternative products.

3.1.5 product price survey


(1) the pricing management measures for products are controlled by the state or by the market.
(2) the sales price of the product, the price change trend, the time and reason for the occurrence of the highest price and the lowest price.
 

3.1.6 foreign market research


(1) the main production countries and regions of foreign products.
(2) the production technology, production capacity and sales volume of major foreign production plants.
(3) the sales price of the product in the international market and its change trend
(4) the production capacity and change trend of the main importing countries in china that import this kind of product.

3.2 market forecast


Market forecast is the continuation of market research in time and space quotient, is the use of market research obtained information, according to the conclusion of the market information data analysis report, the future market demand for the project products and related factors of quantitative and qualitative judgment and analysis. in the feasibility study work, the conclusion of the market forecast is the necessary basis for formulating the product plan and determining the scale of the project construction.

3.2.1 domestic market demand forecast


In the feasibility study, the following factors related to market forecasts should be explained:

(1) the object of consumption of this product.
(2) the consumption conditions of this product. consumption conditions vary according to product characteristics and performance, such as the consumption of automobiles needs to have corresponding road traffic conditions; the consumption of televisions and refrigerators requires electricity and so on. when predicting the market demand for a certain product, which consumption areas that do not have consumption conditions should be excluded from the total number of consumption objects.
(3) the characteristics of the update cycle of this product indicate the length of the effective economic life of this product.
(4) alternative products that may appear, that is, substitutes.
(5) new uses that may arise during the use of this product. the emergence of the use of the product means that the consumption field of the product has been expanded and the market demand capacity has been expanded.

Based on the above analysis, the forecast of domestic demand for this product and the gap with the existing production capacity are proposed.

3.2.2 analysis of product export or import substitution


(1) substitution import analysis. compare this product with the current imported products in terms of performance, weight, price, accessories, maintenance, etc., and explain the advantages and favorable conditions of this product.
(2) export feasibility analysis. if the product of the proposed project has the ability to compete in the international market in terms of quality and technology, the demand for this product in foreign markets should be considered.

Analyze what restrictions or incentives the country has for the export of this product, the trade policy of the country importing the product, the export flow of the product, and whether the export price is favorable.

Through the above analysis, it is predicted that the possible substitution import or export volume of the products of this project is predicted.

3.2.3 Price prediction



To make product price forecasts, it is necessary to consider the product output, quality, the current price level of similar products, but also to analyze the price change trend of the international and domestic markets, the change of the national price policy, the change of supply and demand of the whole society of the product and other factors; measures and possibilities for reducing production costs of products; in order to expand the market need to adopt price strategies, etc., combined with the above factors, the possible sales price of the product is predicted

Conclusion: Make a summary conclusion about the feasibility of the project.

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