By Staff Reporter
ISLAMABAD: The government has instructed all federal ministries/divisions as well as four provinces to implement Techno-Economic Feasibility studies for undertaking multi-billion rupees development projects in an efficient manner.
According to a working paper approved by the Executive Committee of the National Economic Council (ECNEC), all provinces should have Project Development Facility (PDF) Fund in provincial Annual Development Plans (ADPs) for conducting feasibility of the development projects.
The feasibilities studies should be carried out for all major cities, focusing on ring roads, wastewater treatments, urban mass transit etc. Stack of feasibility studies should be available to guide future investments.
Instructions for conducting feasibility studies shall be made a part of development manual.
The government is willing to achieve maximum efficiency, effectiveness and optimal utilization of scarce resources and minimize risk of cost over-run and delay in implementation of the project.
In order to achieve ultimate objectives, it is necessary to carry out a sound feasibility study prior to initiating a project.
A feasibility study is a pre-requisite for the preparation of a major development project proposal on sound lines. Infrastructure projects studies focus more at design and geo-technical aspect but economic, climate and other key aspects are given less priority.
The instructions for Techno-Economic Feasibility Studies will serve as standard instructions for conducting all types feasibility studies. These include requirements, types, methodology procedures, steps, checklist, standards and templates for conducting feasibility studies. These guidelines suggest theoretical and practical ground rules for conducting feasibility studies to assess viability of public investment proposals and the way forward.
The guidelines will identify, appraise and suggest a basis for informed investment decisions. Effort has been made to provide instructions involved for conducting a Techno-Economic Feasibility Study to seek cost-effective alternates, market analysis, and risk assessment and reduce the probability of cost over-run and delay in implementation.
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