PREPARING PROJECT

FEASIBILITY STUDY

BY

CLODUALDO V. VELASCO
Professor of Agribusiness, CLSU
 INSTRUCTIONAL
OBJECTIVES
At the end of Chapter III, you
should be able to:

define/relate what Project

Feasibility Study is all about;

distinguish Project
Feasibility Study from a
Project Proposal; and

relate and demonstrate the

guidelines in the preparation
of Project Feasibility Studies
 What is a Project Feasibility
Study?
PFS is a detailed plan of a proposed
project

It involves feasibility tests to prove the

investment worthiness of a proposed
project

As a process, PFS requires tedious

activities of gathering, collating and
interpreting relevant, realistic and
updated project planning data.

It also requires various management

activities such as programming,
designing, lay-outing, forecasting,
budgeting, analyzing and most
importantly, decision making.
 PROJECT PROPOSAL VERSUS PFS

 Although both PFS and project proposal are almost the same in its broader
sense (both are considered plans anyway!), they, however, differ in terms
of presentation and contents. PFS, for sure, is a more detailed action plan
than a project proposal.

 While project proposal may run up to 10 or 15 pages, PFS on the other hand
may even reach 50-100 pages or even more because of its detailedness.
While PFS is most of the time subject to the test of feasibility, project
proposals may or may not be.

 Take note that there are also instances wherein project proposals are made
to make a feasibility study of a proposed project. This doesn’t mean,
therefore, that a project proposal is always a feasibility study!
 USES AND PURPOSES OF PFS
 From the point of view of the  PFS is used as a basis for
project proponent or investors determining whether a proposed
investment is feasible or not
 PFS is used to prioritize investment
alternatives
 PFS is used to encourage
stakeholders or investors to share
their capital with the project.

 From the point of view of  PFS is used as a basis for

Financing Institutions accepting/rejecting loan or
financing assistance from lending
and/or donor agencies
 PFS is used as a basis for
determining condition/terms of loan
to be granted (e.g. grace period,
interest rate, repayment terms,
collateral requirements, etc.)
 PFS is used to schedule timing of
loan releases and loan repayment

 From the point of view of the  PFS is used for prioritizing resource
Government commitments
 PFS is used for assessing the
societal desirability of the project
 PFS is used for determining the
financial assistance and/or support
services from the government (e.g.
subsidies, physical facilities,
investment incentives, etc.)
General Components of
PFS
Marketing Aspect;

Technical/Production
Aspect;

Organization and
Management Aspect;

Financial Aspect; and

Socio-Economic Aspect
 PROJECT FEASIBILITY OUTLINE
FORMAT “A”
i. COVERLEAF
ii. TABLE OF CONTENTS
iii. EXECUTIVE SUMMARY
1.0 INTRODUCTION
1.1 Project Rationale
1.2 Background and Purpose of the Project
 Sample Executive Summary

VILLAGE-BASED TOMATO PROCESSING PROJECT

Geared towards the government’s thrust of promoting agribusiness enterprise development and rural
industrialization, the study was focused in determining the feasibility of establishing the proposed Village-Based
Tomato Processing Centers in Aliaga, Talavera, and Rizal, Nueva Ecija, respectively. Two options were
evaluated in the conduct of the study, namely: Option I (Semi-mechanized operation) and Option II (Mechanized
operation). Although both options showed signs of project feasibility, Option II was given emphasis in the
preparation of the project study. This was preferred for it has provided greater opportunities and socio-economic
benefits among the intended beneficiaries. A brief project profile of Option II is presented as follows:

Excerpt of the Project Feasibility Study prepared by Prof. Clodualdo V. Velasco, Village-based Tomato Processing Project, 1992
Name of the Project Nueva Ecija Tomato Processing
Cooperative, Inc. (NETPCI)

Plant Site Phase I - Talavera, N.E.

Phase II – Aliaga, N.E.
Phase III– Rizal, N.E.

Product(s) Tomato paste, sauce and catsup

Market Potentials Local fish canners; food

processors; groceries/
super markets; export

Plant Capacity Tomato paste: 48,840 packs/mo.

@ 1 gallon
Tomato sauce: 12,500 bottles/
month @ 320 g
Tomato catsup: 15,625 bottles/
month @ 320 g

Machinery/Equipment Almedah Equipments Co.

Source

Total Project Cost P12,793,812

 Land and site development 998,279

 Building 776,640
 Transportation facilities 490,000
 Production equipment 6,080,000
 Pre-operating expenses 20,000
 Working capital 3,789,203
 Contingency (5%) 639,690
------------------
T O T A L P 12,793,812

Financing Scheme 20% Equity; 80% Loan

Payback Period 2.05 Years

Benefit Cost Ratio (BCR) at 12% 1.20

Profitability Index (PI) at 12% 1.98

Net Present Worth (NPW) at 12% P7,134,883

 The proposed project will be put up in three separate sites: A) Phase I – Talavera,
B) Phase II – Aliaga, and C) Phase III – Rizal. Each plant will have a total project cost of
P12,793,812. Financing is programmed to come from LBP loan (80%) and PMPC equity
counterpart (20%). The projected financial cash flows of the project yield an acceptable
IRR of 39.45%. At an estimated hurdle rate of 12%, the project is therefore considered
financially viable. Likewise, the project cash flows also show that the projected revenues
of the project can meet its debt-service requirements as scheduled.

The project was also subjected to sensitivity analysis. The yield on IRR shows
that the project is still viable when project costs will increase by 5% (16.15% IRR).
Likewise, a 5% shortfall in anticipated benefits will still provide the project an acceptable
IRR of 18.49%. Further investigation, however, has revealed that the project performance
is no longer viable at an increase of 10% on project costs. Findings showed that the
project is too cost sensitive, thus, it necessitates for effective cost control techniques
during the operationalization stage.

Socio-economic desirability of the project was also assessed. The projected

stream of incremental economic benefit and costs (B/C) yields an ERR of 159%. The B/C
of “with” and “without” the project were analyzed in the conduct of economic analysis.
The incremental benefits that will accrue to the project are in the form of: A) Increased
farmers income (83 farmer-growers involved @ 1 hectare), P3,113,074; B) Increased
value-added (processed products), P5,333,458; C) Import savings, P22,910,000; D)
Increased household income due to employment generation, P1,007,939, and E) Benefits
from capital build up and patronage, P598,609.
Comparison was also made for imported and locally-produced tomato paste. Price
analysis showed that the economy would be better off if it instead produce tomato paste
domestically. Breakeven wholesale price of the project’s tomato paste was only P18.56
per kg. While FOB price/kg for imported tomato paste was forecasted at P41.47/kg.

Market analysis indicates that there is a bright prospect in tomato processing. This
was reflected by the continuing importation of tomato pastes and the inadequacy of
supply coming from the local paste manufacturers. The project is anticipated to capture at
least 10% of the estimated 10,000 ton paste deficit locally. As percentage of projected
paste imports, market share of each plant is estimated at 7.57%.

The project is technically viable in almost all aspects. Tomato processing

technology, which has long been developed by DOST, will be provided by ITDI.
Production equipment and raw materials can be acquired locally. Labor and utilities are
also available. Likewise, land, labor, capital, and farmer’s cooperation can be easily
negotiated through the local/municipal government, LBP and PMPCs, respectively.

The operational feasibility of the project is also positive. Through the DOST’s
CTTC Program, the project will be supported by the interplay of different agencies. The
project was also highly supported by the concerned/surveyed PMPCs.

In brief, the project should be implemented.

 Marketing Aspect
2.0 MARKETING ASPECT
2.1 Market Assessment
2.1.1 Demand and Supply Analysis
2.1.2 Competitor Analysis
2.1.3 Consumer/Client Analysis
2.2 Market Prospects
2.3 Marketing Program
2.3.1 Product Feature/Design
2.3.2 Pricing Scheme
2.3.3 Promotion and Advertisement Strategies
2.3.4 Product Distribution Strategies
2.3.5 Target Market Share and Profit
Objectives
 Marketing Aspect:
Who are your specific
market prospects or
target clientele group?
Men
Women
Students
Teenagers
Senior Citizen
Children
Housewives
Farmers
Institutions
 Marketing Aspect:
What is your product
Offer?
In what form?
Fresh or Raw product
Graded/sorted Product
Semi-processed product
Cooked Product
Marketing Aspect:
What is your product
offer?
Live product
Fresh product
 Marketing Aspect:
What is your product
Offer?
In what form?
Processed Product
Marketing Aspect:
Product Feature
What packaging material to use?
What is the Product brand name?
What Label and Trademarks to use?
What is the Product size and/or
content?
Marketing Aspect:
Product Feature
What packaging material to use?
What is the Product brand name?
What Label and Trademarks to use?
What is the Product size and/or
content?
PRODUCT CODE PRODUCT DESCRIPTION WEIGHT PER PACK PRICE/PACK
(gms) (Php/Pack)

EP El Pescador 900 165

NPTF Nile Pacific Tilapia Fillet 450 105

IQFTF Individual Quick Frozen Tilapia Fillet 1000 215 Sample Price List

SKN A Skin-on A 1000 205

TGA FOODS CORPORATION
Product Specification and
SKN B Skin-on B 1000 205
Prices
SKN C Skin-on C 1000 205

WR Whole Round Tilapia 25000 1625

WGGS Whole gilled , gutted scaled Tilapia 450-500 98 Note:

Pricing Scheme is based on
Unit Cost plus 25% Mark up
NPTL 1000 Nila Pacific Longanisa 1000 120

NPTL 180 Nila Pacific Longanisa 180 26

T-SKIN Skin 1000 75

2000 150

T-HEADS Heads 1000 25

H&B Head and Belly 1000 30

NPDBU Nile Pacific Deboned Bangus Unseasoned 400-500 165

DBU Deboned Bangus Unseasoned 290-345 95

Click icon to add picture Marketing Aspect:
How will you promote
your product/service?
Through its label
Marketing Aspect:
How will you promote
your product/service?
Through institutional endorsement
Marketing Aspect:
How will you promote
your product/service?
Through promotional poster
Marketing Aspect:
How will you
promote your
product/service?
Through a Product endorser:
Celebrities/Model
Owner-Manager
Student
Professionals
Institution
Consumer
Farmer
Promoting Products through
Demo
Field Testing through a Model
Farm
Marketing Aspect:
How will you advertise?
What medium to use?
Posters/billboards
TV, radio, internet websites
Print ads Newspapers, Magazines
Promoting and advertising through
Product Billboards
 Marketing Aspect:
Product Distribution
Where and how will you market your
product?
Public Markets
Malls
Trading Posts
Institutions
Traders
Viajeros
Retailers
Wholesalers
Direct consumers
Continuation of PFS Format…

3.0 PRODUCTION MANAGEMENT

3.1 Plant/Farm Description and Location
3.2 Product(s) & Production Schedule
3.3 Production Process(es)
3.4 Fixed Assets and Facilities
3.5 Raw Materials and Other Key Inputs
3.6 Waste Disposal System
3.7 Other Information
The Project Site
(Location Map)
The Project Site
(Location Map)
Sample Vicinity Map
Location Map
49
Sample Project Perspective
Sample Project Perspective
Sample Project Perspective
Sample Building Design
Sample Plant Design
 Sample Ground/Plant Layout
SPICES
Preparation
Labeling Room
Raw Smoke
Area House 6
Materials
Warehouse Dry
Canning Section Smoke QARD/TSD
Office
Canned
House5 Warehouse
Goods Stock Section
Room Smoke MICRO
House 4 Production Laboratory

Smoke Section
Bottled
Cold House 3
Water
Storage # 1 Station
Smoked Section Smoke
House 2
Packaging Section
Cold Storage
Smoke Room
Cold House 1
Storage # 2 Meat
Receiving
Section

Chiller
ICE PLANT
Room#2

Admin Building Chiller

Women’s Men’s Room#1
Locker Room Locker Room
Power
House
CR CR CR CR CR
Sample Farm Layout
 Sample Process Flow Chart
Process Flow Chart for Hotdog

Receiving of Raw Materials

Blast Freezing

Thawing

Slicing & Mixing

Grinding& Casing

Smoking

Cooling

Canning Packaging

Retorting Packing

Labeling Cold Storage

Distribution
 Sample Process Flow Chart
Process Flow Chart for Tilapia Fillet

Receiving

Smoking Sorting/Grading
weighting

Bleeding Depuration

Scaling and Gutting Filleting

Skinning First washing/Chilling

Rubbing Trimming

Layering Final Washing/chilling

Chilling Blast Freezing

Storing Packaging
(cold storage)
Sample Production Flow Chart
Continuation of PFS Format…
4.0 ORGANIZATION AND MANAGEMENT
4.1 Management During the Pre-operating Period
4.2 Management During the Pre-operating Period
4.2.1 Type and Size of Organization
4.2.2 Organizational Set-up
4.2.3 Job Description and Job Specification
4.2.4 Personnel Compensation and Fringe
Benefits
4.3 Timetable of Activities
 Sample Organizational Chart
(Ostrich Farm)
General Manager

Farm Manager

Veterinary Consultant

Secretary

Head Caretaker

Clerk-Encoder

Laborer Laborer
 Sample Job Description
JOB DESCRIPTION OF THE TECHNICIAN

1. Accept and supervise loan application of borrowers;

2. Interview borrowers;
3. Inspect collaterals to prove its validity for approval of the
Manager and the Credit Committee;
4. Campaign for collection of loans maturing and those that
have matured (past due item);
5. Campaign for deposits; and
6. Campaign for unpaid share subscriptions.

Salary Rate: Php 15,000 per month

Fringe Benefits: 13th month pay, cash gift, SSS insurance, Philhealth
insurance, uniform allowance, free board and lodging.
 
Sample Job Specification
Continuation of PFS Format…

5.0 FINANCIAL MANAGEMENT

5.1 Total Project Costs
Initial Capital Outlay P _______
Operating Capital _______
Pre-operating Capital _______
Contingencies ` _______
Total Project Costs P =======
5.2 Financing Scheme and Sources
5.3 List of Financial Assumption
5.4 Projected Financial Statements
5.5 Financial Analysis
5.5.1 Benefit and Cost (B/C) Schedule
5.5.2 Measures of Project Worth
5.5.3 Financial Sensitivity Test
5.5.4 Financial Ratios
5.5.5 Breakeven Points

6.0 SOCIO-ECONOMIC CONTRIBUTIONS

7.0 OPERATIONAL PLAN
8.0 ATTACHMENTS/ANNEXES
 Sample Projected Monthly Income
Statement
Monthly Income Statement

Particulars Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year-end Total
Gross Sales ____________
____________
____________
____________
____________
Less: Cost of Goods Sold ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
Equals: Gross Margin ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
Less: Operating Expenses ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
A. Selling and Administative Expenses ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
B. Interest Expense ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
C. Depreciation ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
D.Amortization of Pre-operating Expenses
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
Total Operating Expenses ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
Equals: Net Income Before Tax ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
Less: Tax ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
Equals: Net Income After Tax ____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________
____________ ____________
 Sample Projected Annual Income
Statement
Projected Annual Income Statement

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Gross Sales ____________
____________
____________
____________
____________
Less: Cost of Goods Sold ____________
____________
____________
____________
____________
Equals: Gross Margin ____________
____________
____________
____________
____________
Less: Operating Expenses ____________
____________
____________
____________
____________
A. Selling and Administative Expenses ____________
____________
____________
____________
____________
B. Interest Expense ____________
____________
____________
____________
____________
C. Depreciation ____________
____________
____________
____________
____________
D.Amortization of Pre-operating Expenses
____________
____________
____________
____________
____________
Total Operating Expenses ____________
____________
____________
____________
____________
Equals: Net Income Before Tax ____________
____________
____________
____________
____________
Less: Tax ____________
____________
____________
____________
____________
Equals: Net Income After Tax ____________
____________
____________
____________
____________
 Sample Projected Monthly Cash Flow
Statement
Annual Cash Budget

Particulars January February March April May June July August September October November December Yer-end Total

Cash Receipts: ___________________________ ____________________________ ________

_________ _________ ___________________________ _________
LGU Equity ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
DA Equity ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
KOICA Equity ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Loan (if any) ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Gross Sales ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Depreciation ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Amortization of Pre-operating Expenses ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Total Cash Receipts ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Cash Disbursements:
A. Initial Capital Investments ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Land ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Buildings and Equipment ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Transport Facilities ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
_____________________ ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
_____________________ ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
_____________________ ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
B. Pre-operating Capital Investment ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
C. Working Capital Investments ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Cost of Goods Sold ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Operating Expenses ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
D. Taxes ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
E. Owner's Withdrawal ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
F. Loan Repayment ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Total Cash Disbursement ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Net Cash Flow ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Add; Beg. Cash Balance ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
Ending Cash Balance ___________________________ ____________________________ ________
_________ _________ ___________________________ _________
 Sample Projected Annual Cash Flow
Statement
Annual Cash Flow Statement

Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash Receipts: _________ _________ _________ _________ _________ _________

LGU Equity _________ _________ _________ _________ _________ _________
DA Equity _________ _________ _________ _________ _________ _________
KOICA Equity _________ _________ _________ _________ _________ _________
Loan (if any) _________ _________ _________ _________ _________ _________
Gross Sales _________ _________ _________ _________ _________ _________
Depreciation _________ _________ _________ _________ _________ _________
Amortization of Pre-operating Expens es _________ _________ _________ _________ _________ _________
Total Cash Receipts _________ _________ _________ _________ _________ _________
Cash Disbursements :
A. Initial Capital Investments _________ _________ _________ _________ _________ _________
Land _________ _________ _________ _________ _________ _________
Buildings and Equipment _________ _________ _________ _________ _________ _________
Transport Facilities _________ _________ _________ _________ _________ _________
_____________________ _________ _________ _________ _________ _________ _________
_____________________ _________ _________ _________ _________ _________ _________
_____________________ _________ _________ _________ _________ _________ _________
B. Pre-operating Capital Investment _________ _________ _________ _________ _________ _________
C. Working Capital Investments _________ _________ _________ _________ _________ _________
Cost of Goods Sold _________ _________ _________ _________ _________ _________
Operating Expenses _________ _________ _________ _________ _________ _________
D. Taxes _________ _________ _________ _________ _________ _________
E. Owner's Withdrawal _________ _________ _________ _________ _________ _________
F. Loan Repayment _________ _________ _________ _________ _________ _________
Total Cash Disburs ement _________ _________ _________ _________ _________ _________
Net Cash Flow _________ _________ _________ _________ _________ _________
Add; Beg. Cas h Balance _________ _________ _________ _________ _________ _________
Ending Cash Balance _________ _________ _________ _________ _________ _________
 Sample Projected Annual Balance
Sheet Statement
Projected Balance sheet Statement
Year 0-5

Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Assets
Current Assets:
Cash on Hand _________ _____________________________________________
Cash on Bank _________ _____________________________________________
Inventories _________ _____________________________________________
Accounts Receivable _________ _____________________________________________
Other Current Assets _________ _____________________________________________
Total Current Assets _________ _____________________________________________

Fixed Assets:
Land and Land improvements _________ _____________________________________________
Buildings and Equipment (net) _________ _____________________________________________
Vehicles (Net) _________ _____________________________________________
Office Furnitures and Fixtures (net) _________ _____________________________________________
Other Fixed Assets _________ _____________________________________________
Total Fixed Assts _________ _____________________________________________
Total Assets _________ _____________________________________________

Liabilities and Networth

Loan (if any) _________ _____________________________________________
KOICA Equity _________ _____________________________________________
DA Equity _________ _____________________________________________
LGU Equity _________ _____________________________________________
Retained Earnings (end) _________ _____________________________________________
Total Liabilites and Networth _________ _____________________________________________
Sample Projected Annual Benefit and
Cost Stream
Proje cted B/C Schedule
Ye ar 0 to 5

Ye ar GB GC NB
0 ____________________________________
1 ____________________________________
2 ____________________________________
3 ____________________________________
4 ____________________________________
5 ____________________________________
Total _____________
_____________
_____________

Net Present Worth at ____%= ___________

Benefit Cost Ratio at __ %= ___________
Profitability Index at __% = ___________
Internal Rate of Return= ___________
Payback Period= ___________
 List of Attachments
1. Annual Projected Financial Statements (supported by monthly
projection and assumptions made)
2. Perspective View of the Overall Project
3. Building/Plant Designs
4. Location and Vicinity Map
5. Farm/Plant Layout
6. Production/Process Flow Chart
7. Product/Packaging Designs
8. Sample Promotion and Advertisement Posters
9. Organizational Structure
10. Job Description, Job Specification and Compensation Package for
each Position
11. Others (e.g Land Certificate, Contracts, MOA, Permits and Licenses,
Survey Results, Supporting Pictures, etc.)
 DATA NEEDS AND SOURCES
Required Data Suggested Data Source

1. Marketing Aspect

A. Demand and Supply

Situation

 Past Visit government agencies (e.g. BAS, DTI,

NCSO, BAR, NEDA, CRC)

Visit private firms; libraries; industry

studies; etc.

 Present Conduct actual survey

 Future Prepare forecasts (consult economic

planners/consultants/businessmen, if
necessary

B. Commodity Prices Visit DTI, BAS, CRC, research firms, etc.

Conduct actual market survey

C. Consumer Needs Consult market research firms,

(product type, design, etc.) Conduct actual survey

D. Competitors -do-

E. Marketing Plan Consult marketing managers

 DATA NEEDS AND SOURCES
1. Technical Aspect

A. Present alternative Consult DOST, ITDI, DA, research

technologies institutions (e.g. PCCARD, UPLB, CLSU,
etc.), TLRC

Consult private firms; interview technical

men, managers, technicians, entrepreneurs

B. Equipment/Facilities Consult suppliers (importers, local

(Specification and Prices) fabricators, dealers

C. Raw Materials Consult suppliers/producers, visit

government agencies (e.g. BAS, DTI)
D. Building Design Consult engineers, architects
(Specification and Costing,
Layout, etc.)

E. Packaging Materials Contact private suppliers; DTI;

(Designs and Prices) conduct actual survey

F. Utilities (e.g. water, fuel, Ask concerned government agencies

electricity, etc.) and/or local suppliers of utilities

G. Labor (Sources and Costs) Refer to labor agencies and recruitment

agencies; conduct actual labor survey
 DATA NEEDS AND SOURCES
3. Organization and Management Usually dependent on the project
Aspects proponent and/or management decisions

4. Financial Aspects

A. Fixed Asset Investments Consult technical men/engineers; contact

(Specifications and Costings) suppliers

B. Operating Expenses Conduct actual cost survey; interview

(e.g. wages/salaries, utilities, concerned agencies and/or suppliers
insurance, raw materials,
business licenses, etc.)

C. Financing Scheme
 Equity Refer to project proponent or investors

 Loan (terms & conditions, Approach banking institutions; private

interest, etc. lenders (if it will be tapped as financing
source)

D. Investment Incentives Refer to BOI/NEDA

E. List of Financial Conduct actual surveys/interviews;

Assumptions Visit firms producing similar
products/services;
Consult managers, economic planners,
marketing man, etc.

5. Socio-Economic Aspects Consult socio-economist;

Conduct socio-economic surveys;
Refer to DA/NCSO researches;
Secure provincial and municipal profiles
(DA offices or concerned municipalities)
 Laboratory Exercise # 3
 After going through with your readings in Chapter III, please do
your laboratory activity as follows and submit to me your
output next meeting:

1. As a preparatory requirement to the preparation of your

project feasibility study, please outline your project
components and list down all the data that you may need.
Plan how and where to secure these data. Prepare your
interview notes to speed up and facilitate your data gathering
phase.
2. Please prepare your data gathering plan now.
End of PFS Preparation

Thank You and

Good Day to
Everyone…!!!