In a lecture organized by Asharqia Chamber in Qatif
Branch.
A Specialist stresses the importance of the social side in the feasibility study of the project.
The
lecturer Hussain bin Muhammed Al Rabiah stressed the importance of the social
side in the feasibility study for any economic project to be implemented. The
social analysis of the project is in line with the marketing, financial and economic
study of any beneficial project.
Al
Rabiah said in a lecture organized by Asharqia Chamber, represented by the
Center for the Development of Small and Medium institutions under titled "basics
of the Feasibility Study", which was held on Monday 22 May 2017. The
feasibility study is the study that will determine the requirements for
implementation and operating the project under study, It
is a tool of planning, which means predicting the future. It is a process of
expectation and appreciation shared by technicians, finance and economists, and
if a feasibility study for any project does not mean that the vision is
unclear, explaining that
the aim of the project is an activity using certain sources and money
spent for it to get expected benefits over a certain period of time. "
Al
Rabiah reviewed the components of the feasibility study, such as: market,
technical and engineering study, financial feasibility, economic feasibility,
organizational and institutional structure, environmental analysis of the
project and legal aspects, all of which the requirements and benefits of the
project.
The
projects start with ideas, which may be many, so that the owner of the project
to choose a particular idea, this idea is the beginning or study of the initial
project, then it is necessary planning (a feasibility study), where information
is collected about the project to be implemented ,
analysis of the information collected, knowledge of the investment costs of the
project, and the extent of the need for this project for society and the
economy, and then reaching a decision about the continuity of the project or considering
it.
He
stressed the need to be a good start, that leads to the good end.
The
lecturer talked in details about many aspects of the market study, which refers
to sellers, suppliers or producers of goods or services to their purchasers,
consumers or beneficiaries on the basis of known quality and time unit. He
mentioned a number of determinants required in the market study, project
products or services, target group, market amount, market share, demand and
supply currently and independent, distribution channels, promotion, competitor
analysis and so on.
The
technical and engineering study of the project was discussed in the project
location, with a general description of the project framework, technical and
engineering design, identification of the type of technology used,
determination of the design capacity of the project, identification of the
production stages and identification of inputs and outputs.
Regarding
the financial feasibility study, the lecturer stressed the need to determine
the assumptions on which the study is based, as well as the amount of the
initial investment, the amount of the expected revenues, operating expenses,
cash flows and the revenue of the investment.
The
economic feasibility study, which is one of the most important components of
the feasibility study, is concerned with transferring financial values to
economic values using a correction factor, which means determining the
feasibility of the project for the national economy in general, and focusing on
correcting the financial values of the elements of land and labor, customs, taxes and exchange rate.
The
study was concluded by talking about the social value of the project, which
includes studying the effect of the project on society and the national
economy, and whether it represents a basic or secondary need, and then comes
the organizational and institutional framework of the project. In
conclusion, the lecturer was honored with a memorial sheild.
