Hussein bin Mohammed Al-Rabiah, a trainer in the project affairs at Qatif College of Tecnology, stressed that feasibility study of any project must take into account social and environmental aspects, not just financial and administrative issues.
He emphasized that giving these aspects the necessary attention ensured the required success, as it is being playing a role in acquiring more customers and determining the credibility of the project for the national economy.
This came in a lecture organized by Asharqia Chamber Chamber, represented by the Small and Medium Enterprise Development Center, under the title (Fundamentals of Feasibility Study) in its branch in Qatif on Wednesday, January 23, 2019.
Hussein bin Mohammed Al-Rabiah pointed out that the feasibility study consists of several components, including social analysis, which includes study of the impact of the project on the environment, and the impact of the environment on the project, the redistribution of national income, in accordance with legal aspects, market study, technical and engineering study, financial and economic feasibility, and organizational and institutional structure of the project.
According to Al-Rabiah, the importance of the feasibility study is that it will draw the future of the project under study for a long time to come through a process of forecasting and assessment involving technicians, finance and economists, including information on the project and analysis, and knowledge of the investment costs of the project, and then reach a decision on the continuation of the project or to dismiss it.
The lecturer discussed many aspects of supply and demand and the factors affecting them, and addressed the marketing outlets, which is the way the product goes until it reaches the consumer or its last user that may come directly, indirectly or through a dual port (product and medium) or triple outlet (product, wholesaler, retailer) or quadrant outlet (product, agent, wholesaler, retailer).
As for the technical and engineering study, the lecturer mentioned a number of important points in this regard, most notably the study of the site, a general description of the project outline and framework, technical and engineering design of the project, identification of the type of technology used, determination of project design capacity, determination of project life span, description of the stages of production, and identifying inputs and outputs.
Within the scope of the discussion about the feasibility study, the lecturer stressed the importance of choosing different methods and production processes, which takes place in several steps beginning with the inventory of different alternatives of production methods available and technically possible, technical and economic evaluation of the art of production available in the light of a number of considerations, the exclusion of technically inappropriate production methods, as well as methods that are not developed and are not compatible with technical progress, as well as the violation of laws
Financial feasibility study means the profitability of the project stressed the importance of determining the assumptions on which the study is based, the size of the initial investment, the expected revenue volume, operating expenses, cash flows, calculation of the redemption period and net present value, with the IRR.
The feasibility study refers to the transfer of financial values of economic values using a correction coefficient that means to determine the feasibility of the project for the national economy has been detailed on several elements related to this subject and most notably (land, employment, customs, taxes, exchange rate).
On the risk component of economic feasibility studies, the trainer said that they are factors affecting the calculation of the economic return of the investment project, and often related to investment costs, operating costs, and revenue from sales.
"The higher the risk, the higher the expected return on investment," he said.
In conclusion, the lecturer generously was presented by a memorial plaque.
