A pre-feasibility analysis provides a broad foundation for assessing the overall potential of an industrial park project. It serves as a guide for decision-makers, helping them determine whether the project is technically, financially, economically, socially, and environmentally viable. Additionally, it positions the proposed project within the context of national, regional, and international competition, while taking into account relevant market trends.
Although it preceds more detailed feasibility studies (if deemed necessary), a pre-feasibility study typically uses widely available statistical data, supplemented by field data collected specifically for the study and qualitative information obtained through consultations with public authorities and enterprises. Key indicators, such as labor supply, consumer income levels, and the presence of existing enterprises in the target market, are critical in evaluating the sustainability of potential industrial parks. Other important factors include the market's economic activity, key sectors, population, infrastructure, and legal framework. While pre-feasibility studies cover similar topics as full feasibility studies, they do so with less detail.
In general, pre-feasibility studies provide guidance in the following areas:
Location/site selection
Provides information about alternative locations and sites that are potentially suitable for establishing an industrial park.
Market/industry identification and forecasts
Assesses the sectoral niches likely to be interested in the proposed industrial park, as well as their country of origin, expectations and needs;
Demand Projections
Appraises anticipated sector-specific demand for an industrial park based on historical investment patterns and international, national and local trends, as well as on industry and comparator country benchmarks in terms of space utilization. The projection serves to (i) analyze the sector’s competitiveness; (ii) estimate of the amount of project investment and industrial land demand required for an industrial park, (iii) provide a sense of the infrastructure and service requirements, and (iv) the resulting scale of the project’s costs and revenues;
Financial Analysis
Evaluates the costs and revenue streams of the potential industrial park project, based on its expected demand and conceptual master plan, exploring a range of possible financing structures, mechanisms, and funding sources;
Policy Analysis and Stakeholder Mapping
Considers the existing policy, legal, and regulatory framework in which the project will operate, providing a high-level overview of the institutions and stakeholders involved. Identifies opportunities for differentiation that these conditions may offer to the project and its potential investors, while also highlighting the constraints and challenges they present. Additionally, it informs potential reforms that could be considered within this context.
Safeguards Assessment
Evaluates the social and environmental considerations for the proposed industrial park with respect to relevant national requirements and international commitments, providing a proposed impact mitigation and management strategy, and influencing the demand and investment costs for the park as well as its competitiveness;
Economic Impact Projections
Assesses the anticipated economic impacts of establishing the proposed industrial park in terms of investment, public finance expenditures, jobs, net exports, tax revenues and foregone revenues, and other factors, based on the results of the demand and financial analysis.