Investment Project Feasibility Study Guide

Author: Compiled by the Writing Group of the "Guidelines for Feasibility Study of Investment Projects"
Publisher:
Publishing Date: March 1, 2002
Features: This "Guidelines" summarizes the practical experience of reliability research in China over the past 20 years and emphasizes learning from beneficial international practices. During the writing process, discussions and reviews were held with responsible officials from the planning departments of various State Council ministries and commissions, as well as experts and scholars from planning and design agencies, financial institutions, large enterprises, universities, and research institutions. Two public international seminars were also held to gather comments from foreign experts. After multiple revisions, it was finally approved by the National Development and Reform Commission (NDRC). The "Guidelines" consists of two parts: 1. Content and Methods of Feasibility Study; 2. Outline for Compiling Feasibility Study Reports. It has the following characteristics: (1) Highlights the fundamental role of the market in resource allocation; (2) Emphasizes the importance of scheme comparison and optimization in feasibility studies; (3) Stresses the significance of risk analysis; (4) Pays attention to financing scheme analysis; (5) Gives due weight to the role of social evaluation in project decision-making; (6) Simplifies and adjusts economic evaluation parameters; (7) Defines the focus and depth of preliminary feasibility studies versus feasibility studies; (8) Emphasizes sustainable development, deepens environmental impact assessment efforts, and adds research content and requirements for energy conservation and water conservation; (9) Reflects the characteristics of feasibility studies for technical transformation projects. The primary readers of this "Guidelines" include personnel engaged in feasibility studies across various industries, investment and financing decision-making, planning and programming, bank lending, consulting and evaluation, as well as those involved in relevant training and education. The English edition of this "Guidelines" can be used for foreign-related projects, foreign capital introduction, and international exchanges. Feasibility study is a fundamental task in fixed-asset investment activities, and the conclusions of feasibility studies serve as an important basis for investment decisions. To meet the needs of scientific decision-making by various investment and financing entities in China, the National Development and Reform Commission (NDRC) commissioned China International Engineering Consulting Company to organize the writing of the "Guidelines for Feasibility Study of Investment Projects" to standardize the content and methods of feasibility studies and guide the compilation of feasibility study reports. The compilation of this book summarizes the experiences and lessons learned from feasibility studies since China's reform and opening-up, draws on beneficial international practices, strives to align with China's actual conditions, and seeks to align as closely as possible with international common practices. This book is applicable to feasibility study work for basic construction projects and technical transformation projects in industries, transportation, agriculture, forestry, water conservancy, urban infrastructure, and other fields, undertaken by various investment entities such as government, enterprises, and private investors. This book primarily serves professionals engaged in feasibility studies for investment projects, as well as those involved in investment decision-making, bank lending, consulting and evaluation, and teaching and training. The content, depth, and evaluation index settings of this book have a certain degree of generality but cannot fully accommodate the specific differences of various investment projects. Feasibility study personnel can select the scope and focus of research and evaluation based on the actual conditions of the project. This book is generally applicable to preliminary feasibility study (or project proposal) stage research work, but its content, scope, and evaluation indicators can be adjusted appropriately as needed.