Template for Feasibility Study and

Detailed Project Report

Developed by:

Espelia, in partnership with CEPT Research

and Development Foundation

August 2020
Template for Feasibility Study and
Detailed Project Report

Developed by:

Espelia, in partnership with CEPT Research

and Development Foundation

August 2020
 Contents

1. Background 1
1.1 Typical feasibility study 2
1.2 Typical detailed project report 2
1.3 Approach to preparing the templates 2
1.4 Some key highlights of the templates 3

2. Template for Feasibility Study 4

3. Template for Detailed Project Report 9

1. Background

Under the CITIIS program, each of the selected cities are expected to conduct a feasibility study and prepare
a detailed project report before the project can be taken up for implementation.

This ensures that the proposed project remains technically, economically, socially, environmentally and
financially viable for all stakeholders. Wide range of projects are proposed under the CITIIS program. The
matrix below captures the overall composition of the projects financed under CITIIS:

Sr.
Category Cities Project Description
No.
Child-friendly & Commuter Centric Dehradun Smart City
Dehradun
Sustainable Mobility Plan
1 Sustainable Mobility
Development of Sustainable and Green Public Transportation
Amritsar
in Amritsar City
Agartala Howrah River Front Development (Phase- II)
Bhubaneswar B-Active (Be Active or Bhubaneswar Active)
Hubbali-
Green Mobility Corridor
Dharwad
2 Public Open Spaces
Mahakal Rudra Sagar Integrated Development Approach -
Ujjain
Phase – II
Creating ‘Wild Valley Bio-Diversity Park’ as City Lungs by
Surat
Rejuvenation of Existing Wasteland along the Creek
Urban E-Governance
3 Kerala E-health Solution
and ICT
Basic Infrastructure Development in Low- income Settlements
Amravati
in Amaravati City

Social and Social Inclusion through modernizing Public Schools as Smart

Visakhapatnam
Organizational Campus
4
Innovation in Low- Our Neighbourhood is Your Neighbourhood Too - A
Income Settlements Puducherry Participatory Planning Approach for Improvement of Low-
Income Settlements in Puducherry
Chennai Model and Smart Corporation Schools in Chennai

Evidently, some of the projects may not manifest tangible financial outcomes and will need to find
measures of the intangible benefits that accrue to various stakeholders due to the implementation of these
projects.

The feasibility study therefore needs to find a balance between outlining tangible and intangible benefits
for the stakeholders. Over the years, especially in the case of urban infrastructure projects, the gap between
the feasibility study and the detailed project report has been very wide which leads to poor implementation
of projects.

Often, the feasibility studies are conducted from the financial perspective without adequate technical
detailing of the projects. When detailed project reports are prepared, the costs often significantly change
along with the technical requirements.

Template for Feasibility Study and Detailed Project Report  1

1.1 TYPICAL FEASIBILITY STUDY
Feasibility study, as the title suggests, lays out the potential solutions and their workability in the
operational environment wherein the project is proposed.

Typical feasibility study approach warrants examining the following:

1. Market analysis and project scope – this typically includes needs analysis, options analysis, output
definition and demand estimates.
2. Social and environment feasibility – key impact assessments and mitigation measures.
3. Technical feasibility – technical design options and their suitability based on market and demand
estimates.
4. Risk analysis – key risk factors likely to impact the project and their mitigation measures; this includes
market demand risks, contractual risk, and other relevant risks.
5. Preliminary cost estimates – based on technical options with sufficient buffers for cost over/under-run.
6. Financial analysis and due diligence – revenue structure and estimates, financing requirements (viability
gap financing) etc.
7. Economic feasibility – outlining the net economic benefits of the project including net social and
environmental benefits.

This overall approach for a feasibility study can be applied to any project, whether commercial or otherwise,
and can be utilized to determine the overall feasibility.

Various stakeholders utilize the above approach and develop versions of feasibility template based on their
requirements and convenience.

Analyzing the overall nature of the projects proposed under the CITIIS program, a draft template for
feasibility study has been proposed in the following sections.

1.2 TYPICAL DETAILED PROJECT REPORT

Detailed project report, as the name suggests, lays out the overall project in a ready to implement mode.
The overall approach to preparation of DPR is:

1. Project scope and objectives – lays out the overall project and the objectives it aspires to achieve.
2. Existing situation analysis – takes stock of current circumstances and details out the state of the current
assets.
3. Detailed design – presents the detailed design of the overall asset as well as various components of the
asset.
4. Project cost – presents the overall capital and operation and maintenance costs of implementing the
projects.

In certain cases, the DPR also focuses on economic analysis and outlines the overall economic benefits of
the project.

1.3 APPROACH TO PREPARING THE TEMPLATES

The approach adopted for preparing the templates is:

a. a logical sequence between feasibility study and detailed project report should be evident.
b. both reports together enable easy project implementation.
c. the feasibility should inform the detailed project report and vice versa.

Therefore, as will be evident from the templates, there is a very large focus on undertaking the feasibility
study in much greater detail while the DPR template only compliments the contents of the feasibility.

The rationale is to ensure that the feasibility is detailed and thorough such that the DPR is utilized only to
re-confirm the detailed designs and put in place the final working drawings or final plans in place.

2  City Investments to Innovate, Integrate, and Sustain (CITIIS)

Section 2 presents the template for a detailed techno-economic/financial feasibility while Section 3 presents
the template for the DPR.

The templates are presented in a matrix and the contents defined in the matrix are accompanied with very
brief explanatory notes of what each section / heading should elaborate upon.

1.4 SOME KEY HIGHLIGHTS OF THE TEMPLATES

Over the years, the trend of relying more on the Detailed Project Report has seen traction. Ideally, the DPR
should largely reconfirm what the detailed feasibility study includes. However, with the commercialization
of services related to feasibility and owing to fierce price competition, the feasibility contents often
witnessed dilution and were more focused upon establishing financial feasibility.

Quite often, only conceptual drawings are utilized to prepare cost estimates and establish financial
feasibility. However, when the DPR for the same project is developed, a stark contrast in costs is observed.
This departure in costs between the feasibility and the DPR is quite common and can range between 10% to
400%.

To avoid this pitfall, higher emphasis is placed on the feasibility study and it is expected to be detailed to
provide for prudent decision making.

With the realization that ‘one size does not fit all’, these templates have a key difference from typical
‘templates’. As is very common, with templates it is expected that the user will stick to the contents in the
template. However, the templates in the following pages have built-in flexibility to ensure that the users can
maneuver the contents and can adopt the contents based on their relevance to the project at hand.

All contents of the templates have a ‘mandatory’ and ‘optional’ classification. This will aid the users in
making decisions relating to retention or modification or removal of contents within the templates for their
use.

Wherever possible, crisp guidelines are included to provide an overview of the overall contents and what
should be included in the sections / sub-sections.

Template for Feasibility Study and Detailed Project Report  3

2. Template for Feasibility Study

Mandatory / Optional
Section Contents Guidance Notes
Components
Background and
1
Introduction
1.1 Background
1.2 Introduction to CITIIS
• Introduce CITIIS
1.3 Project introduction • All components of this • Explain in brief the overall project
section are mandatory • Briefly state the need and purpose of the
1.4 Need for feasibility feasibility
Key takeaways of previous
1.5
studies
The structure of feasibility
1.6
report
Project background,
2
scope, and details • Briefly describe decadal growth, city area
over a period, city economic profile, etc.
City Demography and
2.1 • Outline the key reasons for taking up this
socio-economic profile
project.
2.2 Need for the project • Outline and describe the project
constituents and what individual
Project overview and components are part of overall project
2.3
objectives ad what are the overall outcomes and
Key project components benefits that are likely to accrue if the
2.4 • All components of this
and outcomes project is implemented.
section are mandatory
• Detail out how the stakeholder
Stakeholder engagement engagement process was utilized to not
2.5 process for project only evolve the project by addressing
selection and maturation citizen aspirations and keeping them
engaged in the process.
Project development
• Outline how the CITIIS values are central
2.6 principles and
to the entire project development process
methodology
as well as the overall methodology for
Best practices project implementation
2.7
benchmarking
3 Technical feasibility • Technical feasibility studies are carried out
primarily to analyze the possible design
Existing infrastructure and engineering options that could be
3.1
assessment applied and the different technologies
3.1.1 Demand analysis • Mandatory that could be adopted for project
implementation.
• Mandatory – in case • Establish and accurately capture the
of multiple sites under existing conditions with respect to the site
consideration and the project environs.
• Optional – for projects • Establish that the proposed site is the best
3.1.2 Site suitability analysis
with only 1 site or option for the project
in case where site • Gap assessment is to establish the gap in
suitability is irrelevant service standards thereby re-confirming
(e.g. E-governance) the need for the project.

4  City Investments to Innovate, Integrate, and Sustain (CITIIS)

 Mandatory / Optional
Section Contents Guidance Notes
Components
Mapping of existing • Existing situation analysis helps avoid
3.1.3 • Mandatory
infrastructure / services duplication of facilities.
• These studies are specific to projects with
Benchmark current level physical infrastructure components. The
3.1.4 • Mandatory
of services w.r.t standards studies with non-physical infrastructure
3.1.5 Gap assessment • Mandatory should adapt these elements to suit their
study.
• Mandatory – for • The technical studies for each set of
projects dealing with projects will be different and can have
land parcels different constituents. This should be
3.1.6 Topographical survey
• Optional – for projects adapted to the nature of the project.
that do not involve land • The overall range of design ideas along
parcels with the principles of design for the
project should be discussed
• Mandatory – for
• The array of design options, block cost
projects with large land
estimates and key challenges relating to
area (e.g. Riverfront)
each option should be elaborated here.
• Optional – for projects
3.1.7 Base Map • Based on the analysis, zero in on the final
with no land area
design option and prepare all detailed
involvement (e.g.
designs and engineering solutions
Mobility, e-governance
necessary to be developed.
etc.)
• In cases of multiple design related
• Mandatory – for drawings, the final drawings that present
projects dealing with the overall post-construction views of the
land parcels facility should be included in this report.
3.1.8 Geotechnical investigation o An additional volume may be prepared
• Optional – for projects
that do not involve land with all relevant design drawings (which
parcels. will be required in any case for technical
sanction) and kept handy.
• Mandatory – for • The Master Plan section is necessary for
projects with large land projects where a wide set of components
area (e.g. Riverfront) will be dealt with (e.g. Riverfront, bio-
• Optional – for projects diversity park etc.).
3.1.9 Hydrology & Hydraulics
with no land area
involvement (e.g.
Mobility, e-governance
etc.)
Technical design options
3.2
and feasibility
• Mandatory – for
projects with physical
infrastructure
Design ideas and components
3.2.1
principles • Optional – for projects
with no physical
infrastructure
components
Stakeholder consultations
3.2.2 on technical options to • Mandatory
finalize the design option
• Mandatory – for
projects where design
elements / structures
Design options and / components are
3.2.3
relevant challenges involved
• Optional – for projects
such as e-governance
and ICT.

Template for Feasibility Study and Detailed Project Report  5

 Mandatory / Optional
Section Contents Guidance Notes
Components
3.2.4 Final design option • Mandatory
3.2.5 Material selection • Mandatory
Potential environmental
3.2.6 • Mandatory
and social impacts
• Mandatory – for
projects with physical
infrastructure
components
• Optional – for projects
3.2.7 Final detailed design
with no physical
infrastructure
components or no
significant design
requirements
• Mandatory – for
projects with physical
infrastructure
components
Engineering solutions
• Optional – for projects
3.3 for infrastructure
with no physical
components
infrastructure
components or no
significant design
requirements
3.4 Final master plan
3.4.1 Project components • Mandatory – for
projects with varied
3.4.2 Land use plan physical infrastructure
Urban design for components
3.4.3 • Optional – for projects
proposed components
with no physical
infrastructure
Land ownership components or no
3.4.4
assessment significant design
requirements
Cost estimates for each
3 .5 • Mandatory
component
Environmental and
4
Social Feasibility
Environment impact
4.1 • Mandatory
assessment and feasibility
4.1.1 Impact on flora and fauna • Mandatory
• This should build upon the preliminary
Impact on environmental assessments carried out as part of ESIAs.
4.1.2 • Mandatory • Any specific issues arising out of the
parameters
project should be addressed here.
Overall environmental • This feasibility should be more
4.1.3 • Mandatory
feasibility comprehensive since the feasibility will
be informed by the master plan, detailed
Social impact assessment
4.2 • Mandatory designs, and engineering solutions
and feasibility
Mapping of social
4.2.1 • Mandatory
infrastructure
Identification of social
4.2.2 • Mandatory
and cultural activities

6  City Investments to Innovate, Integrate, and Sustain (CITIIS)


Section Contents
Identification and
4.2.3 assessment of Project
Impacted Persons (PIPs)
Relocation options for
4.2.4
PIPs and activities
4.2.5 Overall social feasibility
5 Financial feasibility
Estimation of capital costs
5.1 (including interest during
construction)
Estimation of pre-
5.2
operative expenses
Identification of revenue
5.3
sources if any
Estimation of potential
5.4
revenue
5.5 Funding sources
Estimation of O & M costs
5.6
for 10-15 years
Identify economic and
5.7
social benefits
Financial feasibility
5.8
analysis
6 Risk analysis
6.1 Identification of key risks
Identification of key
6.2
mitigation measures
7 Procurement plan
Key procurement
requirements
Overall procurement plan
Implementation
8
requirements
Statutory, administrative,
8.1 and technical approvals
process and timelines
Environmental-
• Mandatory
clearances – Central, State
8.2
government or any other
agencies (airport etc.)
Human resource and
8.3
institutional requirements
Mandatory / Optional
Guidance Notes
Components
• Mandatory – for
projects which involve
displacement of people
• Optional – for projects
with no displacement
• Mandatory
• The financial feasibility should identify all
possible costs for the project and should
factor in sufficient inflation impact on
prices. The ideal solution would be to
develop a financial model that captures
• Mandatory
all key assumptions such as debt, equity,
cost of capital, inflation, cashflow,
revenue assumptions, projections related
to revenue realization and overall key
financial indicators such as IRR, NPV etc.
• Risk analysis is critical to think through
all the risks that can impact the results of
the project. Risk analysis allows proactive
• Mandatory planning of measures to either avoid the
risks altogether or develop mitigation
measures to withstand the risk if it
presents itself.
• The procurement plan should identify
all requirements of external consultants
/ agencies / contractors that need to be
• Mandatory
hired to ensure project implementation.
• This should ideally be juxtaposed with the
overall project implementation plan.
• The implementation requirements include
the key pre-implementation activities
that are necessary to ensure that the
implementation moves ahead without any
glitches.
• One of the key implementation
requirements is to think through the
human resource (the key experts /
people necessary to oversee smooth
implementation) and institutional
requirements (creating specific verticals /
departments, identifying the best suited
agency and working out implementation
modalities with them).
Template for Feasibility Study and Detailed Project Report  7
 Mandatory / Optional
Section Contents Guidance Notes
Components
9 Annexures
A1 – Concept plan for
9.1
each option
A2 – Master plan for
9.2
selected options • The list of annexures provided is only
A3 – Detailing of indicative and should be modified to
9.3 present the most relevant information
Engineering solutions
necessary.
A4 – Statutory policy and
9.4
regulations
A5 – Costing and
9.5 financing plan details if
applicable

8  City Investments to Innovate, Integrate, and Sustain (CITIIS)

3. Template for Detailed Project Report

Mandatory / Optional
Section Contents Explanation (if any)
Components
Background and
1
Introduction
1.1 Background
• Introduce CITIIS
1.2 Introduction to CITIIS • Explain in brief the overall project
• The key takeaways from the feasibility
1.3 Project introduction • Mandatory
are to ensure that this report adheres to
the most important points that feasibility
Key takeaways of
1.4 has presented.
feasibility study
The structure of Detailed
1.5
Project Report
2 Project rationale • Set out the context of the project
highlighting the key issues being faced
2.1 Context resulting in the conceptualization of the
City Demography and project and the key reasons and benefits
2.1.1 of taking up this project.
socio-economic profile
• Outline and describe the project
2.1.2 Key issues constituents and what individual
components are part of overall project.
2.1.3 Need for the project
• Outline the outcomes and benefits likely
2.1.4 Project benefits to accrue if the project is implemented.
• Mandatory • In the overall methodology, present
Project overview and a snapshot of how the project is
2.2
objectives conceptualized from ideation to
implementation.
Key project components
• Chapters 1 and 2 might appear to be
2.2.1 and methodology of
a repetition and to a large extent it is
project development
reiterating some aspects of the feasibility
2.2.2 Key intended outcomes study. However, this is to ensure that
the reader / user of the document can
2.3 The overall methodology understand and appreciate the overall
context of the project.
Existing situation • Mandatory – in
3
analysis case only limited
investigations were
3.1 Soil investigation carried out during the • This section should highlight the
3.2 Topographic surveys feasibility. existing situation in all possible details
• Optional – if the including all the detailed surveys and
3.3 Hydrological surveys feasibility study has investigations that have been carried out
comprehensively • The technical studies for each set of
3.4 Climate studies
covered all surveys and projects will be different and can have
tests and it is further different constituents.
determined that no • The sample for Geotech investigation will
more surveys or tests increase to ensure full site is workable for
Mapping of existing
3.5 are necessary, the the project.
infrastructure / services
relevant sections of the
FS can be utilized to
populate this section.

Template for Feasibility Study and Detailed Project Report  9

 Mandatory / Optional
Section Contents Explanation (if any)
Components
3.6 Detailed Technical design • Mandatory – the
feasibility study will
3.6.1 Final design option have final overall • Depending on the nature of the
Architectural design and technical designs project, these titles can be modified to
3.6.2 for the projects. This
drawings, if applicable present detailed technical designs for
section should be all components of the project. This can
Structural design and utilized to finalize all
3.6.3 include designs for physical and non-
drawings, if applicable the working drawings physical infrastructure.
so that implementation • In case of non-physical infrastructure
3.6.4 Material selection
can be commenced components, these headings can be
3.6.5 Final detailed design using these drawings. suitably modified.
• Optional – where in the • In cases of multiple design related
feasibility, the projects drawings, the final drawings that present
Engineering solutions which are determined the overall post-construction views of the
3.7 for infrastructure to not require detailed facility should be included in this report.
components designs can skip this • An additional volume may be prepared
section. with all relevant design drawings (which
• Mandatory – all will be required in any case for technical
Cost estimates for each possible costs are to sanction) and kept handy.
3.8
component be re-confirmed in this
section.
Environmental
4 and Social impact
assessment
• The feasibility study will have already
Reconfirm the
carried out potential EIAs and SIAs – in
environmental and social • Mandatory
4.1 case the same have not been carried out,
impact assessment
this can be taken up here
studies
Final mitigation measures
4.2
for E&S impacts
Project costing and
5
economic analysis
• Based on the final designs, final costs for
Final capital costs the project are to be determined here.
5.1 (including interest during This section should be informed by the
construction) • Mandatory
analysis carried out under the feasibility
Final pre-operative study and either re-confirm or update
5.2 the overall costs for the project.
expenses
5.3 Estimation of O & M costs
5.4 Economic Analysis
• Undertake the necessary economic
5.4.1 Cost – benefit analysis • Mandatory
benefit analysis.
5.4.2 Economic rate of return
6 Implementation plan
Project scheduling with • An overall project implementation
6.1 schedule should be developed (GANTT
respect to time and cost
Chart) for project implementation.
Statutory, administrative, • This section and its contents should be
technical and • Mandatory
6.2 further refined of modified based on
environmental approvals’ what was captured in the feasibility study
timelines and should now identify all key steps
necessary to kick-start implementation.
Human resource and
6.3
institutional requirements

10  City Investments to Innovate, Integrate, and Sustain (CITIIS)

 Mandatory / Optional
Section Contents Explanation (if any)
Components
7 Procurement plan • The procurement plan here should differ
from the feasibility in terms of finalizing
Final procurement the optimum contract structures and
7.1
requirements • Mandatory number of work packages that are to be
taken up. This plan and its realization
7.2 Overall procurement plan should align with the overall project
implementation schedule.
8 Annexures
8.1 A1 – Concept plan
A2 – Detailed design
8.2
drawings
• Mandatory – include
• The list of annexures provided is only
A3 – Detailed engineering annexures that
8.3 indicative and should be modified to
drawings present the key data
present the most relevant information
points, designs, bill of
A4 – Overall necessary.
8.4 quantities etc.
implementation plan
A5 – Project costing in
8.5
detail
8.6 A6 – Contract packages

Template for Feasibility Study and Detailed Project Report  11

 National Institute of Urban Affairs

City Investments To Innovate, Integrate & Sustain (CITIIS)

1st Floor, Core 4B, India Habitat Centre, Lodhi Road, New Delhi - 110003
Phone: (+91 11) 24617517, 24617543, 24617595w • Fax: (+91 11) 24617513
Website: citiis.niua.org, www.niua.org