Project

Feasibility
Study
In the Context of Real Estate Management

Riza C. Belgira, EnP, REB

Instructor
Concept of
Project… As a concept and a process is anchored
Development on a broader concept called – DEVELOPMENT

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 The Idea of Development is…

❑ to improve the human condition

Concept of
❑ to reduce or eliminate oppression, misery, and
Development poverty
❑ a central feature of human thought for millennia
and it has been synonymous with economic,
social, and political change

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 Development is a concept and a process…
❑ It has various components and factors to be
considered and such factors are interrelated
with each other

Concept of ❑ It is elusive that it could not be seen in an

ordinary set up but could be viewed using
Development various indicators and parameters
❑ Development is a total process that includes
economic, political, social and cultural
aspects

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 Feasibility studies are structured ways to assess the
technical, social, financial, and environmental
The Essential
viability or practicality of a project and used to make
Description of a
an informed decision about whether the project
Feasibility Study
should be implemented (Hofstrand and Holz-
Clause, 2009; Karagiannidis et al., 2009).

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 Feasibility Study in Real Estate Development
❑ Many of the critical development decisions are
made even before a developer acquires a site.
❑ Market feasibility studies help the developer
The Essential
identify the best location and site characteristics
Description of a
for a particular development (see DiPasquale
Feasibility Study
and Wheaton 1996).

R. Peiser, in International Encyclopedia of the Social

& Behavioral Sciences, 2001

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 III. Technical and
I. Introduction II Market Study (1)
Production (2)

Parts of the IV. Socio-cultural (3) V. Institutional (3)

VI. Environmental
(EIA) (4)

Feasibility
Study:
An VII. Financial/
VIII. Findings
IX. Conclusion and

Overview
Economic (5/6) Recommendations

X. Other parts

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 A. Statement of the Problem
B. Objectives of the Study
C. Significance of the Study
D. Scope and Limitation
I. Introduction
E. Methodology
F. Review of Related Literature
G.Definition of Terms

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 Examines the demand for the goods or services
II. Market of a project in the domestic or foreign market,
Study and the supply condition expected to prevail
during the project's life.

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 A. Definition of Market
B. Information Necessary in Analyzing Demand and
Supply
C. Understanding the Demand
1. Demand Analysis
2. Demand Determinants
3. Consumer Demand
4. Producer Demand
5. Demand for Social Services
II. Market 6. Estimation of Demand for Social Services
Study 7.
8.
Estimating Past and Present Demand
Projecting Demand
D. Understanding the Supply
1. Supply Analysis
2. Identifying Supply Sources
3. Estimating Past and Present Supply
4. Projecting Supply
5. Demand Supply Consolidation
E. Other Major Market Considerations

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 This section is concerned with the project's input,
parameters, quantities and prices of inputs by
type required for project construction, inputs
required for project operation by year, and the
III. Technical appropriateness of the technology adopted.
and
Production It is also concerned with issues such as project
size, design and location and the technology to
be adopted inclusing equipment and processes
to be used.

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 Sections under TPA

III. Technical 1. Alternative ways of carrying out the project

2. Engineering characteristics of each
and alternative
Production 3. Requirements of physical resources for each
alternative
4. Plan for construction and operational phases
of each alternative

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

IV. Socio- This deals with the identification and quantification,
whenever possible, of the project's impacts on its
Cultural stakeholders including on the well-being of
particular groups in society.

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 A. On the Displaced Persons
1. Loss of Homes
2. Loss of Jobs
3. Destruction of Income Generating Assets-
4. Separation from site-related services
5. Loss of social/ cultural networks
B. On the Host Community
1. Integration of new community to host community
IV. Socio- 2. Pressure on existing facilities and services
Cultural 3. Over-Exploitation of natural resources
C. Mitigating Measures
1. Improvement of Housing Situation
2. Better Community/ Environment
3. Better Jobs
4. Improved Facilities and Services
5. Livelihood
6. Resettlement
7. ROW Compensation

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 This section deals with the adequacy of the local
institution to manage the different stages of
phases of the project.
V.
Institutional Experience shows that insufficient attention to
institutional aspects creates serious problems
during a project's implementation and operation
phases.

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 Management, Staff and Institutional Audit
V. 1. Management Capability
Institutional 2. Staff Capability
3. Institutional Capability

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 A. Definition of EIA

An Environmental Impact Assessment (EIA) is a

“process that involves predicting and evaluating the
VI. likely impacts of a project (including cumulative
Environmental impacts) on the environment during construction,
commissioning, operation and abandonment. It also
(EIA) includes designing appropriate preventive,
mitigating and enhancement measures addressing
these consequences to protect the environment and
the community’s welfare”.

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 Purpose of EIA Process

As a basic principle, EIA is used to enhance

planning and guide decision-making. EIA is primarily
presented in the context of a requirement to
VI. integrate environmental concerns in the planning
process of projects at the feasibility stage.
Environmental
Through the EIA Process, adverse environmental
(EIA) impacts of proposed actions are considerably
reduced through a reiterative review process of
project siting, design and other alternatives, and the
subsequent formulation of environmental
management and monitoring plans.

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 Monitoring, validation, Site selection,
audit of Environmental environment screening,
compliance and over-all Project initial assessment,
Operation
performance Conceptualiz scoping
and
ation/
Maintenance
Improvement

Detailed
Implementation assessment,
of mitigation identification of
VI.measures
Project
mitigation needs,
inputs to CBA
EnvironmentalConstruction
and
Pre-feasibility
(EIA) Development

Findings and
recommendations of EIA
Detailed design and
mitigation measures
Detailed considered in various
Engineering Feasibility permits and licenses
and Design needed

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 A. Environmental Impact Study/ Assessment
VI. 1. Environmental Critical Project
Environmental 2. Environmentally Critical Areas (PD 2146)
(EIA) B. Environmental Compliance Certificate

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 This section provides the first integration of financial
and technical variables estimated in the marketing
VII. and technical sections.
Financial/
Economic The cashflow profile during the project is
constructed.

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

VII.
Financial/
Economic

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 A. Major Assumptions
VII. B. Capital Requirements/ Investments
Financial/ C. Preparation of Financial Statements
Economic D. Financial Analysis

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB

 ADB. Guidelines for the Economic Analysis of Projects. ADB
Economics and Development Resource Center. 1997.
Babiera, N. (2015, Oct). The Concept of Development 1. Iloilo City;
University of the Philippines.
EMB. Philippine EIA System Guide: Policies and Procedures. 2007

References: Feasibility Study Handbook, Eustaquio Ditablan, National Book

Store, Inc., Manila, Philippines.
NEDA. Reference Manual on Project Development and Evaluation.
Vol. 1-3, 2000
Project Management in Practice, Mantel, Meredith, Shafer, Sutton,
John Wiley & Sons, Inc., Asia

Project Feasibility Study. Copyright 2021. Riza C. Belgira, EnP, REB