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Pre-Feasibility Study Guideline
               September 2009




                        CDIA
      Cities Development Initiative for Asia
TABLE OF CONTENTS



1     INTRODUCTION                                                     3

2     DEFINITION OF PFS                                                3

3     NECESSITY AND OBJECTIVES OF PFS                                  3
3.1    CDIA Guiding Principles                                         3
3.2    Bridging the “gap”                                              3

4     SCOPE OF PFS                                                     3

5     KEY STEPS TO UNDERTAKE PFS                                       4
5.1    Initial Consultations Prior Departure to the Project Location   4
5.2    Counterpart Consultations                                       4
5.3    Undertaking the Assignment                                      5

6     CONTENT OF PFS                                                   5
Table 1: PFS Checklist                                                 6




                                                  2
1      INTRODUCTION                                    sustainability,     ii)    Climate     change
                                                       mitigation/adaptation, iii) Urban poverty
CDIA’s key operational principle is to provide         reduction, and iv) Good urban governance.
services up to pre-feasibility level. This guide       While it is not possible to make a discernable
has been developed to clarify the term                 impact across all these dimensions in every
“Prefeasibility Study (PFS)” and aims to               project, CDIA is committed to addressing
further elucidate the content of PFS primarily         them as much as possible across all aspects of
for CDIA stakeholders (local governments of            CDIA operations. Thus, a PFS should always
medium-sized cities in Asia), and not at least         upfront emphasize the relevance the
for the consultants who are hired to                   proposed infrastructure has for one or more
undertake and implement CDIA supported                 of these guiding principles.
assignments.                                           3.2      Bridging the “gap”

                                                       In many cases cities do have some type of
2      DEFINITION OF PFS1
                                                       urban development strategies and/or
                                                       masterplan, but have somehow not been able
A PFS is broadly defined as preparatory
                                                       to move forward from these plans. CDIA was
studies required to enable funders to have a
                                                       created to bridge these urban governance
successful feasibility study carried out for a
                                                       “gaps” and assist cities to translate their
particular investment opportunity; this
                                                       infrastructure needs into projects and
generally      will    comprise     investment
                                                       programs ready to be financed, including
programming and packaging, initial scoping
                                                       prioritization of investment proposals by
and costing of identified investment projects,
                                                       providing useful pre-feasibility information.
and priority-setting       among      identified
                                                       CDIA is cooperating closely with bi-lateral and
investment projects competing for scarce
                                                       multi-lateral   development      banks      and
resources. Typical outputs are descriptions of
                                                       agencies.
priority projects for which broad design
choices have been made, at a level of detail           Therefore, the main purpose of PFS is to
sufficient for a Terms of Reference for a              ensure that there is a solid base for
feasibility study                                      undertaking a feasibility study and to further
                                                       defining probable following investment
Another way to define PFS is “a preliminary
                                                       projects. The PFS can also be used to identity
study undertaken to determine if it would be
                                                       and highlight certain development issues and
worthwhile to proceed to the feasibility study
                                                       assist the cities and local government to
stage2.” Hence, a PFS can determine the
                                                       identify prioritized sectors to improve the
scope of the probable following feasibility
                                                       urban situation.
study whether; i) Is it worthwhile to proceed
with the feasibility stage? And, ii) What would
be the main objective(s) of the feasibility            4       SCOPE OF PFS3
study?
                                                       The specific scope and tasks of a PFS will be
                                                       determined in the Terms of Reference (TOR).
3      NECESSITY AND OBJECTIVES OF PFS
                                                       Generally a PFS undertaken under CDIA
                                                       umbrella would include the following:
3.1      CDIA Guiding Principles
                                                           •    a review of technical options and
The guiding principles and operational                          features for the potential project(s);
directions for CDIA are addressing four major
principles:    i)    Urban     environmental
                                                       3
                                                        There are usually more than 1 PFS per CDIA study,
1
    Reference: CDIA Operational Guidelines             hence section 4 will need to be repeated for each sector
2
    BusinessDictionary.com                             while the other sections apply to the Project as a whole.



                                                   3
•   brief assessment of potential economic                  5       KEY STEPS TO UNDERTAKE PFS
        and social benefits;
    •   preliminary assessment of probable                      Depending on the nature of the PFS below are
        development impact objectives of the                    standard steps the study team should take
        project(s)  in   terms   of    urban                    into consideration.
        environmental improvement, urban
                                                                5.1      Initial Consultations Prior
        poverty reduction, urban governance
                                                                         Departure to the Project Location
        improvement and social and gender
        impacts;                                                    •    Consult the CDIA nominated Core
    •   preliminary assessment of possible                               Management Team member who will
        adverse environmental and social                                 supervise the Consultants work, i.e. to
        impacts and how to mitigate by                                   ensure that the scope and expectations
        safeguards4, flag these issues for the                           of the assignment has been correctly
        anticipated Feasibility Study;                                   understood;
    •   preliminary estimates of project costs                      •    Study related programs and activities in
        and of financial sustainability;                                 the country to establish a sound
    •   recommend likely implementation and                              understanding      of    the     urban
        operation arrangements for the                                   development situation being addressed.
        potential project(s) including possible                 5.2      Counterpart Consultations
        public-private    partnership    (PPP)
        potential;                                              Counterpart consultations should be seen as a
                                                                key priority activity. The following steps are
    •   undertake financial and/or economic
                                                                recommended:
        analysis based on available information,
        providing the basis for negotiation with                    •    Formally validate Steering Committee
        potential financers;                                             structure and counterpart contribution;
    •   flagging of issues to be considered in                      •    Establish sound working relationship
        detail in the ensuring Feasibility Study                         with the city counterpart to strive for
        including review of the process why the                          efficient team work and good
        specific infrastructure has become a                             cooperation       ensuring     that     key
        priority.                                                        institutions are at all times engaged in
                                                                         the process of the assignment as equal
CDIA has developed ToR templates for                                     partners;
consultants in specific areas of work. For                          •    Thoroughly explain and inform the
example, i) TOR template to undertake PFS(s),                            counterpart when and how many
and ii) TOR template for urban infrastructure                            consultants will be present in the city,
investment planning and programming. These                               especially if intermittent inputs are
templates will be reviewed and adjusted to                               being used. Ideally this is done by
specific city circumstances to meet the actual                           providing a tentative staffing schedule
requirements depending on which sector to                                and workplan to the counterpart;
support.                                                            •    Undertake field visits to locations of
                                                                         proposed activities to reach a full
                                                                         understanding of the development
                                                                         issues;
                                                                    •    Together with the counterpart discuss
                                                                         and identify the key issues of the study
                                                                         and agree on how to address those;
4
    Safeguarding the environment, Indigenous Peoples                •    Identify      investments      with     the
    and resettled people, i.e. to prevent, minimize, or
                                                                         counterpart       through     participatory
    mitigate harmful environmental impacts, social costs,
    and marginalization of vulnerable groups that may                    processes and in partnership with
    result from development projects.                                    citizens, civil society and private sector,


                                                            4
which are pro-poor focus and mitigate                   •   Conduct preliminary assessment of
        climate change.                                             possible adverse environmental and
                                                                    social impacts and how to mitigate by
5.3     Undertaking the Assignment
                                                                    safeguards, flag these issues for the
                                                                    anticipated Feasibility Study;
As mentioned under Para 4 the TOR should be
                                                                •   Conduct preliminary estimates of
the guiding instrument for the assignment,
                                                                    project costs and of financial
however to ensure a successful study the
                                                                    sustainability;
below steps should be taken into account.
                                                                •   Recommend likely implementation and
    •   Jointly with the counterpart define the                     operation arrangements for the
        geographical scope of the study area;                       potential project(s) including possible
    •   Review of previous studies on the                           potential of public-private partnership
        referred development issues, if                             (PPP);
        available;                                              •   Flag issues to be considered in detail in
    •   Study the current development issues                        the anticipated Feasibility Study
        (e.g. urban planning, land use, urban                       including review of the process why the
        transport, solid waste, sewage water                        specific urban infrastructure has
        and drainage etc.) and design within the                    become a priority;
        city;                                                   •   Undertake an initial assessment of
    •   Assess      the     organizational   and                    major risks including political;
        institutional issues in the provision of                •   Throughout the assignment hold
        basic urban services (e.g. systems,                         regular meetings (besides steering
        business      processes,      stakeholder                   committee meetings) with relevant
        analysis, internal/external relationships                   stakeholders in the counterpart
        and political economy);                                     institution and the city administration
    •   Identify     possible    solutions   and                    to update on progress of the study and
        measures to improve the urban                               create ownership;
        management situation, including new                     •   Throughout the assignment discuss with
        institutional delivery mechanisms for                       and inform potential funding partners
        improved service provision;                                 of the progress and likely need for
    •   Identify alternative solutions including                    future investments;
        assessment of local financing capacity                  •   If applicable, define issues to be
        and the likely need for external funding                    addressed in, and further need for data
        and support, including the role of the                      collection and analysis for, a potential
        private sector;                                             Feasibility Study.
    •   Make use of CDIA developed toolkits
        and guidelines5, as appropriate;
    •   Recommend         environmentally    and            6       CONTENT OF PFS
        socially responsible techniques and
        strategies for urban infrastructure                 Depending on the nature of the PFS the
        investment;                                         content of the report(s) will naturally vary.
    •   Conduct preliminary assessment of                   CDIA has developed a detailed checklist
        probable        development        impact           containing the standard requirements and
        objectives of the project(s) in terms of            content of a PFS (refer to Table 1 overleaf).
        urban environmental improvement,                    Relevant parts shall apply depending on the
        urban poverty reduction, urban                      nature and scope of the PFS.
        governance improvement and social
        and gender impacts;
5
    This PFS Guideline, Project Programming &
    Prioritisation Toolkit and PPP Manual Quick Start
    Guide



                                                        5
Table 1: PFS Checklist

1.0   EXECUTIVE SUMMARY
                                       Brief information of project objectives and
1.1      Objectives                                                                       ( )
                                       background.
                                       Summarize the stages of the PFS, brief description
1.2      Summary of analysis           of current situation and recommended projects and ( )
                                       strategies including tentative cost estimate.

2.0   INTRODUCTION
                                       Brief introduction to the PFS, objectives of the
2.1      Reporting structure                                                            ( )
                                       report and how it is structured.
2.2      Schedule                      Indicate the schedule of the study.              ( )
         Consultant(s) and
2.3                                    Involved consultants(s) and counterpart staff            ( )
         Counterpart(s)

3.0   ANALYSIS OF DEVELOPMENT ISSUES
                                       Indicate Project area, policy and legislation,
3.1      Current situation             institutional structure and finance, analysis and        ( )
                                       overview of the current situation and its impact.
                                       Analysis of future requirements and demand
3.2      Development need              analysis, i.e. typically 5 – 10 years’ projections and   ( )
                                       estimates.
                                       Stakeholders’ perceptions of the conditions and
3.3      Stakeholders’ views                                                                    ( )
                                       how they were obtained.
                                       Indicate considered institutional and financial
         Institutional and financial
3.4                                    options, public funding versus PPP, point out why        ( )
         options considered
                                       the project appears as it does etc.

4.0   PROJECT IDENTIFICATION
                                       Study’s recommendations and analysis to improve
                                       the urban situation. Alternative broad technical
4.1      Recommendations                                                                ( )
                                       solutions and preliminary design, social-,
                                       environmental- and institutional aspects.
                                       Project description to include:
                                       - Project title
                                       - Sector / Sub-sector
                                       - Location (maps, photos as required)
                                       - Implementing agency
                                       - Technical description and aspects
                                       - Project benefits and outcomes
4.2      Project Descriptions                                                           ( )
                                       - Beneficiaries
                                       - Social, poverty, gender impacts
                                       - Environmental impacts
                                       - Project Costs (US$)
                                       - Operation and Maintenance Cost
                                       - Recommended implementation schedule
                                       - Potential for private investment




                                                 6
- Potential            for                 community
                                     involvement/contributions

5.0   DEVELOPMENT IMPACT OBJECTIVES
                                   Preliminary assessment of likely development
                                   impact objectives of the project(s) in terms of urban
5.1      Assessment                environmental improvement, urban poverty ( )
                                   reduction, urban governance improvement and
                                   social and gender impacts.
                                   Preliminary assessment of possible adverse
                                   environmental and social impacts and how to
                                   mitigate those by safeguards (environment,
         Adverse     Environmental
5.2                                indigenous peoples and resettled people). Flag ( )
         and Social Impacts
                                   these issues for the anticipated Feasibility Study.
                                   (Refer to ADB’s checklists on social and
                                   environmental assessments)

6.0   FINANCIAL ANALYSIS
                                   Preliminary estimates and summary of project costs
6.1      Project Costs                                                                       ( )
                                   of identified and prioritized projects.
                                   Analysis of the current municipal revenues,
                                   recurrent internally generated and other revenue
6.2      Municipal revenues        (funds from irregular sources that can vary               ( )
                                   significantly from year to year). In addition, analysis
                                   of grants and loans situation.
                                   Analysis of recurrent expenditure, other
                                   expenditure (operation & maintenance, possibly
6.3      Municipal expenditure                                                               ( )
                                   electricity etc) and development (capital)
                                   expenditure.
                                   Preliminary estimates of project costs. Analysis of
                                   the current investment situation to derive a
                                   financial envelope to finance the identified
                                   investment projects. Undertake financial and/or
                                   economic analysis of the project. Elaborate various
         Economic and Financial
6.4                                funding       scenarios      considering     potential    ( )
         Analysis
                                   loans/grants from development banks, possible
                                   private investments and government contribution,
                                   producing projections of financial statements as
                                   required to evaluate viability. (Refer to ADB
                                   guidelines on economic and financial analysis)
                                   Conclusion remarks of the current investment
6.5      Conclusions               situation and the affordability to finance identified     ( )
                                   investment projects.

7.0   IMPLEMENTATION ARRANGEMENTS
                                 Recommend and elaborate likely implementation
         Implementation      and and operation arrangements for the potential
7.1                                                                                 ( )
         Operation Arrangements  project(s) including possible potential of public-
                                 private partnership (PPP). Indicate possible



                                             7
institutional weaknesses and suggested measures
                                   to rectify the situation.

8.0    RISKS
                                   Initial assessment of the key risks for each proposed
8.1       Assessment                                                                       ( )
                                   project.
                                   Identify the major assumptions which are made for
                                   recommended projects. Indicate if there are any
                                   circumstances outside the control of the
8.2       Assumptions              recommended project, if they occurred, would ( )
                                   prevent the achievement of the main objectives.
                                   These assumptions would be analyzed further at
                                   the feasibility stage.
                                   Identify broad risks to both implementation and
                                   sustainability. Indicate risk management strategies,
8.3       Risks                                                                            ( )
                                   if relevant. To be further developed at the feasibility
                                   stage.

9.0    FORTHCOMING FEASIBILITY STUDY (if required)
                                  Indicate the need and reasons for further studies, if
9.1       Further studies                                                               ( )
                                  required.
                                  Briefly summarize the requirements to indicate
                                  likely data and survey needs, required expertise,
          Feasibility       study
9.2                               support facilities, locations, and institutions to be ( )
          requirements
                                  consulted, skills required on the team and time
                                  requirements.

10.0 CONCLUSIONS AND RECOMMENDATIONS
                                   Summarize the conclusions and recommendations
          Conclusions and
10.1                               from the study. Highlight key issues and suggested ( )
          Recommendations
                                   way forward for the local government and/or city.

11.0 APPENDICES
                                   To be attached as necessary e.g. data and survey
11.1      Appendices               sheets, detailed technical descriptions and costing, ( )
                                   project fiches, key references etc.




                                             8
Cities Development Initiative for Asia
Suite 202-203 Hanston Building, Emerald Ave.,
        Ortigas Center, Pasig City 1600,
          Metro Manila, Philippines
Phone: +63-2 631-2342 • Fax: +63-2 631-6158
            Website: www.cdia.asia




               CDIA is supported by:

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Pre-Feasibility Study Guideline September 2009

  • 1. Pre-Feasibility Study Guideline September 2009 CDIA Cities Development Initiative for Asia
  • 2. TABLE OF CONTENTS 1 INTRODUCTION 3 2 DEFINITION OF PFS 3 3 NECESSITY AND OBJECTIVES OF PFS 3 3.1 CDIA Guiding Principles 3 3.2 Bridging the “gap” 3 4 SCOPE OF PFS 3 5 KEY STEPS TO UNDERTAKE PFS 4 5.1 Initial Consultations Prior Departure to the Project Location 4 5.2 Counterpart Consultations 4 5.3 Undertaking the Assignment 5 6 CONTENT OF PFS 5 Table 1: PFS Checklist 6 2
  • 3. 1 INTRODUCTION sustainability, ii) Climate change mitigation/adaptation, iii) Urban poverty CDIA’s key operational principle is to provide reduction, and iv) Good urban governance. services up to pre-feasibility level. This guide While it is not possible to make a discernable has been developed to clarify the term impact across all these dimensions in every “Prefeasibility Study (PFS)” and aims to project, CDIA is committed to addressing further elucidate the content of PFS primarily them as much as possible across all aspects of for CDIA stakeholders (local governments of CDIA operations. Thus, a PFS should always medium-sized cities in Asia), and not at least upfront emphasize the relevance the for the consultants who are hired to proposed infrastructure has for one or more undertake and implement CDIA supported of these guiding principles. assignments. 3.2 Bridging the “gap” In many cases cities do have some type of 2 DEFINITION OF PFS1 urban development strategies and/or masterplan, but have somehow not been able A PFS is broadly defined as preparatory to move forward from these plans. CDIA was studies required to enable funders to have a created to bridge these urban governance successful feasibility study carried out for a “gaps” and assist cities to translate their particular investment opportunity; this infrastructure needs into projects and generally will comprise investment programs ready to be financed, including programming and packaging, initial scoping prioritization of investment proposals by and costing of identified investment projects, providing useful pre-feasibility information. and priority-setting among identified CDIA is cooperating closely with bi-lateral and investment projects competing for scarce multi-lateral development banks and resources. Typical outputs are descriptions of agencies. priority projects for which broad design choices have been made, at a level of detail Therefore, the main purpose of PFS is to sufficient for a Terms of Reference for a ensure that there is a solid base for feasibility study undertaking a feasibility study and to further defining probable following investment Another way to define PFS is “a preliminary projects. The PFS can also be used to identity study undertaken to determine if it would be and highlight certain development issues and worthwhile to proceed to the feasibility study assist the cities and local government to stage2.” Hence, a PFS can determine the identify prioritized sectors to improve the scope of the probable following feasibility urban situation. study whether; i) Is it worthwhile to proceed with the feasibility stage? And, ii) What would be the main objective(s) of the feasibility 4 SCOPE OF PFS3 study? The specific scope and tasks of a PFS will be determined in the Terms of Reference (TOR). 3 NECESSITY AND OBJECTIVES OF PFS Generally a PFS undertaken under CDIA umbrella would include the following: 3.1 CDIA Guiding Principles • a review of technical options and The guiding principles and operational features for the potential project(s); directions for CDIA are addressing four major principles: i) Urban environmental 3 There are usually more than 1 PFS per CDIA study, 1 Reference: CDIA Operational Guidelines hence section 4 will need to be repeated for each sector 2 BusinessDictionary.com while the other sections apply to the Project as a whole. 3
  • 4. brief assessment of potential economic 5 KEY STEPS TO UNDERTAKE PFS and social benefits; • preliminary assessment of probable Depending on the nature of the PFS below are development impact objectives of the standard steps the study team should take project(s) in terms of urban into consideration. environmental improvement, urban 5.1 Initial Consultations Prior poverty reduction, urban governance Departure to the Project Location improvement and social and gender impacts; • Consult the CDIA nominated Core • preliminary assessment of possible Management Team member who will adverse environmental and social supervise the Consultants work, i.e. to impacts and how to mitigate by ensure that the scope and expectations safeguards4, flag these issues for the of the assignment has been correctly anticipated Feasibility Study; understood; • preliminary estimates of project costs • Study related programs and activities in and of financial sustainability; the country to establish a sound • recommend likely implementation and understanding of the urban operation arrangements for the development situation being addressed. potential project(s) including possible 5.2 Counterpart Consultations public-private partnership (PPP) potential; Counterpart consultations should be seen as a key priority activity. The following steps are • undertake financial and/or economic recommended: analysis based on available information, providing the basis for negotiation with • Formally validate Steering Committee potential financers; structure and counterpart contribution; • flagging of issues to be considered in • Establish sound working relationship detail in the ensuring Feasibility Study with the city counterpart to strive for including review of the process why the efficient team work and good specific infrastructure has become a cooperation ensuring that key priority. institutions are at all times engaged in the process of the assignment as equal CDIA has developed ToR templates for partners; consultants in specific areas of work. For • Thoroughly explain and inform the example, i) TOR template to undertake PFS(s), counterpart when and how many and ii) TOR template for urban infrastructure consultants will be present in the city, investment planning and programming. These especially if intermittent inputs are templates will be reviewed and adjusted to being used. Ideally this is done by specific city circumstances to meet the actual providing a tentative staffing schedule requirements depending on which sector to and workplan to the counterpart; support. • Undertake field visits to locations of proposed activities to reach a full understanding of the development issues; • Together with the counterpart discuss and identify the key issues of the study and agree on how to address those; 4 Safeguarding the environment, Indigenous Peoples • Identify investments with the and resettled people, i.e. to prevent, minimize, or counterpart through participatory mitigate harmful environmental impacts, social costs, and marginalization of vulnerable groups that may processes and in partnership with result from development projects. citizens, civil society and private sector, 4
  • 5. which are pro-poor focus and mitigate • Conduct preliminary assessment of climate change. possible adverse environmental and social impacts and how to mitigate by 5.3 Undertaking the Assignment safeguards, flag these issues for the anticipated Feasibility Study; As mentioned under Para 4 the TOR should be • Conduct preliminary estimates of the guiding instrument for the assignment, project costs and of financial however to ensure a successful study the sustainability; below steps should be taken into account. • Recommend likely implementation and • Jointly with the counterpart define the operation arrangements for the geographical scope of the study area; potential project(s) including possible • Review of previous studies on the potential of public-private partnership referred development issues, if (PPP); available; • Flag issues to be considered in detail in • Study the current development issues the anticipated Feasibility Study (e.g. urban planning, land use, urban including review of the process why the transport, solid waste, sewage water specific urban infrastructure has and drainage etc.) and design within the become a priority; city; • Undertake an initial assessment of • Assess the organizational and major risks including political; institutional issues in the provision of • Throughout the assignment hold basic urban services (e.g. systems, regular meetings (besides steering business processes, stakeholder committee meetings) with relevant analysis, internal/external relationships stakeholders in the counterpart and political economy); institution and the city administration • Identify possible solutions and to update on progress of the study and measures to improve the urban create ownership; management situation, including new • Throughout the assignment discuss with institutional delivery mechanisms for and inform potential funding partners improved service provision; of the progress and likely need for • Identify alternative solutions including future investments; assessment of local financing capacity • If applicable, define issues to be and the likely need for external funding addressed in, and further need for data and support, including the role of the collection and analysis for, a potential private sector; Feasibility Study. • Make use of CDIA developed toolkits and guidelines5, as appropriate; • Recommend environmentally and 6 CONTENT OF PFS socially responsible techniques and strategies for urban infrastructure Depending on the nature of the PFS the investment; content of the report(s) will naturally vary. • Conduct preliminary assessment of CDIA has developed a detailed checklist probable development impact containing the standard requirements and objectives of the project(s) in terms of content of a PFS (refer to Table 1 overleaf). urban environmental improvement, Relevant parts shall apply depending on the urban poverty reduction, urban nature and scope of the PFS. governance improvement and social and gender impacts; 5 This PFS Guideline, Project Programming & Prioritisation Toolkit and PPP Manual Quick Start Guide 5
  • 6. Table 1: PFS Checklist 1.0 EXECUTIVE SUMMARY Brief information of project objectives and 1.1 Objectives ( ) background. Summarize the stages of the PFS, brief description 1.2 Summary of analysis of current situation and recommended projects and ( ) strategies including tentative cost estimate. 2.0 INTRODUCTION Brief introduction to the PFS, objectives of the 2.1 Reporting structure ( ) report and how it is structured. 2.2 Schedule Indicate the schedule of the study. ( ) Consultant(s) and 2.3 Involved consultants(s) and counterpart staff ( ) Counterpart(s) 3.0 ANALYSIS OF DEVELOPMENT ISSUES Indicate Project area, policy and legislation, 3.1 Current situation institutional structure and finance, analysis and ( ) overview of the current situation and its impact. Analysis of future requirements and demand 3.2 Development need analysis, i.e. typically 5 – 10 years’ projections and ( ) estimates. Stakeholders’ perceptions of the conditions and 3.3 Stakeholders’ views ( ) how they were obtained. Indicate considered institutional and financial Institutional and financial 3.4 options, public funding versus PPP, point out why ( ) options considered the project appears as it does etc. 4.0 PROJECT IDENTIFICATION Study’s recommendations and analysis to improve the urban situation. Alternative broad technical 4.1 Recommendations ( ) solutions and preliminary design, social-, environmental- and institutional aspects. Project description to include: - Project title - Sector / Sub-sector - Location (maps, photos as required) - Implementing agency - Technical description and aspects - Project benefits and outcomes 4.2 Project Descriptions ( ) - Beneficiaries - Social, poverty, gender impacts - Environmental impacts - Project Costs (US$) - Operation and Maintenance Cost - Recommended implementation schedule - Potential for private investment 6
  • 7. - Potential for community involvement/contributions 5.0 DEVELOPMENT IMPACT OBJECTIVES Preliminary assessment of likely development impact objectives of the project(s) in terms of urban 5.1 Assessment environmental improvement, urban poverty ( ) reduction, urban governance improvement and social and gender impacts. Preliminary assessment of possible adverse environmental and social impacts and how to mitigate those by safeguards (environment, Adverse Environmental 5.2 indigenous peoples and resettled people). Flag ( ) and Social Impacts these issues for the anticipated Feasibility Study. (Refer to ADB’s checklists on social and environmental assessments) 6.0 FINANCIAL ANALYSIS Preliminary estimates and summary of project costs 6.1 Project Costs ( ) of identified and prioritized projects. Analysis of the current municipal revenues, recurrent internally generated and other revenue 6.2 Municipal revenues (funds from irregular sources that can vary ( ) significantly from year to year). In addition, analysis of grants and loans situation. Analysis of recurrent expenditure, other expenditure (operation & maintenance, possibly 6.3 Municipal expenditure ( ) electricity etc) and development (capital) expenditure. Preliminary estimates of project costs. Analysis of the current investment situation to derive a financial envelope to finance the identified investment projects. Undertake financial and/or economic analysis of the project. Elaborate various Economic and Financial 6.4 funding scenarios considering potential ( ) Analysis loans/grants from development banks, possible private investments and government contribution, producing projections of financial statements as required to evaluate viability. (Refer to ADB guidelines on economic and financial analysis) Conclusion remarks of the current investment 6.5 Conclusions situation and the affordability to finance identified ( ) investment projects. 7.0 IMPLEMENTATION ARRANGEMENTS Recommend and elaborate likely implementation Implementation and and operation arrangements for the potential 7.1 ( ) Operation Arrangements project(s) including possible potential of public- private partnership (PPP). Indicate possible 7
  • 8. institutional weaknesses and suggested measures to rectify the situation. 8.0 RISKS Initial assessment of the key risks for each proposed 8.1 Assessment ( ) project. Identify the major assumptions which are made for recommended projects. Indicate if there are any circumstances outside the control of the 8.2 Assumptions recommended project, if they occurred, would ( ) prevent the achievement of the main objectives. These assumptions would be analyzed further at the feasibility stage. Identify broad risks to both implementation and sustainability. Indicate risk management strategies, 8.3 Risks ( ) if relevant. To be further developed at the feasibility stage. 9.0 FORTHCOMING FEASIBILITY STUDY (if required) Indicate the need and reasons for further studies, if 9.1 Further studies ( ) required. Briefly summarize the requirements to indicate likely data and survey needs, required expertise, Feasibility study 9.2 support facilities, locations, and institutions to be ( ) requirements consulted, skills required on the team and time requirements. 10.0 CONCLUSIONS AND RECOMMENDATIONS Summarize the conclusions and recommendations Conclusions and 10.1 from the study. Highlight key issues and suggested ( ) Recommendations way forward for the local government and/or city. 11.0 APPENDICES To be attached as necessary e.g. data and survey 11.1 Appendices sheets, detailed technical descriptions and costing, ( ) project fiches, key references etc. 8
  • 9. Cities Development Initiative for Asia Suite 202-203 Hanston Building, Emerald Ave., Ortigas Center, Pasig City 1600, Metro Manila, Philippines Phone: +63-2 631-2342 • Fax: +63-2 631-6158 Website: www.cdia.asia CDIA is supported by: