Questions about the key points and uncertainties in reviewing feasibility study reports? Let’s all talk about it
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As the title suggests: I have been involved in several such projects (at least 5, including those commissioned by other organizations), but it’s always very difficult to identify any issues. The key areas that need to be examined are as follows: 1. Technical solutions; 2. Product designs; 3. Investment assessment. My doubts are as follows: 1. The technical solutions are usually well-developed, and the drawings are often highly detailed, making it hard to find flaws. 2. Product designs are generally based on market demands. 3. When it comes to investment assessment, since I have little experience with investments and am not sure about the unit prices of various materials, I hesitate to give opinions for fear of making mistakes. How do others conduct such assessments? What do you think are the key aspects that should be focused on during a feasibility study?
1. Market for raw materials and products: Whether the raw materials meet demand, and whether the products comply with current **standards； Surrounding market research situation. 2. Process technology: Whether it falls under the categories of outdated technologies to be phased out according to industrial policies, whether foreign technology is utilized, and what are the advantages and disadvantages. 3. Material and energy consumption – whether these levels are excessive ； 4. Key points: Whether environmental protection facilities are complete and whether emissions meet the required standards. 5. Investment: The proportion of funds coming from internal sources versus loans or financing, as well as the proportion invested in safety, environmental protection, and fire protection measures
1. In terms of raw materials and products: reliable sources of raw materials, market fluctuations in recent years, anticipated market trends over the next 5 to 15 years, and the sales prospects for products. 2. Technical solution: Evaluate whether this technical solution represents mature and advanced technologies currently available in China as well as abroad. Mature technologies offer higher reliability, while advanced technologies result in better energy consumption, product quality, and yield. 3. Energy consumption and material usage: In terms of energy consumption, lower levels of energy use help reduce processing costs; the same is true for material usage. 4. Land occupation: For some proposals, land occupation is considered a key factor during the review process, especially in cases of upgrading existing facilities or installing new equipment in old factories. 5. Requirement: For newly launched projects, their product quality, including emissions of waste materials, must meet current as well as future **environmental protection and related industrial emission standards. 6. Investment: On the premise of meeting the above requirements, both the total investment and the operating costs during operation need to be taken into account. 7. Performance: In my opinion, when it comes to feasibility study reports, no one wants to be the first to try something new, especially in our industry. Conducting a thorough analysis of performance and operational conditions is particularly important; the more information one has, the better one can assess the feasibility of a project. This is just my personal view – please correct me if I’m wrong.