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The Cities Development Initiative for Asia (CDIA) specializes in advancing urban infrastructure projects through the Pre-Feasibility Study (PFS) process. This approach supports cities in transforming strategic plans into bankable projects. The PFS utilizes a systematic methodology to analyze project concepts, undertake financial assessments, and identify investment opportunities. By incorporating local contexts and engaging key stakeholders throughout the planning process, municipalities can enhance their capacity to secure funds from various sources, including multi-lateral institutions and private sectors.
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Cities Development Initiative for Asia Developing Investments using the Pre-Feasibility Study (PFS) Process
Learning Outcomes • Why Pre-Feasibility Study emerges • What is it • How does it work • What does it offer for cities • Can it be applied to local contexts
Why the PFS • City development strategies and plans • How do cities move from strategies to plans • What processes are involved • Does the process lead to bankable projects • Accessing money for projects and investments • PFS aides existing approaches and processes
What is a PFS • New concept in project cycle • Between strategy/plan and feasibility • Project structuring • Conceptual engineering design • Financial and economic analysis • Tool for infrastructure planning and programming
How does it work • Key tool for CDIA • Process orientated • Delivered through consultants • CDIA and City partners • Strategy – Plan – Bankable Projects • CDIA and City own and manage process
PFS Process • City demands support • CDIA prepares PFS with city • CDIA procures consultants/experts • Consultants and city team work together • 5 key steps in implementing PFS
Key Steps in Process • Mobilization • Consultants and city team meet • Review of ToRs • Review of city counterpart contributions • Planning for inception phase • Setting the scene • Steering committee
Key Steps in Process • Inception Phase • Situation analysis • Finalize approach to study with city • Identify partners in city • Agree staffing/personnel schedule with CDIA-city • Set dates for key consultations and reports • Communication strategy in place
Key Steps in Process • Mid term (interim) Phase • Situation/gap analysis complete • Initial consultations complete • Priority investment areas identified • Medium term investment program identified • Key project areas prioritized with city
Key Steps in Process • Draft final phase • Priority projects identified • Investment proposals prepared • Institutional, environmental, social, financial and economic analysis • Financing plan prepared • Final consultation with city and key stakeholders
Key Steps in Process • Final phase and report • Report and investment proposal submitted to city and CDIA • Recommendations for next phase • City initiates next phase • Consultants demobilize • What next?
Moving to Feasibility • Access to financing • who will finance next phase? • Multi-lateral institutions/private sector • Marketing the investment proposals • Who takes the lead? • Is there a role for CDIA?
Critical Success Factors • Vision • Leadership • Managing the process • Ownership • Partnership • Resources
PFS and Local Context • Not replacing the way projects developed • Another tool and option • What works and what doesn’t • Examine strengthens and weaknesses • Take what you like • Means to an end!
PFS and Local Context • identifying projects • Understanding the demand • Processes involved in creating a project • Bringing decision makers together • Key ingredients in ‘good’ projects • Avoiding ‘bad’ projects • Financing for feasibility work