Consultation seminar on the preparation of full Application Form for LSP 6 December 2011, Tartu

1. Feasibility study ConsultationseminaronthepreparationoffullApplicationFormfor LSP 6 December 2011, Tartu

2. Definition • Single study covering the entire cross-border project • Broader view on the operation, consider all the factors associated with the project • Look at the viability of the idea and identify potential problems • Precedes technical development and implementation • Based upon verifiable data and contain sufficient information • The information from feasibility study is valuable for further project elaboration and implementation

3. Feasibility factors • Technical and operational feasibility • Economic feasibility • Legal feasibility • Schedule feasibility • + Risks analysis • + Analysis of alternative project or situation without project

4. Technical and operational feasibility • The capability in terms of technology, land, operational capacity, personal and expertise or possibility of aquiring from outside • Estimate whether the new system will perform adequately or not, how well it will solve the problem • Not just whether a system can work, but also whether it will work • The whole operational period is considered and not just the project timeframe • Evaluation of any possible internal or external resistance

5. Economic feasibility • Justification of proposed costs and description of benefits • The feasibility of the project from financial point of view and financial sustainability • Benefits outweighting costs (not applicable in case of non-commercial projects) • Cost Estimate is based on real data and includes allowances for optimisim bias, inflation and a contingency for unexpected change during detailed design development and implementation • Cost Estimate includes for costs of design, tender and supervision if these costs are not being borne by Beneficiary or Project Partner

6. FA - Financial sustainability • A project is financially sustainable when it does not incur the risk of running out of cash in the future • Cash proceeds and payments– how sources of financing (incl. revenues and any kind of cash transfers) will consistently match disbursements year-by-year • What resources the project will draw on when the EU grants are no longer available

7. FA - Financial sustainability

8. Legal and schedule feasibility • Analyse whether the proposed system conflicts with legal requirements • Analyse whether the project timetable is reasonable and feasible, including before the project, all the stages of the project implementation (including warranties and maintenance periods) and post-project analysis • !!!“Contingencies” for possible unexpected delay:*design approvals taking longer than expected*the first round of tenders failing (re-tender)*unexpected events during implementation*political and management changes

9. Supporting attachments • Location permit • Land ownership • Building permit • Location plans, general layout • Architectural general plans, structural sizes, installations

10. To be considered • Estimated cost of the Feasibility study and technical specifications • The level of readiness in projects and time needed for preparing it • The modality for funding the Feasibility studies and technical documentation

11. FurtherInformation JOINT TECHNICAL SECRETARIAT Phone: +371 6750 9520 Fax: +371 67509523 E-mail: info@estlatrus.eu Ausekļa Street 14 – 3rd Floor, Riga, LV-1010, Latvia

12. Thank You for attention! 12