Technical and Financial Feasibility

At a Glance
  • A detailed technical and financial feasibility study should be undertaken before an SEZ is set up. Findings—particularly those related to potential socioeconomic benefits (or losses)—should then be carefully compared with relevant policy objectives.
  • Realistic assessments of market size, potential share and take-up, and participating firms’ drop-out rates over time are important.
  • A frank evaluation of the government’s ability to meet key obligations in an SEZ should also be made.

Case Studies

Key Resources

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Feasibility Report: Proposed Greentech Special Economic Zone at Atlantis

This document provides an overview of the proposed Atlantis SEZ (SEZ), including the history of the area and progress made in establishing a ...

Feasibility Study for the Tripoli Special Economic Zone

This document focuses on the Tripoli special economic zone (SEZ) in Lebanon, described as the first project of its kind to develop a ...

Topic Briefing

A detailed technical and financial feasibility study should be used to determine the design, associated financial costs, and revenue scenarios of a proposed SEZ. Before SEZ development proceeds, these factors should be weighed against potential socioeconomic benefits. Realistic assessments of market size, potential share and take-up, and dropout rates over time are needed. For extractive industry SEZs, these will need to take into account the life cycles of mines or oil and gas projects in the catchment area.

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The feasibility study should also include a frank evaluation of the government’s ability to meet certain obligations in an SEZ (e.g., creation of a special customs area or one-stop shop). Long-term budgetary commitments may be needed while the SEZ builds up a base of investors or tenants, as it may take 10–15 years for an SEZ to become well established. Many SEZ feasibility studies struggle with unrealistic forecasts of market share and take-up rates.