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- Technical and Financial Feasibility
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
- Feasibility Report: Proposed Greentech Special Economic Zone at Atlantis (Deloitte)
- Feasibility Study for the Tripoli Special Economic Zone (Andrea Erdmann)
Key Resources
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.