Technical And Financial Feasibility

At a Glance
  • A detailed technical and financial feasibility study should be used to determine the design, associated financial costs, and revenue scenarios, and should be compared to the socio-economic benefits before going ahead with an SEZ.
  • Realistic assessments of market size, potential share and take-up, and drop-out rates over time are crucially important.
  • A frank evaluation of the government’s ability to meet certain obligations in an SEZ should also be included.
  • Common pitfalls in many SEZ feasibility studies are unrealistic market share and take-up rate scenarios. 

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 (ASEZ), including the history of the area and progress made in establishing ...

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, and should be compared to the socio-economic benefits before going ahead with an SEZ. Realistic assessments of market size, potential share and take-up, and drop-out rates over time are needed (for extractive SEZs these will need to take into account the project life cycles of mines or oil and gas projects in the “catchment area”).

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This should also include a frank evaluation of the government’s ability to meet certain obligations in an SEZ (e.g. creation of a customs area or one stop shop). Long-term budgetary commitments may be needed while the SEZ builds up a base of investors or tenants (it may take 10 to 15 years for an SEZ to become well-established). A pitfall of many SEZ feasibility studies is the unrealistic market share and take-up rate scenarios. 

This should be mapped against the initial goals of the SEZs. Site-specific feasibility assessments are also required, including environmental, infrastructure development, transport integration, and traffic impact, and security.