Resilience Planning and Project Finance Process:
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Conduct Feasibility Analyses

Urban Resilience Roadmap
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Conduct Feasibility Analyses
Introduction Competencies/Skills Tools Tips Supporting Entities Potential Outputs
Introduction

It is during this step that the real project design work begins.  This step encompasses several design tasks.  If the city is applying for a smaller grant (e.g. Indonesian Climate Change Trust Fund), these tasks will be carried out internally by the project proponent - a local government agency, academic institution, or NGO.  If the city is applying for a large financing package, most of these tasks will be completed by a consulting team, and the city’s role will be to supervise the process and ensure quality by appraising the design team’s work. 

Tasks to be completed in this step include:

  • Recruit design team.  If the city is preparing a large project, the detailed design stage will mostly likely require specialized services and expertise related to the design of the project.  This entails developing a scope of work and terms of reference for the design team, soliciting and managing bids, and ultimately selection of a team and negotiating a contract; 
  • Detailed project design.  This includes the development of a complete logical framework describing the inputs, activities, outputs, outcomes, and impacts of the project along with a budget.  The project design should describe why the chosen activities and outputs are appropriate for the project context; and 
  • Economic and financial analysis.  These analyses help the project proponent make the “economic case” for the project.  They involve a thorough accounting of all of the costs and benefits of the proposed project with accurate costing, as well as a comparison of the activities and outputs in the proposed project with alternatives.

The output of this step is a rigorous project feasibility study that demonstrates that the proposed project is the most technically and economically sound option among several.  

Tools/Resources
Tips
  • Project feasibility analyses should take into consideration future uncertainties associated with climate change so that projects are robust against a range of possible futures.  Projects with longer lifespans in general should consider a wider range of possible futures;
  • Technical and feasibility analyses should examine a range of possible resilience measures, comparing them to inform decision making;
  • All resilience projects are different, so be sure that the skills and experience of the design team matches the requirements of the project;
  • Project design can be an expensive process, so effective time management will help to keep consulting costs under control;
  • Some financiers provide grants and/or technical support for project design.  Check with your financier about the availability of financial support for design phase tasks; and
  • Proven firms, NGOs, foundations, and individuals with successful track records in project design are the best to engage with for the design of new projects.  These will provide the best value for money and are most likely to produce a project that will be approved for financing.
Supporting Entities/Processes
  • USAID Adapt Asia-Pacific;
  • ADB;
  • GCF; and
  • UNDP
Potential Outputs
  • Project feasibility study and design and monitoring framework; and
  • Project specific studies and analyses