Initiatives brought to the table of an investing or financing body need to be assessed at several levels. There is the “quick” assessment that makes the first screening of the flood of proposals. No one wants to exert too many resources on every bizarre idea. So, the quick assessment is done by people with a lot of experience that can make similarities with previous initiatives in the field and have broad multi-disciplinary know-how. This check can either finish by a polite rejecting response, or a recommendation to make a deeper investigation.

A deeper assessment may call hiring specific technical experts, and a deeper look into the economic model of the proposal. It also consumes time.

Checking initiatives on the technical aspects involves understanding the level of acquaintance of the initiator with the technology, how solid the technical background is, what technical risks might arise and how significant the novelty is. Here also rise questions of compliance with regulations and environmental impact.

On the economic side, the figures on which the proposal relate need to be verified. Then the “assumptions” or the “predictions” that lie in the basis of the economical model are scrutinized. Have the risks been catered properly: fluctuations in currencies, cashflow, exposure, allocation of adequate resources etc.

At the end of the economic assessment a recommendation should be given whether the expected returns and expected risks fall within the policy guidelines of the investors or financiers.

Once the outcome of the deep Techno-Economical assessment is positive and there is a “Go Ahead” by the client, there comes the time for a series of studies, the length and cost of which is very much dependent on the size and complexity of the project. These are – Preliminary Feasibility Study, Feasibility Study, and a Bankable Feasibility Study.

The discussion about these studies appears on a separate note.