Feasibility study and cost-benefit analysis constitute essential components of declarations required for obtaining EU co-funding and serve as the foundation for authorities' decision-making regarding project funding.

 

Conducting feasibility studies for projects holds significant importance and serves as a crucial factor in deciding whether to invest in a new project. The primary objective of a feasibility study is to assess the viability of establishing the project, maximizing returns from the available resources, attaining profits or a return that surpasses the invested cost, and ultimately arriving at a conclusive decision to either accept or reject the idea.

 

Cost-benefit analysis stands out as one of the most commonly employed and effective tools for economically assessing a project or investment. In this analysis, all the costs and benefits associated with the project are meticulously examined using prescribed methodologies. It complements the feasibility study, and together, they elucidate the rationale for securing financing, forming the bedrock for informed decision-making. The cost-benefit analysis encompasses both the financial and economic aspects. The financial analysis assesses whether the future project's cash flow generates substantial revenues. Meanwhile, the economic analysis gauges the project's economic sustainability by calculating additional benefits for society resulting from its execution.