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Conduct Feasibility Studies

Feasibility studies help governments assess investment viability, identify risks, and make informed technical, financial, and geographic decisions.

About

A government may wish to carry out feasibility studies to assess the suitability and viability of exploiting a particular resource or constructing, rehabilitating, or expanding a particular infrastructure at a given time and place. Feasibility studies are also crucial to obtain information about the resource that will help define the framework of the investment and define and quantify any risks associated with the investment to better inform the government in subsequent negotiations with the investor.

The types of feasibility studies include, but are not limited to:

  • Geological surveys to better understand the location, grade and quantity of the resource (in the case of extractive industries);
  • Hydrological studies to better understand the availability and renewability of water resources (i.e. the annual projected rainfall and recharge capacity of any underground aquifers) in the location of a proposed investment, the current and projected demands on those water resources and the impact of the proposed investment on those water resources;
  • Microeconomic studies to map out the effect on the local economy of such an investment and the potential for economic linkages; and
  • In the case of infrastructure, user demand and risk analyses to determine the demand for the infrastructure or associated public service that will be provided in relation to it and to identify and quantify the cost of potential risks in the construction, operation and maintenance of the infrastructure.

Equipped with such feasibility studies, a host government is better placed to make informed decisions as to the suitability of a large-scale investment from a budgetary, technical and geographical perspective.

Key Tools At
This Stage

Stakeholder Engagement: Feasibility Studies and Project Planning

The International Finance Corporation (IFC) has created a handbook to provide a comprehensive overview of good practices in stakeholder engagement. The Feasibility Studies and Project Planning resource is a guide chapter in this handbook focused on how projects are assessed before they move forward. It explains the role of technical, financial, and stakeholder-related review in deciding whether a proposed project or expansion is viable.

Also available in English, Chinese, Spanish, French, Portuguese, Russian, and Burmese.

Investment Contracts for Farmland and Water: Ten Steps

The IISD’s Investment Contracts for Farmland and Water is a tool for parliamentarians, government officials, landholders and local communities who are involved in negotiating investment contracts with foreign investors for agricultural land and water. It gives a step-by-step framework for preparation, including assessing food security, land and water rights, community engagement, and project impacts before signing a deal.

Mining Contracts – How to Read and Understand Them

Mining Contracts – How to Read and Understand Them was produced by a diverse group of 14 experts from Africa, Asia, North America, South America, and Europe to help policy makers, civil society, citizens, and the media understand the often complex and opaque terms of mining contracts. This guide explains in layman’s terms the principal features of a contract, compares different approaches to key issues, and supplies the context and background necessary for non-specialists to understand how contracts are negotiated and what they say.

Available in French and English.

Oil Contracts – How to Read and Understand Them

Oil Contracts – How to Read and Understand Them is the sister-guide to the Mining Contracts – How to Read and Understand Them resource. It is a plain-language guide for non-specialists on the often complex and opaque terms of oil contracts. It was produced to help people understand the terms governments negotiate with oil companies, including revenue sharing, operations, and contract pitfalls.

The EPEC PPP Guide

The EPEC Guide to Public-Private Partnerships is published by the European PPP Expertise Centre (EPEC), a Division of the European Investment Bank (EIB). It provides a high-level framework to guide the public-private partnership (PPP) process.

Fiscal Analysis of Resource Industries (FARI)

The Fiscal Analysis of Resource Industries (FARI) is a framework created by the International Monetary Fund, used to evaluate and design fiscal regimes for extractive industries. It helps estimate government revenue, test fiscal terms, and analyze project-level impacts using economic and financial modeling.

Available in English, French and Spanish.

Open Fiscal Models

Thomas Mitro (CCSI’s senior fellow) and CCSI have built the first open fiscal LNG model that allows users to test different LNG commercial structures, compare domestic gas use options and assess the impact of various fiscal tools along the gas value chain. A manual and other resources can be found on this page to understand key concepts of the LNG value chain and how the model can be used.

Pedro and Iwara, "Beyond Resource Extractivism and Comparative Advantages: The Case for Energy Transitions in Africa," (2024).

This collaboration between the UN Economic Commission for Africa and the Institute for Peace and Conflict Resolution Analyzes Africa’s overreliance on extractive industries and outdated “comparative advantage” models. The paper recommends energy transitions as a foundation for industrialization, economic diversification, and regional integration.

AFD and World Bank, "Africa’s Resource Future: Harnessing Natural Resources for Economic Transformation during the Low-Carbon Transition," (2023).

This report provides a comprehensive outlook on how Africa can leverage natural resource endowments during global decarbonization. The French Development Agency and World Bank offer strategies for governance, industrial policy, and technological adoption to avoid renewed resource dependency.

CCSI, "Roadmap to Zero-Carbon Electrification of Africa," (September 2021).

CCSI outlines pathways to achieve universal electricity access in Africa while still meeting climate objectives. The roadmap assesses investment needs and policy frameworks for distributed solar, regional power pools, and large-scale renewables.

CCSI, "Circularity in Mineral and Renewable Energy Value Chains," (2023).

A key text for understanding the relationship between the circular economy and extractive industries, this paper provides utility for government officials by highlighting relevant opportunities for local value retention, reduced environmental risks, and improved resource efficiency.

CCSI & Capterio, "North Africa Can Reduce Europe's Dependence on Russian Gas by Transporting Wasted Gas Through Existing Infrastructure," (March 2022).

In an illustrative case study, CCSI and energy tech company Capterio assess how capturing flared or wasted associated gas in North Africa can support climate goals and reduce Europe’s reliance on Russian gas. The paper recommends repurposing existing gas infrastructure for short-term gains.

International Finance Corporation (IFC), "Net Zero Roadmap to 2050 for Copper and Nickel Value Chains," (2023).

This roadmap from the IFC identifies emissions hotspots in mining, refining, and transport operations, as well as technology options and financing strategies, on the road towards decarbonizing copper and nickel value chains. For negotiators, it can serve as a resource to implement contractual commitments from mining firms to adopt low-carbon practices.

CCSI & Sabin Center for Climate Change Law, "Decommissioning Offshore Oil and Gas Infrastructure in the Face of Climate Change and the Energy Transition," (August 2023).

This analysis addresses the escalating challenge of decommissioning offshore oil and gas projects as energy systems decarbonize. It examines financial, regulatory, and environmental dimensions of safely retiring infrastructure, with particular focus on liability risks for host states. The study calls for proactive governance to avoid stranded public liabilities.

CCSI, “Market Assessment on Critical Minerals Innovation in Developing Countries,” 2024.

This in-depth assessment highlights opportunities for developing countries to move beyond resource extraction by engaging in innovation across mid- and downstream critical mineral supply chains. It addresses barriers such as financing and technology access, while proposing strategies to capture higher value. The report links mineral governance to economic diversification and developmental gains. In a negotiation context, it strengthens the case for securing commitments on technology transfer, local innovation, and R&D in mineral investment contracts.