Screening of Projects
Once the Application Form has been approved then a feasibility study will be carried out to evaluate the readiness of the project and to check the assumptions made by the Developer during the application form stage.
The feasibility study will cover the following aspects (please refer to the “AEPC Feasibility Study Guidelines and Report Format” (link here)).
- Technical feasibility
- Financial and Commercial Feasibility (limited to the Biogas Plant Project)
- Legal registration requirements (VAT, PAN, Clearance of Taxes, Ownership of land or legally lease, etc)
- Environmental and Social Screening
The Feasibility Study shall make a justified assessment on the project promoting it to the next stage if feasible, making recommendations that will turn it feasible, or disregarding the project for funding if unfeasible and no viable way to change this status is found. The Environmental and Social Screening needs to be completed by the PQC at this stage for the project to qualify for the next stage. The Screening will be checked and verified by AEPC (please refer to the “Project Operational Manual for the Environmental and Social Safeguards” link)
Who completes it
The Feasibility Study will be completed by one of the AEPC Prequalified Consultancy Companies, and the cost will be borne by the Developer. The Developer will select the pre-qualified consulting firm to carry out the Feasibility Study. An electronic copy and a hard copy shall be submitted to AEPC.
Timeline and Review
The Feasibility Study will be reviewed by AEPC and assessed as per the “Feasibility Study Assessment Criteria” included in the “AF, FS and DFS Assessment Criteria”, link. If the findings of the feasibility study conclude that the project is viable after an initial assessment and AEPC agrees with this consideration, AEPC will recommend this project for the next stage.
If the FS concludes that the project needs further work in order to become viable, AEPC will consider this and await for submission once the recommended actions are completed.
If the FS concludes that the project is unfeasible, AEPC will not consider this project for qualifying to the next phase.
AEPC shall perform two monthly reviews. For a FS to be evaluated by a given bi-weekly review, it shall be submitted at least one week prior to the review date, otherwise it will be considered for the following scheduled review.
Procedure upon rejection
The results from the assessment shall highlight any issues or further details required identified by the AEPC and detailed feedback shall be provided to the Pre-qualified Consultant and the Developer. The Developer may reapply through the prequalified consultant, who is responsible for producing a report to AEPC’s satisfaction, once the issues raised during AEPC’s review are addressed.
The PQC shall act upon feedback from AEPC and resubmit the FS to AEPC within 30 days from receiving feedback from AEPC. Delays in the resubmission may imply that the project would lose priority against other compliant projects, so the PQC and the Developer are encouraged to resubmit the report as soon as possible as funding is provided on a first come first served basis.