One of the vital steps in the project study and design before implementation is an economic analysis of the project. Feasibility study of a project, at the first step, determines the applicability of the project from an engineering and technical view but in the second step, the benefits of the project should be defined and clarified from an economic view. Economic analysis of a project gives a clear image of the benefits of the project by measuring and comparison of output and expenditure of the project and evaluating its costs and benefits. A positive balance of benefits and good return of a project provides the background information for decision making on the implementation of a project.
Due to the importance of economic review and analysis of projects, a special expert group on economics in Saman Ab Sarzamin Consulting Engineers is working independently on the economic evaluation of the projects through collecting and analyzing required data and information and application of economic methods and models.
Economic assessment of projects is carried out with the main objectives as below:
- Providing required information to make a decision on the justification of proposed plans
- Comparison of different alternatives to the optimization of plans
- Economic sustainability, security, and balancing
- Evaluating the effects of the implementation of water supply plans on the users
- Estimation of financial losses caused by constructing water structures or other contracting projects on ecosystems (dam construction, agriculture development plan, tourism development project, industrial development zone, ...)
The scopes of economic services are described as below:
Economic Evaluation of Projects
- Cost-effectiveness analysis
- Multi-Criteria analysis
- Threshold analysis
- Dual analysis
- Risk analysis assessment
- Evaluation/feasibility studies/procurement of knowledge and technology-based projects
- Evaluating the payback period
- Social Cost-Benefit Analysis
- Total economic value (use value- passive-use value, values related to risk and uncertainty)
- Various economic studies in relation to both public and private ventures
- Comparison between actual and projected
- Evaluation of technical specifications of goods to be provided by the contractor
- Identification of customer risk analysis in order to design the asset management patterns
Formulating Economic Models
- Site location, modeling, and economic affair survey
- Preparation/codification of strategic plans
- Codification of idea-oriented plans in various businesses
- Performing various types of financing on EPCF(Engineering, Procurement, Construction and Financing Contract) patterns
- Designing entrepreneurial ecosystems based on innovation/technology (including venture capital funds)
- Econometric specification and estimation of dynamic systems and models
- Econometric modeling for policy analysis and forecasting
- Exercises in formulating and estimating simple econometric models, by using econometric software.
- Cost-effectiveness models
- Budget impact models
- Model strategy and design
- Model testing and validation
- Complex modeling/simulation modeling
Investment advisory
- Investment consultancy
- Cash- flow calculations (calculating payments flow, calculating income flow)
- Financial studies
- Delay effect assessment of projects
- Water market assessment studies
- Preparing proper policies to refund investment
- Economic analyses based on publicly available data sources
- Preparing tender’s documents and required process for financing projects
- Economic feasibility & statistical studies
- Value engineering (with the aim of investigating and analyzing all process of doing a project from pre-feasibility studies up to designing, commissioning, and operation)
- Private-Public-Partnership (PPP) management
- Advisory services on the implementation of investment models
- Pre-feasibility (opportunity) and techno-economic feasibility studies
- Feasibility studies and business plan
- Supervision of investment projects
- Consultancy with regards to regulations/rules
- Determining and identification of investment opportunities
- Marketing studies and designing sale/market plans
- Preparation of marketing plans
- Market improvement in the field of high-tech processes and tourism
- Field surveys and forecasting evaluation of commodity market
- Utilizing the most cost-effective method
- Corporate finance advisory
- Risk analysis assessment
- Uncertainty and sensitivity analysis
Socio-Economic Studies
- Strategic planning and development (working closely with regional leaders to develop effective socio-economic strategy and policy to support the continued sustainable growth of the region)
- Preparing a tourism development plan
- Negotiation with foreign investors/partners
- Population’s quality of life (urban, rural)
- Cooperation with local/foreign corporations
- Solving the limitation of financing resources in water engineers projects
- Brand management and brand evaluation