[Gasification] Fwd: Cost of feasibility study

[Oscar Jimenez]

Dear Lewis and All.

Lewis wrote:

...."Fancy per diem rates for outside "experts" can chew up a lot of
money fast.]

...Yes..!!! absolutely right. Really more often than we would like,
important amount of the cost feasibility study budgeting goes to
experts's spenditure which not helps in spending on those critical
issues of the project itself...!!

Kindest regards.

Oscar.



-----Mensaje original-----
De: gasification-bounces at listserv.repp.org
[mailto:gasification-bounces at listserv.repp.org] En nombre de
mmbtupr at aol.com
Enviado el: Viernes, 25 de Agosto de 2006 08:00 a.m.
Para: gasification at listserv.repp.org
Asunto: [Gasification] Fwd: Cost of feasibility study

           To Gasification List       from   Lewis L Smith
 
 
   Addresses should have included our List. My mistake. Apologies.
 
-----Original Message-----
From: MMBTUPR at aol.com
To: philippe.malon at club-internet.fr
Sent: Wed, 16 Aug 2006 2:29 AM
Subject: Re: [Gasification] Cost of feasibility study


          to   Gasification List                    from  Lewis L Smith

The cost of a project appraisal [also known as "feasibility study" and
by other names] can very a lot, depending on factors such as the
following ---

.      The complicatedness and type of the project, especially the
number of inputs, outputs and process stages.

.     The scope of the appraisal. For example, are market studies
required for all outputs ? Has a preliminary commitment for financing
been obtained or is a survey of financing sources required ?  Are soil
borings and/or other physical tests of the site required ? How much site
engineering of equipment and machinery is required ?  [Most of these
items are frequently omitted, but not always.]

.     The amount and availability of accurate data needed to make the
appraisal.

.     Who does the appraisal. [A big US engineering firm once did a
biomass-energy project appraisal in the Caribbean for $1.0 million which
I could have done with good Caribbean crew for $600,000 !!! Fancy per
diem rates for outside "experts" can chew up a lot of money fast.]

Cordially. End of message. 
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