A feasibility study is a pre-decision analytical exercise that tests whether a proposed initiative can realistically be delivered within available constraints. In policy and development work, it typically precedes a full project proposal, a procurement decision, or a funding request, and is used by ministries, multilateral lenders, NGOs, and think tanks to filter out unworkable options early.
Most feasibility studies examine several dimensions in parallel:
- Technical feasibility — whether the required engineering, data systems, or methods exist and can be deployed in context.
- Economic and financial feasibility — cost-benefit analysis, internal rate of return, affordability, and fiscal sustainability.
- Legal and regulatory feasibility — compatibility with domestic law, treaty obligations, procurement rules, and environmental safeguards.
- Operational and institutional feasibility — whether the implementing agency has the staffing, governance, and political backing to execute.
- Social and environmental feasibility — stakeholder acceptance, displacement risks, and environmental impact, often overlapping with formal Environmental and Social Impact Assessments (ESIA).
Multilateral development banks have institutionalised the practice. The World Bank, Asian Development Bank, and African Development Bank typically require a feasibility study before appraising a loan, and the European Investment Bank uses them as part of its three-pillar assessment. Donor agencies such as JICA and GIZ commission them routinely for infrastructure and governance projects.
For Model UN delegates and junior researchers, the term often appears in draft resolutions that "request the Secretary-General to conduct a feasibility study on..." — a useful diplomatic device because it commits the UN system to analysis without prejudging the outcome. The Secretariat has produced feasibility studies on subjects ranging from peacekeeping deployments to the relocation of UN offices.
A well-scoped feasibility study is not the same as a business plan or a full design document; it tests whether to proceed, not how. Its credibility depends on transparent assumptions, sensitivity analysis, and an honest "do nothing" baseline.
Example
In 2021, the African Development Bank financed a feasibility study for the Lagos–Abidjan Corridor Highway, assessing engineering, traffic demand, and financing options across five West African states before any construction loan was approved.
Frequently asked questions
A scoping study defines the problem and the range of possible interventions; a feasibility study takes one or more shortlisted options and tests whether they can actually be implemented under real constraints.
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