Techno-Economic Viability (TEV) is an evaluation of a project using a systematic procedure for weaving technical and financial information about the project with relevant data about its technological and economic environment into one or a few criteria on the basis of which the project is recommended for selection, modification, or rejection.
The scope of the TEV report includes:
● Technical Feasibility: Determination of technical feasibility by evaluating several needs such as production technology, optimum utilisation of installed capacity, availability of utilities and inputs, product quality, etc
● Market Potential: Assessment of current and future market situations, available marketing infrastructure, demand-supply analysis, and field competition.
● Economic Feasibility: Assessment of the project's economic viability will be done in light of market demand-supply scenarios in relation to the project's production capacity, the market price of the product in relation to a unit cost of production, etc
● Financial Feasibility: Assessment of the project's financial feasibility in terms of predicted profitability, cash flow, Internal Rate of Return (IRR), Debt Service Coverage Ratio (DSCR), and sensitivity to bad scenarios, etc
● Managerial Competence: Assessment of managerial competence in terms of 3 elements: ○ promoters' business acumen and experience ○ a professional management team with a defined work domain for project implementation, production, marketing and finance, etc ○ the promoters'/management's ability to mitigate implementation risk, funding risk, input risk, market risk, technology risk, regulatory risk etc
● SWOT Analysis: The SWOT analysis is used to determine the essential internal and external aspects that are critical to the project's success.