1. The Feasibility Study, as required by Section 11 of this Agreement, shall comply with the requirements of the Applicable Law and shall contain, at a minimum, the following:

(a) a market survey or analysis, including identification of:

(i) levels of demand for the Product;

(ii) competitor firms and competing products;

(iii) historical prices for similar products; and

(iv) projected sales of the Product.

(b) technical feasibility, including identification of:

(i) physical inputs required for production;

(ii) assumptions with respect to existing and future environmental, hydrological, and climatological conditions at the Project Area;

(iii) appropriateness of the Product and production techniques for existing and future environmental, hydrological, and climatological conditions at the Project Area;

(iv) sensitivity of the Project to changes in environmental, hydrological, and climatological conditions and adaptation measures needed to respond to those changes; and

(v) The degree to which the Project will impact the exposure and vulnerability to climate change of Legitimate Tenure Rights Holders and members of the Local Community, using Gender-Disaggregated Data.

(c) financial feasibility, including identification of:

(i) total capital requirements, including capital expenditures and operating expenses;

(ii) cost of production;

(iii) cost of obtaining the Applicable Permits;

(iv) cost of compliance with the Applicable Law and implementation of the Environmental and Social Management Plan and Human Rights Due Diligence Report; and

(v) expected costs, returns, and profits.

(d) Social and environmental feasibility, including identification of:

(i) a plan for consultations with Legitimate Tenure Rights Holders and the Local Community, ensuring separate discussion spaces for women and for men, which will enable Free, Prior, and Informed Consent of individuals and groups;

(ii) the expected impacts of the project (positive and negative) on Legitimate Tenure Rights Holders and the Local Community, using Gender-Disaggregated Data;

(iii) yield assumptions of women and men farmers involved in the Project, using Gender-Disaggregated Data and accounting for the productivity gap between women and men farmers;

(iv) degree of access to productive resources and capital of women and men farmers involved in the Project; and

(v) the expected environmental impacts and risks posed by the Project over the term of the Agreement, using Gender-Disaggregated data.

(e) organizational feasibility, including identification of:

(i) the proposed business structure;

(ii) the most appropriate business model for implementation of the Project.

(iii) a plan for development of the managerial and organizational skills of women and men according to their needs.

(f) a proposal for a grievance mechanism for use by Legitimate Tenure Rights Holders and members of the Local Community, outlining:

(i) how the Company intends to finalize the design for the grievance mechanism in consultation with its intended users, including a process for identifying:

A. the types of complaints likely to be submitted to the grievance mechanism;

B. the preferred methods by which the intended users can submit complaints; and

C. the availability of other local resources to resolve conflicts, and any integration of these processes into the grievance mechanism.

(ii) how the Company intends to administer the grievance mechanism, including identifying how the Company shall:

A. commit to building internal support for the grievance mechanism and ensure fairness of its operations and outcomes, and freedom from reprisal for its users;

B. ensure the grievance mechanism is culturally appropriate, Gender-Sensitive, and accessible to all Legitimate Tenure Rights Holders and members of the Local Community, including vulnerable groups;

C. receive and keep track of complaints from users in relation to a broad range of perceived concerns, through a central coordinator with multiple access points;

D. publicize the grievance mechanism procedures and access points among its intended users, taking extra measures where necessary to ensure women receive information about the mechanism directly and in a manner that is understandable and appropriate to them; and

E. review, investigate, and develop resolution options for grievances in a way that incorporates a variety of grievance resolution approaches.

(iii) how the Company intends to monitor, report on (without attribution), and evaluate the effectiveness of the grievance mechanism to adapt and improve the effectiveness of the grievance mechanism and to improve Project operations.

For more information: Holz-Clause, M., Wright, G., & Hofstrand, D.  (2009). Feasibility study outline. Iowa State University Ag Decision Maker. https://www.extension.iastate.edu/agdm/wholefarm/html/c5-66.html