During this step, the priority solutions identified through the screening in Step 6.4 will undergo a full feasibility analysis and initial design phase. The information gathered during the screening process and the additional evidence from the BIOFIN assessments in Chapters 3-5 can be starting points for the analysis. The feasibility analysis should be carried out for each priority solution. Design and analysis will include defining core elements of the solutions, justification and rationale, expected financial results, sequencing, risks, etc.

The lack of information and knowledge about a solution may necessitate the commissioning of detailed research, which, depending on the complexity, may continue after drafting the Plan. When all the information is collected, the Plan will be updated. The Plan should be presented as a working document rather than a single one-off report. Comprehensive feasibility studies can include the following:

• Executive Summary – The summary contains all the essential information that a high-level decision maker needs in a concise format (not exceeding a few pages). Infographics or summary bulleted tables may facilitate the presentation.

• Finance Solution Description – This introductory section should include a detailed description. The finance solution must be detailed including a) area of focus, both geographical and sectorial, b) key actors and stakeholders, c) sources of financing, d) financial instruments involved, and e) expected results as per Step 6.2.

• Environmental, Social, and Political Considerations – This includes a review of risks and opportunities as well as legal and regulatory issues that should be addressed in the design.

• Market Demand or Finance Sources – For marketbased finance solutions, it is essential to understand market demand including the willingness (and ability) to pay for the associated goods and services. Demand can be assessed through market research, interviews, surveys, and comparative studies. If the tool is not market-based, this section should analyse likely finance sources.

• Marketing or Communication Strategy – A brief marketing analysis and main elements of a marketing strategy are essential for all market-based instruments. Alternatively, for non-market instruments, a communication strategy to reach and convince key donors, finance sources and other stakeholders is useful.

• Organization and Staffing – Identifies the human resource and institutional needs for success, including existing and required technical and implementation capacity.

• Schedule – Elucidates a realistic timetable for implementation, including key milestones.

• Financial Projections – Detailed timeline of design, startup, and operational costs as well as financing needs and sources. Projections should be on a yearly basis and even if estimated, should cover the years required to reach a financially viable state for the solution in question.

• Findings and Recommendations – Summary conclusions including key opportunities and challenges. The recommendations should be very specific and provide guidance on design features if the planned finance solution is advance to the next stage.

The feasibility assessment can be turned into a concise technical proposal for both the BFP and/or for seeking outside financing. Each feasibility study will be included as an annex while summaries will be presented in the main text (Step 6.7).