Economic and Financial Analysis of Onshore Processing Facilities in Solomon Islands

Client: International Finance Corporation (IFC)
Duration: February 2016 – July 2016
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MRAG Asia Pacific undertook an economic and financial analysis to estimate the viability of onshore processing facilities in Solomon Islands.  Economic aspects considered included socio-economic benefits, environmental costs, and changes to consumer benefits through increased supply. Financial analysis considered likely financing options, tax costs, and return on equity to investors. Market analysis to determine likely destinations and prices was critical to this analysis.  Furthermore, the analysis considered advantageous trade relationships in determining optimal markets. This project required detailed cost benefit analysis.  Sensitivity analysis on uncertain inputs was conducted through the use of Monte Carlo Simulation.