Sensitivity analysis, which is a prerequisite for a careful economic analysis, is a powerful tool in project appraisal and is of great assistance

to the decision-maker in pinpointing potential areas of trouble and enabling him to reduce certain forms of uncertainty. Therefore, it is recommended that sensitivity analysis should be carried out for all major public and private sector projects.

Potential Entrants

Organizing Power of the Supplier is high as they hedge their resources

Rivalry among existing Firms is not much as there are only 2-3 such organizations.

Bargaining Power of Buyer is high as it raises money from issuing bonds.

There is no threat from Substitute.