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Investing in a New Urban Market

An informed decision

Investment decisions need to be clearly justified well before pre-feasibility studies are undertaken. Decision makers thus need to be able to answer the following questions:

  • Is the proposed development really necessary?
  • Is a new market needed?
  • Are there alternatives, for example, improving existing markets by rehabilitating or expanding them?
  • What will be the consequences of a new market on the whole food supply and distribution system?
  • What will be the consequences of a new market on the environment?
  • What will be the implications for traffic and parking space?
  • Is there a consensus on the financial and economic rationale for the project. Is it agreed that it should be run on a cost-recovery basis? Or on a profit basis?
  • What are the traders’, transporters’ and consumers’ reactions to the proposals?
  • Why should traders want to move to a new market?
  • Is there a possibility or agreement for increasing market user charges?
  • How much more will traders have to pay to distribute food from the new market back into town? By how much will the new market reduce transport costs from supply areas?
  • Will services (e.g. banks, packaging and cafeterias) be willing to move to the new market?
  • How can traders and transporters be involved in the operation and financing of the market, as well as its management?
  • Are the next steps clear on how to proceed with the market development?


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