Setting Processing Plant Projects up for Success in Australia

Independent Project Analysis (IPA) is in the business of benchmarking the performance of capital projects on behalf of owner companies in the processing and extractive industries. IPA assesses between 500 and 800 projects each year. The projects are conducted globally and range in size from about $1 million to over $30 billion. Using the data, we are able to benchmark the performance of Australian projects against the rest of the world. This presentation focuses on the performance of large (greater than $100 million) projects that involve chemical or thermal processing.We regularly hear calls for more processing to be conducted in Australia but on the other hand industry leaders are concerned about the poor success rate of solids processing projects in Australia. Data gathered by IPA indicates that there is good reason for the concern. Out of a sample of 31 large processing projects conducted in Australia, 23, or 74 percent, were classed as failures. This performance is significantly worse than for similar projects in other parts of the world. The presentation analyses why the performance is worse and demonstrates that many of the reasons behind the failures were manageable by the project team. Furthermore, members of the project teams on at least half the failed projects knew that the projects were on a path to failure before the project was authorised but could not be heard.The presentation discusses how large projects that involve process design and, in many cases, new technology, need to be set up for success. *This is an abstract only. No paper was prepared for this abstract.*