James Arnott - Engerati · James Arnott Managing Director Accenture Capital Project ... International Energy Agency 2011 and Accenture Analysis Utility ... • End-to-end process

Hayley Walters Managing Director

Africa Capital Project Services

James Arnott Managing Director

Accenture Capital Project Services: EALA

Capital Project Landscape

Global Investment in Energy

380 Projects that represent 672 bn boe of oil and

gas reserves - almost half the total planned capex

for the Majors over the next four years

African Utility Investments

Africa’s contribution to the USD 18.8 trillion to be

invested in the power industry

Source: Goldman Sachs: 380 projects to change the world

From resource constraint to infrastructure constraint

Source: Africa Project Access, World Energy Outlook 2011 © OECD/

International Energy Agency 2011 and Accenture Analysis

Utility Investments

African Capital Investment Africa is becoming an important market and an attractive target for organisations

looking to expand

Current spending for infrastructure in Sub-Saharan Africa

Irrigation

~$1bn

Transport

~$16.2bn

Power

~$11.6bn

ICT

~$9bn

Source: Accenture research into PIDA and PICC programmes

Capital Project Challenges

Source: Developing Strategies for the Effective Delivery of Capital Projects

Accenture global survey of the utilities industry

Increasing size and complexity

Will decrease Will increase

29% 26% 29%

Size of new

projects

Overall size of

project

portfolio

Complexity

of new

projects

9%

58%

13%

65%

6%

65%

Will remain the same

How will the size, complexity of your portfolio of

projects change in the next five years compared to

the last five years?

Deliver to approved schedule (within 25%)

33%

40%

38%

47%

33%

39%

Deliver to approved

schedule (within 25%)

Deliver to quality

requirements

Deliver to approved

budget (within 25%)

Deliver reliable

production capability

Deliver the expected

business value

Enhance reputation

Failing to deliver against expectations

To what extent you usually meet your targets

regarding the delivery of capital projects

Trends

We see ten trends shaping the capital project landscape

Trends

Methods to process Offer to the nation Resource and talent management

• Contingent labour

management

• Reallocation of work

• Attraction, retention and

development programs

• FEL activities and a more

inclusive functional view

• End-to-end process models

with a focus on measuring

outcomes

• Adoption and education with

new joint venture partners and

geographic operations

• Local workforce and supplier

development

• Structured training and

development programs

• Project management and

accountability related to

community development

programs

Three African considerations

Treating capital projects as businesses can significantly influence their success

Bringing it all together

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