Adelaide’s proton therapy unit at Australian Bragg Centre in ruins after SAHMRI ‘terminate’ taxpayer contract with ProTom International

Adelaide’s world-leading cancer proton therapy treatment facility is in ruins after an embattled Chinese-backed US company was sacked from the crisis-hit project.

Adelaide’s world-leading cancer proton therapy treatment is in ruins after an embattled Chinese-backed US company was sacked from the crisis-hit project.

The $500m Australian Bragg Centre for Proton Therapy and Research was due to operate the southern hemisphere’s first such unit in a specially designed, fortified, four-storey concrete bunker.

But in a crushing blow after 10 months of tense negotiations, the South Australian Health and Medical Research Institute has “terminated” ProTom International, leaving authorities scrambling for a new supplier.

State government officials admit it’s a “very disappointing” decision after the Chinese-backed firm earned more than $45m in public funds while another $7m was paid to subcontractors.

No “severance” payouts will occur but taxpayers will pay $5.35m more to PTI for completed works.

The proposed Australian Bragg Centre proton therapy unit spearheaded by the South Australian Health and Medical Research Institute. Picture: Supplied by SAHMRI.

Negotiations are ongoing on how to dispose of specially designed sub-components in America for the SAHMRI 2-based unit and for PTI to repay some taxpayer funds.

Treasury officials, who advised SAHMRI to refuse payments after losing confidence in PTI’s operations, are urgently reviewing how one of the city’s most expensive buildings can fit a different provider.

In bizarre scenes, officials struggled to formally “serve” the termination notices on PTI offices in Texas and Boston before notification last Thursday (US time).

Senior government sources concede the debacle was “not a process that’s gone well” after leaked documents laid bare stark audit warnings that were ignored seven years ago.

Almost $120m worth of state and federal resources, including $78m funding and $40m of land, was in a PTI contract signed in 2017 under the former Weatherill Labor government.

PTI, which blamed Covid and the Ukraine war for its financial woes after filing for “Chapter 11” bankruptcy in 2015, failed to make “progress” after requesting in March a $US50m ($75.5m) bailout and another year.

Queensland’s development of a similar unit threatens to undermine SA’s exclusive therapy claims, officials fear.

Australian Bragg Centre. Picture: Matt Loxton

South Australian Treasurer Stephen Mullighan speaking said the latest development was disappointing. Picture: Kelly Barnes

Treasurer Stephen Mullighan said the government was working with ABCPTR and the Commonwealth to investigate “alternative proton therapy technologies from other providers to be located within the centre”.

He hoped for engineering advice by year’s end if another system is feasible before any possible new tender in 2025.

“This is a very disappointing situation for this contract with ProTom International,” he said.

“It’s disappointing Australian cancer patients won’t have access to this treatment now and that PTI has been unable to satisfy concerns over its ability to deliver on its contract.

“As soon as negotiations are completed with a potential other provider, we hope Australians, and South Australians, will have the benefit of such lifesaving technology.”

Proton therapy allows specialists to target specific tumours in sensitive areas, especially in children, with less risk of damaging surrounding organs or tissue.

A SAHMRI spokesman said PTI’s “continuing default” sparked the agreement termination.

“(We) are committed to working with their partners to identify the most suitable way forward for Australia’s first proton therapy centre,” he said.

PTI chief executive Paul Tso, whose company has been bound by a non-disclosure agreement, declined to comment, adding: “Please stay tuned.”

Originally published as Adelaide’s proton therapy unit at Australian Bragg Centre in ruins after SAHMRI ‘terminate’ taxpayer contract with ProTom International