Government Terminates Over $227 Million in Power Contracts Over Non-Performance
Energy Minister says move aims to cut waste, improve efficiency in ECG operations
- John Jinapor, has announced the cancellation of more than 202 electricity supply contracts
- The contracts are valued at over $227 million
- , Mr. Jinapor said the move is part of a broader effort to clean up inefficiencies
The Minister for Energy and Green Transition, John Jinapor, has announced the cancellation of more than 202 electricity supply contracts valued at over $227 million, following a major contract review undertaken by the Electricity Company of Ghana (ECG).
Speaking at the Government Accountability Series in Accra on Wednesday, July 16, Mr. Jinapor said the move is part of a broader effort to clean up inefficiencies within the power sector and reduce financial waste.
“To reduce ECG’s contingent liabilities and streamline inventory control, we launched a full review of all ongoing supply agreements. Out of 347 contracts examined, 202 had failed to meet agreed delivery timelines,” he stated.
The cancelled contracts include deals worth $227.6 million, £1.17 million, and €4.08 million. According to the Minister, these were not existing shipments stuck at the ports, but rather supply agreements where goods were never delivered.
He emphasized that the cancellations form part of a wider government initiative to enhance procurement discipline and ensure value for money in all energy-related transactions.
“We are determined to clean up the energy sector. Contracts that are non-performing or poorly executed will not be allowed to drain public resources,” Jinapor added.
He also revealed that another 145 contracts are currently under review and may face termination if found lacking.
The announcement comes as the Mahama administration pushes through a series of reforms aimed at making the energy sector more transparent, accountable, and financially sustainable.
