Government cancels over US$227m power contracts over non-performance – Jinapor
The Ministry of Energy has cancelled 202 supply contracts of the Electricity Company of Ghana (ECG) valued at over US$227 million due to non-performance, as part of efforts to address procurement irregularities and improve the reliability of Ghana’s electricity distribution system.
The disclosure was made by the Minister for Energy and Green Transition, Mr John Jinapor, at a Government Accountability Series press briefing held in Accra on Wednesday, July 16, 2025. He said the termination was due to the suppliers' failure to deliver goods within the stipulated periods.
“These are not materials stuck at the ports. These are new containers resulting from past procurements that failed to deliver within the specified timelines,” Mr Jinapor explained.
He noted that a total of 347 contracts were reviewed, out of which the Board of the Electricity Company of Ghana (ECG) approved the termination of 202. The value of the cancelled contracts includes US$227 million, £1.17 million, and €4.08 million.
The remaining 145 contracts are still under review and could also be terminated, depending on the outcome of ongoing assessments.
“We are determined to clean the sector. As Minister, I take full responsibility to ensure strict adherence to procurement procedures going forward,” Mr Jinapor said.
He further announced that ECG had procured 200 new transformers classified as critical, to help stabilise the power distribution network and reduce unplanned outages that continue to affect parts of the country.
