Government Cancels Over $227 Million in Power Contracts Due to Non-Performance
In a significant move to enhance the reliability of Ghana’s electricity distribution system, the Ministry of Energy has announced the cancellation of 202 supply contracts valued at over $227 million. This decision comes as part of a broader initiative to address procurement irregularities within the sector.
During a Government Accountability Series press briefing held in Accra on July 16, 2025, the Minister for Energy and Green Transition, Mr. John Jinapor, provided insights into the cancellations. He emphasized that the contracts in question were not related to materials stuck at ports, but rather involved new containers from previous procurements that failed to meet delivery deadlines.
Out of a total of 347 contracts reviewed, the Electricity Company of Ghana (ECG) approved the termination of these 202 contracts. The total value of the cancelled contracts includes not only $227 million but also £1.17 million and €4.08 million. Mr. Jinapor noted that the remaining 145 contracts are still under review, and further terminations may occur based on ongoing assessments.
“We are committed to cleaning up the sector,” Mr. Jinapor stated. “As Minister, I take full responsibility to ensure strict adherence to procurement procedures moving forward.”
In addition to the cancellations, Mr. Jinapor announced that ECG has procured 200 new transformers deemed critical for stabilizing the power distribution network. This initiative aims to reduce unplanned outages that have been affecting various regions across the country.
This proactive approach is expected to bolster the efficiency of Ghana’s electricity distribution system and restore public confidence in the sector. The government’s commitment to transparency and accountability in procurement practices marks a crucial step towards sustainable energy management in Ghana.
