Ministry of Energy is moving to terminate hundreds of underperforming electricity supply contracts in a bid to rein in costs and tighten oversight in the country’s troubled energy distribution sector.
Energy Minister John Jinapor said Wednesday that the board of the state-owned Electricity Company of Ghana (ECG) has approved the cancellation of 202 contracts valued at approximately $227 million, along with £1.17 million and €4.08 million. An additional 145 contracts are under review and could face termination following further evaluation.
“These contracts relate to suppliers that failed to deliver the required goods,” Mr. Jinapor said during a press briefing at the Jubilee House in Accra. “We are determined to ensure that we clean the sector.”
The move is part of a broader initiative by the government to reduce waste and increase accountability in public procurement. Officials say the canceled agreements involve goods that had not yet arrived in the country and are not linked to recent controversies over equipment held at Ghana’s ports.
According to the Minister, 347 supplier contracts in total have been flagged for underperformance. The contracts were awarded under previous procurement cycles and involve materials yet to be delivered.
Mr. Jinapor also noted early gains from a recent procurement overhaul, citing a 30% to 40% decline in procurement spending compared with 2024 levels, while maintaining service standards. The reforms, he said, have contributed to improved operational stability in Ghana’s power distribution network.
“We are achieving better results with less expenditure and enforcing compliance with procurement protocols,” he said.
