ECG Board Cancels 202 Supplier Contracts Worth Over $230m to Boost Efficiency
The Electricity Company of Ghana (ECG) has cancelled 202 supplier contracts as part of a sweeping reform agenda aimed at sanitising the country’s energy distribution sector, Minister for Energy and Green Transition, John Jinapor, has disclosed.
Speaking at the Government Accountability Series held at the Jubilee House on Wednesday, July 16, Mr Jinapor revealed that the ECG board had approved the outright termination of the contracts due to non-performance by the suppliers.
“The ECG board has approved the outright termination of 202 of these contracts,” the Minister stated. The total value of the cancelled contracts is estimated at $227 million, £1.17 million and €4.08 million.
According to him, an additional 145 supplier agreements remain under review and may also be scrapped following what he described as “additional strict scrutiny.”
The Energy Minister explained that the cancelled agreements mainly relate to contracts in which suppliers failed to deliver the agreed materials. “So far, 347 supplier contracts that have failed to deliver goods within the specific areas are up for review,” he said.
“These goods were not part of the materials locked up at the ports; these are new containers coming up following procurement that were undertaken previously. They are yet to be delivered,” he clarified.
The contract terminations, he noted, form part of broader efforts by the Ministry to enhance accountability and reduce wasteful expenditure within the energy distribution value chain. “We are determined to ensure that we clean the sector,” Mr Jinapor stressed.
He also announced the implementation of a performance-based management framework across ECG’s operational structure. “The ministry has also signed some KPIs with management, and management has also signed KPIs with the regional office — and we will hold them to account,” he added.
On procurement, the Minister highlighted improved fiscal discipline and efficiency, stating that expenditure on procurement in 2025 is significantly lower than the previous year.
“If you compare this year to last year in terms of expenditure, we are spending about 30% or 40% of what was spent in 2024 when it comes to procurement. And we are achieving better results with value for money and ensuring that we adhere to strict procurement procedure and processes,” he noted.
Mr Jinapor also credited these reforms with contributing to the relative stability in Ghana’s electricity distribution network. “The current stability of the distribution network is due to some of our initiatives and policy interventions that we have put in place,” he remarked.
The Government Accountability Series is a public engagement platform through which ministers provide updates on key activities and developments within their respective portfolios.
