Gov’t Terminates 202 ECG Contracts

Ghana’s Energy and Green Transition Minister, John Jinapor, has announced the termination of over 202 supply contracts worth more than $227 million awarded under the Electricity Company of Ghana (ECG), in a move to reduce liabilities and tighten procurement controls .

Speaking at the second edition of the Government Accountability Series, Dr. Jinapor revealed that the terminations followed a comprehensive review of 347 contracts, which uncovered widespread delays in delivery by suppliers.

“In total, 202 contracts have been terminated with the approval of the ECG Board. These contracts were valued at approximately US$227.6 million, £1.17 million, and €4.08 million,” he stated.

The terminated agreements exclude contracts where goods are currently delayed at Ghana’s ports. Jinapor further disclosed that the remaining 145 contracts are under continued assessment and could also be axed depending on findings from the ongoing review.

The Minister emphasised that the cancellations form part of a broader accountability drive to curb waste, strengthen procurement oversight, and ensure value for money within the power utility sector.

The ECG, which has long battled rising operational costs and inefficiencies, is expected to benefit from reduced liabilities and streamlined inventories, with the government positioning the move as a critical step towards financial prudence and efficient utility management.

This bold action comes amid increasing scrutiny of Ghana’s public sector contracts, with President Mahama’s administration intensifying efforts to enforce fiscal discipline across ministries and state agencies.

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