The new management of the Electricity Company of Ghana (ECG) has cancelled over 200 supply contracts deemed non-performing as part of sweeping reforms to improve efficiency and accountability in the energy sector, Minister for Energy and Green Transition John Abdulai Jinapor revealed on Wednesday.
According to the Minister, a total of 202 contracts have been terminated outright by the Electricity Company of Ghana (ECG), with an additional 145 contracts under review for failure to deliver goods within agreed timelines.
“The ECG Board has approved the outright termination of 202 of these contracts,” Jinapor disclosed when he took his turn at the Government Accountability Series press briefing.
“These contracts, valued at approximately GH¢227 million, failed to meet performance expectations and were not delivering value to the Ghanaian people.”
He emphasized that the terminated contracts were not part of older materials locked up at the ports but were related to new procurements that had failed to meet delivery deadlines or contractual obligations.
According to the Minister, the cancellations form part of a broader initiative to rationalize procurement practices in the energy sector, tighten oversight, and ensure value for money.
He noted that under his leadership, the sector has achieved greater results while spending significantly less compared to previous years.
“Compared to 2024, we are spending 30-40% less on procurement this year, and yet achieving better results,” Jinapor explained.
“This is what value for money looks like, and it’s being driven by strict adherence to procurement procedures.”
Jinapor took full responsibility for ensuring that these reforms are enforced, stressing that the efficiency gains will directly benefit ordinary consumers through improved service delivery and reduced outages.
“We are not going to witness the kind of bloated procurements we saw in the past. Every cedi saved is a gain for the Ghanaian people,” he affirmed.
Minister Jinapor highlighted that ECG, under the leadership of Julius Kwame Kpekpena, has made significant progress, including the procurement of 200 new transformers and deployment of 24-hour rapid-response teams to address faults in Accra.
Source: https://energynewsafrica.com
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