Government cancels over $227 million worth of power contracts for non-performance

The Ministry of Energy has terminated 202 electricity supply contracts valued at over US$227 million due to non-performance, in a sweeping move to address procurement irregularities and enhance the reliability of Ghana’s power distribution network.

This was disclosed by the Minister for Energy and Green Transition, John Jinapor, at the Government Accountability Series press briefing held in Accra on Wednesday, July 16, 2025.

“These are not just abandoned materials at the ports. These are new containers from past procurements that failed to meet delivery deadlines,” Mr Jinapor clarified.

Out of 347 reviewed contracts, the Board of the Electricity Company of Ghana (ECG) approved the termination of 202 contracts. The cancelled deals comprise US$227 million, £1.17 million, and €4.08 million in value. Another 145 contracts remain under review and could face termination depending on the outcome of further assessments.

“We are determined to clean the sector,” Jinapor emphasized. “As Minister, I take full responsibility to ensure strict adherence to procurement procedures going forward.”

In a related development, he announced that ECG had successfully procured 200 new transformers classified as critical infrastructure, aimed at stabilising the power distribution system and reducing the frequency of unplanned outages affecting various parts of the country.