The Electricity Company of Ghana (ECG) has canceled more than 202 supply contracts totaling more than $227 million as part of a significant cleanup effort to increase efficiency and cut down on financial waste in the energy industry, according to Minister for Energy and Green Transition John Jinapor.
During his remarks at the Government Accountability Series in Accra on Wednesday, July 16, 2025, Mr. Jinapor stated that the canceled contracts were a part of a larger examination of 347 contracts that ECG had signed, many of which had not been delivered on schedule.
“To reduce ECG’s contingent liabilities and streamline inventory control and cost savings, the government initiated a comprehensive review of all ECG contracts,” he said. “The review identified 347 supply contracts in which the suppliers had failed to deliver the contracted goods within the specified delivery periods.”
He explained that the terminated contracts covered new supplies that had not yet been delivered and had nothing to do with goods that were stranded at the nation’s ports. The total value of the canceled transactions is €4.08 million, £1.17 million, and $227.6 million.
The Energy Minister further indicated that an additional 145 contracts are under further scrutiny and could also be terminated based on the outcome of ongoing assessments.
“This action is in line with our commitment to clean up the energy sector, improve value for money, and ensure that procurement processes are strictly adhered to,” Mr. Jinapor said.
The government’s efforts to reposition the energy sector for increased accountability, openness, and dependability in service delivery include the announcement as part of larger reforms.