On July 16, 2025, Energy and Green Transition Minister John Jinapor announced the termination of 202 Electricity Company of Ghana (ECG) supply contracts valued at $227.6 million, £1.17 million, and €4.08 million, citing non-performance by suppliers.
Speaking at the Government Accountability Series in Accra, Jinapor revealed that the cancellations stem from a comprehensive review of 347 ECG contracts, which identified widespread failure to meet delivery timelines.
The move is part of President John Mahama’s administration’s efforts to enhance efficiency, reduce financial waste, and address ECG’s contingent liabilities in the energy sector, which accounts for 10% of Ghana’s GDP.
The terminated contracts involve new supplies, not materials stuck at ports, and are aimed at streamlining inventory control and ensuring value for money.
Jinapor noted that an additional 145 contracts are under review, with potential further cancellations pending 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,” he stated.
The cancellations align with broader austerity measures, including the recent scrapping of fuel allowances for appointees, reflecting the government’s focus on fiscal discipline amid a public debt of 92.7% of GDP (IMF, 2024).
The decision has sparked mixed reactions. Industry analysts praise the move for addressing inefficiencies, noting that ECG’s procurement challenges have historically contributed to power distribution losses, estimated at 27% in 2024 (PURC data).
However, some suppliers, via posts on X, claim the terminations could disrupt supply chains and affect small businesses. The government has assured that due process was followed, with notifications issued to affected contractors
