Minister for Energy and Green Transition, John Jinapor, has announced that the Electricity Company of Ghana (ECG) board has approved the cancellation of 202 contracts.
Speaking during the Government Accountability Series at the Jubilee House on Wednesday, July 16, the Energy Minister explained that, “The ECG board has approved the outright termination of 202 of these contracts.”
He disclosed that the total value of the cancelled contracts stands at $227 million, £1.17 million and €4.08 million.
He added that 145 more contracts are still under review and may also be terminated following “additional strict scrutiny.”
He explained that the move forms part of efforts to clean up the energy distribution sector and improve financial efficiency. “We are determined to ensure that we clean the sector. The ministry has also signed some KPIs with management and management has also signed KPIs with the regional office and we will hold them to account,” he said.
He clarified that the affected contracts relate to supplier agreements that failed to deliver the required materials.
“So far, 347 supplier contracts that have failed to deliver goods within the specific areas are up for review. The goods in these containers were not part of the materials locked up at the ports; these are new containers coming up following procurement that were undertaken previously. They are yet to be delivered.”
The Minister also highlighted gains from recent procurement reforms.
“If you compare this year to last year in terms of expenditure, we are spending about 30% or 40% of what was spent in 2024 when it comes to procurement. And we are achieving better results with value for money and ensuring that we adhere to strict procurement procedure and processes.”
He said the reforms have led to relative stability in the country’s electricity distribution. “The current stability of the distribution network is due to some of our initiatives and policy interventions that we have put in place.”
The Accountability Series is a government initiative allowing ministers to update citizens on their respective sectors.
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Source: myjoyonline.com
