Independent Power Producers (IPPs) and government have finalised a fresh agreement that could save the nation approximately US$300 million.

This was announced by the Minister for Energy and Green Transition, John Abdulai Jinapor during a working visit to the Volta River Authority (VRA).

He emphasised the need to detach political influence from the energy sector, emphasizing that it is a vital national resource that demands unity, professionalism, and collective responsibility.

“So far, this sector is experiencing some significant progress. We’ve negotiated with the IPPs, and based on the numbers I’m seeing, I’m confident that we can save a lot of money. So far, what the IPP renegotiation team has done tells me that we are saving about 300 million US dollars from the IPPs,” he stated.

Mr John Jinapor added that the previous administration made progress in renegotiating existing IPP contracts; however, the current government has secured improved terms to maximise savings and efficiency.

“The previous administration did their bit. We’ve also come to improve on it, and that is what we ought to be doing. It’s not always about politics. Let’s sometimes put the nation’s interest first. If we do it, we do it for Ghana. Before the next four years, let’s put VRA first, let’s put Ghana first, and let’s work together to turn around this sector,” he added.

Meanwhile, Finance Minister, Dr. Cassiel Ato Forson, has cautioned that without immediate reforms, the energy sector risks collapsing under the weight of growing debt.

According to Dr. Forson, ECG successfully collects only 62% of the electricity it supplies, leaving nearly 40% unaccounted for either lost due to technical faults or unpaid. This shortfall has forced the government to provide continuous financial support, with budgetary transfers reaching $2.1 billion over the past two years.

Dr. Forson emphasized that these inefficiencies are severely impacting the economy, as government support for the energy sector has reached unsustainable levels while ECG continues to struggle with operational and revenue challenges.

ECG managed to raise GH¢1.6 billion in revenue in the first half of 2025, against a projected target of GH¢2.5 billion.

Three months ago, a committee commissioned on January 30 to examine procurement irregularities and the prolonged detention of ECG’s equipment at the Tema Port revealed detailed severe procurement violations and found that approximately 1,328 containers remain unaccounted for.

In March, the Energy Minister disclosed that 40 of the 1,328 missing containers belonging to the Electricity Company of Ghana (ECG) have been located in a warehouse at Kpone, near Tema. The facility is reportedly owned by an Indian national.

The minister further revealed that the warehouse owner claimed to have legally purchased the containers last year. However, he emphasized that the matter remains under active investigation, with authorities determined to hold those responsible accountable.

Mr. Jinapor commended the collaborative efforts of national security and law enforcement agencies in recovering the containers.

Former Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, earlier pledged his full cooperation with any investigative body seeking to uncover the circumstances surrounding the disappearance of the ECG containers at the Tema Port.

Addressing the matter on the Citi Breakfast Show on Thursday, April 3, Dubik Mahama expressed shock and disappointment over the controversy but affirmed his readiness to engage with any official probe into the missing shipments.

“The containers were never in the custody of the ECG. If they were in ECG’s custody, then you can hold ECG responsible but this is the case that they were still under the port authorities and so I am all for whatever investigations there will be and I am ready to sit with whoever to give my side of the story,” he stated.

Key findings from the investigative report by the committee include:

Prior to 2022, ECG maintained a dedicated fund that received weekly allocations to facilitate the clearance of shipments. However, this funding mechanism was discontinued due to financial constraints cited by the ECG board.

Despite limited resources, ECG awarded contracts to two firms to clear the shipments, one of which was pre-financed by ECG.

One of these companies reportedly lacked the necessary licensing to handle the contract, raising concerns over procurement violations.

ECG’s procurement directorate was merged with its Housing and Estate unit, further complicating oversight mechanisms.

The Director of Procurement had no prior experience in procurement and was not a registered member of any professional procurement body.