Think-tank, Africa Centre for Energy Policy (ACEP) has asked the government to initiate a new concession agreement in the power sector.

This follows the termination of the controversial agreement with the Power Distribution Services (PDS) and its aftermath.

The US partners in the agreement that brought PDS have pulled the second tranche of the money, some $190million which was available to Ghana for successful implementation of the agreement.

But ACEP believes the government should go ahead and initiate a new concession agreement “outside the MiDA framework and assemble tier two pension fund managers and life insurance funds to take majority stake in the concession.”

“The concession should not be dominated by government-controlled agencies such as Social Security and National Insurance Trust (SSNIT) or Ghana Infrastructure Investment Fund (GIIF),” a statement from ACEP said.

“However, these funds can pick up minority interest in the concession…”

“Additionally, 10 Ghanaian individuals and or businesses should be hunted to invest at least two $2 million annually for five years to pick up 20 percent interest in the concession.”

“The concession arrangement should accommodate technical backstopping by an experienced distribution company from anywhere in the world,” ACEP said.

Read the full release below