WORLD TRADE
ORGANIZATIONIP/C/W/132/Add.6
27 September 2000
(00-3893)
Council for Trade-Related Aspects
of Intellectual Property RightsOriginal:  English
IMPLEMENTATION OF ARTICLE  66.2:  INFORMATION FROM
DEVELOPED COUNTRY MEMBERS
Addendum
NORWAY
The present document reproduces information on the implementation of Article 66.2 of the
TRIPS Agreement, which has been received from the Permanent Mission of Norway by means of acommunication, dated 19 September 2000.
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Article 66.2 of the TRIPS Agreement requires "developed country Members to provide
incentives to enterprises and institutions in th eir territories for the purpose of promoting and
encouraging technology transfer to least developed country Members in order to create a sound and
viable technological base".  The present note provides an introduction of facilities for investment
support and financing arrangements for export of capital goods, technology and services provided by
the Norwegian Agency for Development Cooperation (NORAD) and the Norwegian Investment Fundfor Developing Countries (NORFUND).  In order to be eligible for these incentive schemes, the
developing country must be classified as low or lower middle income according to the OECD/DAC
list of aid recipients.
The purpose of the NORAD facilities for investment support is to encourage Norwegian firms
to pursue opportunities for investment in lower income developing countries, including leastdeveloped countries.  The facilities promote cooperation, including related to technology transfer,
through the support of feasibility studies for establishing joint ventures or foreign subsidiaries,
investments in basic infrastructure and training in order to strengthen the local management of joint
ventures or companies that are owned wholly or partially be one or more Norwegian companies, as
well as equity investment guarantees to Norwegian companies in connection with investment projectsin developing countries.  The insurance cover is similar to that offered by MIGA (the Multilateral
Investment Guarantee Agency).
The financing arrangements for export of capital goods, technology and services include
support for training in connection with export, mixed credits, export credit guarantees and parallel
financing.  Special training arrangements in connect ion with such export to developing countries are
often a necessary prerequisite for ensuring a real transfer of technology and the proper operation and
maintenance of machines and equipment.  The facility for training support enhances the ability of the
recipient to make use of and to maintain the new assets or technology supplied from Norway, while
enabling Norwegian firms to meet the needs of the buyer in the developing country.  Mixed credits
combine development assistance funds with ordinary export credits in order to further technology and
capital transfer, as well as industrial and commercial interaction between the Norwegian industrialIP/C/W/132/Add.6
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community and developing countries.  NORAD, jointl y with the Norwegian Export Credit Guarantee
Agency (GIEK), may also offer export credit guarantees for projects that are expected to be
particularly beneficial in contributing to the economic and social development of the partner
countries, which do not satisfy the requirements of the general system of guarantees provided by
GIEK.  Such guarantees normally cover political risks only, although commercial risks may also becovered under certain conditions.  The coverage is usually up to 90 per cent of the risk of loss of the
exporter or financial institution.
In addition, NORAD may fund project exports consisting of one or more project components
in major projects that are prepared and financed by multilateral development banks.  Such parallel
financing is tied to project components where the non-Norwegian content is not more than 50 per
cent.  Norway has signed agreements concerning this scheme with the World Bank (IBRD/IDA), the
Asian Development Bank (AsDB), the African De velopment Bank (AfDB), and the Inter-American
Development Bank (IDB).  Parallel financing can also be used in connection with projects financed
through NORAD's country and regional programmes.  Domestic competitive tendering is arranged for
those project components that are selected for co-f inancing.  The Norwegian Trade Council assists in
the administration of this facility.
Special NORAD financing on grant terms is provided for technical assistance within sectors
where Norway is considered to have particularly strong expertise.  Such sectors include shipping, oil
and gas (offshore), hydropower, environmental t echnology, mariculture/aquaculture and fisheries.
The purposes of NORFUND are to invest in profitable private enterprises in developing
countries and to promote business development in these markets, to support the realization of viable
commercial projects which balance economic, social and environmental considerations, and tocontribute to the success of its co-investors by providing risk capital and expertise.  NORFUND
generally pursues two investment strategies:  direct investment and involvement in local investment
funds.  Direct investments are made in coopera tion with Norwegian comp anies in all countries
eligible for NORFUND funding.  NORFUND also invests in local funds in a number of countries,
independently of other Norwegian investors.  Both strategies aim to stimulate profitable commercialdevelopment in developing countries.  Direct investments provide particular incentives for promoting
and encouraging technology transfer.
Direct investment are made jointly with Norwegian companies, often in cooperation with
local partners.  By providing capital, contacts and expertise, NORFUND can actively contribute to the
success of its projects.  The fund requires a well-documented business plan before proceeding with an
investment.  Here the Norwegian partner must be  able to demonstrate good earnings potential,
expertise and an awareness of environmental and social considerations.  NORFUND usually injectsequity capital, at most matching the amount invested by the Norwegian sponsor, with its
commitments based on shared risk, not subsidies.  Norwegian companies wishing to set up local
operations in eligible countries can also apply directly to the local investment funds established in
cooperation with other institutional investors, such  as the CDC Group plc, the International Finance
Corporation (IFC) and private financial institutions.IP/C/W/132/Add.6
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For further detailed information concerning the above incentive schemes for Norwegian
companies to engage in cooperation with partners in least developed countries please contact:
Norwegian Agency for Development Cooperation (NORAD)
Industrial Development Department
P.O. Box 8034 Dep., 0030 Oslo, NorwayTel:  +47 22 31 44 00 Fax:  +47 22 31 44 03
Email:  informasjonssenteret@norad.no
Website:  www.norad.no
Norwegian Investment Fund for Developing Countries (NORFUND)
P.O. Box 1280 Vika, 0111 Oslo, Norway
Tel:  +47 22 01 93 93 Fax:  +47 22 01 93 94Email:  post@norfund.org
Website:  www.norfund.org
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