IP/C/W/631/Add.5  
 
2 October  2017 
(17-5244) Page: 1/5 
Council for Trade -Related Aspects of Intellectual 
Property Rights  Original: English  
 
 
REPORT ON THE IMPLEM ENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEME NT 
NORWAY  
Addendum  
The following communication, dated 25 September 2017 , from the delegation of Norway, is being 
circulated pursuant to paragraph 1 of the Decision on the Implementation of Article 66.2 of the 
TRIPS Agreement (IP/C/28).  
 
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1  INTRODUCTION  
1.  Article 66.2 o f the TRIPS Agreement requires " developed country Members to provide 
incentives to enterprises and institutions in their territories for the purpose of promoting a nd 
encouraging technology transfer to least -developed country Members in order to enable them to 
create a sound and viable technologica l base". The present note provides an update of the relevant 
facilities provided by the Norwegian Agency for Development Cooperation (Norad) and 
the Norwegian Investment Fund for Developing Countries (Norfund).  
2.  Least -developed countries are eligible for Norad and Norfund  incentive schemes along with 
other developing countries.  
2  THE NORWEGIAN AGENCY  FOR DEVELOPMENT COOP ERATION  (NORAD)  
3.  Norad provides incentives for technology transfer to least -developed countries (LDCs) through, 
among other means, facilities for pre -investment support including training, and support to 
framework conditions. In this report, for transparency reaso ns, we have included examples on 
relevant incentives where LDCs in accession to the WTO are beneficiaries.  
4.  The facilities for pre -investment support are application -based and untied. The main users are 
Norwegian enterprises. The schemes are open for all ki nd of technology transfer, but priority is 
given to investments in renewable energy, agriculture (particularly climate -resilient agriculture in 
Africa), ICT as well as the marine and maritime sector. Technical assistance is the main mode of 
technology tran sfer but the schemes also include investments in basic infrastructure. Mozambique, 
Uganda, Myanmar, and Tanzania are among the LDCs receiving such support.  The financing 
facilities are fully utilized every year. Norad also ran Business MatchMaking Programm es in 
Bangladesh and East Africa through end -2016. A modified prog ramme continues in East Africa.  
5.  The purpose of the Norad facilities for pre -investment support is to encourage firms to invest in 
developing countries and LDCs.  The support schemes intend to  pave the way for long -term 
commercially viable investments through financial support for risk -reducing measures and/or 
measures that promote the sustainability and feasibility of private investment projects. 
The facilities promote cooperation, including c ooperation relating to transfer of technology, 
through the support of feasibility studies for establishing joint ventures or foreign subsidiaries, 
match -making, training in order to strengthen the local staff and management of joint ventures or IP/C/W/631/Add.5  
 
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  companies t hat are owned wholly or partially by one or more foreign companies, investments in 
basic environmental infrastructure and basic infrastructure (road, water/sanitation, electricity and 
telecommunication). The additionality of Norad 's support to individual c ompanies has been in 
helping direct investment towards countries and regions where companies would not necessarily 
have invested otherwise, amongst others due to lack of contact to facilitate implementation and 
risk. 
6.  Norad 's support in the area of framewor k conditions for private sector development in 
developing countries aims to improve the framework conditions (amongst others) in terms of 
commercial investments, access to clean energy and framework conditions for trade.   
7.  The purpose of supporting trade re lated projects is to strengthen the countries' export potential 
and to facilitate trade by assisting in building institutional and national capacities, i.e. relating to 
certification and quality infrastructure, standards, metrology, testing and quality and trade 
facilitation. Norad is supporting several regional and national programs leading to international 
recognition and acceptance of certification systems. Some of these programs also include financing 
of testing laboratories both for food export and par ticular industrial goods. The area of trade 
facilitation is important for the development of trade, not least regional trade and support is given 
mainly through multilateral a nd international organizations.  
8.  Norway 's International Climate and Forest Initiat ive was established in 2008, to implement the 
pledge from Bali.  Most activities are being coordinated through multilateral channels.  In addition, 
Norway supports a few countries bilaterally in their efforts to reduce forest loss, and provide 
funding for ci vil society actors in relevant areas. Technology transfer - and development related to 
reduced greenhouse  gas emissions will be an important element in the cooperation between public 
authorities and private sector. In particular the development of capacity for Measurement 
Reporting and Verification (MRV) has a high component of technology transfer.  A large nu mber of 
countries receive MRV support from Norway through multilateral and bilateral channels, and this is 
also benefitting national private and public institutions through capacity building and technology 
transfer.  Congo DRC, Ethiopia and Mozambique are a mong the LDCs who has received support 
in 2016.  
9.  The Clean Energy for Development initiative  aims to increase access to renewable energy in 
developing countries. The initiative has provided lasting results for millions of people since it was 
started in 2007 . The Initiative focuses on areas where Norway has a special expertise to offer and 
mobilize private capital and competence in areas such as hydropower, solar, wind and bio -energy. 
The Initiative also supports various capacity building and institutional st rengthening programmes 
within the energy sector and channels parts of its funding through multilateral institutions. Some 
of the core least developed countries receiving such support are Bhutan, Mozambique, Nepal, 
Tanzania, Uganda, Myanmar and Liberia.  
10.  The Norwegian Oil for Development Programme (OfD) aims at assisting developing countries 
and LDCs, upon their request, in their efforts to manage petroleum resources in a way that 
generates economic growth, and promotes welfare of the whole population in an e nvironmentally 
sustainable way.  In 2016, Mozambique, Sudan, Tanzania and Uganda received support through 
this programme. The Oil for Development Programme is engaged in a number of other initiatives, 
either directly or via other donors and implementing par tners.  
11.  Within Norwegian development cooperation in fisheries and aquaculture one aim is introducing 
appropriate technology and systems and over time ensuring that these are operated as intended. 
Norway has supported the Nansen Programme over the last 40+ y ears. One central element in 
the programme is the research vessel "Dr. Fridtjof Nansen ". The programme aims at gathering 
information about the marine resources and environment and supporting developing countries and 
LDCs in utilizing these data for improve d management of their marine resources.  
12.  Since 1990 the programme has mainly been operating in the coastal states of Africa, including 
LDCs like Angola, Benin, Congo DRC, The Gambia , Guinea, Guinea Bissau, Liberia, Madagascar, 
Mauritania, Mozambique, Senega l, Sierra Leone and Tanzania. The programme has also over 
the years conducted three surveys in Myanmar. Scientists and managers take part in the planning, 
operation and post -survey work of the surveys. The participants learn about instruments and 
technique s to measure the size and composition of fish stocks as well as identification of other IP/C/W/631/Add.5  
 
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  organisms in the ocean. Physical parameters of the marine environment are measured 
continuously. The results are analyzed and formulated as basis for management decisio ns. 
With time series that are developed, information can be achieved about changes and trends in 
the marine environment and its resources. The data collected are the property of the country in 
question. The Food and Agriculture Organization of the UN (FAO)  manages the programme. 
The Institute of Marine Research in Norway provides scientific expertise.  
13.  In Mozambique, Norway is supporting the establishment and operation of a hatchery, 
breeding  programme and training of personnel in the operation of the equip ment and systems.  
3  NORWEGIAN INVESTMENT  FUND FOR DEVELOPING COUNTRIES ( NORFUND)  
3.1  About Norfund  
14.  The purpose of Norfund is to contribute to building sustainable commercial businesses in 
developing countries by providing risk capital and expertise. Norfund  contributes to economic 
development and profitable, sustainable jobs in poor countries through the development of 
profitable enterprises, particularly within the fields of clean energy, the financial sector and 
agribusiness, coupled with transfer of knowl edge and technology. Norfund 's strategy is to invest 
primarily in five geographical areas: Southern Africa, East Africa, selected countries in West Africa, 
Central America, and the Mekong area, with priority given to Sub -Saharan Africa and Least 
Developed Countries (LDCs). These are areas with a particular shortage of capital and expertise. 
Two of Norfund 's own investment targets concern geographical reach, namely that 33 per cent of 
in the portfolio should be in LDCs and 50 per cent in Sub -Saharan Africa. Of new commitments in 
2016, the LDC and Sub -Saharan Africa shares were 57 and 73 per cent respectively. Norfund has 
a local presence with offices and staff in all the main geographic areas.  
15.  Norfund has chosen to concentrate on investments in clean energy,  food and agribusiness, 
and the financial sector. These are sectors with high developmental returns and where Norfund 's 
prerequisites for mobilizing expertise of international quality are good. Assistance from Norfund is 
untied and does not have to be in c ooperation with Norwegian enterprises. Of the three core 
sectors, clean energy and the financial sector are the largest areas of investment. Both sectors are 
preconditions for development and economic growth. Norfund invests in clean energy generation 
projects that increase energy supply, improve reliability and are sustainable sources of electricity. 
Banks and microfinance institutions are important for businesses ' and households ' access to 
financial services such as loans, savings accounts and insurance, allowing for more value creation 
and financial planning. Food and agribusiness is an important sector for poverty reduction through 
increased food production for local consumption and trade, as well as employment of both skilled 
and unskilled labour. Techn ology and competence transfers are an integral part of Norfund 's 
investment activities, both regarding operational and industrial management as well as health, 
safety and environmental issues. The development of these elements is core to the organization 's 
mission.  
16.  Norfund exercises active ownership in the companies and funds it invests in and it often 
requires seats on the investees ' boards or other decision making bodies. This gives Norfund  
proximity to operations and the possibility of influencing practices and standards over time. Given 
an ownership horizon of 4 -10 years, Norfund works for the creation of a corporate culture that is 
engaged in continuous improvement of corporate governance , and environmental and social 
standards. Action plans are sometimes used to stake out a long -term course for how companies 
should shift from operating according to local standards to international standards over time. 
Norfund also has a special grant faci lity that can be used to support enterprise improvements; 
better governance; enhanced environmental and social responsibility for existing investees, 
community development as well as the development of particularly risky investment opportunities. 
These gra nt resources are allocated independently of the commercial investment capital and are 
an effective instrument in Norfund 's execution of ownership and for transferring technology 
and knowledge.  
3.2  Investments in food and agribusiness  
17.  By year end 2016, Norfund  had ten direct agribusiness investments that all involve a certain 
degree of technology and knowledge transfer. One example is African Century Foods (ACF) – IP/C/W/631/Add.5  
 
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  a producer and distributor of poultry and fish tilapia in Zambia, Zimbabwe and Uganda. Norfund is 
assisting ACF in identifying relevant partners in Norway for vocational training for fish farming and 
applying to NORAD for funding from the new Building Skills for Jobs program. Other examples  
include the forestry company Green Resources ' investment in th e first automated sowing machines 
in East Africa, Agrivision 's installation of state of the art pivots and irrigation technology in Zambia, 
and Africado 's outgrower farmer program (in Tanzania) that will improve smallholder farmers ' 
agricultural practices and help meet the operational standards required by the export market 
in Europe.  
3.3  Investments in clean energy  
18.  Within the field of clean energy, Norfund has several investments involving transfer of state of 
the art technologies to developing countries. In 2 016, Norfund entered into a private -public 
partnership with Mozambique 's state -owned utility EDM and the Government of Mozambique to 
enable the construction Mozambique 's first large -scale solar power plant. This will give EDM 
an opportunity to gain technic al, commercial and practical experience in utility -scale solar 
solutions.  
19.  Norfund has also been instrumental in setting up and funding the hydropower companies SN 
Power/Statkraft International Hydro Invest (SKIHI) and Agua Imara. Although hydropower 
techno logy is known in most LMIC and UMIC countries, SN Power and SKIHI, through 
the rehabilitation work and construction processes, draw on Norwegian hydropower expertise and 
introduce state of the art -technologies in e.g. coating technologies of turbines and t unnel 
construction, also ensuring knowledge and technology transfer. Norfund also supports small scale 
hydropower development, and has invested in the 5 MW Rwimi EP Co Ltd in Uganda and the 9 MW 
Nam Sim plant in Lao PDR . Small scale run -of-the-river hydrop ower is an important technology in 
many developing countries due to the nature of the resources and scale of local markets.  
20.  In order to promote technology transfer and ensure that even more projects in developing 
countries are developed to a bankable state , Norfund has established an early funding scheme that 
covers project development costs of clean energy projects. The scheme is applicable for projects in 
established technologies such as hydro, wind and solar as well as biogas, geothermal and waste -
to-energy projects. The scheme allows Norfund to proactively contribute to a pipeline of projects 
being brought to fruition. In 2016, Norfund supported the project development phase of six energy 
projects, one of which was a new solar project in 2016.  
3.4  Investment s in the financial sector  
21.  By year -end 2016, 30% of Norfund 's portfolio was invested in financial institutions, including 
microfinance. While technology transfer is not necessarily an inherent part of investments in this 
sector, Norfund regularly provides g rants in which technology and knowledge transfers are central 
components. In 2016, Norfund, together with FMO and Rabobank, created the investment 
company Arise which will be a long -term owner in locally owned banks in sub -Saharan Africa. 
The aim is to con tribute to financial inclusion by building strong and scalable banks, hence 
reducing operating costs. Arise will provide management with bank expertise and skills transfer, 
including on the technology side of banking.  
22.  In addition to direct investments, No rfund also invests in funds that focus on small and 
medium -sized enterprises (SMEs). SMEs are important for local value creation and employment, 
but is generally too small and too diverse for Norfund to invest in directly. By investing through 
local and re gional funds, Norfund can reach enterprises that often have trouble getting finance 
from formal banks. Norfund is also providing technical assistance grants to several of the funds ' 
investee companies. Among other things, the grants are used to help the SM Es obtain 
certifications and external expert advice to improve various aspects of the business model and/or 
operations. Grants have also been provided to strengthen the fund managers and support for 
a work-related training programmes.  IP/C/W/631/Add.5  
 
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  For further information and details, please contact:  
Norwegian Agency for Development Cooperation (Norad)  
Department for Private Sector Development  
P.O. Box 8034 Dep., N -0030 Oslo, Norway  
Tel: +47 23 98 00 00  
Email:  postmottak@norad.no  
Website:  https://www.norad.no/  
Norwegian Investment Fund for Developing Countries (Norfund)  
P.O. Box 1280 Vika,  
N-0111 Oslo, Norway  
Tel: +47 22 01 93 93  
Fax: +47 22 01 93 94  
Email: post@norfund.no  
Website: http://www.norfund.no/  
 
 
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