IP/C/W/616/Add.3  
 
24 October 2016  
(16-5800) Page: 1/5 
Council for Trade -Related Aspects of  
Intellectual Property Right s 
 Original: English  
 
 REPORT ON THE IMPLEMEN TATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT  
NORWAY  
Addendum  
 
The following communication, dated 14 October 2016, from the delegation of Norway, is being 
circulated pursuant to paragraph 1 of the Decision on the Implementation of Art icle 66.2 of the 
TRIPS Agreement (IP/C/28).  
 
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1  INTRODUCTION  
1.  Article 66.2 of the TRIPS Agreement requires "developed country Members to provide 
incentives to enterprises and institutions in their territories for the purpose of promoting and 
encouraging technology transfer to least -developed country Members in order to enable them to 
create a sound and viable technological base".  The present note provides an update of the 
relevant facilities provided by the Norwegian Agency for Development Co operation (Norad) and the 
Norwegian Investment Fund for Developing Countries (Norfund).  
2.  Least -developed countries (LDCs) 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 LDCS  and long -term cooperation countries 
for Norwegian Official Development Assistance through (1) its facilities for pre -investment support , 
including training ; and (2) its support to fra mework conditions in developing countries .  
4.  The facilities for pre -investment support are application -based and untied. The main users are 
Norwegian enterprises. The schemes are open for all kind s of technology transfer, but priority is 
given to investment s in the following sectors: renewable energy; local suppliers of goods and 
services related to the oil and gas sector; agriculture, including agro -processing; fish and marine 
resources; the maritime sector; and information and communication technology (ICT ). Technical 
assistance is the main mode of technology transfer 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 utili zed every year. Norad also supports a  Business 
MatchMaking Programme in East Africa.  
5.  The purpose of the Norad facilities for pre -investment support is to encourage firms to invest in 
developing countries, includ ing 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 coopera tion relating to transfer of technology, through the 
support of feasibility studies for establishing joint ventures or foreign subsidiaries, match -making, IP/C/W/616/Add.3  
 
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  training in order to strengthen the local staff and management of joint ventures or companies that 
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 compani es 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 framework con ditions 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 related  projects is to strengthen the countries' export potential 
and to facilitate trade by assisting in building institutional and national capacities i.e. relating to 
standards, metrology, testing and q uality and trade facilitation. Norad is supporting several  
regional and national program mes leading to international recognition and acceptance of 
certification systems. Some of these program mes also include financing of testing laboratories 
both for food export and particular 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 
and international organizations.  
8.  Norway’s International Climate and Forest Initiative (NICFI) was established in 2008  to 
implement t he pledge from COP 13 in 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 civil society actors in rele vant areas. Technology 
transfer - and development related to reduced greenhouse gas emissions will be an important 
element in the cooperation between public authorities and the private sector. In particular, the 
development of capacity for Measurement Repor ting and Verification (MRV) has a high com ponent 
of technology transfer. A large number of countries receive MRV support from Norway through 
multilateral and bilateral channe ls, and this is also benefi ting national private and public 
institutions through c apacity building and technology transfer.   
9.  The purpose of Clean Energy for Development Initiative is to provide inc reased access to clean 
energy. The Initiative focu sses on areas where Norway has a special expertise to offer and 
mobilize private capital a nd competence in areas such as hydropower, solar, wind and bio -energy. 
The Initiative also supports various capacity building and institutional strengthening programmes 
within the energy sector and channels parts of its funding through multilateral institu tions. Some 
of the core LDCs  receiving such support are Mozambique, Nepal, Tanzania, Uganda, South -Sudan, 
Myanmar, Liberia, and Ethiopia.  
10.  The Norwegian Oil for Dev elopment Programme (OfD) aims to assist  developing countries, 
upon their request, in their e fforts to manage petroleum re sources in a responsible manner  to 
promote poverty reduction in an environmentally sustainable way. Mozambique, Sudan and South 
Sudan and Uganda are among the LDC -countries receiving support. The Oil for Development 
Programme i s engaged in a number of other countries, through various implementing partners.  
11.  The main task for The Information Office for Private Sector Development, owned by Norad 
and Norfund, is to advise companies on different support instruments available when pl anning an 
investment in a developing country.  Main sectors of interest have been renewable energy, 
aquaculture and services.  
3  NORWEGIAN INVESTMENT  FUND FOR DEVELOPING COUNTRIES ( NORFUND)  
3.1  About Norfund  
12.  The purpose of Norfund is to contribute to building su stainable 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 knowledge and technology. Norfund’s strategy is to invest 
primarily in five geographical areas: Southern Africa, East Africa, selected countries in West Afri ca, IP/C/W/616/Add.3  
 
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  Central America and the Mekong area, with priority given to Sub -Saharan Africa and 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  the portfolio should be in LDCs and 
50 per cent in Sub -Saharan Africa. Of new commitments in 2015, the LDC and Sub -Saharan Afric a 
shares were 38 and 85%  respectively. Norfund has a local presence with offices and staff in all the 
main geographic areas.  
13.  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 cooperation 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, a s well as employment of both skilled 
and unskilled labour. Technology 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.  
14.  Norfund exercises active ownership in the companies and funds it invests in and it often 
requires seats on the inve stees’ 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 four to ten  years, Norfund works for the creation of a corporate culture 
that is engaged in continuous improvement of corporate gove rnance, 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 gran t facility 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. Th ese grant 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  
15.  By year end 2015, Norfund had ten direct agribusiness investments that all involve a certain 
degree of technology and knowledge transfer. One example is Africa Century Foods (ACF) - a Sub -
Saharan African producer and distributor of poultry and fish tilapia. Norfund has fund ed a 
programme for optimizing ACF’s business model (feed, production and harvesting strategies) and 
learning from the Norwegian company Akvaforsk Genetics Cent re (AFGC) and other industry 
experts. Other examples include our investee, the forestry company G reen Resources’ investment 
in the first automated sowing machines in East Africa and our investee Agrivision’ s installation of 
state-of-the-art pivots and irrigation technology.  
3.3  Investments in clean energy  
16.  Within the field of clean energy, Norfund has seve ral investments involving transfer of state of 
the art technologies to developing countries. Norfund is financing the largest wind power plant in 
Africa, Lake Turkana Wind Power project in Kenya (360 MW), where leading international wind 
power technology c ompanies are involved in the design, construction and operation of the wind 
power plants. The process from initial project identification to commercial operation of p ower 
plants is complex and time -consuming. Success depends on the ability to combine techn ical, 
commercial, legal and social skills. In 2015, Norfund saw the completion of five new renewable 
energy plants in hydro, biogas, solar and wind power. Norfu nd has also invested in a small -scale 
biomass to power plant in South Africa and is in the proce ss of developing a second project with 
Bio2Watt. While this technology is widely used elsewhere, it is not prevalent in Africa and this 
investment will pioneer the introduction of the technology to South Africa. Norfund also supports 
small scale hydropower  development, and has invested in the 5 MW Rwimi EP Co Ltd in Uganda , IP/C/W/616/Add.3  
 
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  the 9 MW Nam Sim plant in Lao P.D.R. , the 4 MW Stortemelk project in South Africa, as well as 
Agua Fria  (59 MW) in Honduras. Small -scale run -of-the-river hydropower is an important 
techn ology in many developing countries due to the nature of the resources and scale of local 
markets.  
17.  Norfund has also been instrumental in setting up and funding the hydropower companies SN 
Power/Statkraft International Hydro Invest (SKIHI) and Agua Imara. A lthough hydropower 
technology is known in most LMIC and UMIC countries, SN Power and SKIHI, through the 
rehabilitation work and construction processes, draw on Norwegian hydropowe r expertise and 
introduce state -of-the-art-technologies in, for instance,  coating technologies of turbines and tunnel 
construction, also ensuring knowledge and technology transfer.  
18.  In order to promote technology transfer and ensure that even more projects in developing 
countries are developed to a bankable state, Norfund has establ ished an early funding scheme that 
covers project development costs of clean energy projec ts. The scheme is applicable to  projects in 
established technologies such as hydro, wind and solar , as well as biogas, geothermal and waste -
to-energy projects. The sc heme allows Norfund to proactively contribute to a pipeline of projects 
being brought to fruition. In 2015, Norfund supported the project development phase of four solar 
power projects in Africa in joint collaboration with the Norwegian solar power produce r Scatec 
Solar.  
3.4  Investments in the financial sector  
19.  By year -end 2015, 28% 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, No rfund regularly provides grants in which technology and knowledge transfers are central 
components. In 2015, Norfund invested in Equity Bank in Kenya with a desire to create efficient, 
scalable banks that provide cost effective services to the masses. The bank is a leader in financial 
innovation and technology. In South Sudan, Norfund has established the investment company 
Kinyeti Capital Ltd, offering financi al services to small and medium -sized enterprises. Grant 
funding from Norfund, Swedfund and the Nor wegian embassy in Juba , as well as expertise from 
regional banks , has been important for the establishment of the company, and will continue to be 
for the next couple of years. The microfinance industry in Myanmar is und erdeveloped and in dire 
need of  investments , as well as professional and technical assistance. In 2014, Norfund provided a 
grant to a greenfield microfinance institution in Myanmar. The grant is needed to attract expertise 
for the management team in a transition period.  
20.  In addition to direc t investments, Norfund also invests in funds that focus on small and 
medium -sized enterprises (SMEs). SMEs are important for local value  creation and employment, 
but are  generally too small and too diverse for Norfund to invest in directly. By investing th rough 
local and regional funds, Norfund can reach enterprises  that often have trouble obtaining  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 SMEs 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 
work-related training programmes.  
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/  
 IP/C/W/616/Add.3  
 
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  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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