IP/C/W/611/Add.6  
 
14 October 2015  
(15-5389)  Page: 1/5  
Council for Trade-Related Aspects 
of Intellectual Property Rights  Original: English  
 
 REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
 OF THE TRIPS AGREEMENT 
 
NORWAY 
Addendum 
 
The following communication, dated 13 October 2015,  from the delegation of Norway is being 
circulated pursuant to paragraph 1 of the Decisi on on the Implementation of Article 66.2 of the 
TRIPS Agreement (IP/C/28). 
 
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I. INTRODUCTION 
1.  Article 66.2 of the TRIPS Agreement requ ires "developed country Members to provide 
incentives to enterprises and institutions in their territories for the purpose of promoting and 
encouraging technology transfer to least-develope d 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 Cooperation (Norad) and the 
Norwegian Investment Fund for De veloping Countries (Norfund). 
2.  Least developed countries (LDCs) are eligible for Norad and Norfund incentive schemes along 
with other developing countries.  
II. THE NORWEGIAN AGENCY FOR DEVELOPMENT COOPERATION (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 framework conditions in developing countries.  
4.  The facilities for pre-investment support ar e application-based and untied. The main users are 
Norwegian enterprises. The schemes are open for a ll kinds of technology transfer, but priority is 
given to investments in renewable energy, agriculture (particularly climate-resilient agriculture in 
Africa), forestry, environmentally-related technology, as well as the marine and maritime sector. 
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 faciliti es are fully utilized every year. Norad also has 
Business MatchMaking Programmes in Bangladesh and East Africa. 
5.  The purpose of the Norad facilities for pre-investment support is to encourage firms to invest in 
developing countries, including 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 cooperatio n 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 companies that are owned wholly or partially by one or more foreign companies, investments in basic IP/C/W/611/Add.6 
 
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  environmental infrastructure and basic infrastructure (road, water/sanitation, electricity and 
telecommunication). The additionality of Norad’s support to individual companies has been in 
helping direct investment towards countries and regions where companies would not necessarily have invested otherwise, due to, inter alia , lack of contact to facilitate implementation and risk.  
6.  Norad’s support in the area of framework 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-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 quality and tr ade facilitation. Norad supports several regional 
and national programmes leading to international recognition and acceptance of certification 
systems. Some of these programmes 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 In itiative was established in 2008 to implement the 
pledge from Bali. Most activities are being coordi nated 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 relevant areas. Technology transfer and development related to reduced greenhouse gas emissions will be an impo rtant 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 comp onent of technology transfer. A large number of 
countries receive MRV support from Norway through multilateral and bilateral channels, and this also benefits national private and public institutions through capacity building and technology 
transfer.   
9.  The purpose of the Clean Energy for Developmen t Initiative is to provide increased access to 
clean energy. The Initiative focusses on areas wh ere Norway has a special expertise to offer and 
mobilizes private capital and competence in areas such as hydropower, solar, wind and bioenergy. 
The Initiative also supports various capacity building and institutional strengthening programmes within the energy sector and channels parts of its funding through multilateral institutions. Some of the core LDCs receiving such support are Mozambique, Nepal, Tanzania, Uganda, South-Sudan, 
Myanmar, Liberia, and Ethiopia. Norway is also a Partner of the International Energy and Climate 
Partnership. The Partnership aims to coordinate joint efforts to ensure access to sustainable energy for all, and avoid greenhouse gas emission s through the increased use of renewable energy 
and improved energy efficiency in developing Partner countries. 
10.  The Norwegian Oil for Development Programme (OfD) aims at assisting developing countries, 
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 environmentally sustainable 
way. Mozambique, Sudan and South Sudan and Uganda are among the LDCs receiving support. The Oil for Development Programme is engaged in a number of other initiatives, either directly or via other donors and 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 planning an investment in a developing country. Main sectors of interest have been renewable energy, 
aquaculture and services.  
III. NORWEGIAN INVESTMENT FUND FO R DEVELOPING COUN TRIES (NORFUND) 
About Norfund 
12.  The purpose of Norfund is to promote private-sector development in developing countries by 
providing risk capital and expertise. Norfund provides loans and invests in equity both directly in companies and through local or regional funds.  Norfund supports the realization of viable 
commercial projects, which balance economic, social and environmental considerations, by 
investing in private enterprises. Norfund’s strategy is to invest primarily in four geographical IP/C/W/611/Add.6 
 
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  areas: Southern Africa, East Africa, 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% of the portfolio should be in LDCs and 50% in Sub-Sa haran Africa (note that these targets exclude 
Norfund’s investments through SN Power, see more under paragraph 15 below). Of new 
commitments (excluding SN Power) during 2014, the LDC and Sub-Saharan Africa shares were 24% and 85% respectively. Norfund has a local presence with offices and staff in all the four 
target geographic areas.  
13.  Norfund has chosen to concentrate on investments in clean energy, 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 growth. Clean energy projects contribute to more energy 
production, as well as more reliable and 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. 
Agribusiness is an important sector for poverty reduction through increased food production for 
local consumption and trade, as well as empl oyment 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 and 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 investees’ boards or ot her decision-making bodies. This gives Norfund 
proximity to operations and the possibility of in fluencing 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 co rporate 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 facility that can be used to support enterprise improvements; better governance; enhanced environmental and so cial responsibility for existing investees, 
community development as well as the development of particularly risky investment opportunities. 
These 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.  
Investments in agribusiness 15.  By year end 2014, Norfund had nine 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 funded a programme for optimizing ACF’s business model (feed, production and harvesting strategies) and learning from the Norwegian company, Akvaforsk Genetics Centre (AFGC), and other industry 
experts. Other examples include our investee, the forestry company Green 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. 
Investments in clean energy 
16.  Within the field of clean energy, Norfund has several investments involving transfer of state-of 
the-art technologies to developing countries. Norfund is financing two wind projects in Kenya 
(360 MW) and one in Guatemala (50 MW), where leading international wind power technology 
companies are involved in the design, construction and operation of wind power plants. In 2014, Norfund invested in Globeleq, a Sub-Saharan African power company with a gross portfolio of over 1,200 MW in wind, solar, natural gas and heavy-fuel oil. By end 2014, Norfund had invested in 
four solar power plants in Sub-Saharan Africa with the Norwegian solar company Scatec Solar, all 
of which were successfully operating by year-end. Additionally, Norfund has invested in Bio2Watt, 
a small scale biomass to power plant in South Africa. 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 IP/C/W/611/Add.6 
 
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  invested in 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 technology in many developing countries due to the nature of the resources and scale of 
local markets.  
17.  Norfund has also been instrumental in setti ng up and funding the hydropower companies SN 
Power and Agua Imara. In 2014, the restructurin g of SN Power and Agua Imara was successfully 
completed. Norfund now has a 50% stake in SN Power (covering Africa, Central America and 
South-East Asia) and a 33% stake in Statkraft In ternational Hydropower Invest (SKIHI) (covering 
South America and South Asia). In 2014, SN Power extended its South-East Asian portfolio with the addition of a 20% stake in THPC power plant in  Lao P.D.R.. Although hydropower technology 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, 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 established an early funding scheme that covers project development costs of clean energy pr ojects. 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 contribute proactively to a pipeline of projects being brought to fruition. In 2014, Norfund’s portfolio included five projects of this kind. 
Investments in the financial sector 
19.  By year-end 2014, 23% 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 grants in which technology and knowledge transfers are central 
components. In South Sudan, Norfund has established the investment company, Kinyeti Capital 
Ltd, offering financial services to small and medium-sized enterprises (SMEs). Grant funding from Norfund, Swedfund and the Norwegian Embassy in Ju ba, 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 underdeveloped and in dire need of investments, as well as professional and technica l 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 direct investments, Norfund also invests in funds that focus on SMEs. Such 
enterprises are important for local value creation and employment, but are generally too small and 
too diverse for Norfund to invest in directly. By investing through local and regional funds, Norfund 
can reach enterprises that often have trouble obtaining finance from formal banks. Norfund also provides 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. 
21.  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: http://www.norad.no  
Norwegian Investment Fund for Developing Countries (Norfund) 
P.O. Box 1280 Vika  
N-0111 Oslo Norway IP/C/W/611/Add.6 
 
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  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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