IP/C/W/594/Add.4  
 
4 October 2013  
(13-5377)  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 26 September 2013, is being circulated at the request of the 
delegation of Norway.  
_______________ 
 
 1  INTRODUCTION 
1.1.  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). 
1.2.  Least developed countries are eligible for NORAD and Norfund incentive schemes along with 
other developing countries. In 2012, NORAD provided approximately US$44.2 million to the said 
group of developing countries through these pr ogrammes. Norfund provided NOK 1.99 billion to 
official development aid (ODA) recipients in 2012. 
2  THE NORWEGIAN AGENCY FOR DEVELOPMENT COOPERATION (NORAD) 
2.1.  NORAD provides incentives for technology transfer to least developed countries and long-
term cooperation countries for Norwegian Official Development Assistance, through (1) its facilities 
for pre-investment support including training; and (2) its institutional support.  
2.2.  The incentives are application based and untied. The main users are Norwegian enterprises.  
The schemes are open for all kind of technology tr ansfer, but priority is given to investments in 
renewable energy, environment and climate-relate d technology, agriculture, forestry and the 
marine and maritime sector. Technical assistance is the main mode of technology transfer but the 
schemes do also include investments in basic infrastructure. The support offered under the schemes is normally 50%. Malawi, Bangladesh, In dia, Sri Lanka, Ghana, Uganda and Nepal are 
among the least developed countries receiving such support. The financing facilities are fully 
utilized every year. 
2.3.  The purpose of the NORAD facilities for pre-investment support is to encourage firms to 
invest in developing countries, including least developed countries.  The support scheme aims 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 cooperation relating to transfer 
of technology, through the support of feasibility st udies for establishing joint ventures or foreign 
subsidiaries, matchmaking, training in order to strengthen the local staff and management of joint IP/C/W/594/Add.4 
 
- 2 - 
 
  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).    
2.4.  The purpose of supporting trade-related projec ts is to strengthen 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 trade 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.  
2.5.  Norway’s International Climate and Forest Initiative was established in 2008, to implement 
the pledge from Bali. Most activities are bein g 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 relevant 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 Reporting and Verification (MRV) has a high technology transfer component. A large 
number of countries receive MRV support from Norway through multilateral and bilateral channels, and this is also benefiting national private and public institutions throug h capacity building and 
technology transfer.   
2.6.  The purpose of the Clean Energy for Developm ent Initiative is to provide increased access to 
clean energy. The Initiative focuses on areas wh ere Norway has special expertise to offer and 
mobilizes private capital and 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. Some of the core least developed countries receiving such support are Mozambique, Nepal, Tanzania, Uganda, Timor-Leste, 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 emissions through increased use of renewable energy and impr oved energy efficiency in developing partner 
countries. 
2.7.  The Norwegian Oil for Development Initiative (OfD) aims to assist 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 populati on in an environmentally sustainable way. The 
Oil for Development Initiative conducted activities in 19 countries. Mozambique, Sudan and South 
Sudan, Timor-Leste and Uganda are among the least developed countries receiving support. The Oil for Development Programme is engaged in a number of other initiatives, either directly or via 
other donors and implementing partners (for ex ample the Petroleum Governance Initiative and  
NORAD’s Master Programme for Energy and Petroleum). 
2.8.  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. 222 new cases were registered in 2012 and six out of ten 
enquires relate to countries in Africa. Main sectors of interest have been renewable energy, manufacturing and services.  
3  NORWEGIAN INVESTMENT FUND FO R DEVELOPING COUNTRIES (NORFUND) 
3.1  About Norfund 3.1.  The purpose of Norfund is to promote privat e-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 
areas: Southern Africa, Eastern Africa, Central America and the Mekong area, with priority given to IP/C/W/594/Add.4 
 
- 3 - 
 
  Africa and least developed countries. These are ar eas with a particular shortage of capital and 
expertise, and Norfund has a local presence with offices and staff in all the four target areas. 
3.2.  Additionally, Norfund has chosen to conc entrate especially on investments in renewable 
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 no t have to be in cooperation with Norwegian 
enterprises. Of the three core sectors, renewable energy and the financial sector are the largest 
areas of investment. Both sectors are precon ditions for development and growth. Renewable 
energy projects contribute to more energy prod uction as well as healthier and more sustainable 
sources of electricity. Banks and microfinance institutions are important for businesses’ and households’ access to financial services such as loans, saving accounts and insurance, which allows 
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 
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 and health, safety and environmental issues. The development of these elements is 
core to the organization’s mission. 
3.3.  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; and enhanced environmental and social responsibility for existing investees, as well as the development of particularly risky in vestment 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.  
3.2  Investments in agribusiness 3.4.  Currently Norfund has eight direct agribusiness investments, which all involve a certain 
degree of technology and knowledge transfer.  Norfund has recently invested in the company 
Africa Century Foods (ACF) that produces white protein in the form of tilapia and poultry in Zimbabwe, Zambia, Uganda and Mozambique. The company intends to expand its business, and 
Norfund is providing technical assistance to review and improve its production process in advance 
of the expansion. Agrica Ltd., a rice farm in Tanz ania, uses state-of-the-art rice farming equipment 
and has constructed a high tech processing plant. In 2009 Agrica initiated, and is now running, a 
System for Rice Intensification (SRI) Programme for small holder farmers in the villages 
surrounding the farm. The Programme provides farm ers with high yield seed, weeding equipment, 
and training in order to increase the quality and quantity of their rice produce. Norfund has supported the SRI Programme through the grant fac ility since 2010. Norfund is also supporting 
other initiatives for small holder farmers. For instance, Norfund has supported the acquisition of a 
development manager at its investee Africado Lt d., an avocado plantation in Tanzania. The 
manager is an international expert and is developing a professional outgrower scheme for the 
company. The objective of the scheme is to enable Africado to contract small holder farmers in the 
vicinity of the plantation and offer them a pred ictable intake for their produce. The scheme is 
currently supported by both Norfund’s grant fa cility and USAID, and includes offering the 
outgrowers subsidized avocado trees and training.  
3.3  Investments in renewable energy 3.5.  Within the field of renewable energy, No rfund is working on several projects involving 
transfer of state-of-the-art technologies to developing countries. In-principle, investment decisions 
have been made to finance two wind projects in Kenya in which leading international wind power 
companies will be involved in the design, construc tion and operation of the wind parks. In total 
360 MW of electricity generated from wind power w ill be fed into the Kenyan grid. Furthermore, 
Norfund intends to invest in three solar photovoltaic power plants in South Africa developed by the 
Norwegian company Scatec Solar. The projects have been awarded under the South African IP/C/W/594/Add.4 
 
- 4 - 
 
  renewable energy procurement programme and will result in 190 MW of solar powered electricity 
on the South African grid. 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 renewable 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 is operating and allows Norfund to proactively contribute to a pipeline of projects being brought to fruition.  
3.6.  Norfund has also been instrumental in se tting up and funding the investment company Agua 
Imara. Agua Imara is targeting hydropower investments in East and Southern Africa and Central America. The company is currently developing hydropower projects in Zambia, Panama and looking at opportunities for hydropower in Mozambique. In addition, Norfund owns 40% of the 
investment company SN Power, which invests in developing countries through the development of 
hydropower projects in Asia and Latin America. SN  Power’s strategy consists both of acquisition 
and construction projects. At year end 2012, SN Power held 39 power plants in nine countries with 
a total installed capacity of 1.303 MW. Whereas No rfund and Agua Imara focus on investments in 
least developed countries and Lower Income Countries (LIC), SN Power focuses on projects in Lower Middle Income Countries (LMIC) and Upper Middle Income Countries (UMIC). Although 
hydropower technology is known in most LMIC and UMIC countries, SN Power, through its 
rehabilitation work and construction processes,  draws on Norwegian hydropower expertise and 
introduces state-of-the-art technologies in, for instance, turbine and tunnel construction coating technologies, also ensuring knowle dge and technology transfer.   
3.7.  From 2011 onwards Norfund has led the deve lopment of a 40 MW hydropower plant in the 
Fula Rapids, South Sudan. The project is undertaken in cooperation with the Government of the Republic of South Sudan and is the first to fina nce hydropower projects in the country. Norfund 
has drawn upon Norwegian expertise for the deve lopment of the project from both Norplan and 
NTE (Nord-Trøndelag Elektrisitetsverk). The power plant will contribute extensively to the power supply in the country, where the current grid relies on merely 8 MW of power generated from 
diesel fueled aggregates. 
3.8.  In Uganda, Norfund and the Norwegian hydr opower company TrønderEnergi have built the 13 
MW Bugoye hydropower plant. At full capacity it  is expected to produce 82 GWh per year. The 
plant is operated by Ugandans only and all em ployees are local. TrønderEnergi has provided 
training in Norway for the technical staff at the power plant, and provides back-up technical 
support.  
3.4  Investments in the financial sector 
3.9.  In Mozambique, Norfund has invested in the microfinance institution Socremo that targets 
local micro, small and medium-sized enterprise s. Norfund has supported several enterprise 
improvement projects in the institution, for example, the development of a strategic plan, 
improving its IT platform, and implementation of paperless banking.  
3.10.  Norfund is currently working on the development of financial institutions in two fragile 
states, the Republic of South Sudan and Myanmar.  In South Sudan, Norfund has established the 
investment company Kinyeti Capital Ltd. The Company offers financial services to small and 
medium-sized enterprises in the areas surroundin g Juba. Grant funding from Norfund, Swedfund 
and the Norwegian embassy in Juba, as well as ex pertise from regional banks, has been important 
for the establishment of the Company, and will co ntinue to be for the next couple of years. 
Norfund provides one of its own employees as the Companies first CEO.  
3.11.  Norfund is also one of the founders of the Norwegian Microfinance Initiative (NMI), which is 
Norway’s largest investor in microfinance. Based on its experiences with NMI, Norfund, together 
with Norwegian private investors, is now in the process of establishing a first of its kind specialized 
investment company that will target banks and financial institutions in Africa. Norfund will 
contribute with equity and transfer assets from its existing portfolio into the new company. 
3.12.  In addition to financial institutions, Norfund also invests in funds that focus on small and 
medium-sized enterprises. 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 IP/C/W/594/Add.4 
 
- 5 - 
 
  investing through local and regional funds, Norfund  can reach enterprises that often have trouble 
obtaining finance from formal banks.  
3.5  Other activities 3.13.  In addition to the three main investment sectors, Norfund also has some direct investments 
in other areas, e.g. tourism. Sustainable tourism is a vehicle to generate sustainable use of natural 
resources. Through its investment in Basecamp Explorer in a conservancy bordering the Maasai Mara in Kenya, Norfund has been instrumental in developing an equitable and sustainable tourism 
partnership between the Maasai landowners, tour ism investors and conservation interests. The 
model is based on the application of sound eco-tourism principles and the transfer of the latest technology in energy generation and water harves ting. In 2011 Norfund’s grant facility supported 
the formalization of a master plan for the development of the conservancy, taking commercial, 
social and environmental sustainability into account. The following years Norfund has provided 
additional grants to support the implementation of the master plan. In Tanzania, Norfund has provided a grant towards vocational training in service and gastronomy related to its investment in 
the Tourism Promotion Services (TPS) Dar es Salaam hotel. 
3.14.  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 
Tel: +47 22 01 93 93 
Fax: +47 22 01 93 94 Email: post@norfund.no  
Website: http://www.norfund.no/  
 
__________