WORLD TRADE  
ORGANIZATION   
IP/C/W/558 
5 October 2011  
 
(11-4815) 
Council for Trade-Related Aspects of 
Intellectual Property Rights Original:   English 
 
 
 
REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT 
 
NORWAY 
  
 The following communication, dated 29 September 2011, from the delegation of Norway is 
being circulated pursuant to paragraph 1 of the Decision on Implementation of Article 66.2 of the 
TRIPS Agreement (IP/C/28). 
 
 Communications from other developed country Me mbers will be circulated as addenda to this 
document.  
_______________ 
 
 
I. INTRODUCTION 
1. Article 66.2 of the TRIPS Agreement requir es "developed country Members to provide 
incentives to enterprises and ins titutions in their territories for the purpose of promoting and 
encouraging technology transfer to least-developed co untry 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 Devel opment 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 with a GDP per capita  of less than US$6,885 in accordance with the 
threshold for the World Bank's concessional financ ing.  In 2010, Norad provided approximately 
US$59,5 million to the said group of developi ng countries through these programmes.  Norfund 
provided US$105 million to ODA recipients in 20 10 of which US$25 million to least developed 
countries. 
II. THE NORWEGIAN AGENCY FOR DEVELOPMENT COOPERATION (NORAD) 
3. Norad provides incentives for technology transf er to developing countries, including least 
developed countries, through (1) its facilities for inv estment support, (2) its financing mechanisms for 
import to developing countries, (3) support to expo rt related activities in developing countries and 
(4) its institutional support.  Priority is given to least developed countries, Norway's partner countries 
and strengthening private sector development and trade in Africa.  
4. The incentives are application based and untied.  The main users are Norwegian enterprises.  
The schemes are open for all kind of technology transf er.  Technical assistance  is the main mode of 
technology transfer but the schemes do also in clude investments in basic infrastructure and 
environmental technology.  The support offered under the schemes is normally 50 per cent.  IP/C/W/558 
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  Engagement in LDCs may enjoy a higher percen tage of support. Tanzania, Bhutan, Sudan, 
Bangladesh, Nepal, Malawi and Ethiopia are among the LDCs receiving such support.  The financing 
facilities are fully utilized every year. 
5. The purpose of the Norad facilities for investment support is to encourage firms to invest in 
and import from developing countries, including l east developed countries.  The facilities promote 
cooperation, including cooperation 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 environmental 
infrastructure and basic infrastructure (road, water/ sanitation, electricity and telecommunication).  
Support is also given to public-private partnership arrangements.  Public-pri vate partnership involves 
engagement of Norwegian private sector in develo ping countries, incl. LDCs.  This kind of projects 
will often include an important technology tran sfer component.  Uganda, Tanzania, Mozambique, 
Malawi, Ethiopia have received such support. 
6. The purpose of the financing arrangements for e xport (i.e. import to developing countries) of 
capital goods, technology and services is to promote tr ansfer of technology more directly.  They 
include support for training in connection with  export, export credit guarantees (through the 
Norwegian Institute for Export Guarantees).  Special  training arrangements in connection with such 
export to developing countries are often necessary to ensure an effective transfer of technology and 
the proper operation and maintenance of machines and equipment.  This facility is discontinued 
from 2009, but projects in the existing pipeline will be  finalized.  Bangladesh, Tanzania and Laos are 
among the countries receiving such support. 
7. The purpose of supporting export related project s is to strengthen the countries' export 
potential and to facilitate trade by assisting in build ing institutional and nationa l capacities i.e. relating 
to standards, metrology, testing and quality and trade facilitation.  Norad is supporting several 
regional and national programmes leading to intern ational recognition and acceptance of certification 
systems, both on multilateral basis as well as bilate rally.  Some of these programmes also include 
financing of testing laboratories both for food expor t and particular industrial goods.  Assistance is 
also given to exporters in developing countries and to the development of quality and design of 
products (product development) in order to meet inte rnational market requirements.  The area of trade 
facilitation is important for the development of trad e, 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 bei ng coordinated through mu ltilateral 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 green house gas emissions will be an im portant element in the cooperation between public 
authorities and private sector.  Tanzania, Nepal, Liberia and Democratic Republic of the Congo are 
among the LDC countries receiving support from the Initiative. 
9. The Cleaner Development Mechanism (CDM) is  a flexible mechanism under the Kyoto 
Protocol.  One of the main aims of this mechanism is to contribute to sustainable development, and 
technology transfer is an important element.  Norad's scheme for support to CDM-project development aims at facilitating development of projects in LDCs. 
10. The purpose of the Clean Energy for Developmen t Initiative is to provide increased access to 
clean energy.  The Initiative will focus on areas wher e Norway has a special expertise to offer and 
mobilize Norwegian private capital and competence in areas such as hydropower, solar, wind and  IP/C/W/558 
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  bio-energy.  Some of the core least develope d countries receiving such support are Mozambique, 
Nepal, Tanzania, Uganda, Timo r-Leste, Liberia and Ethiopia. 
11. The Norwegian Oil for Development Initiative (OfD ) aims at assisting developing countries, 
upon their request, in their efforts to manage petr oleum 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 cooperates with 25 countries.  Angola, Mozambique, Sudan, 
East Timor, Afghanistan, Cambodia and Uganda are among the LDC countries receiving support.  
12. The main task for The Information Office for Private Sector Development, owned by Norad 
and Norfund, is to advice companies on different support instruments available when planning an 
investment in a developing country.  Close to 300 new cases were registered in 2010 and 6 out of 10 
enquires relate to countries in Afri ca.  Main sectors of interest have been energy, manufacturing, 
fisheries/aqua and trade.  
III. NORWEGIAN INVESTMENT FUND FOR DEVELOPING COUNTRIES 
(NORFUND ) 
13. 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 consid erations, by investing 
in private enterprises. Norfund's strategy is to invest  primarily in four geographical areas:  Southern 
Africa, Eastern Africa, Central America and the Me kong area, with priority given to Africa and least 
developed countries (LDCs).  These are countries with a particular shortage of capital and expertise, 
and Norfund has a local presence with offices and staff in these areas (save Mekong).  
14. Additionally, Norfund has chosen to concentr ate especially on investments in renewable 
energy, agribusiness, and the financial sector.  These are sectors where its activities result in 
particularly high development effects and where th e conditions are in place for mobilizing expertise 
of international quality among Norweg ian partners.  When investing with partners in LDCs, it is 
essential for Norfund to include the issues of technol ogy and competence, 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 missi on.  Assistance from Norfund is untied and do not 
have to be in cooperation with Norwegian enterprises.  Local part ners or partners from other 
developed countries may be preferred. 
15. Norfund exercise active ownership in the companie s and funds where it invests.  Since equity 
investments are made more often that providing pu re loan financing, the investments often involve 
positions on the investees' boards.  This gives Norf und proximity to operations and the possibility of 
influencing standards over time.  Given an owners hip 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 pl ans are used to stake out a long-term course for 
how companies should shift from operating according to local standards into international standards.  
Norfund also has a special grant facility that can be  used to support project development, boost the 
development effects of the projects and assume greater social responsibility in connection with projects.  These grant resources are allocated indepe ndently of the commercial investment capital, and 
are an effective instrument in Norfund's execution of ownership and for transferring technology and 
knowledge.  
16. Currently Norfund has four agribusiness investme nts which all contribute to a certain degree 
of technology and knowledge transfer. E.g., in Sw aziland, the Norfund investment company Casquip 
is introducing an industrial production method to refi ne cassava starch to the African continent. IP/C/W/558 
Page 4  
 
  Previously such starch has only been available th rough imports from Asia. Agrica Ltd., a rice farm in 
Tanzania, uses state of the art rice farming e quipment and has constructed a high tech processing 
plant.  In 2009 Agrica initiated, and is now running, a System for Rice Intensification Programme for small-holder farmers in the villages surrounding th e farm.  The Programme provides farmers with 
high yield seed, weeding equipment, and training in or der to increase the quality and quantity of their 
rice produce.  In the future, this Programme can potentially develop into a more commercial out-
grower scheme, where farmers can se ll their excess produce to Agrica Ltd. 
17. Renewable energy and the financial sector ar e Norfund's largest areas of investment.  Energy 
is a prerequisite for developmen t and growth and investments in and loans to banks and financial 
institutions help create more sustainable local ca pital markets that give small and medium-sized 
enterprises better access to financing.  In Uga nda, Norfund and the Norweg ian hydropower company 
TrønderEnergi have built the 13 MW Bugoye hydropower plant.  The run-of-river power plant that 
will help reduce Uganda's dependenc y on fossil fuel will cover 7 per cent of Uganda's electricity 
sales.  The power plant is expected to produce 82 GW h per year.  The plant is operated by Ugandans 
only and all employees, except the managing direct or, are locals.  TrønderEnergi has provided 
training in Norway to the technical staff at the po wer plant, and provides back-up technical support.  
This is an example of how Norway exports skills, knowledge and technology to  LDCs is contributing 
to ensuring sustainable industries.  
18. Norfunds largest investment is in SN Power, a renewable energy company. SN Power invests 
in developing countries through acquisitions and de velopment of new hydropower projects in Asia, 
Latin America, and, via Agua Imara, in Africa.  When acquiring companies, SN Power can leverage 
off of Norway's excellent competence and upgrade the plants with state of art technology.  Examples 
include the challenging upgrades of the Binga and Am buklao power plants in Philippines, which were 
severely affected by earthquakes and resulting landslid es.  SN Power has invested in the rehabilitation 
and upgrade of these plants – both of which have involved technically challenging engineering.  
Similarly, SN Power is applying m odern coating technology to turbines in South American projects to 
better handle local water quality.  The same is the case for new developments.  SN Power is 
committed and is proactive in their approach to knowledge and technology tr ansfer.  In 2010, two 
additional hydropower companies, TrønderEnergi and BKK, invested in Agua Imara, thereby 
widening the competence base available to this company. 
19. The financial sector is another area where Norf und is involved in technology transfer.  In 
Mozambique, Norfund and the Mozambican invest ment company GAPI, Rabobank and the German 
development bank KFW have invested in and are transferring banking technology and competence to 
a new bank, Banco Terra.  The aim is to specialize in banking to the agricultural sector and in rural 
areas. E.g. Norfund is co-financing a Norwegian IT manager who, over a two year period, will help 
improve the Bank's IT systems, and train its em ployees so that the Bank can acquire the skills 
necessary to use and maintain its IT system going forward.  In Cambodia Norfund promotes 
knowledge transfer on financial institution opera tion and corporate governance through active board 
seats in microfinance institutions.  
20. LDCs being the main target of most of Norf und's general investment activities, a special 
credit line has been set up to provide smaller loan s for investments in, and promotion of technology 
transfer to LDCs.  The aforementioned grant facility also contributes to technology transfer, e.g. installing or upgrading a water treatment facilit y at a processing plant to meet national and 
international requirements, ensure energy efficiency, training, industry certifications etc.  
21. In addition to the three main investment sectors,  Norfund also has some direct investments in 
other areas, e.g. tourism. Sustainable tourism is increasingly seen as a vehicle to generate sustainable use of natural resources.  In Masai Mara Ke nya Norfund has through its investment in Basecamp 
Explorer been instrumental in developing an equ itable and sustainable tourism partnership between  IP/C/W/558 
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  the Maasai landowners, tourism investors and conserva tion interests.  This has been made possible 
through the application of sound eco-tourism principl es and the transfer of the latest technology in 
energy generation and water harvesting.  
For further information and details, please contact:  
  Norwegian Agency for Development Co-operation (Norad)  Department for Private Sector Development  P.O. Box 8034 Dep., N-0030 Oslo, Norway  Tel:  +47 22 24 20 30  Fax:  +47 22 24 20 31  Email:  postmottak@norad.no  
 Website:  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: www.norfund.no 
 
 
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