WORLD TRADE  
ORGANIZATION  IP/C/W/431/Add.5 
11 January 2005 
 (05-0110) 
Council for Trade-Related Aspects 
of Intellectual Property Rights Original:   English 
 
 
 
REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT 
 
UNITED STATES 
 
Addendum  
   The following communication, dated 29 N ovember 2004, from the Delegation of the 
United States is being circulated pursuant to paragraph 1 of the Decision on Implementation of 
Article 66.2 of the TRIPS Agreement.  It was circ ulated as an advance copy  for the Council's meeting 
on 1-2 December 2004.  
_______________ 
  
 The United States has undertaken to provide in formation regarding its activities relevant to 
Article 66.2 of the Agreement on Trade-Related Aspe cts of Intellectual Property Rights (TRIPS).  The 
present document updates the report provided by the United States in 2003 (IP/C/W/412/Add.3) for consideration of the TRIPS Council.  
1. Visiting Scholars Program 
 Since 1985, the US Patent and Trademark Office (USPTO) Visiting Scholars Program has 
provided participants from over 33 foreign countr ies/economies with two weeks of classroom hands-
on study of the United States' intellectual property syst em.  Past participants in the programme include 
directors and deputy directors of industrial property offices, patent  and trademark examiners, and 
other experts from developing countries and economi es.  The Visiting Scholars Program is the most 
thorough introduction to the US intellectual property system offered annually by the US government.  
The goals of the programme are:  
(1) to foster a better understanding of intern ational intellectual property obligations and 
norms; 
  
(2) to educate participants on the US  intellectual property system;  and 
 (3) to exchange information on intellectual property issues. 
  The 14-25 June 2004, USPTO Visiting Scholar Program trained government officials from 
the following countries: 
 
Bahrain, Belize, Bosnia-Herzegovina, Brazil, Bulgaria, Chile, China, Croatia, Czech Republic, Guinea, Indonesia, Korea, Paraguay, Ph ilippines, Portugal, Romania, Saudi Arabia, 
Serbia-Montenegro, South Africa, Chinese Taipei, Thailand, and Viet Nam. IP/C/W/431/Add.5 
Page 2  
 
 2. Science and Technology Agreements of the US Department of State 
 The US pursues science and technology (S&T) co operation agreements with both developed 
and developing countries as an effort to foster part nerships between the scientific communities of both 
countries.  Within the context of Article 66.2 of  TRIPS, such cooperation activities with developing 
countries, and the exchange and diffusion of knowledge and technologies, strengthen economic 
cooperation, as well, and are important mechanisms  for the development of  national economies and 
the basis for expanded trade.  The collaborative S&T relationships between  the US and developed 
countries often yield benefits to developing count ries as well.  The S&T cooperation agreements 
contain provisions for protection of intellectual property, due to the nature of the research and 
technology transfer which may take place pursuant to the agreement. 
  
 The S&T agreements are not funding mechan isms, but enjoin the governments to seek 
collaborative relationships, which build science ca pacity and infrastructure and apply science, 
technology and engineering to fac ilitate a developing country's integration into the global economy.  
Areas which may be covered include: basic research  and science education, meteorology and weather 
forecasting, health sciences and public health, wa tershed management, envi ronment and biodiversity 
protection, energy and alternative energy research and development, information and communications 
technology, and biotechnology (in all facets).  Scie nce relationships have the ancillary benefit of 
helping to foster democracy and civil society, en hancing a country's ability to make science-informed 
decisions on issues related to sustainable developm ent, and advancing the frontiers of knowledge. 
 
 New bilateral S&T agreements have been or  are in the process of being concluded with 
Algeria, Bangladesh, Cape Verde, India, Morocco , Tunisia, and Uruguay.  An S&T Agreement is 
under discussion with Thailand.   The Embassy Science Fellows Program is anothe r major effort applicable to Article 66.2 of 
TRIPS.  Through this programme USG agencies se nd representatives to Embassies abroad to look at 
establishing new institutional linkages and long-ter m partnerships with the S&T community in 
government, academia and the private sector.  Current ly, over 50 Embassy Science Fellows are being 
placed overseas, principally to countries not alr eady covered by traditional S&T agreements.  The 
experience has resulted in the form ation of important new networks. 
 
 Within the context of our rejoining of UNESCO, the US is looking at how our work within 
this organization also contributes to fulfilment of our obligations under Article 66.2 of TRIPS, 
particularly in the application of science and technology to capacity building and sustainable development.  3. Millennium Challenge Account 
 In March 2002, President Bush announced his intent to establish a special development 
assistance programme, the Millennium Challenge Acc ount (MCA), designed to help spur economic 
growth in developing nations.  The goal of th e MCA is to achieve poverty reduction through 
economic growth by investing in areas such as ag riculture development, education, enterprise and 
private sector development, governance, health, a nd trade and investment capacity building.  In 
January 2004, Congress approved legislation aut horizing the Millennium Challenge Corporation 
(MCC) and providing MCA $1 billion in FY 2004.  The President's request for the MCA in FY 2005 
is $2.5 billion, paving the way to reaching the $5 bi llion funding level proposed by the President for 
FY 2006.  The MCA is a new approach to deve lopment assistance.  The MCA establishes a true 
partnership in which the developing country, with the participation of its citizens, proposes its own 
priorities and plans for MCA funding. 
  IP/C/W/431/Add.5 
 Page 3 
 
 
  The Millennium Challenge Corporation Board of Directors met on 6 May 2004 and selected 
countries that will be eligible, and invited to s ubmit proposals, for FY 2004 MCA assistance.  The 
Board determined the following 16 countries elig ible for FY 2004 assistance: Armenia, Benin, 
Bolivia, Cape Verde, Georgia, Ghana, H onduras, Lesotho, Madagascar, Mali, Mongolia, 
Mozambique, Nicaragua, Senegal,  Sri Lanka, and Vanuatu.  The MCC is currently evaluating 
proposals from 13 of the 16 eligible countries.  In th is partnership, countries will identify their own 
highest priorities for achieving sustainable economi c growth and poverty redu ction, recognizing that 
economic growth is largely driven by a country's ow n efforts, policies, and its people.  Examples of 
the activities that MCA will fund include educati on, water, micro-credit,  rural development, 
infrastructure, and financial sector development. 
 
4. IPR Enforcement Workshop 
 On 23 August 2004, the US Patent and Tradem ark Office (USPTO) organized a workshop in 
Johannesburg, South Africa on enforcement of intellectual property rights (IPR).  Over 60 
representatives from the South African government a nd private sector attended the event.  The 
workshop included a particular emphasis on counte rfeit medicines and optical disc, digital and 
software piracy.  
5. Lead Phase-Out and Air Quality Management Assistance 
 In May 2004, the US Environmental Protection Agency (EPA) sent a team to South Africa for 
the final set of consultations as part of a project  providing information and assistance to South African 
stakeholders on the phase-out of leaded gasoline.  During the course of the trip, EPA experts met with 
government, industry and NGO representatives.  EPA experts held discussions on issues related to 
enforcement and compliance at refineries and e nvironmental justice issues faced by communities 
surrounding refineries.   EPA also held discussions regarding EPA's assistance to the South African Department of Environmental Affairs and Tour ism (DEAT) with respect to broad air quality 
management in preparation for the implementation of  its proposed air quality management legislation. 
 
I. TRADE CAPACITY PROGRAMMES IN SUB-SAHARA AFRICA 
 Under the African Growth and Opportunity Act (AGOA - Title I of the Trade and 
Development Act of 2000), technical assistance is  targeted to sub-Saharan African countries to 
promote economic reforms and development. The Ad ministration has devoted special attention to 
trade capacity building (TCB) ac tivities in sub-Saharan Africa. The United States devoted 
$133 million to TCB activities in sub-Saharan Afri ca in FY2003, up 26 percent from FY2002.  These 
activities are implemented by about a dozen agenci es, including the US Agen cy for International 
Development, the Department of Commerce, the De partment of Agriculture, and the US Trade and 
Development Agency.  The US Trade Representative' s Office (USTR) works closely with all of these 
agencies to ensure that US-sponsored TCB assist ance is comprehensive and responsive to both 
African needs and US trade policy objectives.   Helping AGOA beneficiary countries to access 
benefits under AGOA has been a major fo cus of US trade policy objectives. 
  The United States directly supports WTO programmes on trade-related technical assistance (TRTA).  For example, at the September 2003 WTO Mi nisterial in Cancun, the United States pledged 
an additional $1.2 million for WTO TRTA.  This contribution augmented $1 million given earlier in 
2003, bringing total US support for WTO TRTA to more than $3 million since the launch of Doha 
negotiations in November 2001.  This money was in   direct support of programmes like the annual 
WTO Technical Assistance Plan.  Sub-Saharan A frican Members of the WTO are among the leading 
beneficiaries of WTO TRTA.  The United States also  provided bilateral assistance to Cape Verde in 
support of its efforts to accede to the WTO. 
 IP/C/W/431/Add.5 
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  In April 2002, USTR created the Office for Trade Capacity Building to coordinate US 
Government TCB efforts linked to bilateral and mu ltilateral trade negotiations and the implementation 
of trade agreements.  Helping countries to access be nefits under AGOA has been a major focus of US 
TCB programmes.  The following is an update on so me of the USG capacity building and technology 
transfer programmes to implement AGOA.  1. US Agency for International Development (USAID) 
 USAID is the primary agency in the US Government involved in delivering development 
assistance to sub-Saharan Africa and has field offi ces throughout the region. Regional programmes – 
in Eastern, Southern, and West Africa – work w ith African organizations responsible for activities 
that are multinational in nature. In FY2003 USAID provided $82.1 million in trade capacity building 
funds for sub-Saharan Africa.   As part of its response to the WTO Doha Development Agenda, the United States, through 
USAID, is providing a wide range of support fo r the Integrated Framework (IF) initiative, a multi-
agency, multi-donor programme that helps least deve loped countries to expand their participation in 
the global economy and to enhance their economic gr owth and poverty reduction strategies.  Twenty 
sub-Saharan African countries have  benefited from the IF or are targeted for assistance under it: 
Angola, Benin, Burkina Faso, Chad, Guinea, Bur undi, Lesotho, Senegal, Madagascar, Djibouti, 
Malawi, Eritrea, Mali, Ethiopia, Mauritania, Moza mbique, Rwanda, Sudan, Togo, and Zambia.  The 
United States has contributed funds for the past thr ee years to the Integrated Framework Trust Fund to 
finance Diagnostic Trade Integration Studies.  This includes $200,000 of the Cancun pledge. The 
United States is committed to helping partner countries follow up on trade capacity building (TCB) 
priorities identified in IF diagnostic exercises and has already contributed funds for immediate follow-
up projects in Senegal, Madagascar, and Mozambique.  In 2003, US trade capacity building assistance to the 13 sub-Saharan African countri es participating in the IF exceeded $28 million, more than three 
times the 2002 level for these countries. 
  In support of AGOA, USAID's technical assi stance promotes Afri can economic growth, 
trade, and competitiveness in the global economy .  USAID's many programmes support African trade 
and investment policy and institutional analyses a nd reform, trade capacity building and technical 
training, and the promotion of US-Africa private sector development.  These programmes help to 
create a supportive environment for trade and investment.  
  The following are highlights of other USAID technical assistance programmes related to trade:    
• In 2002, USAID began implementation of the Trade for African Development and 
Enterprise (TRADE) initiative with the opening of three regional Hubs for Global Competitiveness.  TRADE is a multi-year programme designed to promote African 
commercial competitiveness; reduce poverty; improve trade-related public services, policy formulation and implementation; strengthen the business environment; and promote US-African business linkages.  The H ubs are located in Botswana, Kenya and 
Ghana. Each Hub serves as a technical assist ance platform for a cadre of technical 
experts in support of trade and development. 
 
• At the AGOA Forum in January 2003, Presi dent Bush announced that each Hub will 
support a technical expert from the US Anim al and Plant Health Inspection Service 
(APHIS) to help sub-Saharan African count ries address challenges related to meeting 
sanitary and phytosanitary requirements for th e US market.  The first technical expert 
reached Botswana in Spring 2003 and oversaw the development of Pest Risk  IP/C/W/431/Add.5 
 Page 5 
 
 
 Assessments (PRAs) in Zambia, South Afri ca, and Namibia.  Three PRAs have now 
entered the review phase, a legal prerequisite to import certification.  APHIS experts will arrive at the Regional Hubs in Kenya and Ghana in 2004. 
 
• The Southern Africa Trade Hub carried out multiple activities in support of AGOA. 
For example, the Hub facilitated a 30-per son workshop for the development of a 
Namibian AGOA strategy, at which the partic ipants agreed to create a National Export 
and Trade Promotion Board to promote Nami bian exports worldwide and to provide 
advisory services to companies in key Nami bian sectors.  The Hub also collaborated 
with the Ronald H. Brown Institute in So uth Africa to develop trade strategies in 
agribusiness, tourism, information technolog y, and manufacturing.  The Hub continues 
to develop its Web-based business developmen t services; to work toward reforms in 
customs policy, valuation, and administration; and to promote trade facilitation activities. 
 
• The Regional Mission for Eastern and Centra l Africa (REDSO) ma nages the Regional 
Agriculture Trade Expansion Support (RATES)  project, which is designed to increase 
the value of agricultural trade within the East and Southern Africa region and between 
the region and the rest of the world. During its first year, positive results were achieved in each of the four target commodities: co ffee, maize, cotton and livestock.  RATES 
successfully supported the design and devel opment of the Regional Agriculture Trade 
Intelligence Network website, which came  on line in September 2003.  Finally, 
RATES also completed the Tradeafrica.biz website, the first of several planned trade 
linkage sites intended to promot e supplier-to-buyer networking. 
 
• Under the partnership between COMESA a nd REDSO, the Association of Regulators 
of Information and Communications for Eastern and Southern Africa (ARICEA) has become a key driver of regional telecommuni cations development.  Since its launch in 
January 2003, ARICEA has been very active in addressing both its advocacy and 
capacity building mandates.  At a series of working meetings, ARICEA established 
major components of a model telecommuni cations law that would harmonize policy 
approaches across the ARICEA service area .  In November 2003, ARICEA conducted 
an intense one-week regulatory "boot camp" featuring African and US telecom policy and regulatory experts. 
 
 The following are some additional examples of  USAID trade capacity building activities in 
support of AGOA:  
• Zambia: In collaboration with APHIS, USAI D assisted Zambia in the completion of 
country pest risk analyses for five agricu ltural products.  With guidance from USAID 
and APHIS, a national committee to promote the export of Zambian crops was 
established in 2003, with the participation of numerous Zambian government agencies 
and private sector organizations. 
 
• Senegal: USAID's Integrated Framewor k implementation programme emphasizes 
AGOA export promotion and includes an AGOA export information campaign; 
training seminars to assist particular subsectors in understanding export procedures; 
technical assistance in the areas of inspec tions, customs, transportation, packaging, 
fumigation and marketing; and technical assistance to the Senegalese agency responsible for international trade negotiations. 
 IP/C/W/431/Add.5 
Page 6  
 
 • Mozambique: USAID has been active through MozLink, the TechnoServe-led Global 
Development Alliance that facilitates mentor ing relations between US companies and 
Mozambican exporting firms.  Since the programme's launch in 2003, mentors have 
provided high-level strategic guidance, ha nds-on operational assistance and market 
linkages to promising Mozambican companies.  For example, one US company assisted 
a leading oilseed producer in procuring capital in order to diversify into soy and another 
developed a brand for the Mozambican cashew  industry to facilitate its export of high 
quality product. 
 
2. US Department of Commerce  
 In 2003, the US Department of Commerce's International Trade Administration created the 
Management Training for Africa (MTA) Pilot Program  initiative to offer trade capacity building for 
the five countries of the Southern African Cust oms Union (SACU) as they embarked upon free trade 
agreement (FTA) negotiations with the United Stat es.  The MTA Pilot Program's objective was to 
facilitate the development and m odernization of SACU's transportation infrastructure to address a 
critical necessity for the region's economic growth.  In July 2003, 19 participants were trained as a 
group and had an opportunity to visit ports in Ba ltimore and New Orleans and to conduct meetings 
and training opportunities with US companies, in stitutions, and state transportation departments. 
Training focused on key areas related to transportation infrastructure, with a specific emphasis on inter- modal logistics.   The objective of the 2004 MTA Hospital Administration Program, which took place in 
August, was to foster, promote, and develop US commercial activities with each subregion in sub-
Saharan Africa.  MTA will help facilitate the deve lopment and modernization of Africa's healthcare 
infrastructure with a focus on hospital and clinic ad ministration, alternative medicine, telemedicine, 
insurance and other related topics.
 
 
3. US Department of Agriculture 
 The US Department of Agriculture (USDA) is actively involved in planning, coordinating and 
funding trade capacity building programmes in sub- Saharan Africa.  USDA projects provide technical 
assistance and training in the following areas:  
(a) WTO/SPS Seminar Series: 
 Through a series of Africa-based regional workshops, USDA has trained officials from over 
30 sub-Saharan countries on Sanitary and Phytosanitar y (SPS) issues as they relate to African trade. 
This project, funded under USAID's now concluded African Trade and Investment Program, focused 
on assisting African countries to meet international SPS standards, thereby enabling them to increase 
their participation in global trade. In 2004, US DA/FAS will replicate this  SPS seminar series for 
Central African Economic  and Monetary Community member countries. 
 (b) SPS Work and the Southern Africa Global Competitiveness Hub 
 A USDA technical expert from the Animal Plant Health Inspection Service (APHIS) was 
assigned to the Southern Africa Global Competitiven ess Hub in Gaborone, Bots wana in January 2003 
in partnership with USAID's Regional Center for Southern Africa.  The technical expert worked 
closely with countries in the region to conduct pest  risk assessments for agricultural plant products 
potentially destined for the US market.  The Botswa na Hub arrangement will be replicated in 2004 at 
the other two regional hubs in Kenya and Ghana.  USDA will provide technical assistance and support 
to facilitate the export of African  agricultural products under AGOA. 
  IP/C/W/431/Add.5 
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 (c) Biotechnology Activities 
 The goal of this activity is to encourage Afri can scientists and their institutions to provide 
science-based information to the general public on technical matters that impact trade, agricultural 
production, and food security.  In May 2003, USDA's Foreign Agricultural Service (FAS) sponsored a 
Biotech Short Course at Michigan State Universi ty for 32 sub-Saharan African regulators and 
government officials working on agricultural biotechnology issues.  For FY2004, FAS has allocated 
over $100,000 in Emerging Markets funding to sub-Saharan Africa for activities including the 
development of public communication skills for African government regulators who work on 
biotechnology and assistance on food aid issues relating to biotechnology.  
 
 Beyond 2004, FAS plans to help selected sub-Saharan African governments to develop 
regulatory structures to review products produced us ing modern biotechnology.  Technical assistance 
will take the form of country-specific and regiona l workshops involving US regulators, private sector 
representatives, and scientists.  Depending on the sp ecific needs of each country, activities will focus 
on food safety and/or environmental risk assess ment, and techniques for communicating with 
stakeholders.  
 
4. US Trade and Development Agency 
 The US Trade and Development Agency (U STDA) funds and carries out a trade capacity 
building (TCB) mandate as part of its mission to support priority trade policies.  In FY2003, the 
USTDA programme in TCB was an important part  of the agency's overseas development work, 
funding a number of priority TCB efforts around the world in a wide variety of sectors and regions.  USTDA's TCB activities in FY2003 amounted to more  than $20 million, including over $3.7 million 
in sub-Saharan Africa alone.   Select examples of USTDA programmes funded in 2003 are as follows: 
 
(a) East African Community GPS/GNSS Technical Assistance 
 USTDA provided grant funding in the amount of $199,960 for technical assistance to the East 
African Community (EAC) in support of the implementation of Global Positioning System 
(GPS)/Global Navigation Satellite System (GNSS) procedures.  This project represents a joint 
initiative between USTDA, the Federal Aviati on Administration (FAA), and Department of 
Transportation (DOT), and directly suppor ts the Safe Skies for Africa Initiative. 
 
(b) Nigeria NITEL Expansion of Digital Network Training 
 USTDA provided $140,206 in funding to Nige ria Telecommunications (NITEL) to provide 
training for senior management in the areas of leader ship, strategy formulation, managing change, and 
business improvement. 
 
(c) Chipata Rail Extension and Inland Te rminal Project Feasibility Study 
 USTDA provided grant funding in the amount of $210,450 for the Chipata Rail Extension and 
Inland Terminal Project Feasibility Study.  The Chipata Rail Extension project would extend the regional Nacala Transportation Corridor into East ern Zambia, which would also serve to connect 
landlocked Malawi to the Port of Nacala in Mozambique.  The Nacala Corridor is a NEPAD (New 
Partnership for Africa's Development) priority project, given its anticipated positive developmental 
impact on the Southern Africa region at large and for the inland countries of Malawi and Zambia in 
particular.  It is also considered im portant for on-going famine relief efforts.
 
 IP/C/W/431/Add.5 
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 II. TRANSPORTATION AND COMMUNICATION INFRASTRUCTURE 
DEVELOPMENT 
 A number of US Government agencies have been  working to assist African countries in their 
efforts to improve infrastructure in the transportation and communications sectors.  
 1. Transportation Infrastructure 
 The Department of Transportation's (DOT's) A frica Aviation Initiative is composed of three 
parts: Safe Skies for Africa (SSFA), Nigeria Techni cal Assistance, and Open Skies.  Each of the 
components of this initiative is intended to promot e sustainable improvements in aviation safety and 
security and to support Africa's integration into the global economy.  Recent DOT accomplishments 
and trade-related programmes in  sub-Saharan Africa include: 
 
• DOT/FAA provided safety technical assistance to  African countries to prepare them to 
meet International Civil Aviation Organization (ICAO) safety standards and an FAA safety evaluation process known as Internationa l Aviation Safety Assessment. Nigeria, 
Tanzania and Kenya are targeted as the count ries most likely to meet ICAO standards 
by the end of FY2004 or shortly thereafte r, paving the way for direct air service 
between the United States and these countri es.  As a result of focused technical 
assistance during 2002-2003, in October 2003 Ca pe Verde became the first Safe Skies 
country to achieve FAA Category 1, making it eligible to serve the United States with 
direct flights.
 
 
• In response to the events of Septem ber 11, DOT purchased and installed US-
manufactured explosive trace detectors, x-ra y equipment, and other equipment that 
would enhance aviation security in Angola, Cape Verde, Kenya, Mali, Nigeria, and 
Tanzania.  In addition, DOT has trained some 600 security screening personnel.  
 
• In November 2003, DOT assessed Nigeria railw ays infrastructure in preparation for the 
forthcoming privatization of the Nigeria Railway Corporation.  The assessment made detailed recommendations on modernizing th e rail industry to support Nigeria's 
evolution as a transportation hub for western Africa.
 
 
• The Federal Highway Administration has assisted in the establishment of transportation 
technology transfer centres in South Afri ca, Tanzania, Zimbabwe , Malawi, Botswana, 
Namibia and Zambia that meet those c ountries' specific needs in building and 
maintaining their roads.  The centres he lp to create conditions for sustainable 
development, to facilitate foreign invest ment, to provide a venue to promote US 
highway technology, and to develop linkag es and foster joint venture relationships 
between the US and Southern African private sectors. 
  The US Trade and Development Agency (UST DA) has worked extensively in all major 
economic sectors to assist sub-Saharan Africa to prepare for the benefits of AGOA. USTDA's 
programme in sub-Saharan Africa is targeted to provide the infrastructure necessary to assist the 
countries of the region to modernize their economi es and take part in the global economy.  This 
includes projects in the rail, port, telecommunicati ons, aviation, environmen tal and power generation 
sectors.  The following is a sampling of USTDA projects in the transportation sector:  
• Regional Transportation Security Forum:  USTDA mounted a major international 
Africa/Middle East/Southern Asia conference, "Secure Trade Through New Partnerships and New Technol ogies," held in Cairo in February 2004.  The Forum 
provided a platform for the US Government to  communicate the status of trade security  IP/C/W/431/Add.5 
 Page 9 
 
 
 initiatives to countries in the region. It also served to highlight and promote 
technologies and procedures aimed at facilitating the secure and efficient movement of goods. 
 
• Smart and Secure Tradelanes Pilot/Feasibility Study: USTDA is co-funding a 
$1.3 million smart and secure logistics chain pilot project and feasibility study to 
enhance the trade capacity and supply chain security of the Southern African Customs Union.  A $602,450 USTDA grant will be provided to the South African Port 
Operations to examine transportation security technologies along both land based and seagoing trade lanes connecting Walvis Bay, Namibia; Cape Town, South Africa; and 
the United States. 
 
• Walvis Bay Airport Upgrade: USTDA signed a grant agreement with Namibian 
Airports Company Limited for $381,260 to upgrade and modernize the Walvis Bay Airport. Given its location at the westernm ost node of the Trans-Kalahari Corridor, the 
project will highlight the airport's potential to serve as a multi-modal cargo hub for port, rail, truck and aviation freight trans ported through southern Africa, Europe and 
the United States.  In addition, the airport upgrade and modernization project will 
address the increasing international business and tourism demand in Namibia. 
 
• Entebbe International Airport Upgrade a nd Expansion Project: USTDA is partially 
funding a feasibility study on the upgrade and expansion of En tebbe International 
Airport in Uganda, on behalf of the Civil Aviation Authority of Uganda. 
 
2. Communications Infrastructure 
 The Digital Freedom Initiative (DFI) is a five-year programme organized by the Departments 
of Commerce and State, USAID, USA Freedom Corps,  and the Peace Corps.  The goal of DFI is to 
promote economic growth by transferring the bene fits of information and communication technology 
to entrepreneurs and small businesses in the developi ng world.  DFI leverages the leadership of the 
US government, the creativity and resources of America's leading companies, and the vision and 
energy of entrepreneurs throughout the developing world.  Key elements of the DFI are: (1) placing volunteers in small businesses to share business knowledge and technology expertise;  (2) promoting pro-growth regulatory and legal structures to enha nce business competitiveness;  and (3) leveraging 
existing technology and communications infrastructure in new ways to help entrepreneurs and small 
businesses better compete in both the regional and globa l market place.  In March 2003, Senegal was 
selected as the first DFI country to pilot the appro ach.  In October 2003, DFI/Senegal fielded six US 
specialist volunteers and ten Senegalese volunteers and began preparing technology solutions to 
improve the electronic movement of funds to ru ral areas, improve business performance and increase 
access to national, regional and world markets.  Based on the success in Senegal, President Bush 
announced two more DFI countries, Peru and Indonesia, in October 2003. 
 
 The USAID Leland Initiative and the Federa l Communications Commission (FCC) have 
continued their fruitful collaboration to strengt hen telecommunications policy and build African 
regulatory capacity.  The programme strengthens associ ations of African regulators; uses experts from 
the FCC and state level regulatory bodies to help US and African universit y programmes on effective 
regulation; and provides technical assistance to regulator s in more than twenty countries.  In the past 
year, this effort has helped newly formed associatio ns of regulators in both West and East Africa to 
devise and implement their first annual work plan s;  completed the development of courses and 
training modules in ten key subject areas;  facilita ted partnerships between four leading African 
regulators and their US counterparts in New Jersey,  Oregon, Montana, Alaska and the District of 
Columbia;  and provided direct assistance to twelve countries. IP/C/W/431/Add.5 
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 The Leland Initiative's NetTel@Africa programme  is an African-led network for capacity 
building and knowledge exchange in the African te lecommunications sector.  It has four primary 
components: training, a knowledge exchange network, a community-to-community service, and research. For example, one of its core activiti es is the development of ten learning modules for 
regulators that are to be hosted on the website.  These modules are developed through partnerships 
between seven African universities - the Univers ities of Zambia, Botswana, Dar es Salaam, West 
Cape Town, South Africa, Fort Hare, and Witwater srand - and three US universities - University of 
Colorado-Boulder, University of Florida- Gainesville, and Michigan State University.
 
 
3. Energy Infrastructure Development 
 The Department of Energy (DOE), both thr ough its own programmes and via partnerships 
with USAID and other US agencies, is working in sub-Saharan Africa in support of energy projects for AGOA-eligible countries.  Activities support infr astructure development and creation of private 
enterprises, especially small- and medium-sized en terprises.  In conjunction with other agencies, DOE 
encourages the export of US energy technologies and services, facilitates regulatory reforms, and 
pursues collaborative energy development and deploy ment opportunities.  Some energy infrastructure 
related development activities conducte d by the United States include:   
 
• Over the past three years, DOE has provi ded energy sector assistance to Nigeria 
through an interagency agreement with USAID.  DOE has provided significant assistance toward power sector reform and some policy recommendations in the areas 
of oil and gas.  Specifically, DOE has assist ed efforts to develop a natural gas strategy 
for Nigeria, advised Nigerian entities on measures, including grassroots-level public education efforts in support of deregulation, the removal of subsidies and energy sector 
reform.  DOE also provided a renewable ener gy technology demonstration that resulted 
in micro-enterprise economic empowerme nt in rural Nigerian villages. 
 
• USAID provides capacity building and advocacy support for the West African Gas 
Pipeline (WAGP) project, a 630-mile, $550 m illion natural gas transmission pipeline 
project that will connect Nigeria's gas reserve s to markets in Nigeria, Benin, Togo and 
Ghana.  In January 2003, the Preside nts of these four countries signed an 
Intergovernmental Agreement to estab lish a harmonized legal and regulatory 
framework for the WAGP.  In May 2003, another major accomplishment was achieved 
with the signing of the WAGP International Project Agreement by the four countries 
and the developer, the West African Gas Pipeline Company and witnessed by the Economic Community Of West African States
 Secretariat.  The pipeline, anticipated to 
be operational in late 2005/ear ly 2006, will facilitate the co mmercialization of much of 
the region's natural gas resources, eliminat e environmental degradation from existing 
gas flaring, allow substitution of crude oil burned in the countries' power plants with 
cleaner gas, promote growth through access to cheaper, more reliably sustainable energy, and facilitate ECOWAS integration. 
 
• Through DOE, the US Government contributed financially to the World Bank Gas 
Flaring Reduction Initiative and serves as a member of the Steering Committee. The 
Initiative, a multi-year, multi-million dollar, private-public partnership, promotes the 
monetization of gas resources to prom ote economic development and address 
environmental concerns associated with g as flaring or venting from oil production. 
Countries initially targeted include Angola and Nigeria.  IP/C/W/431/Add.5 
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 • Through a longstanding history of energy cooperation with the Government of South 
Africa, principally through the Department of Minerals and Energy, DOE continues to 
provide assistance on regulatory issues, especially as South Africa seeks to deploy natural gas power generation and enha nce regional energy integration. 
 
• In Botswana, USTDA is partially funding a feasibility study in the amount of $525,000 
on behalf of the Botswana Development Co rporation for a coal bed methane (CBM) 
project in eastern Botswana. The project is  intended to capture and process CBM from 
coalfields in eastern Botswana to meet growing domestic and regional demand for a low-cost, clean and efficient fuel for pow er plants and feedstock for industrial 
processes. 
 
• USAID's Regional Center for Southern Afri ca (RCSA) continues to support energy 
sector development in Southern Africa thr ough technical assistance, partnerships and 
training for competitive trade in electric ity.  With USAID assistance, the Regional 
Energy Regulators Association in Southern  Africa is cooperating with the Southern 
Africa Power Pool (SAPP) on building a framework for attracting investments and private sector participation in regional energy development.  The RCSA support 
contributes to the evolution of the SAPP S hort Term Energy Market that during 2003 
achieved 713,000 MW volume of energy traded at the transaction value of $3,600,000.  
RCSA is also upgrading the SAPP web site  (www.sapp.co.zw), which will enhance 
electricity trading opportunities through faster  processing of potential trade transactions 
and a Quality of Supply database and inform ation management system to assist the 
SAPP coordinator center monitor reliability.  Finally, RSCA is also working with the 
Southern African Development Community to help it advance its plans to interconnect 
the power grids in SADC countries. 
 
4. African Development Foundation 
 The African Development Foundation (ADF) is a US Government corporation that provides 
support directly to small-, medium-, and micro-enterprises in Africa and non-governmental 
organizations that work at the grassroots level.  ADF responds to unsolicited proposals for activities 
that are African-driven and African-owned.  The Foundation helps applicants to develop business 
plans for commercially viable activities and to obt ain up to $250,000 in capital, and technical and 
managerial assistance.  The bulk of ADF's support is  directed toward rural and peri-urban areas and 
under-served populations, including women and minority groups.  ADF seeks to advance replicable 
models for increasing the ability of the poor and disadvantaged to participate in new economic opportunities.  In FY2003, ADF had active projects in  13 African countries: Benin, Botswana, Cape 
Verde, Ghana, Guinea, Mali, Namibia, Niger, Ni geria, Senegal, Tanzania , Uganda, and Zimbabwe.
 
 
 AGOA specifically notes the important role  of ADF in developing and implementing 
strategies for increasing the participation of small-sc ale producers in trade and investment activities in 
Africa. ADF provides technical and managerial assist ance to enable small-scale producers to: 1) adopt 
high-value, non-traditional crops;  2) scale up th e quantity and quality of  production to meet 
specifications of export buyers;  3) establish or increase local processing or manufacturing to add value to primary products;  and 4) cr eate new export marketing partnerships. 
 
 In FY2003, ADF had 26 active Trade and Investment (T&I) projects in three countries (Namibia, Uganda, and Zimbabwe) that have had at  least one major disbursement of funds.  Sixteen 
of the projects, all in Zimbabwe, promoted papr ika cultivation for export.  The other Zimbabwe 
project produced tubes for toothp aste and pharmaceuticals. (Note: ADF's grantees in Zimbabwe, as 
elsewhere, are private sector ente rprises or non-governmental community organizations.  ADF did not IP/C/W/431/Add.5 
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 fund any new economic development projects in  Zimbabwe in FY2002 or FY2003 given the 
economic and political stability there.)  Four of the Uganda projects helped to  develop vanilla exports. 
  One project in Namibia supported rock lobster fishing and one project in Uganda upgraded the processing of Nile Perch.  The other active projects supported exportation of silk, salt, and 
packaged juices.  These projects have a total current budget of $3.595 million. 
  In addition, ADF had seven active Small a nd Micro Enterprise (MSE) projects that have 
stimulated some export production although they were  primarily focused on domestic markets.  These 
MSE projects produced pineapple products (Benin), solar-powered hearing aids (Botswana), fishing 
(Guinea), ostrich products (Namibia), decorative ce ramics (Senegal), butter (Tanzania), and animal 
hides and skins (Uganda).  ADF's active T&I a nd MSE projects have generated over $12 million in 
African exports.  
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