WORLD TRADE  
ORGANIZATION  IP/C/W/551 
11 October 2010 
 (10-5208) 
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 6 October 2010, from the delegation of Norway is being 
circulated pursuant to paragraph 1 of the Decisi on 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.  
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I. INTRODUCTION 
1. Article 66.2 of the TRIPS Agreement requi res "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 c ountry 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$5,295 in accordance with the 
threshold for the World Bank’s concessional financ ing.  In 2009, Norad provided approximately 
US$29.4 million to the said group of devel oping countries through these programmes. 
 
II. THE NORWEGIAN AGENCY FOR DEVELOPMENT COOPERATION (NORAD) 
3. Norad provides incentives for technology tran sfer 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 ex port-related activities in developing countries and 
(4) its institutional support.  Priority is given to least developed countries and Norway's partner 
countries.  The incentives are application based and untied.  The main users are Norwegian 
enterprises.  The schemes are open for all kind of  technology transfer.  Technical assistance is the 
main mode of technology transfer but the schemes do  also include investments in basic infrastructure 
and environmental technology.  The support offe red under the schemes is normally 50 per cent.  
Engagement in LDCs may enjoy a higher percentage  of support.  Zambia, Lao PDR, Bangladesh and 
Ethiopia are among the LDCs receiving such support.  The financing facilities are fully utilized every year.  IP/C/W/551 
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  4. 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 fo reign subsidiaries, traini ng 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 a nd telecommunication).  Support is also given to 
public-private partnership arrangements.  Public -private partnership involves engagement of 
Norwegian private sector in developing countries, including LDCs.  These kind of projects will often 
include an important technology transfer compone nt.  Tanzania, Mozambique, Malawi and Ethiopia 
have received such support. 
5. The purpose of the financing arrangements for export (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 an d equipment.  This facility is discontinued from 
2009, but projects in the existing pipeline will be finalized.  Bangladesh, Tanzania and Lao PDR are 
among the countries receiving such support. 
6. The purpose of supporting export-related projects 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 has, and is supporting 
several regional and national programs leading to international recognition and acceptance of 
certification systems, both on multi-bi basis as well as bilaterally.  Some of these programs also include financing of testing laboratories both for food export and particular industrial goods. 
Assistance is also given to exporters in developi ng countries and to the development of quality and 
design of products (product development) in order to meet international market requirements.  The 
area of trade facilitation is important for the devel opment of trade, not least regional trade and support 
is given mainly through multilateral and international organizations. 
 7. 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.  8. The purpose of Clean Energy for Development 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 bio-
energy.  Some of the core least developed countries receiving such support are Mozambique, Nepal, Tanzania, and Uganda.  9. The Norwegian Oil for Development Initiative (O fD) 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 c ountries.  Madagascar, Mozambique, Sudan, East 
Timor and Uganda are among the LDCs  receiving long-term support.   
  IP/C/W/551 
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  III. NORWEGIAN INVESTMENT FUND FOR DEVELOPING COUNTRIES 
(NORFUND) 
10. 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 consid erations, by investing 
in private enterprises. Norfund’s strategy is to inv est primarily in four geographical areas:  Southern 
Africa, Eastern Africa, Central America and the Mekong area, with priority given to Africa and 
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).  
 
11. In addition, Norfund has chosen to concentr ate especially on renewable energy and the 
financial sector.  These are sectors where the activ ities result in particularly positive development 
effects and where the conditions are in place for m obilizing expertise of in ternational quality among 
Norwegian partners.  When investing with partners  in LDCs, it is essential for Norfund to include the 
issues of technology and competence, both regardi ng operational and industrial management as well 
as health, safety and environmental issues.  The development of these elements is core to the 
organization’s mission. Assistance from Norfund is un tied and do not have to be in cooperation with 
Norwegian enterprises.  Local partners or partners  from other developed countries may be preferred. 
 12. Norfund exercises active ownership in the co mpanies and funds where investments are made. 
Equity investments are more frequent than pur e loan financing and investments often involve 
positions in the board.  This gives Norfund proximity  to operations and the po ssibility of influencing 
standards over time. Given an owne rship horizon of four to ten years, Norfund works for the creation 
of a corporate culture that is engaged in cont inuous improvement of corporate governance, and 
environmental and social standards.  Action plans are used to stake out a long-term strategy to change 
from operating according to local standards to intern ational 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 independently of the commercial invest ment capital, and are an effective instrument in 
Norfund’s execution of ownership and fo r transferring technology and knowledge. 
 
13. Norfund’s involvement in Matanuska, a Green field agribusiness in Northern Mozambique 
operating a banana plantation, is an example of an investment which was motivated by technology 
and skills upgrading in export-orient ed farming.  The international ba nana company Chiquita is a key 
partner and the first exports from Matanuska  through Chiquita took place in July 2010.   Norfund is 
currently contributing in the planning and developm ent of an extensive outgrower scheme that will 
allow local farmers to benefit from the knowledge and resources of the Ma tanuska plantation and 
enable them to export their own produce through the plantation.   14. 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 
TronderEnergi have built the 13 MW Bugoye hydropower plant.  The run-of-river power plant that 
will help reduce Uganda’s depe ndency on imported oil will cove r seven per cent of Uganda’s 
electricity sales.  The power plant is expected to  produce 82 GWh per year.  The plant is wholly 
operated by Ugandans and all employees, except th e managing director, are locals.  TronderEnergi 
has provided training in Norway of the technical staff at the power plant, and provides back-up 
technical support.  This is an example of how No rwegian exports skills, know ledge and transfer of 
technology to LDCs is contributing to ensuring sustainable industries.  IP/C/W/551 
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  15. Norfunds largest investment is in SN Power, a hydro power company.  SN Power invests in 
developing countries through acquis itions and development of new hydropower projects in Asia, 
Latin America and, via SN Power AfriCa, in Africa.  In most cases when SN Power is acquiring companies, they upgrade the plants with state of art technology, leveraging on Norway's competence.  
This is also the case for new developments.  SN Powe r is committed and is proactive in their approach 
to knowledge and technology transfer.  In 2010,  two additional Norwegian hydropower companies, 
TronderEnergi and BKK, invested in SN Power AfriCA, thereby widening the competence base 
available to this company.   16. The financial sector is also an area where Norfund is involved in technology transfer.  In 
Mozambique, Norfund and the Mozambican invest ment company GAPI, the private Dutch bank 
Rabobank and the German developm ent 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.  In Cambodia, Norfund promotes knowledge transfer on financial institution operation and corporate govern ance through active board seats in microfinance 
institutions. 
 17. LDCs being the main target of most of No rfund’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 f acility also contributes to technology transfer, 
e.g. installing or upgrading a water treatment facility at a processing plant, to meet national and 
international requirements, ensure energy efficiency, training and certifications etc.  
 For further information a nd 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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