WORLD TRADE  
ORGANIZATION  IP/C/W/536/Add.4 
20 October 2009 
 
 (09-5156) 
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 16 Octobe r 2009, 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.  
_______________ 
 
 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 (LDCs) are eligib le 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 conces sional financing.  In 2008, Norad provided 
approximately US$ 38 million to the said group of  developing countries through these programmes. 
II. THE NORWEGIAN AGENCY FOR DEVELOPMENT COOPERATION (NORAD) 
3. Norad provides incentives for technology transfer to developing countries, including LDCs, 
through (1) its facilities for investment support, (2) its financing mechanisms for import to developing 
countries, (3) support to export related activities in  developing countries and (4) its institutional 
support.  Priority is given to LDCs  and Norway's partner countries.  
4. 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 incl ude  investments in basic infrastructure and 
environmental technology.  The support offered under the schemes is normally 50 per cent.  
Engagement in LDCs may enjoy a higher percenta ge of support.  Nepal, Lao PDR, Bangladesh 
Ethiopia and Angola are examples of LDCs receiving such support.  The financing facilities are fully 
utilized every year. IP/C/W/536/Add.4 
Page 2  
 
  5. The purpose of the Norad facilities for investment support is to encourage firms to invest in 
and import from developing countries, including least-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, in cluding LDCs.  This kind of projects will often 
include an important technology transfer compone nt.  Tanzania, Mozambic, Malawi and Ethiopia 
have received such support. 
6. 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 and equipment.   
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.a. relating 
to standards, metrology, testing and quality and trade facilitation.  Norad has, and is supporting 
several regional and national programmes leadin g to international recognition and acceptance of 
certification systems, both on multi-bi basis as well as bilaterally.  Some of these programmess also 
include financing of testing laboratories both fo r 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. 
8. 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.  The mechanism can benefit all non-annex-B countries 
which includes LDCs.  So far only a small proporti on of the projects registered are in the least 
developing countries.  Norad's sc heme for support to CDM-project development aims at facilitating 
development of projects in LDCs. 
9. 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 populatio n in an environmentally sustainable way.  Norad 
is coordinating the Initiative and total spending for 2008 was approximately US$ 34 million.  OfD 
holds a holistic approach in its capacity- and instit ution building of public authorities in the partner 
countries and sound resource management, revenue ma nagement and environmental management are 
regarded as a totality needed to safeguard good g overnance of the petroleum sector.  The Oil for 
Development Initiative cooperates with 25 countries, where nine countries are engaged in long-term 
institutional cooperation,  and 16 countries receive limited assistance.  Angola, Madagascar, 
Mozambique, Sudan, East Timor and Uganda are receiving such long-term support.  Afghanistan, 
Bangladesh, Tanzania, Zambia and Mauritania are examples of LDC countries with limited 
cooperation.   
  IP/C/W/536/Add.4 
 Page 3 
 
 
  III. NORWEGIAN INVESTMENT FUND FOR DEVELOPING COUNTRIES 
(NORFUND) 
10. 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 Mekong area. In these areas there is a high concentration of LDCs and Norfund has local pr esence with offices and staff (save Mekong).  
11. When investing with partners in LDCs, it is essential for Norfund to include the issues of 
technology and competence.  The development of these elements is core to the organization's  
mission.  Assistance from Norfund is untied and do not have to be in cooperation with Norwegian 
enterprises.  Local partners or partners from othe r developed countries may be preferred. Financing of 
Grameen Phone, the Bangladeshi joint venture betw een Norway's largest telecom company Telenor 
and Grameen Bank is an example of an investme nt where technology transfer to an LDC from 
Norway was the primary motivation.  Norfund's i nvolvement in Matanuska, a greenfield agribusiness 
in Northern Mozambique operating a banana plantations, was motivated by technology and 
competence transfer in export-oriented farming.  The international banana producer Chiquita, is 
essential to this project. 
12. Energy provision and the financial sector are Norf und's largest areas of investment.  Energy is 
a prerequisite for development a nd growth and investments in a nd 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 
Troender have built the Bugoye hydropower plant.  The run-of-river power plant that will help reduce 
Uganda's dependency on imported oil. The plant w ill cover 7 per cent of Uganda's energy needs. 
Norfunds biggest investment is in SN Power, a hydro power company.  SN Power invests in 
developing countries through acquisiti ons and development of new hydropower projects in Asia and 
Latin America.  When acquiring companies,  SN Po wer in most cases upgrade the plants with state of 
art technology, leveraging on Norway's excellent competence in the area.  The same is the case for 
new developments.  SN Power is committed and is proactive in th eir approach to knowledge and 
technology transfer.  Norfund has with SN Power in 2009 established a new company with focus area on Africa and Latin America with the same objectives.  The financial sector is another area where 
Norfund is involved in technology transfer.  In Mozambique, Norfund and the Mozambican 
investment company GAPI, the private Dutch ba nk Rabobank and the Ge rman development bank 
KFW have invested in and are transferring banking  technology and competence to a new bank, Banco 
Terra, aiming to specialise in banking to th e agricultural sector and in rural areas.  
13. 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.  Norfund also has a technical assi stance facility with the aim to cover costs that may 
be hard to sustain by start-up companies in LDCs.  Such grants may be given to transfer technology, 
e.g. installing or upgrading a water treatment f acility at a processing plant, to meet national and 
international requirements, ensure energy efficiency etc.  IP/C/W/536/Add.4 
Page 4  
 
   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  
__________