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The poorest developing countries face major challenges in developing new expertise, institutions and regulations. By developing capacity in the partner countries’ energy
and planning authorities, Norway helps facilitate the design of sound national devel- opment strategies.
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3.4 Public involvement is necessary in order to trigger private investments in the energy sector
Industrial development is an important part of development policy and the eradication of poverty. The Standing Committee on Foreign Afairs emphasised this fact in
Recommendation No. 93 2004–2005 to the Storting. One focus area is leveraging investments to establish small and medium-sized businesses. Norfund is an important
policy instrument in this connection. According to Report No. 13 2008–2009 to the Storting Climate, Conlict and
Capital, the terms for energy investments have improved signiicantly in many poor countries in recent years, and many developing countries can provide a politically
stable framework for investors. Nevertheless, energy projects are complex, and the risk is greater in developing countries than in wealthier countries. Signiicant public
involvement is therefore required to stimulate private investments.
In Recommendation 44 S 2011–2012 to the white paper Meld. St. 14 2010–2011, the Standing Committee on Foreign Afairs noted that Norway can contribute toward
inancing technology transfer within the areas of renewable energy generation and eicient energy consumption, with a view towards triggering large-scale private
investments. According to Proposition 1 S 2010–2011, the Government wanted to increase its eforts to trigger investments in renewable energy by using development
aid funds strategically, give Norfund latitude to further develop its investments in businesses in developing countries and generally stimulate the use of Norwegian
expertise to make pro-development investments in poor countries. The use of Norfund as a policy instrument to promote private investments in the energy sector in the least
developed countries has been emphasised by the Government since the early 2000s.
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3.5 Development assistance must be based on the partner countries’ own priorities
Norway acceded to the Paris Declaration on Aid Efectiveness in 2005. The subse- quent Accra Agenda for Action in 2008 emphasises the importance of aid being based
on national development plans that relect the partner country’s desires and needs.
As all other development cooperation, the focus on clean energy is subject to interna- tional development policy obligations. The partner country must own its own develop-
ment agenda, and the aid must be based on a division of labour and coordination between donors.
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Norway’s bilateral contributions must be based on demand and founded on the countries’ own plans and priorities.
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The demand is often geared toward hydropower, which is the sector where Norwegian industry has the most to ofer, the most
15 Prop. 1 S 2010–2011 Proposition to the Storting draft resolution – Ministry of Foreign Affairs, p. 37. 16 See e.g. Proposition No. 1 2001–2002 to the Storting – Ministry of Foreign Affairs, p. 65.
17 www.regjeringen.nonbdepuddokrapporter_planerPlaner2007ren_energi_utviklingsarbeidet.html?id=489316. Norwegian only
18 Report No. 13 2008–2009 to the Storting, p. 51.
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established expert environments and an industry that has shown an interest in partici- pating in projects in developing countries.
In Recommendation No. 269 2008–2009 to the Storting, the Standing Committee on Foreign Afairs also emphasised the continued standing of the established principles
and guidelines concerning a rights-based approach, poverty orientation, recipient orientation, national ownership, concentration, untied aid, international division of
labour and the agenda on aid efectiveness.
Report No. 35 2003–2004 to the Storting Fighting Poverty Together states that one key aspect of international energy cooperation will be to identify focus areas within
sustainable development that the developing countries themselves want to prioritise. The partner countries’ authorities determine their own priorities for the energy sector
and thus the areas where they need assistance. For Norway, it is important to ensure that Norwegian expertise in hydropower and other forms of energy is ofered to the
recipients, while the partner country itself chooses how to prioritise.
In Recommendation No. 93 2004–2005 to the Storting, the Standing Committee on Foreign Afairs stated that it is important to ensure that national strategies for poverty
reduction form the operative point of departure for Norwegian eforts at the country level. In Recommendation No. 269 2008–2009 to the Storting, the Standing
Committee on Foreign Afairs stated that Norway has consistently endeavoured to utilise all available relevant aid expertise in Norway. However, the majority is of the
opinion that it is essential that the focus area is selected, and that the aid is designed based on the recipient country’s needs and preconditions. The donor country’s self-
interest shall not determine the choice of focus countries or sectors.
In its discussion of the white paper Towards greener development Meld. St. 14 2010–2011, the Committee’s majority expressed that it may be relevant to utilise
Norwegian special expertise in development eforts. The Committee also pointed out the importance of not reversing the trend towards a greater extent of recipient owner-
ship in development policy, cf. Recommendation 44 S 2011–2012. Excessive emphasis on areas where Norwegian companies have expertise, may blur the line
between aid and self-interest. It is crucial that development policy is founded on local ownership. The developing countries’ own authorities and population know best as
regards which needs are most important.
3.6 The Ministry of Foreign Affairs is responsible for goal attainment in aid efforts
The Ministry of Foreign Afairs has overall responsibility for administering Norway’s long-term aid. The embassies are accountable for delivering results from the grant
funds allocated through the Ministry’s allocation letters. The embassies are expected to consult with Norad for satisfactory quality assurance in line with the requirements
of the various programme regulations. The embassies must also ensure that the aid funds are used as planned, and carry out written appraisals of all contractual informa-
tion they receive regarding progress in aid-supported activities. The routines in the Development Cooperation Manual were in efect until 1 March 2010. New guidelines
for grant administration have been in efect for the Ministry and Norad from 1 January 2010 and for the embassies from 1 March 2010.
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19 The new guidelines are laid down in three manuals for grant administration: Om å forvalte tilskudd selv Administering grants yourself 2008, Om å forvalte delegerte ordninger Administering delegated programmes 2008 and Om å etablere og å for-
valte ordninger Establishing and administering programmes 2008.
