This thesis focuses attention on whether public finances to the private sector can deliver public goals, explicitly development, in foreign aid interventions. I intend to do that by analyzing the Norwegian Investment Fund for Development (Norfund), a Norwegian public institution commissioned with investing public capital on firms with the objective to produce public goods. I will specifically do an evaluative case study of Norfund’s co-investment with the Norwegian company TrønderEnergi in a hydropower company in Bugoye, Uganda. Through contextualizing a particular case, my goal is to asses if is possible to attribute the creation of public goods to operations based on the market rules, like Norfund does. With this research topic, the thesis aims at reflecting upon theories about the emergent role of the state as a competition one, a state that aligns industrial and welfare policies, in the context of economic globalization.