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VOLUNTARY IMO MEMBER STATE AUDIT SCHEME

AUDIT OF THE REPUBLIC OF BULGARIA

10-17 NOVEMBER 2008

FINAL REPORT 1. Executive Summary

1.1 The Memorandum of Co-operation between the Republic of Bulgaria and the International Maritime Organization (IMO) concerning participation in the Voluntary IMO Member State Audit Scheme (VIMSAS) was finalized on 22 October 2008. 1.2 The Pre-Audit Questionnaire was submitted 18 March 2008. 1.3 The audit team was appointed by the IMO 15 September2008. 1.4 The VIMSAS audit program and timetable was confirmed on 16 October 2008. 1.5 The auditors concluded that, from the information available to them, the maritime administration of the Republic of Bulgaria substantially meets its obligations arising from the mandatory IMO instruments set out in the scope of the audit, and to which it is also a signatory. The audit identified that there were few areas where improvements could be made and there were areas of substantially best practices. 2 Introduction 2.1 The objective of the Code for the implementation of mandatory IMO instruments, 2007, (resolution A.996 (25)), hereinafter referred to as “the Code”, is to enhance global maritime safety and the protection of the marine environment. 2.2 In accordance with the Code, Part 1.2, some Administrations may have a greater role as a flag State than a port State or a coastal State, whilst others may have a greater role as a coastal State or port State than as a flag State. Such imbalances do not, in any way, diminish their duties as a flag, port or coastal State. 2.3 Considering the above, the VIMSAS audit of the Republic of Bulgaria covered the maritime administration’s role as a flag, port and coastal State. Therefore the audit team audited primarily the Bulgarian Maritime Administration as the lead government agency charged with the responsibility for implementation of most of the obligations set forth in the mandatory IMO instruments.

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3 Background 3.1 Following the adoption of the Framework and Procedures for the Voluntary IMO Member State Audit Scheme (resolution A.974 (24)) by the 24th regular session of the Assembly, a number of Member States volunteered for audit under the Scheme. The current audit of the Republic of Bulgaria was undertaken by fully using the principles established under resolution A.974 (24) and the Code. This report sets out the findings of the audit in the format adopted under paragraph 7.2 of the Procedures for the Scheme. 4 Members of the Audit Team

Leslie Hemachandra (Audit Team Leader), Maritime Administration of Sri Lanka Kyriacos Aliouris (Auditor), Maritime Administration of Cyprus Tadeusz Jan Wojtasik (Auditor), Maritime Administration of Poland Igor Sibrin (Observer), Ukrainian Registry of Shipping, Ukraine

5 Involved Officials from the Member State

Guides and audit liaisons throughout the audit: Mr. Peter Kirov Deputy Executive Director Capt. Petar Petrov Director, Directorate “Quality Management and Inspections” Mrs Iliana Hristova Senior Expert, Directorate “European Union, International Relations

and Projects” (CPC) 6 Acknowledgement 6.1 The auditors wish to express their considerable thanks to the various members of staff interviewed and the Ministry of Transport, Ministry of Environment, Bulgarian Maritime Administration, Port Infrastructure Company, National Institute for Meteorology and Hydrology, Bulgarian Navy, Marine Antipollution Enterprise PLC and other government institutes for their fullest cooperation during this audit. In particular, thanks are due to the involved officials for their efforts during the preparation for this audit and for its facilitation.

7 Scope, objectives and activities of the Audit 7.1 The scope of the audit addressed flag, port and coastal State obligations of the maritime administration of the Republic of Bulgaria. 7.2 The objectives of the audit were:

.1 to determine the extent to which Bulgaria meets the obligations imposed upon it through its adoption of the following applicable mandatory IMO instruments:

.1 the International Convention for the Safety of Life at Sea, 1974, as amended

(SOLAS 1974);

.2 the Protocol of 1978 relating to the International Convention for the Safety of Life at Sea, 1974, as amended (SOLAS PROT 1978);

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.3 the Protocol of 1988 relating to the International Convention for the Safety of Life at Sea, 1974, as amended (SOLAS PROT 1988);

.4 the International Convention for the Prevention of Pollution from Ships,

1973, as modified by the Protocol of 1978 relating thereto, as amended (MARPOL 73/78);

.5 the Protocol of 1997 to amend the International Convention for the

Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto, as amended (MARPOL PROT 1997);

.6 the International Convention on Standards of Training, Certification and

Watchkeeping for Seafarers, 1978, as amended (STCW 1978);

.7 the International Convention on Load Lines, 1966 (LL 66);

.8 the Protocol of 1988 relating to the International Convention on Load Lines, 1966 (LL PROT 1988);

.9 the International Convention on Tonnage Measurement of Ships, 1969

(TONNAGE 1969); and

.10 the Convention on the International Regulations for Preventing Collisions at Sea, 1972, as amended (COLREG 1972), and

.2 the effectiveness of the implementation of these objectives.

7.3 An Audit was carried out on all mandatory IMO instruments. 7.4 Implicit in this was the degree of compliance with the Code, which mirrors many of the references set out in the applicable mandatory IMO instruments.

7.5 The audit was conducted using the audit programme set out in annex 1. The methodology used was through a series of visits, interviews, examination of written records and databases, and the objective evidence which would determine the extent to which the maritime administration achieved the objectives of the Code.

7.6 The programme followed a process which sought, initially, to determine the strategy for the implementation of the instruments, the review processes in place and the arrangements for continual improvement. Following this was an examination of the national legislations in place, which provide the instruments with force of law, the processes by which the State develops and makes known its interpretations, policies and instructions regarding these instruments, as well as the practical implementation of these arrangements, were also reviewed. 7.7 An opening meeting was conducted on Monday, 10 November 2008, in accordance with the Procedures and the agenda. A list of attendees is attached with the program and timetable set out in annex 1. It was stated that at the closing meeting, which was scheduled for 17 November 2008, a draft interim report would be tabled to assist in focussing discussion and the next steps to be taken.

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7.8 A closing meeting was conducted on Monday, 17th November 2008 when the audit team presented areas of strength (best practices), areas for improvement, and audit findings. Audit results included six (6) nonconformities and seven (7) observations that were acknowledged by the Republic of Bulgaria for review. 8 Overview and general maritime activities of the State 8.1 General 8.1.1 The Ministry of Transport (MOT) is the government department with primary oversight of the maritime administration. Bulgarian Maritime Administration (BMA), an entity established under the Ministry of Transport, is the statutory body responsible for operational delivery of maritime safety, security and marine environment protection, and other related services. The Minister of Transport shall implement the policy of the State in the area of merchant shipping, and represent the Republic of Bulgaria in relevant international organizations, by:

.1 exercising the functions of administration, with regard to international agreements to which the Republic of Bulgaria is a party, and proposing the accession of this country to international organizations and treaties;

.2 determining the norms for preparation and the procedure for certification of seafarers and exercising control over compliance with them;

.3 determining the safety norms for merchant shipping, controlling compliance with the safety rules and organizing activities, related to shipping;

.4 exercising control over the prevention and combating of pollution of the territorial sea, internal sea waters and inland waterways by vessels;

.5 establishing a procedure and means of organization for search and rescue at sea and in inland waterways and for detection of sources of environment pollution; and

.6 establishing, with the Minister of Defence, a system for collection and provision of information, management and control of vessel traffic.

8.1.2 The Minister of Transport exercises his functions through the Executive Agency “Maritime Administration” (EAMA) which is commonly identified as the Bulgarian Maritime Administration (BMA). BMA’s structure, functions and work organization of the agency is indicated in the organigram attached as Annex 2 to this report.

8.1.3 In accordance with the Statutory Regulations on the Ministry of Transport, the Minister exercises his authority in accordance with the Bulgarian Constitution and the laws of the country by preparing drafts of international treaties and agreements in the transport sector and providing for the enforcement and implementation of the international agreements and conventions, which Republic of Bulgaria is a party to.

8.1.4 The Statutory Regulations on the Executive Agency “Maritime Administration” further stipulates that the Minister of Transport exercises control on the following functions through BMA:

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.1 organize and perform functions related to the safety of navigation in sea spaces and inland waterways of the Republic of Bulgaria;

.2 ensure the actual connection between the government and ships flying the Bulgarian flag;

,.3 exercise the control on the compliance with the requirements for safety of navigation by Bulgarian and foreign flagged ships;

.4 prepare and issue certificates of competency to seafarers;

.5 perform functions related to the living and working conditions onboard ships;

.6 exercise control on traffic in canals, ports of the Republic of Bulgaria and other duly defined regions;

.7 organize and control search and rescue activities of persons in distress, vessels and aircrafts; and

.8 exercise control on protection of the marine environment and the Danube River from pollution of ships.

8.1.5 The BMA is managed and represented by an Executive Director, appointed by the Minister of Transport, in coordination with the Prime-Minister. The Executive Director with the executive power is responsible for the organization and activity of the Agency. Authority of the Executive Director is as follows:

.1 organize the implementation of ordinances, rules of procedure, policies, and orders on issues related to shipping;

.2 exercise control on Bulgarian ships in the events envisaged by law;

.3 exercise control on ships calling Bulgarian ports;

.4 exercise control on the safety of navigation in the sea spaces and inland waterways of the Republic of Bulgaria;

.5 exercise control on the sea spaces and inland waterways of the Republic of Bulgaria with respect to issues related to the protection of the marine and river environment from pollution as well as to the prevention, decrease and limitation of the pollution from ships;

.6 organize and manage the combat against oil spills in the Black Sea and the Danube River regions of responsibility of the Republic of Bulgaria;

.7 organize and manage search and rescue activities at sea;

.8 ensure participation in the work of international organizations by:

.1 organizing the implementation of obligations arising out of Bulgaria’s membership in international specialized organizations as well as the implementation of obligations under international agreements in maritime field, to which the Republic of Bulgaria is party; and

.2 draft proposals to the Minister of Transport on the conclusion, accession to, ratification, denunciation or amendment of international agreements and on participation in international organizations;

.9 conclude contracts related to the Agency’s activity;

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.10 make proposals to the Minister of Transport on the harmonization of the national legislation in the field of maritime transport with the respective EU legislation, and the acts of the relevant international organizations;

.11 issue mandatory rules in accordance with the provisions of the Merchant Shipping Code;

.12 ensure participation in the work of the specialized bodies of the European Union in the field of safety of navigation and protection of maritime environment from pollution from ships; and

.13 assist the Minister of Transport in carrying out his/her functions, stipulated in Article 7, Par. 1 of the Merchant Shipping Code.

8.1.6 The BMA is divided in to eight divisions, which work under the Executive Director as described in the succeeding paragraphs.

8.1.7 The Directorate of Administrative, Legal and Accounting activities is responsible for the following:

.1 to organize and supervise the financial activities, accounting and internal financial

controls;

.2 to prepare a draft budget of the Agency;

.3 to prepare accounts and the proper expenditure of funds under the approved budget;

.4 to assist the Executive Director in the management of financial resources of the agency, such as:

.4.1 to carry out preliminary control of the legality of all documents and actions related to financial activities; and

.4.2 to carry out inspections before deciding on commitments or paying expenditure;

.5 to organize the work in conjunction with the implementation of the powers of the executive director according to the Public Procurement Act;

.6 to organize and participate in the annual inventorization;

.7 to prepare, form and store the labour and service records of employees of the agency and maintain them in accordance with the Labour Code and the Civil Service Act;

.8 to implement the regulations regarding the payment of the employees and prepare the position and name official establishment plan of the agency;

.9 to organize the preparation and the implementation of the competition for civil servants;

.10 to organize and control the administrative service;

.11 to provide legal assistance to the management of the agency to carry out its legitimate functions;

.12 to develop and propose solutions to legal problems related to the activities of the Agency;

.13 to carry out procedural representation of the agency;

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.14 to draft contracts in relation with the activities of the Agency and carry control over the fulfilment / execution of the signed contracts;

.15 to participate in the development of draft legislation;

.16 to organize and supervise the secretarial activities, including documents, archives and storage of the office documents;

.17 to organize and supervise the proper use, management and property management of the agency;

.18. to organize the operational activities and maintain automated information infrastructure of the agency - local networks, communications’ equipment, computers and software;

.19 to prepare, maintain and periodically update the Agency's website;

.20 to coordinate the public relations;

.21 to organize and carry out the material and technical supply of the agency with equipment, spare parts and consumables, and plan, exercise financial controls and ensure the financial provision of the specialized directorates of administration;

.22 to organize and monitor the compliance with the safety standards and the healthy working conditions and risk prevention in the agency;

.23 to organize and supervise the implementation of the Agency's activities related to defence-mobilization training and civil defence;

.24 to organize and carry out activities in connection with the submitted proposals and reports obtained under Chapter eight "Suggestions and signals" from the Administrative code, including their registration and processing, their examination within the legal deadlines and the notification of persons of the decisions and the measures taken; and

.25 to carry out other activities arising from the orders of the Executive Director.

8.1.8 The Directorate of Quality Management and Inspections performs the following functions:

.1 coordinates the practical implementation by the agency of obligations under the agreements with the European Union and the membership of Bulgaria in the specialized international organizations;

.2 assists the Executive Director in scrutinizing the work of other specialized agencies of administration;

.3 maintains and develops the quality management system in the agency stemming from the obligations of Bulgaria to international treaties to which Bulgaria is a party;

.4 organizes and coordinates the conducting of independent evaluation of the system according to point 3;

.5 reviews constantly and analyzes the activities of organizations authorized to conduct inspections and checks on behalf of the agency and, if necessary, propose corrective actions;

.6 monitors and analyzes the activities of the Directorates according to Art. 24, para. 1 and art. 27 in the exercise of their functions and, if necessary, propose corrective actions;

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.7 coordinates the activities of the agency when controlling the implementation of measures for the regulation of the fleet capacity;

.8 coordinates and carries out the functions of the agency related to organizational and technical provision of the activity of Fund “Inland waterways”;

.9 maintains and develops the system for information security of the agency;

.10 checks for compliance with the international and national requirements of programs for training of seafarers and proposes them for approval by the Executive Director;

.11 prepares the certificates of competency and seafaring books of the seafarers;

.12 maintains to-date public records of the ports according to art. 92, para. 4 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria and port operators in art. 117, para. 4 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria on electronic copy and provides information from them;

.13 gives methodological guidance of the regional directorates in the monitoring of compliance with the requirements and technical safety of port facilities to ensure safe and healthy working conditions and safe running of loading operations from qualified for the type of work staff;

.14 gives methodological guidelines on the control of compliance with the requirements for operational use of the ports and sites according to art. 111a para. 1 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria and prepares draft reports from the Executive Director, with which it is proposed to the Minister of Transport:

.14.1 to grant or refuse a certificate for operational use for the port or object of art. 111a para. 1 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria; and

.14.2 to grant an ongoing suspension, temporary or permanent limitation on the operation of the relevant port or site according to art. 111a para. 1 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria;

.15 supports the Minister of Transport in its preparatory activities and conducts the procedures for granting concessions to ports for public transport of national importance;

.16 gives methodological guidance to regional directorates on the control of the implementation of contracts under Art. 117b para. 1 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria and contracts under § 74, para. 3 of the Law amending of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria (SG. 24, 2004);

.17 analyzes the applications of art. 112b para. 1 and art. 112g, para. 1 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria and prepares reasoned opinions in conformity with the investment initiative approved a national program of art. 103a para. 2 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria;

.18 carries out inspection under art. 112g, para. 3 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria on compliance of the investment initiative program in art. 103a para. 2 and draws reasoned opinions

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according to art. 112g, para. 4 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria;

.19 codifies the data contained in pre-investment in art. 112a - 112d of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria and on the basis of them establishing a database prepared general plans, cadastral maps and property records and cadastral and detailed structural plans;

.20 gives methodological guidance to the regional directorates on the control of compliance with the activities and services performed at ports of entry in the register of such ports in the port operators and service certificates of exploitation fitness;

.21 monitors the compliance with the requirements of free access to ports for public transport;

.22 organizes the collection, processing, aggregation, storage and provision of the National Institute of necessary statistics in accordance with art. 94 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria;

.23 gives opinions on draft detailed structural plans, with which are defined territorial and aquatic sites for the construction of ports of art. 107 - 109 and objects of art. 111a para. 1 of the Law on the maritime spaces, inland waterways and ports of the republic of Bulgaria;

.24 gives opinions on draft detailed structural plans, for the allotment of land and water areas for construction and documentation for the operation of construction along the coast of the Black Sea and the Danube, in internal waters and territorial sea and in the areas of operation of means of navigational security;

.25 considers and prepares reasoned opinions to the Executive Director to:

.25.1 approval of plans for reception and processing of waste;

.25.2 coordination of plans for port operators during disasters, accidents and catastrophes; and

.25.3 approval of the prepared by ROs port security plans;

.26 assists the Executive Director in determining the level of security of vessels flying the Bulgarian flag, and of the port;

.27 draws up plans for port security or overlooks the security plans made by the ROs; and

.28 evaluates the conformity of the activities of recognized security organizations with the provision of security in ports and ships.

8.1.9 The Directorate of European Union, International Relations and Projects performs the

following functions:

.1 organizes and coordinates the agency's participation in the activities of international organizations and specialized agencies of the European Union on safety of navigation and protection of the environment from pollution by ships and within the ports’ area, such as:

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.1.1 conducting the agency's liaison with international organizations and structures of the European Union;

.1.2 coordinating the preparation of positions for the agency's participation in the work of specialized international organizations and preparing to send them for approval by the Ministry of Foreign Affairs;

.1.3 providing methodological assistance in the implementation of the national legislation and international treaties to which Bulgaria is a party, other specialized agencies in the administration and in the performance of its activities;

.1.4 developing projects of international treaties and making proposals to the Minister of Transport for signing, accession, ratification, denunciation and modification of international treaties in the field of safety of navigation and protection of the environment from pollution by ships and in ports; and in the membership and participation in relevant international organizations and initiatives;

.1.5 organizing and conducting activities related to the in preparation of draft legislation for the implemented in the national legislation of European Community law and international treaties in the field of safety of navigation and protection of the environment from pollution by ships and in port; and

.1.6 coordinating and carrying out of activities related to the development and implementation of international projects to assist the Agency;

.2 drafts programs for the development of international cooperation, conducts international correspondence and assists the Executive Director in organizing and holding international meetings;

.3 coordinates and carries out bilateral cooperation and relations of the agency; and

.4 coordinates the implementation of projects to which the beneficiary is the agency.

8.1.10 The Directorate “Search and Rescue”’ activities include:

.1 assisting the Executive Director in carrying out the obligations of the Republic of

Bulgaria to the International Convention for search and rescue at sea in 1979, ratified by law by the National Assembly - SG. 47, 1999 (promulgated SG. 75, 1999, as amended SG. 61, 2005);

.2 keeping 24-hour duty for reception of distress signals and coordinating and

conducting search operations in order to save lives at sea and providing assistance to ships and aircraft in distress; and

.3 performing the functions of maritime rescue coordination centre of Bulgaria,

situated in Varna. 8.1.11 Of the eight directorates, four are regional and carry out operational functions for the Bulgarian Maritime Authority. The four directorates are:

11.1 Directorate of Maritime Administration – Varna; 11.2 Directorate of Maritime Administration –Burgas; 11.3 Directorate of Maritime Administration-Rousse; and

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11.4 Directorate of Maritime Administration- Lom. 8.1.12 The four regional directorates are managed by Directors (Harbour-Masters), within the limits of their territorial competence. The four directorates, under Art. 24, paragraph 1, shall:

.12.1 keep a register of the Bulgarian ships as well as other registers, as envisaged by the law;

.12.2 perform ship surveys;

.12.3 exercise control on all persons implementing activity in the field of shipping;

.12.4 control the environmental pollution from ships;

.12.5 control and supervise the navigational conditions ensuring shipping safety;

.12.6 organize the exams and other activities related to the certification and registration of competent seafarers;

.12.7 carry out activities in preparation for issuing and verification of certificates and other documents and records of seafarers;

.12.8 prepare seafarer passports and seafarer books for issuing with the Executive Director’s permission;

.12.9 issuing statutory documents to Bulgarian ships on the basis of international agreements and to foreign flag ships on the request of foreign administrations;

.12.10 exercising control on the persons responsible for ships in accordance with the International Code for the Safe Management of the Operation of Ships and Pollution Prevention (the ISM Code);

.12.11 finalizing the documents of ships calling at or leaving Bulgarian ports; .12.12 organizing and managing control on shipping in harbours as envisaged by the law; .12.13 undertaking measures to give aid to people, vessels and aircraft in distress; .12.14 managing the maritime emergency rescue squads within the regions under their

jurisdiction; .12.15 implementing activities in the event of sunken property after the order of the acting

legislation; .12.16 participating in examination committees for the awarding of competencies to

seafarers; .12.17 not allowing ships to leave port in the events stipulated by the law when shipping

safety requirements have been infringed; .12.18 detaining Bulgarian or foreign ships in the events stipulated by the acting

legislation; .12.19 exercising control over services provided in traffic management and information

services of shipping in the sea areas, inland waterways, canals, ports of Bulgaria and other appropriately fixed areas; and

12.20 supervise the implementation of measures regulating the fleet capacity and organize the conduct of examinations of professional competence of the carriers of goods by inland waterways.

Strategy of the Member State

8.1.13 One of the objectives of the Code for the implementation of mandatory IMO instruments requires a Member State to develop a strategy in the areas of maritime safety and pollution prevention, which includes the continuous review and verification of the effectiveness of the State in meeting its international obligations. The Ministry of Transport has a 10 year Master Plan, which has been in place since 2005. The priorities under the present plan are to develop rail & road transport, an intermodal transport system, upgrading river transport system, port

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development, development of short sea shipping, etc. However, maritime safety and pollution prevention is not on the immediate priority list. 8.1.14 The main goal of the transport sector of the Republic of Bulgaria is to facilitate the economic and social development of the country by providing efficient and reliable transportation. Its mission is to aid the balanced regional development, and given the convenient location of Bulgaria at a major transportation crossroad and the country's transit potential, to speed up the country's integration into the European structural framework. In order for this accelerated convergence with the European Union's member countries to be achieved, it is required that the full potential of various fundamental factors be recognized and consequently used. These factors include human capital, innovation, competitiveness, modernization, and the drive for constant improvement in the quality of the services offered. 8.1.15 In connection with the preparation of the Republic of Bulgaria for membership in the European Union and the integration of its transport infrastructure into the European one, great effort has been shown in introducing and implementing the European standards for a modern, environmentally-friendly and secure transport. Intensive action has been undertaken to harmonize the Bulgarian legislation with the European one and opportunities have been created for the exchange of property rights in the transport sector; allowing the entrance of private companies in the transportation services market, which will undoubtedly improve the quality of service due to the emergence of competition in the market. 8.1.16 A major issue during this process was the steady development of the transport infrastructure. Insufficient investment in maintenance and development of the infrastructure in the last decades, as well as the increased demand for transportation services, call for a new and improved, long-term planning of its future development. Modernization is necessary for the successful integration in the European transport system. A considerable amount of time is necessary for the creation of such a modern transport infrastructure, as well as planning in the long run, assuring the existence of reliable and steady influx of finances, and determination and commitment by all institutions and organizations participating in this process. For the crucial full absorption of the considerable European funds, the government has to prepare vital infrastructural projects and also needs to co-finance their realization. 8.1.17 It is essential that better conditions be created for strengthening the role of the private sector in the development of the infrastructure, and including opportunities for various forms of public-private partnerships. The trend is for improving and developing the majority of the ports, airports and highways, by giving them on concession. 8.1.18 One of the most essential aspects in the national and European Union transport policies is to complete the trans-European transport network. Taking into consideration that the Republic of Bulgaria will be one of the peripheral countries and also the external border of the European Union in 2007, this programme concentrates on eliminating the bottlenecks on the Danube River, completing the priority roads and railways for absorbing the traffic flows, improving the quality of the main road and railway arteries, promoting the combined transport and transport by sea and inland waterway, and developing high-quality multimodal passenger transport in the capital City. 8.1.19 With an interoperable trans-European transport network gradually being completed and traffic growth expected to rise, this programme is looking forward to the better integration of the national network with those of the neighbouring countries and the EU.

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8.1.20 In order to achieve its objectives, as stated, the Ministry of Transport is in the process of preparing a draft document titled “Integrated Maritime EU Policy” which will thereafter be the “Blue Book” of Bulgarian maritime policy in the future. The first draft of the document is expected to be ready by March, 2009. 8.1.21 However, at the time of the audit, it was observed that the MoT does not have such a strategy as stipulated in part I, paragraph 3, of the Code for the following:

.1 continuous review and verification of the effectiveness of the State in respect of meeting its international maritime obligation;

.2 adherence to international maritime recommendations; .3 achievement, maintenance and improvement of overall organizational performance

and capability; and .4 implementation and enforcement of relevant mandatory IMO instruments.

8.1.22 Hydrographic services are provided by the Bulgarian Navy, Aids to Navigation are provided by the Bulgarian Navy and the Port Infrastructure Company. Weather information is provided by the Meteorogical department of Bulgaria and transmitted through Varna Radio. 8.1.23 The maritime administration of the Republic of Bulgaria was stated in the Pre-Audit Questionnaire to be the Bulgarian Maritime Administration (BMA). During the process, however, it became apparent that various other agencies are involved. 8.1.24 Throughout the audit, officers of the BMA provided briefs to depict relationships with other entities and BMA who share certain mandatory IMO instrument responsibilities. The audit team could not identify appropriate links between BMA on the one hand and the Ministry of Defence, the Ministry of Environment and Waters, the Ministry of Economic Affairs, the Ministry of Interior, and Regional Governors on the other. 8.1.25 Some of the entities mentioned above have joint responsibilities at the interagency level in relation to the mandatory IMO instruments. 8.1.26 There was no objective evidence to establish that BMA, as the implementing agency, does have explicit strategies for achievement, maintenance and improvement of overall organizational performance and capability. 8.1.27 An overarching mechanism involving all the entities could not be determined, which would periodically review the effectiveness of implementing the mandatory IMO instruments, establish overall organizational performance and develop any improvements needed as set out in paragraphs 3.3 and 3.4 of the Code. 8.1.28 Finding Observation

.1 It was established that the State has no strategy for meeting its overall obligations and responsibilities contained in the mandatory IMO instruments to which it is a Party.

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This was evidenced by the lack of documentation setting out the strategy; absence of continuous review and verification of the effectiveness of the State in respect of its international obligations; and the overall organizational performance and capability had not been assessed (Code, part 1, paragraph 3). See Form A-OB-01

Corrective Action

To achieve full compliance, main and enhance the State’s ability to fully meet its obligations under the mandatory IMO instruments, planned corrective action includes:

.1 Drafting and implementing a maritime safety and marine pollution prevention strategy based on the mandatory IMO instruments to which the Republic of Bulgaria is Party. The Executive Agency (BMA) will draft and submit for approval to the Interdepartmental Coordination Council (ICC), to be established, a strategy for achieving of a high level of safety of its ships, as well as criteria for assessment of fulfillment of the obligations under the mandatory IMO instruments. BMA will also draft and submit to the Council of Ministers a report on the measures necessary for the provision of BMA with adequate administrative capacity, the attraction of highly qualified and experienced professionals, and improvement of their remuneration. The deadline for the implementation of this action is 1 May 2010.

.2 A mechanism will be developed through which the Ministry of Transport

will monitor and evaluate BMA activity related to the fulfillment of the obligations under the mandatory IMO instruments. BMA will submit an annual report to the Minister of Transport on its assessment of maritime safety and protection of the marine environment activities based on approved criteria for their achievement. The report will be drafted in accordance with the form to be approved by the Minister of Transport, and accompanied by proposal for corrective measures. The report will be submitted not later than the 1st of March each year. The deadline for approval of the form of the report is 1 December 2010.

.3 An Interdepartmental Coordination Council (ICC) dealing with maritime

safety and marine pollution prevention from ships will be established by a decree of the Council of Ministers. The ICC, which will report to the Minister of Transport, will comprised deputy ministers of the ministries involved and will carry out consultations, coordination and cooperation between the legal entities and natural persons engaged in the implementation of mandatory IMO instruments. The ICC will be tasked to approve the strategy for maritime safety and marine environment protection; monitor and coordinate the activities of the institutions involved in fulfilling the obligations under the respective mandatory IMO instruments. The ICC will draft mandatory guidelines for the respective institutions, based on the assessment of maritime safety and marine environment protection activities aiming at improving of the performance of these institutions. It will also draft and enforce a mechanism for incorporation into national legislation of all amendments to the

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applicable mandatory IMO instruments to which Bulgaria is Party. The deadline for the implementation of this action is 1 October 2009.

Legislation 8.1.29 The following procedure is followed by the Member State for formal adoption of an international instrument:

.1 the competent minister or ministers for the enforcement and implementation of the international instrument concerned prepares a set of documents to be considered by the Council of Ministers;

.2 the set of documents is sent to all members of the Council for their approval;

.3 the approved set is submitted for consideration by the Council of Ministers;

.4 the Council of Ministers approves the international instrument and issues a decision thereto. The decision further contains an offer to the National Assembly to approve and ratify the instrument;

.5 the proposal is considered by different commissions of the National Assembly;

.6 the proposal is considered in plenary and the National Assembly accepts a law on the ratification of the instrument;

.7 the law on ratification is promulgated in the State Gazette; and

.8 the Minister of Foreign Affairs notifies the international organization under which auspice the instrument is accepted.

8.1.30 Within 14 days from the date of entry into force of the instrument for the Republic of Bulgaria, the related legislation has to translated in Bulgarian and promulgated in the State Gazette. With this act the international instrument becomes an integral part of the Bulgarian national legislation, which has primacy over any conflicting provision of the domestic legislation and is directly applied.

8.1.31 In order to harmonize the existing national legislation with the requirements of the newly ratified instrument, changes in the existing legal acts, as well as the drafting of new ones might be needed. In both cases the proposal comes from the competent minister or ministers. Depending on the type of the act which has to be amended or drafted, and whether it is an act of the primary or secondary legislation, there exist two different procedures. The procedure for acceptance of amendments in an act or acceptance of a brand new act of the primary legislation, i.e. law or code, follows the same steps as described above with regard to the procedure on the accession to an international instrument.

8.1.32 The procedure for acceptance of an act of the secondary legislation is much simpler, flexible and less time-consuming. The most popular instruments of the secondary legislation are the ordinances of the competent minister or ministers and in certain cases – ordinances of the Council of Ministers. The ordinances of the competent minister or ministers after being drafted are signed by this minister or ministers and promulgated in the Sate Gazette. The ordinances of the Council of Ministers, after being drafted are submitted to the Council of Ministers for approval. The Council of Ministers takes a decision for approval of the ordinance and same is promulgated in the State Gazette.

8.1.33 The process of preparation and adoption of legislative acts is regulated by the Law on International Treaties and the Law on Legislative Acts of the Republic of Bulgaria

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8.1.34 Based on the audit samples, it was observed that the complex regulatory process could delay the timely incorporation of convention amendments, including tacit amendments, into the national law where necessary. During the process of the audit, no systematic approach was identified for promulgating various amendments to mandatory IMO instruments (SOLAS, MARPOL, LL) and various Codes (LSA, FSS, etc.). Even though the legislative and regulatory core process was considered comprehensive, it remained difficult to follow the methodology for incorporating certain regulations and amendments in the spectrum of Bulgarian laws/regulations. 8.1.35 The legal system within Bulgaria was stated to be able to assure enforcement provisions by the general authorizations given to the entities and the general requirement for ships to comply with conventions without the need for specific and detailed legislation. In this respect, the need to implement amendments to mandatory IMO instruments through the legal system consisting of the ordinances was only necessary in some cases. During the audit it was not possible to establish if this policy, from a legislative point of view, assures timely implementation of amendments, including tacit amendments. 8.1.36 For maritime safety, the main legislation is the Merchant Shipping Code. The code predates the 1974 SOLAS Convention, which the Republic of Bulgaria acceded to in 1983 and promulgated in State Gazette in 2005, as well as MARPOL Convention acceded to in 1984 and promulgated in State Gazette in 2005. It was not evident during the audit that the Merchant Shipping Code had been revised to transpose the SOLAS and MARPOL Conventions in its entirety into national legislation, although compliance with the SOLAS and MARPOL Conventions and some of its subsequent amendments were introduced through numerous and lower levels of legislation, such as Ordinances or Orders. As such, a consolidated text of SOLAS and MARPOL in Bulgarian language was not found in the legislations during the audit. This apparently also poses a problem with regard to amendments to SOLAS and MARPOL, and the auditors were unable to test the veracity of the amendment process, or whether enabling legislation/regulations have been properly issued no later than the entry into force date of the amendment concerned. 8.1.37 Finding Non-conformity

.1 There was no objective evidence that the State transposed and promulgated all amendments to mandatory IMO instruments into national legislation, which would give such amendments the force of law (SOLAS 1974, Article 1 and regulations III/3.10 (LSA Code), II-2/3.22 (FSS Code), II-1 /3-6.4; MARPOL 73/78, Article 1, Annex II, Chapter 2, regulation 6.1; COLREG amendments, resolution A.910(22)). See Form A-NC-01

Corrective Action The Executive Director of BMA will issue orders implementing all amendments to the annexes to mandatory IMO instruments, including mandatory codes, which are not promulgated in the State Gazette, no later than 1 June 2010. The ICC, to be established, will make a proposal for approval of mechanism for timely enforcement of all amendments to the mandatory IMO instruments, which enter into force for the Republic of Bulgaria, with planned completion date set for 1 January 2011. A report on behalf of the Minister of Transport to the Council of Ministers on the provision of administrative

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capacity and financial resources for activities related to the translation and promulgation of amendments to mandatory IMO instruments will be drafted and completed by 30 September 2009.

Records and improvement 8.1.38 The Administration has established a documented procedure, as set out in their quality management system, defining the controls needed for the identification, storage, protection, retrieval, retention time and disposal of records. However, during the audit it was established that, on several occasions, the records were not readily identifiable or retrievable. 8.1.39 During the audit it was observed that there were no updated training and qualification records for a number of flag State surveyors and port State control officers’ personnel files at the Head Office. 8.1.40 Findings Non-Conformity

.1 It was established that the State did not always report to IMO as required by several mandatory instruments (SOLAS regulations I/6(b), I/19 (d), I/21(b) and IV/5.2; STCW 78, article X(3); MARPOL Article III, Annex I regulation 6.3.2 and Annex II regulation 8.2.4). See Form A-NC-02

Corrective Action The Directorate for Aircraft, Maritime and Railway Accident Investigation will submit investigation report of any serious and very serious accident at sea to the IMO, not later than two months after the publication of the official report. BMA shall submit to the IMO information on the detained foreign flagged ships in the Bulgarian ports under the PSC regime and amend accordingly the existing quality procedure, in order to include the requirements for submission of information on the detained foreign flagged ships to IMO. BMA will submit to IMO the missing information on ROs not later than 1 October 2009 and the missing information on the recent changes to the shore-based facilities in the Maritime Mobile Service and Maritime Mobile-Satellite Service established for sea areas, which the State has designated off its coasts, not later than 1 August 2009.

Observation

.2 During the audit it was established that on several occasions the records were not readily identifiable and retrievable (Code, part 1, paragraph 10). See Form A-OB-02

Corrective Action All employees of the relevant departments of regional directorates shall be required to submit copies of all certificates obtained from training courses not later than 31 March 2009. Personnel files of BMA employees will be checked and updated as necessary. The deadline for the implementation of this action is 1 October 2009. Ship files related to surveys performed, which are maintained in regional directorates, will be checked to verify and ensure the availability of all required documents. The deadline for the

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implementation of this action is 1 December 2009. All employees in the survey departments of regional directorates will become familiar with ships’ surveys findings and the maintenance of related records through a special refresher course. The deadline for the implementation of this action is 1 May 2009.

8.2 Flag State activities 8.2.1 Within BMA, plan approval and oversight of ROs is dealt with by the Head Office and the regional offices at Varna and Burgas. Oversight of ship inspections and surveys, search & rescue (SAR) and pollution prevention are dealt with by the regional Directorates. It was evident during the audit that the Head Office of BMA in Sofia is unable to have effective oversight programs due to lack of adequate number of qualified personal. Implementation 8.2.2 The mandatory IMO instruments were sampled as to their implementation as follows:

.1 Load Lines Convention;

.2 SOLAS Convention;

.3 MARPOL Convention;

.4 Tonnage Convention;

.5 STCW Convention; and

.6 COLREG Convention.

8.2.3 BMA is responsible for the STCW Convention. There are five (5) maritime institutions in Bulgaria providing courses leading to deck officers and engineers competencies for the merchant marine. The training colleges conduct education, training and examination (including oral examinations) by themselves; but under the supervision of BMA. Issuance of their certificates of competency is done by the regional Directorates. Bulgaria has submitted their communication of information on these to IMO in accordance with regulation of I/8 of STCW Convention on 7 March 2005. 8.2.4 The BMA does not issue dispensations for merchant mariner documents or licenses. Instead of that, BMA issues exemptions to the Minimum Safe Manning Document, when required. 8.2.5 BMA port State control (PSC) officers have instructions to check and verify crew STCW competencies during PSC inspections. 8.2.6 Requirements for rest hours are transposed into national Ordinance no. 6. There is a requirement for documenting rest hours as recommended by the STCW Convention, part B, VIII/1. 8.2.7 Bulgaria endorses other States’ certificates for Masters issued by other EU countries. It is a national requirement that only Bulgarian citizens or citizens from an EU country can work on Bulgarian flagged ships as Masters. However, it was noted that one of the ship under the Bulgarian flag have employed a Master from non EU country and so far BMA is yet to take appropriate actions. 8.2.8 In compliance with the provisions of Ordinance No. 54 of the Minister of Transport and Communications on the “Technical Requirements and Conformity Assessment of the Equipment

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of Sea-going Ships” on ships flying Bulgarian flag, only type approved equipment may be placed or installed. It is required that replacement of an existing equipment, which is of non-approved type to be done with type approved equipment only. Furthermore, the ordinance specifies the technical requirements of the equipment of sea-going ships; the procedures for assessing and certifying conformity to technical requirements; the inspections of sea-going ships for the purpose of assessing the conformity of their equipment to the relevant technical requirements; the conditions and order of notifying bodies to perform conformity assessment; etc. The BMA recognize equipment approved by the countries in the European Union and other maritime administrations. Presently BMA has not authorized any organization to perform equipment type approval. 8.2.9 One particular area, which is of interest and is also significant in the implementation of mandatory requirements, is paragraph 16.5 of the Code – “to the satisfaction of the Administration”. The audit team has verified during the audit that the Administration interprets this phase on a case-by-case basis. However, the BMA was not able to provide to the audit team relevant applicable guidance for any mandatory IMO Instrument. 8.2.10 It was established that guidance or interpretation concerning those requirements that are to the satisfaction, discretion or opinion of the Administration, are not provided. Survey and certification 8.2.11 BMA carries out inspections of ships in accordance with the procedures set out in resolution А.948(23) of the IMO Assembly regarding Survey Guidelines under the Harmonized System of Survey and Certification. The BMA carries out the following inspections and surveys:

.1 surveys for the purpose of issuing ship’s certificates, extension of validity and verification of the validity of ship’s certificates that are required by the national law and the international treaties to which the Republic of Bulgaria is a Party;

.2 audits of sea-going ships flying the Bulgarian flag and of companies, for the

purpose of issuing ship’s documents or verification of validity of ship’s documents required under the ISM Code;

.3 surveys for the purpose of establishing the compliance with the standards for safety,

safe operation and environment pollution prevention; and

.4 inspections and surveys regarding safe operation of ro-ro ferries and high-speed passenger craft operating in the sea spaces between two Bulgarian ports and between a Bulgarian and foreign ports.

8.2.12 Furthermore, these surveys and inspections carried out by BMA are initial, annual, intermediate, renewal, outside bottom survey and occasional surveys

8.2.13 In exercising control over Bulgarian ships and ship owners, the BMA’s inspectors are following written procedures. These procedures provide for prohibiting ships entitled to fly Bulgarian flag from sailing in case of non-compliance with the requirements of international rules and standards. When it is determined during a survey that the condition of the ship, its equipment or manning does not correspond substantially with the particulars of the certificate or is such that

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the ship is not fit to proceed to sea without danger to the ship, or persons on board or the environment, the surveyor immediately imposes corrective action and ensures that they are implemented, including ship repair, if necessary. In case no corrective action has been implemented, the inspector immediately notifies the Harbour Master of the port of registry and the relevant ship’s certificate is withdrawn.

8.2.14 The whole process of implementation of the enforcement provisions of the Code for the implementation of mandatory IMO instruments is regulated by the national law. The basic instrument which sets out the requirements for compliance by Bulgarian ships and ship owners with the provisions of both the international conventions which the Republic of Bulgaria is a party to and the domestic law relating to the safety of life and property at sea and prevention of marine environment pollution is Ordinance No. 11/26 April 2004 on the Inspection of Ships and Ship Owners, issued by the Minister of Transport and Communications, published in State Gazette issue No.52/18 June 2004. Two orders 82 and 89 of the Executive Director of the BMA also set out rules regulating the process of flag State control. The execution of this process is detailed in the BMA’s quality procedures (QP), which are part of the Quality Management System of the Agency. (QP 05-03 - Carrying out surveys of conventional vessels and issuing documents to the vessels, QP 05-07 Conduct of Audits under ISM Code and QP 09-01 Control over protection of the marine environment from pollution 8.2.15 M/V HEMUS, a bulk carrier was constructed and delivered under BV Class. It is a requirement that before launching newly built ships, bottom inspection including propellers and rudders should be inspected by BMA. Audit team was unable to establish that such inspection has been carried out due to unavailability of relevant inspection reports. Furthermore, it was evidenced that the ship’s structure access manual has been approved by BMA; but relevant records of inspection were not available. According to records available, the engine room noise level has been measured but relevant measurement records were not available. ISM Auditing 8.2.16 ISM auditing is done by BMA officials only and not delegated to any of the approved ROs. There is a well documented process defined in the BMA’s quality manual. 8.2.17 The Company’s Audit Report shall be prepared in the format prescribed in QF 050709, in two copies – one to be sent officially to the Company, the other to be kept in the Company’s record at the DMA in Varna or Bourgas. The Audit report of a ship shall be prepared in the format prescribed in QF 050710 in three copies – one to be submitted to the ship’s Master for the ship’s records, the second one to be sent officially to the Company, and the third one to be kept in the ship’s record at the DMA in Varna or Bourgas. 8.2.18 Where, during an audit of a Company or a ship, there has been found and documented a major non-conformity that can not be rectified within the time of the audit, the lead auditor shall not verify/issue the relevant document and shall withdraw the latter. In cases of an audit of a Company, the lead auditor shall notify the Director for the relevant DMA to undertake measures to make the SMC, issued on the grounds of the DOC of the Company, null and void or to withdraw same. The Director of the relevant DMA shall require in written the Company to return all SMC issued to its ships.

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8.2.19 When BMA, upon authorization by a foreign Administration, carries out an audit, the document/s shall not be withdrawn and the Audit Report shall be sent immediately to the authorizing Administration. 8.2.20 When BMA has authorized a foreign Administration or a recognized organization to carry out the audit, the DOC/SMC shall be withdrawn on instructions of BMA.

8.2.21 During the audit it was observed that ISM auditors from Varna Office conducted an ISM audit onboard m/v MILIN KAMAK on 14 August 2008 for the issuance of the SMC. The relevant audit check list, as required by their quality procedure, was not available at Varna Office although the SMC had been issued.

8.2.22 Until 2004, when Ordinance No. 4 of 9 January 2004 on Recognition of Organizations for Surveys of Ships and Shipowners was issued by the Minister of Transport and Communications and its entry into force, BMA did not delegate any statutory functions and certification services for ships flying Bulgarian flag to classification societies. During that period, all types of surveys and certifications of ships, flying Bulgarian flag, were carried out by BMA’s employees. As an exception, only in cases when BMA’s staff was not able to conduct a survey in a foreign port, the Administration of the State of the port of call was authorized to act on the behalf of the BMA, provided that the State was party to the relevant IMO instruments. 8.2.23 The internal process for monitoring the validity of the Statutory Certificates issued solely by the Administration for ships flying the Bulgarian flag engaged on international voyages is insufficient. It could not be demonstrated how the Administration verifies the expiry date of these certificates or due dates for annual/periodical surveys or the timely submission of corrective actions for identified non-conformities in order to ensure that Bulgarian flag vessels, while abroad, will not sail with expired or invalid certificates. 8.2.24 There is no written specific internal procedure or clear instructions concerning the issuance of exemption from the requirements of the mandatory IMO instruments. Recognized Organizations 8.2.25 Since 2004, on the grounds of the 2002 amendments to the Merchant Shipping Code (Art. 73a) and Ordinance No. 4 on Recognition of Organizations for Surveys of Ships and Shipowners, BMA started a procedure for delegation of statutory functions and certification services for ships flying Bulgarian flag to classification societies. Ordinance No. 4 , which is the basic legal act, regulating the delegation of authority to classification societies, is based on IMO Assembly resolution A.739(18) and EU Directive 94/57 of 22 November 1994 on the general rules and standards for ship inspections and recognized organizations, and the related activities of maritime administrations (with all amendments thereof). The Ordinance is promulgated in the State Gazette 7 of 27 January 2004 and since its entry into force the following ROs have been authorized to act on the behalf of the BMA:

Bulgarian Register of Shipping (BRS) Germanischer Lloyd (GL) Lloyd's Register of Shipping (LR) Bureau Veritas (BV) Russian Maritime Register of Shipping (RMRS) Krassio Ltd – Nominated Radio Surveyor

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8.2.26 The Administration has not notified the IMO of the specific responsibilities and conditions of authority delegated to some of its ROs. Bulgaria forwarded the agreement with the Bulgarian Register of Shipping to IMO on the 30th June 2005. The agreement with Lloyd’s Register and Germanischer Lloyds was forwarded to IMO on the 3rd June 2006 .There were no relevant evidence for three of its ROs, namely Bureau Veritas, Russian Maritime register of Shipping and Krassio Ltd. 8.2.27 Authorizations of ROs are documented in individual agreements with annexes. The annexes provide details governing the delegation of statutory functions and certification services for ships registered in the Republic of Bulgaria with all above classification societies except with Bureau Veritas and Nippon Kaiji Kayoki. Detailed descriptions of the functions delegated and a supplement gives any additional requirements in excess of the mandatory IMO instruments are included in these agreements. However, it was noted that the agreement with Krassio Limited is not in line with the relevant IMO resolutions. The Administration has no records of compliance, for one of its recognized organizations (ROs), namely Krassio Ltd (radio surveyors), with the applicable provision of Appendix 1 to Annex 1 of resolution A.739(18) and the applicable specifications/modules contained in the Annex to resolution A.789(19). Therefore, it could not be established if the Administration had, before authorizing the said organization, had carried out a proper assessment. 8.2.28 The written agreements between the Administration and the recognized organizations do not include the minimum elements set out in the Appendix 2 of the IMO resolution A.739(18). Several functions (i.e., approval of material and equipment as required by the mandatory IMO instruments) which are carried out by ROs are not included in the relevant agreements. 8.2.29 Furthermore, Orders are sent to all ROs when necessary. These Orders are written in Bulgarian language and there is a possibility of different interpretation by individual ROs when translating these in another language. 8.2.30 It was observed that Krassio Limited is a supplier, service agent and a repairer of communication and navigational equipment in Bulgaria and authorized to conduct Radio Surveys on behalf of the BMA and endorse its certificate on their behalf. This is not inline with the relevant IMO resolution, since there is a conflict of interest. 8.2.31 For the monitoring and oversight of ROs, BMA maintains a biennial audit scheme at Headquarters. Normally the audits are carried by regional DMAs surveyors. The audit team could not establish that biennial audits of several recognized organizations (LR, GL, RS, BV) had been carried out by the Administration since the date of their recognition. 8.2.32 Furthermore, during the audit there was a lack of evidence that the detentions of Bulgarian flag ships by foreign port State control authorities all over the world are properly and timely investigated with reference to class related deficiencies. Investigation for the following sample cases could not be provided:

.1 GENERAL VLADIMIR ZAIMOV – IMO No.7227970, detained at Castellon de la Plana / Spain on 02.11.2006; and

.2 BULGARIA – IMO No.7740831, detained at Hamburg/Germany on 08.02.2006

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8.2.33 M/V «CARINA» - IMO No. 7929619 - GL has imposed statutory condition valid for one month concerning the servicing of immersion suits with inflatable lifejackets without the permission of the Administration. The Administration has failed to identify this and to carry out a proper investigation. 8.2.34 Requests for exemptions or equivalences are to be notified by the relevant RO to BMA, who will evaluate and decide upon the outcome of the application. 8.2.35 The Administration has issued instructions through the Memorandum of Agreement to the ROs that if ships flying its flag are found to be seriously deficient then these must be reported to BMA for further action. 8.2.36 Surveys required under the conventions fully delegated to the ROs except ISM, Tonnage and ISPS certification. 8.2.37 The Cargo Securing Manual and the Ships Structure Access Manual are approved by the BMA. It was noted that the Ship Structure Manual on a newly constructed bulk carrier has been approved without an onboard inspection by BMA. Requirement of Ship Structure Manual has been omitted from the Bulgarian translation of SOLAS although later amendments to SOLAS are included. Enforcement 8.2.38 The Administration has implemented various enforcement measures through national legislation, including administrative penalties and suspension of licenses. 8.2.39 BMA, following the detention of KILMORE (RO_RO VESSEL) in France on 3 September 2008, carried out flag State inspection and additional ISM audit within few days after the detention. The immediate actions taken for this ship shows the commitment of BMA. However the ship was detained again on the 12th November 2008 by a PSC authority under the Paris MOU and various questions remain unanswered.

Training of surveyors, inspectors and PSCOs 8.2.40 Flag State surveyors are designated as inspectors within Bulgaria. Some inspectors are also designated PSCO’s and carry out port State control duties. 8.2.41 The recruitment criteria as well as the qualification and professional requirements for surveyors and other staff engaged in flag duties are detailed in Ordinance No. 11/26 April 2004 on the Inspection of Ships and Ship Owners and Ordinance No.12 on Port State Control Inspections. Surveys are conducted by BMA’s employees relating to survey and certification of ships, flag State control and Port State Control.

8.2.42 The BMA’s surveyors, who are in charge with the flag State control implementation, are required to meet the following requirements:

.1 Higher education in Navigation, Marine Engineering, Naval Architecture or Ships Radio-electronics and Communications;

.2 at least 5 years of sea-going service in a capacity on operational or management level, or at least 5 years of service in the relevant specialty;

.3 fluency in the English language - written and oral, and as to ships on the Inland

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waterways of Europe – German or English language; and

.4 have completed 6-month apprenticeship under the supervision of surveyor with at least two years of experience in carrying out ships inspections and surveys.

8.2.43 Persons working on board ships flying the Bulgarian flag or employed under contract of employment or freelance contract with ROs under Ordinance No. 4 / 2004 on the Recognition of Organizations to Carry out Inspections of Ships and Ship Owners, cannot be nominated as surveyors for BMA. Furthermore, no surveyor with commercial interests in shipping may be allowed to survey the latter. While carrying out surveys, inspections and control, the duly authorized BMA’s staff must produce identity cards in accordance with Article 370, para.3 and 4 of the Merchant Shipping Code and Ordinance No.11.

8.2.44 The recruitment criteria as well as the qualification and professional requirements for inspectors, engaged in port State control, are laid down in Ordinance No. 12 on port State control.

8.2.45 The ship inspections are performed by port State control (PSC) inspectors from the respective Directorates in Varna and Bourgas. When performing the inspections, the PSC inspectors may involve other experts at their own discretion. It is required that all inspectors are to be seafarers, qualified for the purposes of carrying inspections, who:

.1 hold a master’s degree in navigation, or marine engineering, or shipbuilding, or radio electronics and communications;

.2 have at least five years of seagoing service in an operational or management position;

.3 have at least one-year experience as surveyor, performing surveys and certification of ships flying the Bulgarian flag;

.4 have written and spoken knowledge of the English language for the purpose of documenting inspection results and communicating with the Master and crew of the inspected ship; and

.5 have sufficient knowledge and experience for performing inspection and certification of ships in accordance with the national legislation and in compliance with the international agreements to which the Republic of Bulgaria is a party.

8.2.46 Another option is: a person may also be appointed inspector if s/he meets certain requirements laid down in the national legislation and has completed a training course for port State control inspectors and has an experience as flag State surveyor of at least 2 years.

8.2.47 Since the date of Bulgaria’s joining the EU, PSC inspectors are persons, who have at least one-year experience as inspector, performing inspection and certification of compliance with the international agreements, to which the Republic of Bulgaria is a party, and who holds:

.1 a certificate of competency as per Reg. II/2 or III/3 of the STCW Convention and have at least 5 years sailing experience in an operational or managerial position on the deck or in the engine department, or

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.2 a diploma in engineering – naval architecture, radio-electronics, or other specialty, connected with the navigation and who have at least five years of experience in this specialty.

A person may also be appointed inspector if s/h has:

.1 a diploma for a respective higher education, and

.2 completed a training course for ship’s safety inspectors in a training institution, approved by EAMA, and

.3 at least two years of experience as inspector, performing inspection and certification of compliance with the international agreements, to which the Republic of Bulgaria is a party;

8.2.48 Persons, who have commercial interest in the port or the inspected ship as well as employees or contractors of organizations recognized in accordance with the provisions of the Ordinance stipulated in Art.73, par. 4 of the Merchant Shipping Code cannot be appointed inspectors.

8.2.49 Port State Control inspectors are required to identify themselves by means of an identity card, issued in accordance with the Merchant Shipping Code, which certifies that the inspector is authorized to perform the inspections under Ordinance No.12. 8.2.50 It was observed that BMA is not always recruiting properly qualified personnel than stated above to function as PSCOs and/or flag State surveyors. 8.2.51 PSCO’s are required to maintain their levels of competence through periodic assessments but there was no objective evidence of evaluation. MARPOL Convention 8.2.52 Republic of Bulgaria is a party to all Annexes and Protocols to the MARPOL Convention.

8.2.53 The control on the quality of the marine fuel on board of the ships in Bulgarian territorial waters and inland waterways is maintained by duty officers (inspectors) appointed by the Executive Director of BMA. The Duty officers (inspectors) at regional offices maintaining the control will:

.1 check the ship’s Log Books, in which it is obligatory to record all

operations concerning the bunkering; .2 take samples from the marine fuel during bunkering from the supplier or

from ship’s tanks in presence of the Master and/or the ship’s agent; .3 require a Declaration for compliance (Certificate of quality) and/or Bunker

Delivery Note for the bunker delivered; and .4 submit the samples taken to the duty officers from the Directorate “Control

of the Quality of the Liquid Fuels” for testing.

8.2.54 After the fuel is tested the Directorate “Control of the Quality of the Liquid Fuels” sends to the BMA the Test Report from an accredited laboratory and a Protocol for Compliance of marine fuel is undertaking by BMA in accordance with the existing legislation.

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8.2.55 Officers on duty from BMA will order termination of the bunkering in case of lack of Declaration for Compliance (Certificate for the Quality) and Bunker Delivery Note or in cases when the Declaration for Compliance and Bunker Delivery Note are not in compliance with the requirements 8.2.56 The Executive Director of BMA approves procedures for testing and adoption of technologies for reducing of the emissions from ships based on a project for such testing in accordance with Annex VI of MARPOL, IMO recommendations and Regulation EC 2099/2002 of the European Parliament and the Counsel from 5 Nov 2002. During the testing and after the adoption of the technologies for reducing of the emissions from ships, the Executive Director of BMA can permit the use of marine fuels, which are not in compliance with this Regulation, under condition that all procedures are fulfilled. 8.2.57 The requirement for the sulfur content in light marine fuels applies to all ships in Bulgarian internal waterways, as well as to ships at anchorage and in Bulgarian ports. 8.2.58 During the audit it was observed that the officials dealing with MARPOL at the Head Office are not very familiar with the requirements. 8.2.59 The audit team observed that the Republic of Bulgaria does not comply with the provisions

of MARPOL Annex VI regulation 18.7, including maintaining a list of approved bunker suppliers as required. However, it was noted that this is not within the responsibility of BMA. The audit team was unable to establish which organization is the responsible.

Load Line Convention 8.2.60 Republic of Bulgaria is a party to the International Convention on Load Lines and to the

1998 Protocol.

The implementation of the Load Line Convention is carried out by the regional Directorates at Varna and Bourgas.

The Load Line calculations, marking, marking, survey and certification for Bulgarian flag vessels have been delegated to the Recognised Organizations by the Republic of Bulgaria. Subsequent changes to the load line assignments should be notified to BMA by ROs immediately

Exemptions from the requirements of the Load Line Conventions are granted only by the BMA, however, no exemption has been issued so far.

Tonnage Convention

8.2.61 Republic of Bulgaria is a party to the International Convention on Tonnage Measurement of Ships. The regional Directorates at Varna and Bourgas are responsible for the implementation of the Tonnage Convention. Tonnage certificates in accordance to the ITC 69 are issued by the said Directorates based mainly on the calculations carried out by the classification societies of the vessels although this has not been fully delegated to ROs. Oversight of RO tonnage calculations is said to be conducted by the regional offices but there were no records available to confirm such oversight program. In cases where the

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tonnage certificate is issued by a previous administration, the RO is requested to conduct a review of the previous calculations.

8.2.62 Tonnage measurement and calculations for small vessels are carried out by qualified

personnel in the Regional Directorates. It was evident that such calculations not verified or evaluated by another qualified person. Evaluation of these calculations should be carried out by a second person prior to issuing Tonnage Certificates to Bulgarian flag ships.

8.2.63 Findings Non-Conformities

.1 It was established that the Administration does not satisfactorily comply with the requirements of the mandatory IMO instruments concerning the authorization of organizations to act on its behalf (SOLAS 74, regulations I/6 and XI-1/1; MARPOL, Annex I - regulation 6; Annex II - regulation 8; Annex IV - regulation 4; Annex VI - regulation 5; LL 66, Article 13 and resolutions A.739(18) and A.789(18)). See Form A-NC-03

Corrective Action

BMA will analyze all agreements concluded with ROs. Where necessary, the Administration will amend existing agreements to bring them in conformity with the mandatory requirements, or in the absence of an agreement, one will be concluded with the RO concerned. The deadline for the implementation of this action is 1 October 2009.

Observations

.2 It was established that guidance or interpretation concerning those requirements found in several mandatory IMO instruments that are to the satisfaction, discretion or opinion of the Administration are not provided. There is no written procedure or clear instructions concerning the evaluation and approval of requests submitted for exemptions from the requirements of SOLAS, as well as the issuance of relevant exemption certificates (Code, part 2, paragraphs 16.1 and 16.5). See Form A-OB-03 Corrective Action A quality procedure will be drafted on interpretation and implementation of the provisions of all relevant mandatory IMO instruments, which grants discretion to the Administration to decide on approvals and exemptions from the application of certain requirements. The deadline for the implementation of this action is 1 September 2009.

.3 The oversight programme established by the Administration for monitoring its

ROs is not always properly implemented (Code, part 2, paragraph 20). See Form A-OB-04

Corrective Action

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The approved schedule for audits of ROs, every two years and meetings with them shall be strictly observed. The organization of BMA’s activity emanating from the mandatory IMO instruments and the maintained documentation thereto will be analyzed. A mechanism for optimization will be drafted, aiming at systematization of the maintained documentation, which must be easily and quickly accessible and retrievable. The deadline for the implementation of this action is 1 October 2009.

.4 It was established that measures to secure observance of international rules and

standards by ships entitled to fly the flag of the State in order to ensure compliance by the Administration with its international obligations could not be demonstrated (Code, part 2, paragraphs 21.1 and 21.2). See Form A-OB-05

Corrective Action

The procedure dealing with carrying out surveys of ships and issuing documents to the ships will be amended not later than 1 June 2009, in order to include the control over the validity of the certificates issued by BMA. When the new register of ships is implemented, a module, which monitors and informs of the expiry of ships’ certificates will be activated. The deadline for the implementation of this action is 1 June 2010.

.5 It was established that the State does not always ensure that qualified technical

personnel (surveyors/inspectors) are recruited and it does not have a systematic and documented training programme for new entrants, as well as updating of the knowledge of existing technical personnel (Code, part 2, paragraphs 28, 35, 36.5, 36.7; part 4, paragraph 56). See Form A-OB-06

Corrective Action

Analysis of the training of inspectors from relevant departments of the regional directorates and evaluation of the need for additional training will be included in the BMA’s annual activity report. The identified areas of additional training will be laid down in the Annual BMA’s Plan for Staff Training in accordance with the existing procedure. The deadline for the implementation of this action is 31 January 2010. Workshops on amendments to mandatory IMO instruments will be planned and organized annually, for inspectors tasked with PSC inspections and ships’ surveys and certification.

8.3 Investigation of marine accidents 8.3.1 The investigation and analysis of marine casualties are regulated in the Bulgarian national legislation by Ordinance No. 23 / 17.11.2005 on investigation of casualties in the sea spaces and the inland waterways, issued by the Minister of Transport, promulgated in State Gazette issue 95/ 29.11.2005., which entered into force on 01.01.2006. The ordinance fully transposed the requirements of the IMO Code for the Investigation of Marine Casualties and Incidents, adopted by resolution A.884(21). 8.3.2 The Statutory Regulations on the Ministry of Transport provides as follows:

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Section III “c” Specialised unit for investigation of accidents in the maritime spaces and inner waterways (New – SG, issue 90/2005, in force as of 01.11.2005, the title amended – SG, issued 96/2005, in 01.12.2005). Art. 30d. (New – SG, issue 90/2005, in force as of 01.11.2005, the title amended – SG, issued 96/2005, in 01.12.2005).

.1 The specialised unit for investigation of accidents in the maritime spaces and inner

water ways shall:

.1 maintain a system for reporting accidents occurring in the maritime spaces and inland waterways;

.2 conduct investigation of the accidents, under item 1 above;

.3 keep records on the investigations and information data base about the accidents under par.1 above;

.4 draft and circulate information bulletin on the accidents under item 1 above; and

.5 while investigating accidents under par.1 above, the unit shall analyse the actions of the physical persons and the legal entities in the field of shipping as well as the functioning of the objects and equipments, related to the specific accident.

.2 Upon completion of the investigation the head of the unit shall submit a report thereof to the Minister of Transport together with recommendations with regard to the measures for prevention of such accidents.

.3 The head of the unit shall submit to the Minister of Transport annual report on the

measures, undertaken by the recommendations’ addressees under par.2 above, and this report shall be published in the information bulletin.

8.3.3 The competent authority – a specialised unit within the Ministry of Transport for investigation of accidents occurring in the maritime spaces and inland waterways of the Republic of Bulgaria- carries out its tasks in conformity with the requirements of the international and national instruments in this field as described above. The investigations conducted by the unit, as provided for in the ordinance, are impartial and independent and same are not aiming at establishing guilt or responsibility and they do not obstruct any civil, administrative or punitive proceedings. The unit is directly subordinated to the Minister of Transport 8.3.4 In conformity with the legislation in force, while investigating accidents, the specialised unit analyses the actions of the physical persons and the legal entities in the field of shipping as well as the functioning of the objects and equipments, related to the specific accident. Upon completion of the investigation the head of the unit submits a report thereof to the Minister of Transport together with recommendations with regard to the measures for prevention of such accidents. Before the publication of the report, the latter is submitted to all parties concerned for comments and in case when these comments relate to safety issues, they are published together with the report. The recommendations’ addressees are obliged to fulfill without any delay all prescribed measures and to inform the head of the unit accordingly. If they fail to do so they must inform the head of the specialised unit about the reasons for non-fulfilment. 8.3.5 Council of Ministers has taken a decision on 28 July 2008 establishing a new integrated unit to investigate land, air and sea and inland transport accidents under the Minister of Transport.

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8.3.6 Maritime investigation division of the unit is to have 4 inspectors consisting of a state inspector and three (3) chief inspectors. At present only one newly recruited state inspector and one chief inspector are available to deal with all maritime accident investigation activities. Division is receiving daily information from the Emergency Response Centre on situation in ports and in territorial waters. 8.3.7 There have been two (2) maritime accidents during the year 2007:

• Collision m/v GEO MILEV vs m/v MSC ELENA (21.10.2007), • Fatal accident onboard m/v MARINE (03.08.2007)

8.3.8 In the first case the preliminary investigation report was delivered to the Minister of Transport on 30.11.2007, and the report on second accident was delivered on 31.08.2007. 8.3.9 The investigation division is still awaiting for the Minister’s acceptance to publish the reports and to communicate them to the IMO. 8.3.10 During the audit it could not be established by the audit team if lessons learned had been identified in order to prevent reoccurrence. 8.3.11 The following accidents took place during the current year:

• Sinking of Bulgarian m/v Vanessa on 03.01.2008 • Sinking of N. Korean m/v Tolstoy on 27.09.2008 within the Bulgarian waters.

Both accidents are still under investigation. 8.3.12 It was established during the audit that this division does not have sufficient qualified maritime investigation inspectors. 8.3.13 Furthermore, it was difficult to establish that there is a systematic procedure for carrying out activities related to maritime accident investigations. 8.3.14 During the audit there was no objective evidence to confirm that investigations carried out previously have been reported to the IMO as required. 8.3.15 Findings Observation

.1 During the audit it could not be established that lessons learned, following accident investigation, had been identified in order to prevent reoccurrence of such an accident and if the results of such investigations were made public (Code, part 2, paragraph 40). See Form A-OB-07

Corrective Action The Directorate for Aircraft, Maritime and Railway Accident Investigation will publish the reports from accidents investigated in Bulgarian and English languages on the

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official website of the Ministry of Transport, as provided for in the relevant. The report will be published ten days after a draft is completed.

Dangerous cargo 8.3.16 The competent Authority in respect dangerous cargo in Bulgaria is the BMA. However, it was noted that the full responsibility on transporting radio active materials (Class 7) cargo lies with the State’s nuclear power authority. There is a documented procedure within BMA in respect of approval, construction and testing of pressure vessels, approval of other packaging materials and procedure for road transport. The transport of procedure describes the agencies responsible for safety and security