THIRD REPORT
IMPLEMENTATION
OF THE GOVERNANCE PROGRAMME
OF THE GOVERNMENT
for improving the social status
of Bulgarian citizens,
the business environment
and for democratisation of governance
„The main tasks of the Bulgarian government are to improve business climate,
restore statehood and develop social policies. We will continue implementing growthdriving reforms. All conditions exist for the year 2014 to be the first year
of economic recovery“.
Plamen Oresharski,
Prime Minister
of the Republic of Bulgaria
On 29 May 2013 the National Assembly elected Plamen Oresharski as Prime Minister of the
Republic of Bulgaria. From day one the government began work on the important and urgent
measures for Bulgaria. The government supports all initiatives contributing to improvement of
the wellbeing of individuals and business.
The government's vision is focused on three groups of measures:
 The first group of measures reinforces social programmes and addresses youth
unemployment.
 The second group of measures aims to improve business environment and reduce
administrative burdens.
 The third group of measures undertaken by the government cover democratisation of
the governance process.
On 19 June 2013 the National Assembly adopted urgent stabilisation measures for improving
the social status of the Bulgarian citizens, the business environment and for governance
democratisation until the end of 2013. The measures aim at improvement of the social status of
the poorest Bulgarian households, handling the situation in the energy sector and preventing an
electricity price rise, improving business conditions, promoting the enterprise of pro-active
citizens, etc.
In early August 2013 the government of the Republic of Bulgaria supplemented its action plan
in the context of completing the present budget cycle and planning the new one. The action
plan includes measures to be completed by the end of 2013.
On 12 July 2013 the first report on the implementation of the Government Programme was
presented to the National Assembly, which was published on the website of the Council of
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Ministers as well. The 100 days of governance were reported. The third report contains
information about the implementation of the measures envisaged for the end of 2013.
Over the six months in office, the government of the Republic of Bulgaria managed to
change the overall socio-economic situation in the country. Socio-economic stability has
been restored and conditions for economic growth have been created. Reforms in all fields
have been launched.
A serious change occurred in the country's macroeconomic development as a result of the
financial, economic and social policies pursued by the new government. According to
estimates, the fiscal targets for budget deficit, fiscal reserves and public debt for 2013 were
fulfilled. Based on estimates, the budget deficit on the 2013 consolidated fiscal programme is
expected to account for about 1,9% of the projected GDP, and according to projections for
the year it should not exceed 2% of GDP. Other conditions being equal, a lower deficit also
means higher fiscal reserves, providing a buffer for minimising liquidity risks in the context of
forthcoming payments in the beginning of 2014.
Based on estimates, fiscal reserves at the end of 2013 amount to some BGN 4,7 billion, or
about BGN 200 million more than the amount envisaged in the State Budget of the Republic of
Bulgaria Act (SBRBA) for 2013 (not less than BGN 4,5 billion).
Despite the totally recovered amount of due VAT, the sizeable payments of obligations to
business and the funds provided for payments under the Structural and Cohesion Funds of the
European Union, the government managed to close the budgetary year with a reduction of
the planned deficit on the consolidated fiscal programme.
Thanks to this and the proposed measures, the revenues collected by the National
Revenue Agency (NRA) and the Customs Agency in the second half of 2013 mark an
increase by BGN 594 million compared with the same period of 2012. This is a clear
indication not only of the better work of the two agencies, but also of restored credibility of the
business in the Bulgarian government.
Although fiscal reserves halved (from BGN 8 billion to BGN 4 billion, and domestic debt
increased by over BGN 4 billion, from little over BGN 10 billion in mid-2009 to some BGN
14,5 billion at the end of Q1 2013), the envisaged statutory constraints for public debt have
been complied with. The public debt assumed in 2013 amounts BGN 2,9 billion or 96,5% of
the limit for the maximum new public debt under the Act amending and supplementing the
SBRBA for 2013 (BGN 3,0 billion). As of 31 December 2013 the public debt amounts to BGN
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14,1 billion or 96,7% of the stipulated limit for maximum public debt at the end of 2013 under
the Act amending and supplementing the SBRBA for 2013 (BGN 14,6 billion).
During the six months of governance the social focuses of the policies were reinforced,
payments by the state to companies accelerated, the centralised administrative power pressure
on business was discontinued. The institutional culture of communication was restored, drafted
were many improvements in the legal framework towards a more efficient competition, less
administrative burdens, clear and simplified rules, better budgetary revenue collection. Civil
councils were set up at public institutions.
Reported are fields in which the pace of implementation is still unsatisfactory: access of small
business to credit resources, administrative and health reforms, visible improvement of the
investment climate, fluctuations in handling the refugee wave.
The next year will be even harder for the work of the cabinet. The government of the Republic
of Bulgaria will use best efforts so that the burden remains within the cabinet, not allowing it to
fall on the back of Bulgarian citizens. It will strive to carry out the reforms in a manner that
affects people as minimum as possible.
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Legend:
Measures fulfilled by the government are marked with green are.
Measures in progress of implementation are marked with yellow are.
Measures facing difficulties in implementation are marked with red are
THE STATE AGAINST MONOPOLIES
Measure
Deadline
Anti-monopoly and anti-trust legislation and ensuring its
application
31.12.2013
Sector analyses of problem markets
30.11.2013
Amendment of the Competition Protection Act aiming to:


Strengthen and extend the administrative and functional
capacity of the Commission
31.12.2013
Change of the management structure of the Commission to
reinforce public control
Reinforcing control over natural monopolies. Overall assessment
and clear definition of the rights and responsibilities of the
Bulgarian State
31.12.2013
Revision of lobbying laws which led to or created conditions for
establishment of artificial monopolies and cartel agreements
31.12.2013
Measures for reinforcing control over organisers of commodity
exchanges and wholesale markets regarding entry-exit regime
31.10.2013
Analysis and information about all companies and municipalities
that have been awarded public procurement contracts
30.09.2013
Amendments to the Public Procurement Act. Publicity of all
contracts and annexes
31.10.2013
Implementation:
Measure: Anti-monopoly and anti-trust legislation and ensuring its application
A comprehensive analysis of the legal, institutional framework and anti-monopoly practices is
being carried out in partnership with the World Bank. Based on the analysis, both legislative
changes and specific measures for competition protection are being developed.
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Measure: Sector analyses of problem markets
Analyses of several problem sectors, including the energy sector, have been conducted.
 The Commission for Protection of Competition (CPC) adopted a sector analysis of
the competitive environment of the market for electricity production, trade, transfer and
supply in the Republic of Bulgaria, which outlines the main problems in the sector established
by the CPC. The competent institutions were informed of the need to take appropriate
measures for improving the competitive environment.
 An analysis of the problems associated with unequal treatment of producers
and unfair commercial practices (UCP) was carried out regarding:
‒ Abrupt and unjustified termination of commercial relationships or termination
without notice – a major type of UCP;
‒ Unclear contractual conditions between suppliers and buyers, allowing for
imposition of additional obligations on the weaker contracting party;
‒ Lack of written contracts, precluding availability of durable evidence of the
conditions on which an agreement had been reached;
‒ Backdated amendments of contracts, making deductions from the invoiced
amounts to cover different fees, e.g. promotion fees, unilateral discounts on the basis of sold
quantities, fees for inclusion in a catalogue, etc.;
‒ Unfair transfer of commercial risk to suppliers, e.g. transfer of liability for
stolen goods entirely on the supplier, financing private economic activities of the other party,
obligations for indemnity of losses borne by the trade partner, or long delays in payment;
‒ Unfair use of information about suppliers by the buyers regarding supplied
goods and breaching the confidentiality of commercial information and secrets.
Based on the above analysis, legislative amendments are being prepared as well as measures
for preventing unfair commercial practices in accordance with the best European practices.
Measure: Amending the Competition of Protection Act – strengthening the
functional and administrative capacity of the competition protection bodies by
introducing public control over their activity
A draft Act amending and supplementing the Competition of Protection Act has been
prepared. The purpose is to create conditions for implementing a consistent policy on
protecting national markets, production, supply and distribution of goods and services by
ensuring conditions for equal treatment in conducting negotiations, striking commercial deals
and UCP.
Measure: Enhancing control over organisers o f commodity exchanges and
wholesale markets regarding entry-exit regime
The State Committee for Commodity Exchanges and Wholesale Markets as a competent body
exercises tighter control over the organisers of commodity exchanges and wholesale
markets in regard to entry-exit regime. For the reporting period 186 inspections of 11
commodity exchanges were made.
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Measure: Amendments to the Public Procurement Act. Publicity o f all contracts
and annexes
At the beginning of its term in office the government set up a working group within the
Council of Ministers, which proposed amendments to the Public Procurement Act. The
purpose is to make the procedures more transparent and create opportunities for more
candidates to participate in them. The changes reflect the proposals made by the
representatives of business, trade unions and citizens.
The draft Act amending and supplementing the Public Procurement Act was adopted by a
Decision of the Council of Ministers on 29 August 2013, a month earlier than the deadline
provided for in the Government Programme. The draft was submitted to the National Assembly
and was adopted at first reading.
The amendments to the Public Procurement Act proposed by the Council of Ministers aim to
facilitate the public procurement procedure, reduce the administrative burden for candidates
and participants in the procedures and they include:
 Specifying procedural rules in greater detail and clarifying definitions in order to
reduce the administrative burden;

Establishing control on concluded contracts;

Facilitating and promoting small and medium enterprises (SMEs);
 Removing the obligation for the participants in the public procurement procedures
to purchase documentation for participation;
 Creating standard forms of the offer and the appendices thereto, including
declarations, reports, references, certificates, etc.;
 Creating standard forms of public procurement contracts and mandatory
appendices thereto;
 Initial steps for a shift to electronic public procurements – providing opportunity
for submission of technical proposals within the offers in the form of an electronic catalogue.
The amendments aim to achieve full publicity and transparency of the public procurement
award activities, as well as implementation and completion of the concluded contracts to
warrant the public interest.
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EFFECTIVE PROTECTION OF CONSUMERS
Measure
Deadline
New Consumer Protection Act. Revising the status o f the
consumer protection bodies and improving coordination among
institutions
31.12.2013
Creating a regulatory framework of effective decisions for outof-court consumer protection in the following economic sectors:

Conciliation Committee for out-of-court resolution of
consumer disputes in the field of financial services

Conciliation Committee for out-of-court resolution of
consumer disputes in the field of energy

Conciliation Committee for out-of-court resolution of
consumer disputes in the field of electronic
communications

Conciliation Committee for out-of-court resolution of
consumer disputes in the field of passenger transport (rail,
bus and air transport)
Strengthening the role of sector regulators (CRC, SEWRC, FSC)
for consumer protection and improving their interaction with
CPC. Amendment of laws
30.11.2013
31.12.2013
Legal regulation of the following consumer issues:

Protection of online consumer rights

Consumer protection in tourism. Amendments to the
Tourism Act for protection of consumers during tourist
trips and combined travel services using brokers
Change in the pharmaceutical pricing policy to address the rising
trend in prices and steps for their subsequent reduction
31.12.2013
31.12.2013
Implementation:
Measure: New Consumer Protection Act. Revising the status o f consumer
protection bodies and improving coordination between institutions
The effective government policy for consumer protection is laid down in the drafted Act
amending and supplementing the Consumer Protection Act, adopted by the Council of
Ministers (on 5 November 2013) and submitted for deliberation to the National Assembly.
The bill transposes in the Bulgarian legislation the requirements of Directive 2011/83/EU on
consumer rights, creating a brand new legal regulation of off-premises contracts and distance
selling contracts (including internet and telephone selling), improving guarantees for the
common safety of goods and services.
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The bill aims to strengthen the role of consumer organisations and ease the conditions for
their operation, including easing the conditions and requirements for recognition of
representation of consumer associations.
Measure: Strengthening the role o f sector regulators (CRC, SEWRC, FSC) for
consumer protection and improving their interaction with CPC. Amendment of laws
The measures for protection of consumers of energy services are being implemented through
the requirements approved by the SEWRC in the general terms and conditions of contracts
and rules of operation with consumers of energy services. At the end of 2013 the SEWRC
launched a procedure for amending the general terms and conditions of the contracts with
household consumers of electricity distribution companies, end suppliers and heat distribution
companies. The new mandatory requirements to end consumers aim to ensure higher
protection against monopoly provided services, incl. electrometer readings (the reporting
period is limited to 31 days), provision of more and understandable information in the issued
invoices, obligations for handling consumer complaints, etc.
The SEWRC is also authorized as the body in charge of out-of-court resolution of disputes
between regulated monopolies and consumers.
Measure: Creating a regulatory framework for effective decisions for out-of-court
consumer protection (conciliation committees)
The draft Act amending and supplementing the Consumer Protection Act creates legal
grounds for the operation of sector conciliation committees within the Commission for
Consumer Protection for resolving consumer disputes in the field of energy, heat supply,
water supply, telecommunications, passenger transport and financial services.
The conciliation committees shall comprise of three members – one representative of the
Commission for Consumer Protection, one representative of the relevant regulatory body and
one representative of traders associations in the relevant sector. An inter-governmental
working group is developing the regulation for the new out-of-court bodies.
Dialogue with the World Bank was intensified in relation to the international financial
institution's further provision of analytical support in the field of protection of financial
services consumers and financial education. A technical visit of a team of the Bank was made
to discuss work with Bulgarian institutions in the two directions – a mechanism for alternative
dispute resolution in the field of financial services and financial education.
Measure: Change in the pharmaceutical pricing policy to deal with the rising trend
in prices and steps for their subsequent reduction
A Concept of National Pharmaceutical Policy was developed and a public discussion is
pending. Adoption of the Concept of National Pharmaceutical Policy will be of key
importance in the government's efforts of pursuing a policy to the benefit of people. The
purpose is to ensure high-quality and accessible pharmaceutical products, while ensuring that
participants in the pharmaceutical market comply with the rules. Clear measures will be
provided for terminating the practice of medicines supply by persons without pharmaceutical
education in remote areas.
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THE STATE IN SUPPORT OF SMALL AND MEDIUM ENTERPRISES
AND PROMOTION OF START-UP BUSINESS
Measure
Compulsory assessment of the impact of all amended and new
laws and by-laws regarding the effect on small and medium
enterprises
Deadline
30.09.2013
Amendments to the Public Procurement Act:

Extending access by small and medium enterprises to
public procurement

Introducing electronic public procurement tenders

Reducing the administrative burden

Limiting corruption
31.10.2013
Reducing the number of regulatory regimes and charges to
facilitate business and limit corruption:

First package of 24 regimes
31.08.2013

Second package of 30 regimes
30.09.2013

Submitting regime packages on a monthly basis
Implementation:
Measure: Compulsory assessment of the impact o f all amended and new laws and
by-laws regarding the effect on small and medium enterprises
Developed was a Concept of SME Test. The purpose of the test is to report the impact of
statutory instruments on small and medium enterprises and assess their compliance with the
requirements introduced by the relevant instrument. The Concept was approved and publicly
discussed. Introduction of the SME test will run parallel to the adoption of the draft Act
amending and supplementing the Statutory Instruments Act which provides for assessment of
the impact of draft statutory instruments.
A first step in the direction of introducing a compulsory impact assessment was made in
August 2013 with amendments to the Structural Regulation of the Council of Ministers and
Its Administration, introducing a form for assessing the impact on economic activity and
employment.
A draft Act amending and supplementing the Statutory Instruments Act was elaborated,
which was subject to inter-institutional reconciliation. It provides for the introduction of
compulsory impact assessment.
With the adopted amendments and supplements to the Structural Regulation of the Council of
Ministers and Its Administration, the depositors of draft instruments for deliberation at a
meeting of the Council of Ministers must send each draft for reconciliation with the Centre
for Prevention and Countering Corruption and Organised Crime (BORKOR).
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Measure: Amendments to the Public Procurement Act (in support o f small and
medium enterprises)
A draft Act amending and supplementing the Public Procurement Act was submitted to
the National Assembly. The amendments ensure conditions for application of the pro rata
principle by setting forth rules precluding the possibility for contracting authorities to
artificially hinder a wide range of people from participation in the procedure. The
requirements to the financial and economic status of candidates and participants were redefined were the. Competition is strengthened by removing the possibility for concluding a
framework agreement with a single contractor. Framework agreements are to be concluded
with at least three contractors (except when there are less than three participants in the
procedure for selection of contractors).
With the changes to the rules for selection a chance is given to small and medium
enterprises and start-ups in particular to participate in public procurement procedures,
in pursuance of which they have to prove possession of the required capacity – on a
standalone basis or with the support of third parties.
 Removed is the requirement for sub-contractors to prove available economic,
financial and technical capacity and/or professional qualification, in accordance with „the
type and share of their participation“, thereby enabling start-up companies to participate in the
implementation of public procurement contracts as sub-contractors.
 A possibility is provided to contracting authorities to make direct payments to subcontractors. The bill also includes a protection clause for contractors who may challenge
effected direct payments in case of default by a sub-contractor or when the contract with a
subcontractor is terminated and the contractor has notified the contracting authority thereof.
 The obligation for participants in the public procurement procedures to purchase
documentation for participation is abolished.
 Eased are the requirements for the personal status of candidates and participants
and in regard to compliance with the selection criteria, and no selection criteria shall apply for
sub-contractors.

Created are real conditions for a shift to electronic public procurement procedures.
 The actions of contracting authorities are aligned and the requirements for the
conduct of the procedures and for concluding specific public procurement contracts with the
persons under a framework agreement are eased.
 Conditions are created to facilitate participants in the public procurement
procedures by establishing clear rules for award of small public procurement contracts by
public invitation.
Measure: Reducing the number o f regulatory regimes and charges to facilitate
business and limit corruption
In the first six months the government of the Republic of Bulgaria worked pro-actively for
reducing the regulatory and administrative burden in order to facilitate citizens and business
and limit corruption.
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In the reporting period, 112 measures in total were adopted for reducing the regulatory
burden:
 The first package of measures for reducing the regulatory burden, adopted by a
Decision of the Council of Ministers of 15 August 2013, contains 24 measures and
amendments and supplements to 10 laws.
Two of the bills have been already submitted to the National Assembly:
Act amending and supplementing the Administrative Procedure Code – a
common legal framework is elaborated for introducing a comprehensive administrative
service. It was submitted to the National Assembly on 27 November 2013.
‒
Act amending and supplementing the Road Traffic Act – combined in a single
regime are the regimes of initial training and supplementary training (for restoring points) of
drivers of motor vehicles. The regime is changed from permit to registration. The registration
will be for indefinite term. The draft act was submitted to the National Assembly on 29
November 2013.
‒
‒ The Council of Ministers is set to examine an Act amending and
supplementing the Tourism Act (in the process of inter-institutional reconciliation) – the
transitional and final provisions of the draft act provide for amendment of 6 more laws.
Sixteen measures are provided for reducing the regulatory burden.
Some of the key measures included in the first package are:
Abolishing the charge for issuing a certificate of presence or absence of
liabilities to municipalities.
‒ Abolishing the requirement for categorization of autonomous mass-catering
and entertainment establishments under the Tourism Act.
‒ Introducing the principle of comprehensive administrative service.
‒ Decreased charges collected by the Registry Agency.
‒
 The second package of measures for reducing the regulatory burden was adopted
with a Decision of the Council of Ministers of 22 October 2013. The package contains 88
measures.
The effect of its implementation will be: abolishing or shifting to registration for 212 regimes;
reducing deadlines for 14 regimes; reducing the charges for 9 regimes; reducing the
documentation for 34 regimes; extending the channels for access to service for 5 regimes;
reducing the obligations for provision of information for 7 regimes; simplification of the
procedure for 14 regimes. At present the relevant ministries are drafting the necessary legal
amendments.
‒ Act amending and supplementing the Energy from Renewable Sources Act –
approved by the Council of Ministers on 08 January 2014. Through it, one measure for
reducing the regulatory burden will be implemented.
‒ Act amending and supplementing the Health Act has been developed and, in
conjunction with provided relevant amendments in other laws, 4 measures for reducing the
regulatory burden will be implemented. Its submission to the Council of Ministers is pending
‒ Act amending and supplementing the Labour Code has been developed,
providing for the implementation of 3 measures for reducing the regulatory burden.
 Pending is the completion of the implementation of about 80 measures for
reducing the regulatory burden, adopted with a Decision of the Council of Ministers of
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2012, approving a plan for reducing the regulatory burden for business. Some of the
statutory instruments related to the implementation of the decision are:
‒ The Act amending and supplementing the Health Act is developed and, in
conjunction with the provided relevant amendments in other laws, provide additional 21
measures for reducing the regulatory burden (25 in total, including the above-mentioned 4
measures for reducing the regulatory burden);
‒ The Ministry of Interior Act – submitted to the National Assembly on 11
November 2013;
‒ Act amending and supplementing the Railway Transport Act – submitted to the
National Assembly on 03 October 2013;
‒ Act amending and supplementing the Health and Safety at Work Act –
submitted to the National Assembly on 12 December 2013;
‒ Act amending and supplementing the Integration of People with Disabilities
Act – submitted to the National Assembly on 27 December 2013;
‒ Act amending and supplementing the Employment Promotion Act – submitted
to the National Assembly on 09 January 2014;
‒ Act amending and supplementing the Social Support Act and Act amending
and supplementing the Child Protection Act – available drafts to be submitted to the Council
of Ministers.
 A list of implemented measures for reducing the administrative and regulatory
burden was drafted and published on the website of the government to ensure full
transparency of actually introduced reliefs for citizens and businesses. From May 2013 until
present 22 measures were reported as implemented.
 A Base Model of Comprehensive Administrative Service was adopted with a
decision of the Council of Ministers of 19 June 2013 in order to decrease the number of
regulatory regimes and the administrative burden. This helps create a universal framework for
comprehensive administrative service within the public administration. Comprehensive
administrative service is a service that does not require citizens and businesses to provide
documents and information already available in the public administration. The Base Model
gives the start of a set of measures and initiatives for a comprehensive change in the way the
Bulgarian administration provides services.
 A Methodology for Improving Administrative Services Workflow was
approved. It introduces process-oriented governance in the structures of public administration
at central and local levels by modelling and analysing workflows for provision of
administrative services.
Measure: Promoting access to financing of small and medium-sized enterprises,
including through the Bulgarian Development Bank (BDB)
The government supported the granting of credit lines for SMEs from international financial
institutions, including a credit line of EUR 100 million from the European Investment Bank to
CIBANK, as well as a credit line of EUR 100 million from the European Investment Bank to
BULBANK, also in support of SMEs and enterprises with medium capitalisation.
The reform of the Bulgarian Development Bank started with the launch of new products
aimed only at lending to start-up, small and medium enterprises. On 19 November 2013, the
first loan from BDB from the new programme for support of micro and small companies was
signed at an official ceremony. The programmes „Development“ and „Start-up Business“,
aiming to facilitate access to credit products for new and operating micro and small
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enterprises, were launched. The „Development“ credit is offered for both investments and
working capital. The „Start-up Business“ loan is intended for micro and small companies
wishing to implement new projects and ideas.
A Strategy for Small and Medium Enterprises is being prepared. The purpose is to define
the opportunities for SME development until 2020.
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RESPONSIBLE MANAGEMENT OF STATE-OWNED ENTERPRISES
Measure
Deadline
Analysis of the financial condition of state-owned enterprises
31.10.2013
Development of plans for restructuring and rehabilitation of stateowned enterprises in dire financial straits
31.12.2013
Linking management contracts of the bodies of state-owned
enterprises with implementation of structural reforms and with the
financial results of the companies
31.12.2013
Analysis of the fulfilment of concessionaires’ obligations
30.11.2013
Implementation:
Measure: Analysis of the financial condition of state-owned enterprises
In September 2013, the Ministry of Finance made an analysis of the financial condition of
enterprises with over 50% state interest. The companies in the worst financial and
economic condition were identified and the competent relevant ministries took immediate
measures for exercising tighter control and improvement of the management of state-owned
companies. Work is being done for development of a single framework for preparation
of and control over the implementation of rehabilitation plans.
Measure: Development of plans for restructuring and rehabilitation o f state-owned
companies in dire financial straits
In order to exercise tighter control and improve the management of state-owned
companies, information about the financial companies within the system of the Ministry of
Economy and Energy, as of the nine-month period of 2013, was analysed. Information about
the cash funds of these companies and the degree of compliance with the rules for selection of
financial institutions was summarized. Active actions were taken for restructuring stateowned companies to reduce the burden on the state budget, including actions for
rehabilitation of viable companies in dire financial straits in order to prevent
bankruptcies and retain jobs.
Plans for rehabilitation of „Vazovski Mashinostroitelni Zavodi“ AD (VMZ), BDZ and other
companies with over 50% state interest were developed and are in the process of
implementation. Work is on-going for the creation of a single framework for rehabilitation of
state-owned companies
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Measure: Linking management contracts of the bodies of state-owned enterprises
with the implementation of structural reforms and with the financial results of the
companies. Significant change in the management of state-owned companies so as
to comply with the basic principles of behaviour of public companies
An inter-governmental working group elaborated a draft act on management of state-owned
enterprises and commercial companies with over 50% interest. The draft act provides for
introduction of the recommendations of the Organisation for Economic Cooperation and
Development (OECD) for good corporate management of state-owned enterprises and the
recommendations of the European Commission.
The purposes of the draft act are:

A single regulatory framework;

Defining the social and economic objectives;

Transparency, accountability and control of state-owned enterprises;
 Clear rules for appointing the board of directors, stipulating the rights, obligations,
functions and responsibilities of the management;
 Linking management contracts of the bodies of state-owned enterprises with
implementation of structural reforms and with the financial results of the companies.
A conference titled „Regulatory framework and management policy for state-owned
enterprises and commercial companies with over 50% state interest“ was held with
representatives of the OECD, the European Commission and the Hungarian National
Company for Management of State-owned Assets. During the conference guidelines on the
draft act were provided and specific proposals and good practices were presented to the
representatives of the state-owned enterprises, government experts and trade unions.
Measure: Analysis of the fulfilment of concessionaires’ obligations. Effective
control over the use of natural resources
 A comprehensive analysis and control over the implementation of concession
contracts for underground natural resources was made in order to warrant the interests of
the State and citizens.
For the period of governance of the current government BGN 42,1 million in unpaid
concession fees was collected and BGN 783,629 in VAT from bank guarantees of
concessionaires defaulting on their obligations was absorbed. The collection of concession
fees increased.
Checks were made on the implementation of the contracts – 271 in the second half of
2013, including 174 in the last quarter.
Checks were made upon received signals and complaints – 53 on-site inspections were
made in the second half of 2013 in response to received signals and complaints. Based on the
received signals and inspections, 9 statements for unlawful extraction were drawn up.
The practice of delayed reconciliation of Annual Operation Projects was discontinued, i.e.
preventing concessionaires to operate in conflict with statutory rules.
16
In the second half of 2013, 353 complete and annual operation projects were reconciled,
including 326 projects reconciled from mid-November to end – 2013 regarding
extraction operations in 2014.
The Council of Ministers took a decision to terminate 6 concessions, including 4 in the last
quarter of the year. A reconciliation procedure is in progress for termination of over 10
concessions for extraction, most of them being for construction and industrial materials.
An analysis was carried out for the purpose of revising the overall by-law framework of
mining-rescue activity and safety at work in developing open-air deposits, in underground
coal mines and for health and safe working conditions in underground extraction.
The three-year delayed Ordinance on the requirements to the scope and content of
operation projects for prospecting and exploring natural resources to the Natural
Resources Act was ultimately developed. The lack of regulation so far has led to the vicious
practice of delayed submission of operation projects by concessionaires and delayed
administration reconciliation.
An Act amending and supplementing the Underground Natural Resources Act was
developed and adopted by the Council of Ministers in November 2013.
‒ The amendments transpose precisely and fully the provisions of Directive
2006/21/EC of the European Parliament and of the EU Council on the management of waste
from extractive industries and amending Directive 2004/3 5/EC.
The changes reflect the comments made by the European Commission in 2008
in relation to the transposition of these requirements.
‒
‒ The draft act creates the legal framework for more efficient control over the
implementation of contracts for prospecting, exploring and extraction of underground natural
resources and for improved interaction between the controlling bodies of these activities.
Work on the adoption of a National Strategy for Development of the Mining Industry in
Bulgaria is on-going.
A sector analysis of available underground resources in the country was developed in
accordance with Art. 2, para. 1, item 5 of the Underground Natural Resources Act – extracted
construction materials on the basis of granted concessions for extraction and permits for
prospecting and exploring. The analysis covers the granted concessions for extraction and
permits for exploring of construction materials as of 30 June 2013:
‒ Surplus/deficit of various construction materials and their importance for the
national economy;
Demand, forecasts and trends of development of relevant markets – at national
and local level. A balance of demand/supply of construction materials;
‒
‒
Impact of transport costs on the product final price;
‒
Good European legal practices regarding the rights in construction materials.
As a result, proposals for optimisation of the following were made:
Granting rights for exploring and extraction of construction materials based on
the criteria set forth in the analysis, incl. on the basis of regionalisation and availability of
underground natural resources in the country;
‒
17
‒ Exercised control over granted concessions for extraction, permits for
prospecting and unlawful extraction of construction materials;
The Administration of the Ministry of Economy and Energy by setting up a
National Geological Office, specifying its functions in terms of public interest and ensuring a
sound basis for pursuit of a consistent policy on underground natural resources, incorporating
the three aspects of sustainable development (economic, environmental and social).
‒

Concessions of objects of transport infrastructure
On 7 August 2013 a Contract for granting a service concession on Nikopol Port
Terminal, part of Ruse public transport port of national importance, was signed between
the minister of transport, information technology and communications and „Bulgarian River
Shipping” AD of Ruse. With the granting of concession to Nikopol Terminal Port the
necessary funds for reconstruction and modernisation of the terminal will be provided, the
quality of services will increase, while ensuring proceeds from concession payments to the
state.
In the reporting period the Ministry of Transport, Information Technology and
Communications (MTITC) organised and conducted preparatory actions for granting the
following concessions: Varna Railway Station; Ruse-East Port Terminal, part of Ruse public
transport port of national importance; Vidin-Centre Port Terminal, part of Vidin public
transport port of national importance; Zimovnik Port Terminal – Ruse; Sofia Civil Airport for
Public Use and Balchik Civil Airport for Public Use; Plovdiv Civil Airport for Public Use.
Continuous control is organised and exercised over the implementation of the
obligations under the concluded concession contracts.
For the period 1 June – 15 December 2013 the revenues of MTITC from concessions amount
to BGN 7 688 54 excluding VAT, or BGN 9 226 247 including VAT. For the same period of
2012, concession revenues amount to BGN 8 664 885.59 including VAT.
 To ease administrative burdens on the mineral water business and ensure
transparency in the “business – state” relationships, as well as pursue a reasonable
government policy on concessions so that they are used to the benefit of the national economy
16 annexes were signed, amending the concluded effective concession contracts for
extraction of mineral water – exclusive state ownership. A more favourable environment
for the future development of mineral water concessions was created, while ensuring better
predictability and accuracy in the long-term planning of costs for concessionaires.
‒ In July 2013 on-site inspections were conducted for overall
implementation of all concession contracts for extraction of mineral water – exclusive
state ownership, concluded with the following concessionaires: TPK „Bottling Company
Hisar”, TPK „Mihalkovo”, „Devin” AD, „Bulminvex – GB” EOOD, „Atlantik Divine” EAD,
„Aquarex – V” AD, „Bottling Company – Gorna Banya” OOD, „Bottling Company Mineral
Water – Bankya” EOOD, „Bottling Company Izvor” AD, „BC Hisar” EOOD, „Meriam-90”
AD, „Mineral Water Knyazhevo” EOOD, „Etap-Address” AD, „Sofdrinks“ OOD, „Riviera”
AD, „Interhotel – Sandanski – Bulgaria” AD, „Albena” AD and „August-91” AD.
As a result of the inspection, statements of ascertainment were drawn up and
prescriptions were made to 5 concessionaires.
 In the period 15 June – 30 September 2013 181 control inspections were
conducted for 58 beaches on concession and 33 rented beaches. Geodesic measurement of
123 beaches was performed, including beaches rented out by district governors. Established
were 91 breaches in total in the implementation of concession and rent contracts and imposed
18
sanctions amount to BGN 600 342. Most often the breaches concern unreconciled movable
objects, objects with area larger than the stipulated one, and failure to provide sufficient
number of lifeguards.
Revenues from concession and rent contracts of sea beaches as of 30 November 2013
amount to BGN 13 255 059.
Report on revenues (excluding VAT) from state concessions
distributed by budgets of ministries and municipalities
Ministry
Report as of November
2013
Plan 2013
Total, incl.:
91 270 282
108 204 442
budgets of ministries
64 750 000
76 590 807
budgets of municipalities
26 520 282
31 613 635
incl. ministries:
Ministry of Economy, Energy and
Tourism (MEET)
MEET budget
61 935 484
70 267 794
40 000 000
44 211 985
budget of municipalities
Ministry of Regional Development
(MRD)*
MRD budget
21 935 484
26 055 809
8 434 798
9 718 450
4 850 000
4 997 215
budget of municipalities
Ministry of Transport, Information
Technology and Communications
(MTITC)
MTITC budget
3 584 798
4 721 235
17 000 000
23 868 225
17 000 000
23 868 225
budget of municipalities
Ministry of Environment and Water
(MEW)
MEW budget
0
0
3 900 000
4 349 973
2 900 000
3 513 382
budget of municipalities
1 000 000
836 591
*The revenues are generated from concessions of sea beaches and do not include rent revenues.
19
THE STATE: A LOYAL PARTNER OF THE PRIVATE SECTOR.
NORMALIZATION OF THE BUSINESS ENVIRONMENT
Measure
Deadline
Expedited payment by the State for implemented contracts and
timely recovery of VAT
31.12.2013
Reduce the costs for business tax payment and compulsory
insurance contributions. Introduction of regime ‘cash accounting of
VAT’ for small enterprises
31.12.2013
Legislative improvements of the single account for payments to the
budget
31.10.2013
Introduction of a new e-service by the National Revenue Agency
(NRA): automatic provision of information to the persons in case of
changes in their tax and insurance account
30.09.2013
Legislative amendments aiming to tackle and prevent intercompany
indebtedness. Expedited introduction in Bulgarian legislation of the
requirements of the directive regarding the struggle for late
payments in commercial transactions. Acceleration of the
bankruptcy proceedings. Establishment of meditation centres as an
alternative dispute resolution
31.12.2013
Limiting the participation of offshore companies in public
procurement, the privatization, concessions and other fields,
associated with the use of public funding, aiming at:

Enhancing the competitiveness of the Bulgarian economy

Preventing money laundering practices

Preventing tax evasion
Introduction of procedures for liquaidation of not re-registered
companies and sole traders, who are not entitled to operate because
they have not been entered into the Commercial Register but they
have existed for more than 4 years in the registers for BULSTAT,
the National Revenue Agency etc.
30.11.2013
31.12.2013
Implementation:
Measure: Expedited payment by the State for implemented contracts and timely
recovery of VAT
The Government of the Republic of Bulgaria updated the state budget and thus BGN 258,7
million was provided for payments to the business.
20
The following has been disbursed:

Overdue arrears and arrears to the business – BGN 131,1 million.
 For social measures, support of the citizens and business promotion – BGN
127,6 million, including funds for the stabilization of energy and relieving the burden on
electricity consumers – BGN 85,6 million.
Payments made under European programmes from the end of May until 15 December
2013 amount to BGN 2 208 148 932 (excluding agricultural programmes), which includes
the funds, planned for pre-financing and which in fact have reached the business as well.
From 1 June 2013 aiming at the improvement of business environment and the liquidity of tax
payers, a very strict accounting of the process of VAT recovery has been introduced,
including: strict compliance with the statutory deadlines for VAT recovery; introduction of
the principle for VAT recovery based on the sequence of the VAT return submitted and the
VAT declared for recovery; a monthly analyses on the structure of the non-recovered VAT
and the reasons for its non-recovery; a daily control on the process of VAT recovery; monthly
publicizing of information regarding the VAT recovered within the relevant month.
Information regarding the recovered VAT is uploaded monthly on the Ministry of Finance
website for the relevant month in total and in groups of persons liable to tax.
The VAT recovered between 1 July and 31 December 2013 amounts to a total of BGN
3 279 million, which is BGN 200 million more compared to the same period of 2013.
Complying with the 30-day period for VAT recovery is monitored monthly so that interests
for late payment are not paid from the budget. For the first six months of 2013 the interests
paid from the budget for unrecovered VAT within the time limit amount to BGN 25
million, while for 2012 the amount is BGN 41,2 million. During the second half of 2013
the VAT was recovered on time so that no interests for delay be paid from the budget.
Analysis of the VAT recovered in December for 2008 – 2013
(BGN millions)
Amount of the tax recovered
within 1 December – 31 December of the relevant year
Type of tax
VAT recovered
2013
2012
2011
2010
2009
2008
542
239
337
253
136
561
The prepared analysis on VAT recovered in December between 2008 and 2013 shows that
significantly lower amounts of VAT was recovered during the previous four years (20092012) compared to 2013. This fact shows that that during the last month of the relevant
financial year the real amount of VAT, declared by the business, was not recovered properly.
The wrong approach adopted by the previous government led to the following negative
consequences:

Retention of the business’ operational capital at a time when it is mostly needed;
21

Payment of interest from the state budget as a result of failure to recover VAT on
time;
 Distortion of the actual implementation of the statement of revenue of the budget
for the current financial year and the following one.
The Government ceased the harmful practice to retain the financial resource of the business,
in order to indicate ‘better’ implementation of the budget incomes and paid off within the time
limit defined. The analysis clearly shows that VAT recovered in December 2013 is BGN 303
million more than the sum recovered in December 2012, reaching levels of VAT recovery of
2008.
Although due VAT was recovered in full, the significant amount of payed financial
obligations to the business and the resource secured for recovery under the Structural and
Cohesion Funds of the European Union, the Government succeeded to close the financial
year with a reduction of the deficit planned under the consolidated fiscal programme
from 2% to 1,9% of the GDP.
The correctness of the state with regard to payments to the business led to correctness on
behalf of the business for the payment of indebts for taxes and insurances contributions. This
is an indicative sign of the return of the business’ confidence in the Bulgarian government.
Along with the measure concerning the strict timely VAT recovery, a legislative measure was
undertaken to relieve the business and citizens when paying taxes and insurance contributions
to the budget.
Measure: Reduction of the costs for business tax payment and compulsory
insurance contributions. Introduction of regime „cash accounting of VAT“ for
small enterprises.
In compliance with some amendments to the Value Added Tax Act from 1 January 2014 a
special regime, Cash Accounting of VAT, was introduced aiming at improving the
liquidity of SMEs and reducing intercompany indebtedness. As a result, 220 000 SMEs,
registered under the Value Added Tax Act (91% of the registered persons), will be able
to choose the application of the special regime.
Measure: Legislative improvements of the single account for payments to the
budget.
There is a significant improvement of the regime of the single account for payments to the
budget. For the improvement of the single account for payment of taxes and obligatory social
contributions some legislative amendments in the Tax Procedure Code have been adopted
under three main directions:
 A legal opportunity has been provided for the payment first of the principal
for taxes and insurances, for which the period for payment has expired, and then for the
payment of the default interests. The measure aims at stopping the charging of interests and
avoiding the cluster of new debts by individuals with temporary financial difficulties.
 A legal opportunity has been provided for rescheduling and deferral of taxes
and mandatory insurance contributions under relieved conditions for a longer period
and a larger amount. The measure aims at helping indebted persons in a temporary difficult
financial situation. The goal is that they could serve their current liabilities for tax and social
22
security contribution, as well as obligations for which payment periods have expired and for
which a permission to defer or reschedule was granted. Liabilities for taxes and compulsory
insurance contributions, included in the permit for deferral, will be paid according to a
predetermined repayment schedule, and as for the reschedule permit, they will be installed to
a definite maturity date with the interests for delay due (the legal interest).
 A legal opportunity has been provided for self-employed individuals to
declare which financial obligations for compulsory insurance contributions to the state
public insurance they pay off in the case of several public financial obligations, for
which the deadlines have expired. When self-employed individuals declare these
circumstances before the National Revenue Agency (NRA), the order of the single account
will not be applied to the financial obligations stated. In case of non-payment of social
security contributions self-employed individuals lose insurance rights.
 Use of the existing legal opportunity for issuing permits for urgent payments.
During the last 6 months, financial obligations for taxes and compulsory insurance
contributions of 6 000 debtors, with a total debt of BGN 450 million, were rescheduled by
the National Revenue Agency. Thus individuals with temporarily financial difficulty were
given the opportunity to pay off arrears according to preliminary agreed repayment schedules.
The measures have had a positive effect on the enterprises’ liquidity, as well as on the
collectability of budget revenues.
Revenues collected by the National Revenue Agency and the National Customs Agency
during the second half of 2013 are BGN 594 million more than compared to the same
period in 2012.
During the second half of 2013 the National Revenue Agency collected BGN 467,4
million more than during the same period last year. This represents 104,4%
implementation compared to the implementation plan for the same period in 2012 when an
implementation of 96,2% was reported.
Over performance of collected revenues by the National Customs Agency for the second
half of 2013 was BGN 126,6 million more, compared to the same period in 2012.
Measure: Introduction of a new e-service by the National Revenue Agency:
automatic provision of information to persons in case of changes to their tax and
insurance account.
From 1 September 2013 the National Revenue Agency introduced a new e-service - payers
are informed via email about received payment on the NRA bank account.
Another e-service the National Revenue Agency introduced: statement of commitments and
payments. From 20 November 2013 a new NRA e-service was published for the provision
of detailed information from the tax and insurance account of the persons regarding the
sums due and the methods of paying off their contributions (via a payment order,
deducing by an Act of deduction and recovery, an audit act etc.).
For the second half of 2013 3 new e-services were introduced:
 From 1 September 2013 – a notification via e-mail will be sent to the indebted
persons for all payments received, ordered by them to NRA bank accounts. All individuals, of
whom there is a valid e-mail address in the NRA computer system, automatically receive a
notification for the payment received.
23
 From 1 October 2013 – improvement of the reference service for an access to the
tax and insurance account via the internet. After the change for each ordered payment to NRA
bank accounts the clients of the Agency can look up in the internet the allocation of the sum
to their financial obligations, i.e. what principals and interests and on what titles and for
which period they pay off. The references are made online, and it is required either an
electronic signature or the personal identification code issued for free by the National
Revenue Agency.
 Submission of an application for a registration under the VAT regime cash
accounting electronically signed with an electronic signature.
24
ENCOURAGING INVESTMENTS AND EXPORT
Measure
Deadline
Analysis of the investments stimuli so far. Amendments to the
Law on Investment Promotion (LIP)
30.11.2013
Establishing embassies and expanding trade and economic
services in rapidly developing economies
31.12.2013
Establishing prerequisites for the encouragement of export
through the Bulgarian Development Bank (BDB)
30.11.2013
Developing a strategy for state support for innovation and
engineering activity
30.11.2013
Implementation:
Bulgaria stands out with the reported growth of direct foreign investments (DFI) as well as in
the business services sector and the sector ‘transport equipment’ against the declining number
of investments throughout Europe.
For the last 7 months, under the Law on Investment Promotion (LIP), 4 certificates were
issued for investment class ‘A’ amounting to over a total of BGN 44 million, foreseeing
the establishment of 210 new jobs. Three of the projects are being implemented in high-tech
industries and services, while two of them are in municipalities with high percentage of
unemployment.
Two new projects are in a process of certification. Their total cost is BGN 50,9 million and
will create 344 new jobs.
In order to achieve the goal to reindustrialise the Bulgarian economy, work is done on
potential projects for investments in the field of the automotive industry, amounting to
BGN 1,2 billion, creating more than 8 500 new jobs.
By a Decision of the Council of Ministers of 12 December 2013 the government allocated
BGN 290 000 to Ruse Municipality for the construction of public water and sewage
infrastructure elements, necessary for the successful operation of the certified project for the
construction of a Plant for production of electronic and mechanical parts for the automotive
industry of the German investor „Witte Automotive“.
The ‘National Company Industrial Zones’ (NCIZ) Ltd. established a right to build for five
investors from highly technological sectors on properties in zone „Sofia – Bozhurishte“. The
projects are expected to be implemented by the end of 2015 and result in 250 new jobs – and
investments of over BGN 6 million.
The implementation of project for production o control panels for automotive air conditioning
systems is being carried out with German investor „Behr-Hella Thermocontrol“ in zone
„Sofia-Bozhurishte“. The construction began in July 2013 and capacities are expected to be
put into operation in April 2014, resulting in the creation of 350 new jobs and an
investment of BGN 42,5 million.
25
„Walltopia“ Ltd is the first investor in the high-tech sector attracted on the territory of ‘Sofia
Tech Park’ Plc. The investment will vary between BGN 7 and 15 million and between 37
and 100 new jobs will be created.
It is expected that two more investors will be attracted in short terms on the territory of ‘Sofia
Tech Park’ and on the Nation Company Industrial Zone Ltd. Investments of about BGN 14
million are expected, as well as the creation of up to up 600 new jobs.
There is an interest on behalf of the investors, who have already stated their intention for
certification in the Bulgarian Investment Agency, especially in the sectors of business services
and automotive construction.
Measure: Analysis of the investments stimuli so far. Amendments to the Law on
Investment Promotion (LIP)
A thorough analysis has been carried out on the efficiency of the investment stimuli so far.
A bill has also been drafted amending and supplementing the Law on Investment Promotion.
It is proposed that the certification and application of promotion measures be focused on
economic activities, applicable for class „A“ and lass „B“ investments: manufacturing
industry, Scientific Research and Development, high-tech services, technological parks and
industrial zones.
Simplification of documents for certification procedures for investors has been prepared,
including change, reduction and unification of declarations and other documents under the
Law on Investment Promotion.
Measure: Establishing embassies and expanding trade and economic services in
rapidly developing economies
The Bulgarian export has been established as a key factor for economic growth. In the future,
the development of export will remain dependant on the recovery of European economy and
on the reorientation rate of Bulgarian export to traditional developing markets outside the
European Union, which show growth, are not affected by the present crisis and remain highly
solvent.
The government’s priorities are focused on beginning dialogue with the leading partners from
Asia, the Commonwealth of Independent States (CIS), the Middle East and North Africa.
Actions have been undertaken to strengthen the support for Bulgarian business abroad via the
Economic and Commercial Sections (ECS). Their main activity is oriented towards
supporting Bulgarian companies. A new system has also been developed for planning and
evaluation of the work of the Economic and Commercial Sections through the introduction of
individual goals and indicators for the implementation of goals depending on the
specifications of the country and priority directions of work of the relevant market; the
public–private partnership between the state and business is widely used when opening
new offices.
Some offices have been reopened and additional staff has been employed in Kiev (Ukraine),
Brussels (Belgium), Rome (Italy) and Ho Chi Minh (Vietnam).
Actions have been taken for the opening of new offices in China, Iraq and Algeria.
There is a plan to open new trade representations in Armenia, Qatar, UAE and reopen the
office in Budapest, Hungary.
26
In August 2013 the Council of Ministers adopted a decree to re-establish the Bulgarian
embassy in Ulan Bator, Mongolia. The establishment of the embassy is welcomed both by the
Mongolian embassy in Sofia and Bulgarian business.
Measure: Establishing prerequisites for the encouragement of export through the
Bulgarian Development Bank (BDB)
Prerequisites are being considered for the encouragement of the export via BDB. Besides
planned resources and mechanisms for the promotion of export through BDB, a priority is the
introduction of business to the support opportunities offered by the bank. New opportunities
for financing with a credit line of EUR 10 million were presented during the accounting
period to Bulgarian importers, based on an agreement between Exim bank, Hungary and
BDB.
Measure: Developing a Strategy for state support for innovation and engineering
activities
The National Innovation Council held a final discussion on the Innovation Strategy for
Smart Specialisation. The strategy is published on the website of the Ministry of Economy
and Energy and www.strategy.bg for a public discussion. The Council of Ministers is due to
review the strategy.
BGN 20 million is allocated for innovation and engineering in the State Budget Act of the
Republic of Bulgaria for 2014.
27
EXPANSION OF THE FINANCIAL INTERMEDIATION AND A LONGTERM FUNDING OF THE REAL SECTOR
Measure
Deadline
Preparation of a bill for the introduction of European regulations in
the sphere of mortgage credits
30.11.2013
Restarting the Bulgarian Development Bank (BDB). The new role
of the BDB is associated with long-term priorities of the economy –
promotion of export, encouragement of new businesses and small
enterprises, as well as the role of the state in the accumulation of
resource for priority projects on the principle of co-financing. BDB
will help the realization of projects of small and medium
companies, funded by European programmes
31.10.2013
Launching of a national programme with emergency measures for
the financial education of consumers of financial services
31.10.2013
Implementation:
Measure: Preparation of a bill for the introduction of European regulations in the
sphere of mortgage credits
The European Parliament is to adopt a draft directive regarding credit agreements related to
residential properties. A mortgage loan bill, aimed at introducing the requirements of the
directive to Bulgarian legislation, is in a process of preparation.
Measure: Restarting the Bulgarian Development Bank (BDB)
In September 2013 a new management team took over BDB’s management. The team took
targeted actions to ensure cheap financial resources for SMEs:
 A programme for providing loans to small and medium enterprises was
developed within a very short period of time. The programme offers favourable terms for the
Bulgarian market – a fixed interest rate of 6% for the whole period of the loan.
The first two loans under the programme have already been approved. Documents for
another 21 loan applications are currently being considered or compiled. The initial
interest in the programme is high – since the beginning of the initiative 231 enquiries
have been received and 129 meetings with potential clients have been held.
 The parameters of a new programme for larger SMEs, which will be available
in January 2014, are being prepared. The programme will target a sub-segment of SMEs
which require financing of anywhere between BGN 300 000 and BGN 3 000 000. Priority
will be given to companies with investment projects. The pricing conditions will be more
favourable compared to the ones offered so far by the banking market for such type of
companies. Once specified, the parameters of the programme will be presented to the public.
28
 BDB’s ambition is to provide new programmes for SMEs every month – directly
or through partnering trade banks from the beginning of 2014.
Considering available bank resources, it is possible that new funding of about BGN 200
million is provided.
Measure: Launching of a national programme with emergency measures for
financial education of consumers of financial services
The Ministry of Finance, Bulgarian National Bank, the Management Committee for the
protection of consumers of financial services to the Financial Supervision Commission and
the World Bank are carrying out a joint project for Diagnostic Review on Consumer
Protection and Financial Literacy in Bulgaria. Based on the Diagnostic Review a National
Strategy for improvement of financial literacy of consumers of financial services with clearly
identified priorities, target groups, responsible institutions and deadlines will be prepared.
29
EFFICIENCY OF THE PUBLIC FINANCES
Measure
Deadline
Increasing budget revenues by combating tax fraud and tax
evasion. Shutting down smuggling routes
31.12.2013
A comprehensive strategy for the introduction of fiscal control
over the movement of high fiscal risk goods on the territory of the
country that aims to prevent the actual theft of VAT (mobile
groups and regional teams for fiscal control). The Specialised
Directorate ‘Fiscal Control’ to the NRA, which is going to
exercise fiscal control over the movement of goods on the
territory of the country (community acquisitions, community
supplies, transit of goods etc.) will start operating not later than 01
January 2014
31.12.2013
Decisive measures against smuggling and undeclared intraCommunity supplies to counter the unfair competition Bulgarian
manufacturers face
31.10.2013
The realisation of measures for efficiency of public finance is for
a constant term and during 2013 the implementation of the
measures will be reflected in the revision of the Budget for 2013
(the preparation of the Law Amending and Supplementing the
State Budget Act of the Republic of Bulgaria for 2013) and in the
finalisation of the budget procedure for 2014 (the preparation of
the Draft State Budget for 2014 and the update of the mediumterm budget forecast for 2014-2016)
31.12.2013
Introduction of mechanisms for reverse charge of VAT on the
supplies of cereals and industrial crops, deadline – 31 December
2013, to counter tax fraud
31.10.2013
Improving the efficiency of revenue agencies in the service,
control and collection of public receivables
31.10.2013
Restoring the process of fiscal decentralization by gradually
transferring functions and resources from central to regional
authorities
31.12.2013
Public debates on the macroeconomic framework and policies for
Budget 2014
31.10.2013
30
Implementation:
Measure: Increasing budget revenues by combating tax fraud and tax evasion.
Shutting down smuggling routes
A comprehensive Strategy for Combating Tax Fraud, tax avoidance, and evasion of taxes
and compulsory insurance contributions is being developed.
Measure: A comprehensive strategy for the introduction of fiscal control over the
movement of high fiscal risk goods on the territory of the country to prevent the
actual theft of VAT (mobile groups and regional teams for fiscal control)
A comprehensive strategy for the introduction of fiscal control over the movement of
high fiscal risk goods on the territory of the Republic of Bulgaria has been developed.
The concept of the strategy defines all elements, necessary for the measure’s implementation
in practice, namely: scope of goods with high fiscal risk, competent authority, (Specialised
Directorate Fiscal Control to the NRA) and the powers of the competent authority with regard
to the implementation of fiscal control, the nature and procedure for implementation of fiscal
control activities, administrative capacity and material-technical provision, necessary
legislative changes.
In accordance with amendments to the Tax Procedure Code dated 1 January 2014, fiscal
control is introduced on the movement of goods in order to take effective measures to
protect the fiscal position and prevent the non-payment of VAT, corporate taxes and
taxes on personal income, as well as to limit unfair competition and protect Bulgarian
manufacturers of high fiscal risk goods (fruit and vegetables, sugar, meat and meat products
etc.). The fiscal control on the movement of goods with high fiscal risk will be implemented
on the territory of the whole country.
The movement of all high fiscal risk goods is subject to fiscal control, independently of the
place of receiving/unloading of the goods – on the territory of the country, on the territory of
another EU Member State, or a third country. This means that the fiscal control applies to
intra-Community supply of goods from and to another EU Member State, the goods from one
EU Member State to another passing through the territory of the country, and supplies within
the country. The fiscal control will not apply to goods under customs regime.
Measure: Decisive measures against smuggling and undeclared intra-Community
supplies to counter unfair competition Bulgarian manufacturers face
The Customs Agency took urgent actions to perform intensive inspections in border
checkpoint zones on the territory of the country. They aim at shutting down smuggling
roads for excisable goods and enhance control measures around the Bulgarian – Turkish
border.
Since 3 July 2013 joint and regular financial and phytosanitary checks on imported fruit
and vegetables supplied on the territory of the country have been performed to protect
Bulgarian fruit and vegetable producers from unregulated import and unfair
competition. They are carried out by the National Revenue Agency’s authorities, the
Customs Agency, the Bulgarian Agency for Food Safety and the Ministry of Interior at border
checkpoints, in retail chains, warehouses and vegetable exchanges and markets.
31
Joint actions with the Specialised Prosecutor’s Office and law enforcement authorities have
been taken to detect and curb VAT fraud on risk goods – sugar, powder milk and corn.
The activity of large trade chains is closely monitored to reduce losses and prevent VAT fraud
in the trade with fast-moving consumer goods (FMCG) originating from intra-Community
acquisitions.
The authorities of the NRA and the Ministry of Interior are carrying out joint
inspections to ensure physical control of goods acquired/supplied from/to EU Member
States. Inspections on excisable goods are carried out in conjunction with the Customs
Agency.
The Customs Agency took urgent actions for intensive control and full monitoring of the
movement of excisable goods.
A concept for optimisation of control over the production of, and trade with, excisable goods
is underway, thanks to the joint work of the teams of the NRA and the Customs Agency on
the analysis and prevention of fiscal risks, related to the production and marketing of
excisable goods.
Measure: Realisation of measures for efficiency of public finance
The budget procedure for 2014 has been held pursuant to the provisions of the new
Public Finance Law and one of its aims is to increase the efficiency of public finance. A
number of consultations and meetings were carried out with the National Council for
Tripartite Cooperation (commissions) and the National Association of Municipalities of the
Republic of Bulgaria. Draft budget documents were published on the webpage of the Ministry
of Finance.
The fiscal policy is oriented towards following balanced steps for fiscal consolidation in order
to limit the influence of the pro-cyclical fiscal policy on the economy. In Budget 2014 and in
the updated medium-term budget the fiscal policy focus is shifted from measures for
consolidation to measures with a stimulating effect on the economy.
With Budget 2014 the government changes the practice an additional resource to be
added to the budgets each year. The government policy is directed towards change with
regard to the allocation of the public resources and the use of the state budget as an efficient
tool for leading the country’s economy on the path of sustainable growth, encouraging
investments and employment and providing the necessary social protection to vulnerable
social groups.
In the medium term targeted measures are intended to influence a number of key policies,
and for the introduction of a new mechanism for financing public investment projects and
programmes on a competitive basis. Thus, expenditures will be linked more closely to the
commitments outlined in the programme of the government.
Measure: Introduction of mechanisms for reverse charge of VAT on the supplies of
cereals and industrial crops, deadline 31 December 2013, to counter tax fraud
In accordance with the amendments to the Law on Value Added Tax dated 1 January 2014 a
mechanism for reverse charge of VAT for deliveries of cereals and industrial crops was
introduced. The mechanism for reverse charge of VAT is a powerful tool for limiting tax
fraud with potential to simultaneously limit unfair competition in the sphere of production and
32
marketing of cereals and industrial crops and to provide a substantial financial resource to
traders and processors of cereal and industrial crops.
NRA representatives hold meetings with traders to clarify tax fraud mechanisms and
measures that traders can take to prevent themselves from getting involved in tax fraud
schemes.
Measure: Improving the efficiency of revenue agencies in the sercive, control and
collection of public receivables

National Revenue Agency
An analysis and evaluation of the efficiency of customer services, auditing, inspections,
operational checks and forced collection have been carried out.
The collection of public receivables has been reorganized by changing the approach –
mechanical invitations for voluntary payment of public receivables and accounting of
voluntarily paid sums as sums under a compulsory procedure have been substituted by an
individual-oriented approach, which targets the debtor, and the management of debts.
In connection with increasing tax and insurance contributions collectability and the
implementation of Budget 2013, campaigns were held for inspection/auditing of:
 Persons for whom there are data discrepancies according to declaration 1 ‘Insured
person data’ and declaration 6 ‘Data for outstanding contributions and tax under Article 42 of
Income Taxes on Natural Persons Act’ 2008-2013.

Persons who have not submitted declaration 6 between 2008 and 2013.

Self-employed persons who have not submitted declaration 6 for 2012.
Urgent measures have been taken by the NRA for the improvement of collectability of health
insurance contributions. As a result of the measures for 2013 additional revenue from
health insurance contributions, amounting to BGN 33,5 million, was collected and
directed towards the healthcare system.
From 01 January 2014, in compliance with amendments to Ordinance H-8 on the content,
terms, method and procedure for filing and storage of data by employers, insurers, as well as
self-employed persons, the declaration of data is unified with insurance declaration Form
‘Data of the insured person’ and Form 6 ‘Data for outstanding contributions and tax’ by the
simultaneous submission of insurance declarations and comparison of the data contained.
The measure’s goal is to reduce the attempts for manipulating the data submitted in
Declaration 1, leading to misuse of Public Tax Insurance funds and funds from the National
Health Insurance Fund (NHIF), increasing the collectability of compulsory insurance
contributions and improving the interaction between structures of the NRA, the National
Insurance Institute (NII) and NHIF.

Customs Agency
Legislative measures have been taken for reducing the administrative burden for the economic
operators – amendments to the Law on Excise Duties and Tax Warehouses, the Regulations
for its application and the preparation of a new Regulation for the specific requirements and
control exercised by customs authorities on the means for measuring excisable goods.
33
In order to improve the efficiency of the overall activity of the Customs Agency, analyses and
evaluations were carried out on customer services, auditing and inspection activities,
including inspections of mobile teams and groups
Measures to improve the informational system of the Customs Agency (BECIS) were taken in
order to reduce the time need to service economic operators.
Measure: Restoring the process of fiscal decentralisation by gradually transfering
functions and resources from central to regional authorities
In September 2013 a Programme for initiating the process of financial decentralisation
was adopted.
The measures are interrelated and include the following:

Exploring ways to change the financial model;

Constricting the scope of delegated activities;

Expanding the scope of local revenues and the amount of subsides, respectively;
 Analysis of the reasons that led to the imposition of considerable financial
corrections on beneficiaries under operational programmes;
 Permanent regulation of the liabilities regarding the financial corrections, taking
joint responsibility by the management bodies of operational programmes.
Measure: Public debates on the macroeconomic framework and policies for Budget
2014
Consultations and working meetings were held with the National Council for Tripartite
Cooperation (commissions) and the National Association of Municipalities in the Republic of
Bulgaria. The drafts of budget documents are published on the webpage of the Ministry of
Finance and a coordination procedure, in accordance with Structural Regulations of the
Council of Ministers and its administration, was held.
34
EUROPEAN FUNDS
Measure
Deadline
Identification of the critical projects for the 2007-2013
programming period
15.08.2013
Monitoring of the implementation of critical projects for
programming period 2007-2013
31.08.2013
Preparation of a list of alternative projects and stages for their
realisation
15.08.2013
Preparation of an Action Plan with concrete measures for each
operational programme
31.12.2013
Adoption of a Plan for preparation of the necessary documents
and procedures, in compliance with Decision of the European
Commission of 20 March 2013 (establishing conditions for
closing the programming period)
30.08.2013
Preparation of a revised version of the Partnership Agreement for
the 2014-2020 programming period
31.12.2013
Approval of regulations and other documents in connection with
the 2014-2020 programming period
31.12.2013
Elaboration of OP projects for the 2014-2020 programming
period
31.12.2013
Development of a final version of the systems for management
and control
31.08.2013
Implementation:
Measure: Identification of the critical projects for the 2007-2013 programming
period
The implementation of measures, included in the Action Plan for minimisation of the risk of
losses of funds and acceleration of the adoption of funds under operational programmes cofinanced with resources of the Structural Funds and the EU Cohesion Fund within 2007-2013,
approved by the government on 31 July 2013, is monitored on a monthly basis.
Significant progress has been recorded, directly reflecting on the reduction of the risk of loss
of funds under the programmes.
35
Measure: Monitoring of the implementation of critical projects for the 2007-2013
programming period
Significant progress has been recorded, directly reflecting on the reduction of the risk of loss
of funds under the programmes, co-financed by the European Union Structural and Cohesion
Funds:
 For programmes financed by the Structural and Cohesion Funds (SCF) of the
European Union, the growth rate of verified and actually paid sums is 14%, which
represents approximately ¼ of the achieved from the beginning of the implementation of the
programmes up to the present moment. The growth rate of certified expenditures is over 13%.
This amount is equal to approximately 1/3 of all expenditures, certified for the whole
programming period.
Verified and actually paid amounts, co-financed by the Structural and Cohesion Funds
46%
50%
40%
30%
33%
30%
20%
10%
0%
13.3.2013
31.05.2013 31.12.2013
Diagram 1: Verified expenditures
To 13.03.2013, to 31.05.2013, to 31.12.2013
54%
60%
50%
40%
30%
20%
10%
0%
40%
37%
13.3.2013
31.05.2013 31.12.2013
Diagram 2: Actually paid amounts
To 13.03.2013, to 31.05.2013, to 31.12.2013
Source: CoM
Certified expenditures under the programmes, co-financed by the EU Structural and Cohesion
Funds
45%
50%
40%
30%
28%
31%
20%
10%
0%
13.3.2013
31.05.2013
31.12.2013
Diagram 3: Certified expenditures
To 13.03.2013, to 31.05.2013, to 31.12.2013
Source: CoM
36
 Under the OP Rural Development and OP Fisheries verified expenditures mark an
increase of 14% during that period. The amount of actually paid sums under both programmes
has increased by 13% and 9%. The growth of certified funds under the programmes is about
5%.
Verified and actually paid amounts under the OP Rural Development and OP Fisheries
80%
60%
59%
44%
80%
60%
45%
40%
40%
20%
20%
0%
0%
31.5.2013 31.12.2013
към
13.03.2013
Diagram 4: Verified expenditures
To 13.03.2013, to 31.05.2013, to 31.12.2013
60%
46%
47%
към
13.03.2013
31.5.2013
31.12.2013
Diagram 5: Actually paid amounts
To 13.03.2013, to 31.05.2013, to 31.12.2013
Source: CoM
Certified expenditures under the OP Rural Development and OP Fisheries
60%
50%
40%
30%
20%
10%
0%
45%
към
13.03.2013
51%
31.5.2013
57%
31.12.2013
Diagram 6: Certified expenditures
To 13.03.2013, to 31.05.2013, to 31.12.2013
Source: CoM
 There is a significant progress on the minimization of risk of loss of funds in
case of automatic release:
 According to data as of 31 December 2013, the danger of loss has been
minimised to less than BGN 7,7 million with regard to programmes co-financed by the
Structural and Cohesion Funds (OP Technical Assistance and OP Administrative Capacity).
There is still a risk of losing EUR 27 million under OP Environment. Thus, the maximal total
amount of losses may vary between EUR 7,7 and EUR 35 million.
37
For comparison, to 31 May 2013 the estimated value of the funds under thread of automatic
release is over EUR 272 million (under all programmes except for OP Transport).
At the same time loss of funds under OP Rural Development is not expected. Forecasts at
the beginning of the reporting period were for more than EUR 100 million. Loss of funds
under OP Fisheries has been minimised to EUR 4 million (4 134 075 BGN).
Expected losses from the automatic release of funds under the programmes, co-financed by
the EU Structural and Cohesion Funds
300,000,000
272,312,555
250,000,000
200,000,000
150,000,000
100,000,000
35,216,277
50,000,000
0
31.05.2013
31.12.2013
Diagram 7: Expected losses
To 31.05.2013, to 15.12.2013
Source: CoM
 Currently, the programmes financed by the European Social Fund in Bulgaria
(OP Human Resources Development, OP Administrative Capacity), take the first place in all
Member States in terms of absorption of resources from the Fund for 2013, with 23%
recovered interim expenditures during this year, while the average rate for the EU is
14%.
 Corrective measures have been taken in connection with the recommendations
outlined in the statement of Directive General Regional and Urban Policy of the European
Commission on ceased payments under the OP Environment. The reasons for that are
irregularities in public procurement procedures of operations carried out in 2012. The main
criticism is associated with unequal treatment of participants, existence of discriminatory
requirements, mixing of criteria for selection and eligibility of candidates. The
recommendations are with respect to the systems for management and control systems of the
program.
Annex № 1 – Table „Implementation of the Operational Programmes to 31.12.2013“
Measure: Preparation of a revised version of the Partnership Agreement for the
2014-202 programming period
In November 2013 the comments of the European Commission on last version of the
Partnership Agreement for 2014-2020 programming period were received. An annex to the
Agreement is the plan for the implementation of the preconditions. The Commission finds the
latest version more mature and of better quality, but also offers certain suggestions. Currently,
the agreement is being revised to reflect the recommendations. The new version will be sent
38
to the European Commission by the end of January 2014. Official negotiations on the
Partnership Agreement are expected to begin in February 2014.
Measure: Approval of regulations and other documents in connection with the
2014-2020 programming period
The regulatory framework is in a process of elaboration and will regulate the processes of
management of financing of European structural and investment funds. The main decrees –
for the provision of grants, selection of contractor, national rules for eligibility, regulation of
the process of monitoring – are being developed together with the main participants in the
processes, including NGOs and municipalities. The focus in the development the rules is on
simplified costs, the use of integrated projects and joint action plans.
Elaboration of OP projects for the 2014-2020 programming period.
Measure: Elaboration of OP projects for the 2014-2020 programming period
Operational programme projects for the next programme period are in a process of
development, and the projects under OPs Regions in Growth, Human Resources,
Environment and Innovations and Competitiveness, Transport, and Rural Development have
already been submitted to the European Commission for initial comments.
On 11 December 2013 the Council of Ministers approved a decision for the selection of
authorities to be in charge of the management, control, coordination and audit of the European
structural and investment funds and other instruments and initiatives of the European Union
during 2014-2020.
Measure: Development of a final version of the systems for management and control
 An electronic data exchange has been introduced between the Managerial bodies,
the intermediate bodies and the beneficiaries in the process of statement of funds and
accounting of the projects, co-financed by the EU Structural and Cohesion Funds. This results
in the simplification of procedures and a reduction of administrative burden for beneficiaries.
 The preparation for development of a mobile application of the unified information
site www.eufunds.bg has already started, which will facilitate society’s awareness and
understanding of the effective and efficient use EU’s SCF in Bulgaria.
39
RESCUE OF THE BULGARIAN ENERGY SECTOR
Measure
Deadline
Updating the National Strategy for the development of the energy
sector and a proposal for a public debate
31.12.2013
Preparing an analysis on the technical and economic
characteristics of project „Belene“, forcasts for electricity
consumption in the region and Bulgaria and the financial structure
of the project
31.12.2013
Negotiations with „Rosatom“ with a view to solving the problems
of project „Belene“
Restoring public confidence in the regulatory system of the energy
sector through the involvement of civil society representatives in
the State Commission for Energy and Water Regulation
31.10.2013
Restoring conditions for the export electricity to improve capacity
utilisation and coal mining
30.09.2013
Implementation:
Measure: Updating of the National Strategy for the development of the energy sector
and a proposal for a public debate
The Government is developing a new Energy Strategy of Bulgaria until 2030 to create a
permanent framework for a policy on energy security and lower energy prices as an important
factor for the competitiveness of the Bulgarian economy and the living standard of citizens.
At present, the state of sector „Energy“ is being analysed by studying problems related
to the production, transmission and distribution of electricity. Supply and sales
contracts and subsector „Heating“ are also being analysed.
Measure: Preparing an analysis of the technical and economic characteristics of
project „Belene“, forecasts for electricity consumption in the region and Bulgaria
and the financial structure of the project
An analysis of the technical and economic characteristics and the financial structure of project
Belene, as well forecasts for electricity consumption in the region and Bulgaria is due.
A suit, filed by OAO Atomstroiexport before the Court of Arbitration, is currently underway.
According to White&Case, hired to defend the interests of the Bulgarian party, each action or
statement regarding project Belene could influence the outcome of the arbitration case.
40
Measure: Restoring public confidence in the regulatory system for regulating the
energy sector through the involvement of civil society representatives in the State
Commission for Energy and Water regulation
Actions to strengthen the control over natural monopolies are associated with changing the
regulatory documents and strengthening the administrative and financial capacity of the
administration of the State Commission for Energy and Water regulation, which is given the
right to exercise control
At the end of November 2013 the new Rules of Procedures, regulating the new
organisational structure of the State Commission for Energy and Water regulation was
adopted. The greater part of the expert potential of the specialised administration in the State
Commission for Energy and Water regulation has been directed to the new Directorate
General, established to exercise control and resolve disputes.
In 2013 the State Commission for Energy and Water regulation carried out a lot of inspections
on the activity of energy distribution companies. A second regulatory audit on their activity
was carried out. A number of penal provisions have been issued and pecuniary sanctions
imposed amounting to a total of BGN 4 million.
Restoring public confidence in the system for regulation is a long process that requires joint
efforts and actions. Increasing of the independence and transparency of the work of the State
Commission for Energy and Water is the first step of this process. In the process of discussing
the necessary amendments to the Energy Act, the State Commission for Energy and Water
came up with a proposal, including the following three directions:
 Including specific texts concerning the requirements for independence of energy
regulatory authorities;
 Legal regulation for mandatory disclosure of information in connection with
proceedings for prices in the regulator;
 Establishment of a Public Council to the State Commission for Energy and Water,
which must be allowed to participate in the process of reviewing and establishing regulated
prices.
Measure: Restoring conditions for export of electricity to improve capacity
utilisation and coal mining
The direct effects of the application of the measures are the following:
 Reduction in electricity prices by 5% for both households and industrial consumers;
 Additional reduction of the final tariffs for use of low voltage by households and
the small businesses into force from 30.12.2013 – the average reduction of the day tariff is
around 1% and the night tariff – 10%. The change in the structure of tariffs aims to stimulate
the use of electricity during the night hours.
 Electricity load of all capacities and work is guaranteed for all electricity producers.
A step towards balancing the energy system is made by amendments to the Energy Act.
 The change in the pricing model created favourable conditions for the
development of the liberalised market;

The export of electricity is released.
41
Through legislative amendments export of electricity is exempt from additional fees to the
price for transmission (green and brown energy, and sunk costs). The fee for transmission and
access (for export) was reduced from BGN 34,26 to BGN 12,47 in August 2013, and to BGN
7.26 from 30 December 2013, which boosted electricity exports. Exports of electricity in
August 2013 increased by 54% compared to the previous month. For comparison, under
the old pricing model, electricity exports for July 2013 were 28% less compared to July 2012.
This measure was introduced in accordance with the recommendation of the European
Commission to analyse the tariffs for access to grids, review of existing additional fees to
ensure that they are not discriminatory, economically unjustified and do not raise
artificial barriers to exports.
After the change in the tariff structure, the country exports an average of 1300 MW/h –
a lot more compared to May 2013. Export for May was 128 MW/h.
 By setting quotas for the purchase of electricity from the public supplier, the
energy, produced by factory plants, is first to be used to cover the needs of the respective
plant, and the remaining energy to be purchased by the public supplier.
As of 01 September 2013, the price of coal, extracted at Maritsa Iztok EAD is increased to
BGN 75.00 per ton conditional fuel. Until then the price of coal mined at „Mini Maritsa
Iztok“ EAD is BGN 71,50 per ton conditional fuel. This change had a favourable impact on
revenues of the company, together with increased production of coal, based on increased sales
of plants in „Maritsa basin“, which fully meets their needs.
The new approach to reduce costs in the system is a prerequisite for the development of the
liberalised market. There are conditions to prevent a sharp increase in end prices. This favours
the development of industry in the country. External financing has been attracted through the
real increase in electricity exports.
It was decided to split the National Electricity Company (NEC) and the Electricity System
Operator (ESO). The split was approved by the State Energy and Water Regulatory
Commission.
South Stream gas pipeline – strategic economic and energy (and environmental) for
Bulgaria project began.
Actions have been taken regarding all infrastructure projects, in order to provide cheaper gas
for Bulgarian producers and improve their competitiveness, ensure energy independence and
security of supply:

South Stream
The conditions for the participation of Bulgarian side of the project were renegotiated.
National interests were guaranteed and significantly more favourable parameters were
negotiated in terms of financing, financial security and revenues from the operation of the
pipeline. The Bulgarian Energy Holding will finance the project through a loan equivalent to
approximately EUR 620 million, at an interest rate of 4,25%. The Bulgarian company will
receive a dividend from the first year the pipeline reaches full capacity – 2018, which equates
to approximately EUR 715 million by 2035. Bulgaria’s revenue until 2043 is expected to be
approximately EUR 2,8 billion. It was agreed that most of the work will be done by Bulgarian
companies, which will provide employment, especially in areas with high unemployment and
serious economic difficulties.
 The Government of Bulgaria is working on building gas interconnections with
neighbouring countries:
42
 Project to build a gas interconnection with Romania (IBR) – the ground part of
the interconnection is built on Bulgarian territory and it successfully passed hydraulic testing
of density and strength; GIS – Ruse East is in the process of building;

The Joint Development Agreement is about to be finalised;
 Project to build a gas interconnection with Serbia (IBS) – the documentation
for a public tender on the „Design, supervision and consultancy of the construction of Gas
Interconnection Bulgaria – Serbia on Bulgarian territory“.

Azerbaijan – Shah Deniz
It is vital for Bulgaria and the countries of Central and South East Europe in the short and
medium term to create competition between different sources and manufacturers in the supply
of natural gas, the so-called „gas to gas competition“. This will encourage the negotiation of
competitive prices for the economies of Central and South Eastern European countries. In
implementing this goal, on 19 September 2013 in Baku, Bulgargaz EAD signed the first
long-term contract for the supply of about 1 billion cubic m/year gas from 2019 through
Greece (via IGB) with the Consortium Shah Deniz. The only exception, outside of
countries along the TAP route, was made for Bulgaria, which will receive the agreed
volumes of natural gas from Shah Deniz 2 through Greece via TAP and IGB.
After g the Consortium Shah Deniz chose the TAP route to transport Azerbaijani gas via
Greece and Albania to Italy and thus not selecting Nabucco West project, the only real
alternative for diversification of gas sources for Bulgaria and the region of Central and South
East Europe remains the building of a necessary infrastructure for intersystem connectivity
between countries in the region.
The Bulgarian party managed to justify and defend before the European Commission projects
important for diversification of the region of Central and South East Europe, included in the
list of projects of common interest to the EU (PCI) in the new Regulation on European energy
infrastructure, such as: IGB together with the project for Rehabilitation, Modernisation,
Expansion of the National Gas Transmission Network; ITB; IBS; extension of UGS,
construction of new gas storage facility and expansion of the transit capacity of the existing
infrastructure for Greece.
The new interconnections in the region of Central and South East Europe would supply the
region in the long run with „later“ volumes of natural gas from newly discovered fields in
Azerbaijan in 2022.

Westinghouse
Westinghouse Electric Company, Toshiba Corporation, and the Bulgarian Energy Holding
(BEH) signed an agreement to begin negotiations on the development of the possibility to
build a seventh unit at Kozloduy NPP, Using AP1000 pressurised water reactor. In the
coming months, Westinghouse and Toshiba Corporation, together with experts from BEH will
begin work on identifying and specifying the parameters and details of the potential project.
With its decision to authorise the Minister of Economy to mandate BEH to negotiate, the
government focuses on the implementation of three key components of energy policy –
development of nuclear energy in the future, providing real diversification and addressing the
important issue of safety.
43
SUSTAINABLE DEVELOPMENT OF AGRICULTURE AND PROMOTION
OF SMALL PRODUCERS
Measure
Deadline
Minimising the risk of loss of funds under OP Rural
Development for 2007-2013 and structuring the new Programme
for 2014-2020
30.09.2013
Presentation of the Programme for Maritime Affairs and
Fisheries 2014-2020
31.12.2013
Preparing a programme for the construction of irrigation
infrastructure of agriculture
31.12.2013
Promoting organic farming
30.11.2013
Implementing measures aimed at increasing the share of direct
supply of small quantities of raw materials and foodstuffs of
animal origin from the manufacturer to the end user
31.12.2013
Preserving the Bulgarian forest from illegal practices by
improving the activities related to the implementation of control
over and protection of forests by the EFA, including through
decentralisation of the forestry inspectors of the Department of
Conservation, Prevention and Control of Forest Areas (CPCFA)
in the EFA in several regions of the country
31.12.2013
Improving the control of forest activities by developing and
implementing a system for issuing transport tickets by temporary
storage facilities and sites for processing and marketing of timber
through system.iag.bg
31.12.2013
Executing the first stage of the national inventory of forest areas
31.10.2013
Implementation:
Measure: Minimising the risk of loss of funds under OP Rural Development for 2007-2013
(RDP) and structuring the new Programme for 2014-2020
 An action plan to accelerate the implementation of the OP Rural Development
2007-2013 by the end of 2013 has been prepared, including measures related to:
notification of the 11th amendment to OP Rural Development; concluding contracts with
approved beneficiaries; disbursement of payments, including advance payments; issuing
guarantees for beneficiaries with contracts concluded under measures 121 („Modernisation of
agricultural holdings“), 122 („Improving the economic value of forests“) and 123 („Adding
value to agricultural and forestry products“); restructuring of the Guarantee Fund. The Action
Plan is implemented in accordance with the provided steps and deadlines.
The Government has increased the amount of OP Rural Development funding, which
can be negotiated over the programme budget. The maximum size of the budget has
44
been increased from BGN 244,475 million ( EURO 125 million), representing 18% of the
agreed financial assistance under measure 321 „Basic services for the economy and the
population in rural areas“, to BGN 370,768,829 (EUR 189,574 million) or 27% of the
financial assistance approved so far.
The said increase will allow to negotiate a maximum number of requests for assistance
received 9-20 September 2013, as well as to reduce the risk of automatically deducting funds
from OP Rural Development. This will maximize the absorption of the programme budget,
taking into account reductions of already agreed funds in the implementation of commitments
made by final beneficiaries, and will contribute to achieving better quantitative performance
of targets under the measure.
The deadline for extending interest-free loans for municipalities under OP Rural Development
2007-2013 was extended until 12 October 2013. The objective is to provide as long time as
possible to municipalities beneficiaries under OP Rural Development measures for carrying
out final payments to contractors under the projects.
Contracts with a total amount of public funds of BGN 5 979 730 623.44 (96,51% of the
budget of the RDP) were concluded as of 01 January 2014 under OP Rural Development
2007-2013. The amount of contracted funds includes the assumed legal obligations under
Axis 2 of OP Rural Development 2007-2013. Contracted funds in 2013 amounted to
BGN 929 074 768.47.
Measure
Number of
contracted
projects
Value of the agreed
subsidy
111 „Vocational training, information activities
and spreading scientific knowledge“
6
8 209 885,64
112 „Setting up holdings of young farmers“
6
1 917 747,00
114 „Use of advisory services by farmers and
forest owners“
25
49 041,60
121 „Modernisation of agricultural holdings“
670
185 404 252,81
123 „Adding value to agricultural and forestry
products“
204
168 016 164,40
1 422
20 858 607,00
223 „First afforestation of non-agricultural land“
45
11 337 876,91
226 „Restoring forestry potential and introducing
prevention actions“
50
16 353 567,23
311 „Diversification into non-agricultural
activities“
0
312 „Support for the creation and development of
micro enterprises“
0
313 „Encouragement of tourism activities“
40
141 „Support for semi-subsistence farms
undergoing restructuring“
11 068 887,57
45
321 „Basic services for the economy and the
population in rural areas“
179
402 211 216,85
322 „Development and renewal of villages“
158
103 647 521,46
2 805
929 074 768,47
Total:
Source: State Fund Agriculture
Public funds paid to beneficiaries under the programme amount to BGN 3 835 million, of
which BGN 236,8 million is for the National Guarantee Fund EAD. EU participation in
expenditure incurred is BGN 3 087 million, which, together with the EAFRD advance of
BGN 357 million leads to 69% absorption of the budget.
Funds paid in 2013 for the 2011 budget under the n +2 rule amount to BGN 967 777 585,12
(for payments budget of BGN 960 million) of general public funding. For the first time in
three years the budget was repaid in full and no losses were reported.
Funds paid in the period 01.01.2013 – 31.12.2013
Measure
EAFRD – BGN
NB – BGN
Total – BGN
111
112
121
122
123
141
143
211
212
213
214
223
226
311
312
313
321
322
411
412
413
431
511
611
Total:
2 146 703,95
29 764 779,47
78 817 844,82
4 429,17
61 605 391,93
18 267 532,80
1 666 339,22
45 461 306,64
14 723 598,46
24 927 874,87
224 385 604,99
3 386 079,69
6 316 015,28
22 646 073,06
28 568 028,24
3 342 691,69
154 968 294,17
44 567 050,42
1 009 516,23
19 321,45
3 316 314,93
3 058 900,78
9 756 052,24
107 559,05
782 833 303,55
536 675,98
7 441 198,41
19 375 840,16
1 107,29
15 343 243,79
4 566 883,20
416 584,80
9 979 315,97
3 232 011,34
5 471 973,50
49 255 377,18
743 285,79
1 386 442,40
5 530 575,25
6 971 872,
835 672,92
38 397 921,18
11 141 762,53
252 379,06
4 452,28
829 078,71
764 725,22
2 439 013,08
26 888,92
184 944 281,57
2 683 379,93
37 205 977,88
98 193 684,98
5 536,46
76 948 635,72
22 834 416,00
2 082 924,02
55 440 622,61
17 955 609,80
30 399 848,37
273 640 982,17
4 129 365,48
7 702 457,68
28 176 648,31
35 539 900,85
4 178 364,61
193 366 215,35
55 708 812,95
1 261 895,29
23 773,73
4 145 393,64
3 823 626,00
12 195 065,32
134 447,97
967 777 585,12
Source: State Fund Agriculture
46
BGN 623 million was disbursed under OP Rural Development between 9-31 December 2013,
of which BGN 269,5 million under measure „Agri-environmental payments“ and BGN 51
million under measure 211 „Payments to farmers for mountainous areas with natural
handicaps“.
There is a forthcoming discussion of projects on the following measures:
 Measure 112 „Setting up of holdings of young farmers“, under which about BGN
20 million must be absorbed;
 Measure 121 „Modernisation of agricultural holdings“, under which BGN 88
million will be negotiated;
 Measure 311 „Diversification into non-agricultural activities“, under which about
90 million BGN will be negotiated;
 Measure 312 „Support for the creation and development of micro enterprises“,
under which about BGN 50 million are expected to be negotiated;

Structuring of the new Programme for 2014-2020
The first version of the OP Rural Development 2014-2020 was prepared and includes
the first versions of measures. There are plans to provide support for the restructuring and
modernisation of farms with difficult access to the market, such as vegetables, perennials,
essential oils and medicinal crops and livestock breeding.
The budget of OP Rural Development 2014-2020, funded by the European Union, is EUR
2 338 783 966 (according to Annex 1 to Regulation 1305/2013 on the support for rural
development by the European Agricultural Fund for Rural Development).
The new programme includes measures for providing start-up assistance to young
farmers, to new agricultural activities of farmers and micro-enterprises in rural areas.
In accordance with the opportunities provided by the reform of the Common Agricultural
Policy for „shortening“ the supply chain of agricultural products, measures have been
prepared to create so-called farmers' markets for the direct sale of fruit and vegetables and
markets for small quantities of raw materials and foodstuffs of animal origin. The
construction of municipal facilities for storing milk is planned to support small farms with 1-2
dairy cows.
Measures to support breeding activities and to create markets for live animals will be of great
importance to livestock breeders.
An emphasis in new programme is fostering the transfer of knowledge and innovation in the
field of agriculture and forestry. In order to have more sustainable projects, priority will be
given to supporting integrated projects.
Economic and social importance of small farms and their indispensable role in the
development of Bulgarian agriculture, to maintain ecological balance and vitality of rural
communities determine the need for developing a Thematic sub-programme for small farms
within OP Rural Development 2014-2020. It is aimed at supporting small farms with
development potential in order to prevent their withdrawal from agriculture and encourage
their development.
Parallel to the development of new measures, an improved version of the analysis of the
programme was prepared, taking into account the recommendations of the European
Commission.
47
In late November and early December 2013 a series of focus groups with partner
organisations were held and the options of measures presented and discussed. Involvement of
the civil society in the preparation of the new programme resulted in a significant
improvement of the quality of OP Rural Development 2014-2020.
The first version of OP Rural Development 2014-2020, including an analysis, strategy
and measures, was presented and discussed at the annual technical meeting with the
European Commission, held on 4 December 2013 in Brussels. The comments of DG
„Agriculture“ on OP Rural Development and the Partnership Agreement were discussed. The
next steps in the development of the programme were identified – it was agreed that the full
version of OP Rural Development 2014-2020 would be submitted to the European
Commission for informal consultation by the end of January 2014.
Measure: Presentation of Programme for Maritime Affairs and Fisheries 2014-2020
In late November 2013, the first draft of the Programme for Maritime Affairs and
Fisheries 2014-2020 was submitted to the Commission.
The Thematic Working Group for the development of the Programme for Maritime Affairs
and Fisheries 2014-2020 (PMAF) began work in August 2013. It includes representatives of
the public administration, NGOs, research organisations, industry representatives,
representatives of Fisheries Local Action Groups (FLAG) and representatives of the European
Commission DG MARE. By mid-December 2013 seven meetings of the FLAG on PMAF
2014-2020 were held. The drafts of the Multiannual National Strategic Plan for Aquaculture
in Bulgaria (2014-2020), SWOT analysis of the Programme for Maritime Affairs and
Fisheries (2014-2020), etc. were presented and discussed.
On 10 December 2013 the indicative budget of PMAF 2014-2020 and its second draft were
discussed at the seventh meeting of the Thematic Working Group. In 2014, additional
meetings will be held to discuss the budget distribution under PMAF, present the final version
of the environmental assessment, the comments received from the European Commission on
the second draft of the programme, the final ex-ante evaluation, and to approve the final
version of PMAF.
All documents relevant to the preparation of PMAF’s project (2014-2020) and a draft of
the Programme are published on the website of OP Fisheries (2007-2013).
PMAF 2014-2020 measures will stimulate innovation, competitiveness and adaptability in the
fisheries sector. Important priorities are the processing and conservation of fishery resources.
An essential element for increasing competitiveness is the improvement of fishing port
infrastructure, development of landing sites and covered quays. Special attention will be paid
to work with local action groups.
Measure: Preparation of a programme for construction of irrigation infrastructure
of agriculture
In pursuance of the Memorandum of Understanding between the Government of the Republic
of Bulgaria and the World Bank, the Ministry of Agriculture and Food prepared a draft
agreement for the provision of advisory services to strengthen the competitiveness of
agriculture and the development of a strategy for sustainable management of the irrigation
sector, including protection from the harmful effects of water.
48
A procedure for the coordination of the draft agreement, the terms of reference, the financial
plan and the time frame is in progress. The signing of the agreement and preparation of a
Strategy for sustainable management in the irrigation sector, including protection from the
harmful effects of water are forthcoming.
Measure: Promoting and developing organic farming
In early November 2013, amendments to the Law on the implementation of the Common
organisation of agricultural markets of the European Union were made in the following
directions:
 Organically produced agricultural products and foodstuffs shall be offered in retail
outlets in a separate area (stand or shelf) and/or signposted with a logo or inscription
indicating that they are organic.
 Organically produced agricultural products and foodstuffs shall be stored in specially
designated area in warehouses of retail outlets. Unpackaged products will be stored in a
separate designated area.
 Ban on the use of the sign and designations for organic production, including in a
foreign language, on agricultural products and foods not manufactured under the rules of
organic production in accordance with Regulation (EC) 834/2007.
The amendments to the Law in terms of organic farming provide additional safeguards to
consumers regarding labelling and organic products on the market.
Eight meetings and workshops with farmers were held to promote the benefits of organically
produced foods, as well as the organic method of production as environmentally friendly and
preserving natural resources.
Specific measures for priority support for the development of organic farming and the
creation and maintenance of organic aquaculture have been outlined in the course of
preparation of OP Rural Development and PMAF for the new programming period 20142020.
So far organic farming in Bulgaria has been supported under measure 214 „Agrienvironmental payments“ of OP Rural Development in the period 2007-2013 with lines:
organic crop raising and organic beekeeping. In the new programming period 2014-2020,
organic farming will be supported as an independent measure under OP Rural Development,
and the Government aims to extend the scope of the measure by adding a new line – organic
livestock breeding.
Measure: Implementing measures aimed at increasing the share of direct supply of
small quantities of raw materials and foodstuffs of animal origin from the
manufacturer to the end user
In connection with this measure, a draft Regulation amending Regulation № 26 of 14 October
2010 on the specific requirements for direct supply of small quantities of raw materials and
foodstuffs of animal origin was prepared and is at the stage of coordination with the European
Commission.
A conceptual design for the direct supply of small quantities of raw materials and foodstuffs
of animal origin has been developed. This project aims to create conditions for producers and
associations of producers to offer direct small amounts of animal products at distinct locations
49
in existing markets and specifically built markets, equipped for this type of sales. The project
will be implemented through support for investment under the new Rural Development
Programme (2014-2020). The aim is to enable more small farms in economically vulnerable,
disadvantaged, semi- mountainous and mountainous regions to enter the market, which will
lead to a better economic stability in the sector and create livelihood.
Measure: Preserving the Bulgarian forest from illegal practices by improving
activities related to the implementation of control over and protection of forests by
the EFA
To enhance the protection of forests from illegal practices, the Government has taken steps to
strengthen its monitoring capacity.
A Plan for reappointment of forest inspectors from EFA to the Regional Forest Directorates
with a closing date 01 October 2014 has been developed. Steps have been taken to transform
positions in the Directorate for Conservation of Forests and Hunting and in the Directorate for
Inventory and Changes in Forest Areas, and reappointment of forest inspectors from EFA to
the Regional Forest Directorates.
A proposal has been made to appoint forest inspectors working in the aforementioned
departments in the regional forestry directorates, as this change will increase the efficiency of
their work – they will respond more quickly to signals for violations in concerned regions and
funding related to their business trips will be reduced.
Upon changing the vacant positions of „Forest Inspector“ and „Specialist Forest Inspector“
into „Senior Expert“ and „Chief Expert“ in the Directorates for Conservation of Forests and
Hunting and Inventory and Changes in Forest Areas, a competition will be announced and
employees with higher education (Master's degree) in forestry would be correspondingly
employed; they should also have practical experience in the specialty of no less than two
years so as to be able to exercise all rights and obligations under Art. 197 of the Forest Act,
including carrying out expert reports, analyses and evaluations of silvicultural activities in
forest areas.
Measure: Improving the control of forest activities by developing and implementing
a system for issuing transport tickets by temporary storage facilities and sites for
processing and marketing of timber through system.iag.bg
Timbering is one of the main production activities in Bulgarian forests. About 5 million cubic
meters of wood are produced in the country every year. Relevant documents are issued for
lawful transportation of wood and proof of origin. At present, the documents for wood
harvested under the Forest Act (FA) – Art. 211 and the Law on Protection of Agricultural
Property (LPAP) are transport tickets (TT). There is a plan to make TT the only documents
needed for the transportation of wood in the country, regardless of where and in what
order it has been obtained.
TORs for software development have been prepared, and in terms of the sites under Art. 206
of the Forest Act (sites for processing and marketing of wood) a project for funding under the
Operational Programme Administrative Capacity has been submitted. It is envisaged that the
development of a software application for the issuing of transport tickets by temporary
storages will be assigned for implementation through a public procurement procedure in 2014.
50
TT contain information about the quantity and type of transported wood, the place of loading
and delivery, details of the owner and the recipient of the wood, vehicle, driver, etc.
At present, there are two types of transport tickets. The first type is the so-called „electronic“
TT issued by cash registers with embedded software for issuing and recording of data in cash
registers. The other type is the so-called „paper“ TT issued following an established sample
on forms to be filled by hand. The spikes are provided by the Regional Forest Directorates
(RFD).
The transport ticket is proof of the legal origin of the transported wood. The development and
use of software for electronic transport ticket and the relevant registration at upon issuance in
the EFA server will result in the better control of harvested, traded and transported wood.
Measure: Executing the first stage of the national inventory of forest areas
For the purposes of carrying out a national inventory of forest areas, a model TOR for a
national inventory has been prepared. Talks have been conducted with a Norwegian forest
group for joint work and search for funding opportunities.
The National inventory of forest areas under the Forest Act is carried out by the Council of
Ministers on the proposal of the Minister of Agriculture and Food. The performance of the
national inventory of forest areas is assigned by the EFA and is funded by the state budget.
To date no funds have been provided and no national inventory of forest areas has been
carried out.
Annually, by the method of classical inventory, an inventory of about 400 000 ha, or one tenth
of the forest areas, is carried out.
The Government has been also working on the implementation of other measures
outlined in the Programme for Governance, Development and Justice:
Measure: Creating conditions for facilitated access of small farmers to markets for
realization of agricultural produce
To date, the country has established agricultural wholesale and retail markets, but not all of
them function according to their intended purpose. Markets in urban centres sell products
purchased primarily from wholesale markets which pass through several resellers and in many
cases are imported from other countries. In practice, the possibility of a direct link between
producer and consumer is limited.
Due to higher distribution costs and stronger market power of intermediaries and processors,
small producers do not get the best market price. Creating markets for direct realization of
produce by the producers themselves will reduce the cost for end customers, which will not be
at the expense of producers. By skipping resellers, manufacturers will be making direct sales
to the end customer and shops, which in most cases also reach manufacturers through
resellers.
In order to improve market access, measures are provided for the setting up of specialised
exchanges and markets where farmers can sell their produce directly to consumers. The
Ministry of Agriculture and Food (MAF) has initiated a series of meetings with farmers,
mayors of municipalities and governors to discuss the possibilities of allocating municipal
land for the setting up of markets for producers of fruits and vegetables. A proposal to
51
establish a common vegetable market in some Romanian cities along the Danube in order to
establish a direct link between producers and traders of the two countries is being considered.
Drafts for setting up markets for producers of fruits, vegetables and animals that can be
realised with the support of the Rural Development Programme 2014-2020 are in a process of
development.
Measure: Targeted use of the state land fund to stimulate product diversity and
promote the cultivation of intensive crops
In order to overcome the shortage of pasture for a considerable part of livestock breeders,
measures have been provided to ensure easier access to pastures part of State Land Fund,
which will stimulate the development of livestock breeding and product diversity. A
discussion will be conducted in the Council of Ministers on the amendments to the Ownership
and Use of Agricultural Land Act, which will discourage any farmers who do not breed
animals to get pastures and respectively European subsidies.
To promote the cultivation of intensive crops in developing the measures under the RDP for
the new programming period 2014-2020, priority is given to the implementation of projects in
the field of growing vegetables, fruits and oil-bearing crops.
Measure: Promoting of the association of farmers for producing competitive and
cost-effective agricultural produce of high added value intended for the internal and
external markets
Conditions are being created for the implementation of mechanisms of supporting groups and
producer organisations under the first pillar of the CAP and the measures under OP Rural
Development 2014-2020.
The benefits for the members of the associations are better planning of production and
distribution of products, stronger bargaining position in the market. The benefits for the
market are concentration and consistency of supply, and quality control of traded products.
The MAF develops and disseminates information materials to familiarise farmers with the
terms and conditions of their association, implement marketing standards for fresh fruit and
vegetables and organic farming. Over 12 meetings and discussions with producers of fruit and
vegetables from all over the country have been organised.
As a result, during the second half of 2013, a significant intensification of the processes of
association of producers of agricultural products could be seen. Of the recognized to date 16
associations of producers – groups and organisations of fruit and vegetable producers – 10
groups of fruit and vegetable producers were recognised between July and December 2013.
Measures have been taken to support vulnerable sectors, such as livestock breeding and
tobacco growing. In October 2013, under the national premiums scheme BGN 30 million
were paid for cattle, BGN 15 million for sheep and goats and BGN 1,5 million for tobacco.
The MAF has started the implementation of a new state aid scheme „Reduced excise duty rate
on gas oil used in primary agricultural production through the provision of fuel vouchers“.
The aid is to the amount of BGN 84 million and will be provided in the form of a reduced rate
through a system of vouchers to offset part of the costs of oil used in the primary production
of agricultural products incurred by farmers. Arrangements for accepting applications from
farmers as of 2 January 2014 and granting the aid have been made.
52
GREEN ECONOMY. CONVERSION OF THE COUNTRY'S
ENVIRONMENTAL BENEFITS INTO NATIONAL RESOURCE
FOR DEVELOPMENT
Measure
Deadline
Application of the developed Guidelines for Integrating
Environmental Policy and Policy on Climate Change in the
programming of planning period 2014-2020
31.12.2013
Development of the second phase of the Guidelines for Integrating
Environmental Policy and the Policy on Climate Change in the
process of implementation of operational programmes in the
2014-2020 period
31.12.2013
Drafting the Law on Curbing Climate Change
30.11.2013
Development and protection of the country's position on the
proposals for a structural reform of the EU Emissions Trading
System (EU ETS) emissions of greenhouse gases and the
upcoming negotiations for a new policy framework on climate
change
31.12.2013
Implementation:
Measure: Application of the developed Guidelines for Integrating Environmental
Policy and Policy on Climate Change in the programming of planning period
2014-2020
In order to put the implementation of the measures under all operational programmes in this
period in the context of the environmental protection policies, the Ministry of Environment
and Water (MEW) has developed the „Guidelines for the nationwide integration of
environmental policy in the programming period 2014-2020“ targeted at all the ministries so
that they can include projects that are environmentally friendly and address issues of the
environment and climate change in their programmes. The MEW has offered not only the
arguments, not only what the line of the projects to be funded should be, but also the specific
proposals on the measures to be financed: for example, financing energy saving and energy
efficiency projects, which has a multifaceted effect – environmental, reducing GHG, cost
savings of households, businesses and public institutions for electricity; sustainable transport,
smart systems of traffic control for a more convenient, cheaper, and cleaner, in terms of air
quality, transport. This document has been approved at both expert and ministerial level and is
in its first phase of implementation – comprising the phase of preparing the operational
programmes by providing the basic legal framework and an analysis of institutional
arrangements for policy implementation.
The application of the Guidelines is done by reflecting comments and fulfilling commitments
made at internal and interagency coordination meetings (with MAF, MEE, NAFA, MLSP,
MRD, MIP, CM) in relation to the development of the OP Environment 2014-2020, and
53
demarcation with other programmes – OP Rural Development, OP Innovation and
Competitiveness, OP Fisheries, OP Regional Development, OP Good Governance.
Measure: Development of the second phase of the Guidelines for Integrating
Environmental Policy and Policy on Climate Change in the process of
implementation of the operational programmes in the period 2014-2020
The second phase – „Implementation of Operational Programme and Partnership Agreement“
– of the Guidelines for integration of environmental policy and policy on climate change
in the Cohesion Policy, the Common Agricultural Policy and the Common Fisheries Policy
funds for 2014-2020 is being developed.
In this regard studies are done on „Marking of direct and indirect links between investment
priorities included in Operational Programme Science and Education for Smart Growth,
Operational Programme Good Governance and Operational Programme Innovation and
Competitiveness in the period 2014-2020”, and „Formulation of „eligibility criteria“ and
„criteria with specific severity weight““.
The indicative financial plan of the OP Environment 2014-2020 in connection with the
request to reach maturity of the second version of the draft programme has been
prepared and submitted to the European Commission.
Measure: Drafting the Law on Curbing Climate Change
A draft of the Law on Curbing Climate Change has been elaborated, in pursuance of the
Government's policy of turning the country's environmental advantages into national
development resources. It will provide a common legal framework for public relations related
to the implementation of policy on climate change by regulating the competent authorities,
carrying out the policy on climate change, and their powers. The Law will also determine the
circle of private individuals who have rights and obligations under various procedures and the
main activities and processes by which the Republic of Bulgaria fulfils its obligations in the
field of climate change at international and EU levels.
The bill has been submitted to the National Assembly and approved on first reading.
Currently the Committee on Environment and Water of the National Assembly is examining
the before before it is submitted for a second reading.
Measure: Development and protection of the country's position on the proposals for
a structural reform of the EU Emission Trading Scheme of greenhouse gases and
the upcoming negotiations for a new policy framework on climate change
 The national implementation measures of Bulgaria for free allocation of
allowances for greenhouse gas emissions, with include amendments made in accordance
with Decision of the European Commission of 5 September 2013, have been submitted to the
European Commission.
The corrected national implementing measures for free allocation of allowances for
greenhouse gas emissions (NIM) with a reflected cross-sectoral correction factor and linear
factor (for installations which are generators of electricity) in conjunction with modified
operation and reduced capacity in 2012. The European Commission responded that it
accepted the corrections and that was possible to proceed to reflect changes relating to the
54
rules for new entrants, shutdown and operational changes. Operators are being consulted on
issues related to the application of correction factors to their base lines. Changes have been
made to the forms for new entrants in the European Trading Scheme (EU ETS) for trade with
emissions in accordance with the Commission’s decision of September 2013. Correspondence
is maintained with the European Commission and operators of installations in relation to the
requirements for new participants, installations with changes in their capacity in the EU ETS.
A draft Decree of the Council of Ministers concerning the redistribution of funds generated
from the auctioning of allowances for greenhouse gas emissions from the second period of the
EU ETS and the compensation of owners of Joint Implementation projects is in a process of
development.
In relation to the priority of the Government to prevent further increases in electricity
prices and change in the pricing methodology, a forecast for revenues from the
auctioning of allowances in Bulgaria for 13 November 2012 – 30 June 2014 was made.
The material was approved at a meeting of the Council of Ministers of 10 July 2013. A
material and opinion on the expected proceeds from the sale of allowances in connection with
updating the state budget have been prepared.
 A Framework position on the proposal for a Directive of the European
Parliament and of the Council amending Directive 2003/87/EC establishing a scheme for
greenhouse emission allowances within the Community with a view to implement the
International Agreement on the implementation of a single, global market-based
measure of emissions from international aviation by 2020 has been prepared. Positions and
instructions on the proposal for a Decision of the European Parliament and of the Council
amending Directive 2003/87/EC in order to specify the provisions related to schedule of
auctioning of allowances of greenhouse gas emissions (back loading).
 The following actions have been taken to update laws and regulations,
concerning public relations related to environmental protection, in order to make them
consistent with EC Directives:
 A working group was created to draft a Law Amending and supplementing
the Law on Clean Air. The amendments concern Chapter Three „Restriction of emissions“,
Section I „Emissions from stationary sources“, in relation to the transposition of the
requirements of Directive 2012/33/EC amending Directive 1999/32/EC regarding the sulphur
content of marine fuels. The bill will also introduce quality standards for solid fuels used for
domestic heating by the population and emission limit values corresponding to the set
associated emission levels in the implementing decisions of the European Commission related
to the best available techniques.
 The final version of the Transitional National Plan of the Republic of Bulgaria
for large combustion plants covered by Directive 2010/75/EC has been submitted to the
European Commission for review.
 A Law Amending the Law on Waste Management is being developed. The bill
will aim to improve the regulatory framework in the direction of reducing
administrative and regulatory burden on the businesses. Amendments will be made in
the following areas:
 Licensing regime for waste treatment and recovery organisations of
widespread waste;
 Management of activities with ferrous and non-ferrous metals;
 Deductions of waste disposal;
 Management of construction waste;
55
 Amount and procedures for the provision of bank guarantees;
 Duties of mayors of municipal and municipal waste management;
 Administrative Penalty procedures.
 The Ordinance on disposal of bio-waste (of 15 November 2013), a new
Ordinance on Waste Electrical and Electronic Equipment (of 13 November 2013)
amending the Ordinance on end-of -life motor vehicles (of 24 October 2013) have been
adopted by Decrees of the Council of Ministers.
 The Ordinance on separate collection of biowaste and the Ordinance on the terms
and procedures of determining the amount of securities and deductions required for waste
disposal and a draft Ordinance on waste classification have been developed.
 The stable operation of the Information system to the National system for
monitoring biodiversity has been ensured. The work of the Information System for
permits and monitoring in water management has been further developed and improved.
The Management system of the National database in the Executive Environment Agency
has been updated. New software for data reporting of ambient air quality to the European
Commission and the European Environment Agency has been installed and tested.
.
56
COMMITMENT OF THE STATE TO THE DEVELOPMENT OF TOURISM
Measure
Deadline
Developing a National Tourism Development Strategy
31.10.2013
State commitment to ensure cheaper and faster visa issue process
for citizens of non-EU Member States
31.12.2013
Settlement of beach concession issues with a view to expand
beachfront usability and improve beach maintenance in order to
attract more tourists
31.10.2013
State commitment to carry out a national advertisement campaign
in coordination with industry organisations and involvement of
national media
Permanent
Implementation:
Measure: Elaboration of a National Tourism Development Strategy
A draft of the so-called „Pre-master plan for a sustainable tourism development in
Bulgaria – horizon 2030“, which is the first step in developing a national tourism
development strategy. The plan is related to the need to develop a long term strategy for
sustainable development of the sector, with a clearly stated commitment of the state.
Currently, the plan is being discussed with non-governmental organisations of the tourism
industry, the Bulgarian Academy of Science, universities and regional associations, for the
purpose of producing a final version. The plan is due to be approved by the Council of
Ministers by the end of March 2014.
This is the first time a long-term sectoral strategy, defining the sector policy by 2030, is
created. The Strategy aims to ensure continued competitiveness of Bulgaria as a tourist
destination, and the development of the tourism industry on the basis of successful long-term
partnerships at national, regional and local levels. This is evident from the following results:
 The Bulgarian tourism industry indicators are above the global average and the
European average, and Bulgaria ranks among the leading countries in terms of the
economic results of tourism.
 According to World Travel and Tourism Monitor data, tourism generates 9% of the
global gross domestic product, but in Bulgaria it has already attained 13,6% of GDP (a year
ago it was 12,5%).
 According to the projections of the World Tourism Organisation to the United
Nations, the average tourist growth in the years to 2020 is expected to be 2,7% – 2,8% in
Europe and about 3,5% – 4% in Asia; while in Bulgaria tourism had a sustainable growth of
over 4% in the first ten months of 2013, compared to the figures for the previous year – 5,5%,
i.e. Bulgaria has twice the average growth of tourists in Europe.
Based on these projections and the analysis in the Pre-master plan, in 2020 Bulgaria will be
visited by more than 9 million foreign visitors, less the transit ones. It is expected that in 2030
57
there will be more than 12 million foreign tourists, and in the period until 2020 tourism can
generate up to 18% of Bulgaria's GDP.
Taking into account the most significant global trends that will shape the new market
environment and the future of Bulgarian tourism in the period until 2020 and 2030, there is a
clear need to:
 Develop tourist products suitable for people aged 65 + as a combination of
specialised types of tourism – spa, cultural, eco and rural tourism.
 Direct national advertisement to the segment of tourists interested the opportunities
that the country provides for the development of medical tourism by extending the hotel
facilities with the construction of spa (medical spa) facilities and thalassotherapy centres.
Provide opportunities for this segment of tourists to benefit of the healing properties of
Bulgarian mineral waters and curative mud and lye.
 Focus on the development of specialised tourist products that have the potential to
overcome seasonality and create a long-term emotional connection with Bulgaria.
 Look for opportunities to attract and ensure investments in the tourism sector and
optimise the procedures of the investment process.
Bulgaria has not yet reached the capacity of mature tourism destinations in Europe and has
untapped potential and opportunities for the development of the tourism industry at a faster
pace compared to competing European destinations.
The most powerful image of Bulgaria in the minds of tourists is created by beach and cultural
tourism. From a marketing point of view, it would be appropriate for these two types of
tourism to be used as a „booster rocket“ for the placement of non-traditional travel products
and services through a joint offering.
An important emphasis in the Pre-master plan is tourism zoning aimed at better management
of the regions as separate destinations and promotion of partnerships at the regional level,
supporting the establishment and functioning of regional tourism organisations, management
of tourist destinations in terms of general marketing, communication and information efforts.
Implementation of this Pre-master plan will enable potential investors to realise their
investment projects in tourism.
"The Pre-master plan for sustainable tourism development in Bulgaria – horizon 2030" is
preparing a set of long-term strategies in the field of planning, investment, domestic tourism,
research, service delivery, improvement of infrastructure and transport, vocational training
and qualification of staff in tourism, diversification of the tourism product, rehabilitation and
maintenance of existing tourism areas and improvement of the image of the destination as a
whole.
The project defines the strategic documents on the basis of which funds can be received from
the structural instruments, namely the operational programmes. They address the main
problems in the socio-economic development and by they represent the Government’s policy
aimed at resolving the problems within the priorities of the strategy.
By means of the Pre-master plan a System of monitoring and control of implementation of the
planned measures and their detailed indicators reflecting the impact on tourism, economic
development and social environment, protection of natural, cultural and anthropogenic
resources will be implemented.
58
The plan has been developed in accordance with: the Tourism Act (promulgated, S.G. № 30
of 2013, as amended, № 68 of 2013); National and regional strategic planning documents;
Trends of the World Tourism Organisation by 2050; the Programme Destination 2020.
Measure: State commitment to ensure cheaper and faster visa issue process for
citizens of non-EU Member States
A number of measures have been undertaken to change the procedure for accepting and
processing visa applications that are conducive to the development of tourism in Moscow, St.
Petersburg, Kiev, Odessa, Minsk, Chisinau, Ankara, Istanbul, Edirne and Bursa, Astana and
Tashkent.
In order to comply with the best practices of the visa policy of the other EU Member States,
the Ministry of Foreign Affairs has appointed an Ambassador at Large for visa policy.
A centralised system for receiving and processing electronic visa applications „e-Visa“
was introduced in Turkey.
490,247,000 tourist visas have been issued. The number of issued visas has grown by
over 12% compared to 2012.
Visas issued and number of tourists from the CIS countries and Turkey
January – October 2013
State
Russian Federation
Number of visas issued
454 304
Turkey
31 913
Ukraine
223 878
Belarus
103 661
Azerbaijan
1 182
Source: Ministry of Foreign Affairs
Measure: Settlement of beach concession issues with a view of expand beachfront
usability and improve beach maintenance in order to attract more tourists
Between 15 June and 30 September 2013, 181 inspections of 58 beach concessions and 33
beach rentals were conducted. A geodetic survey of 123 beaches, incl. beaches rented out
to Governors, was carried out.
A total of 91 violations in the execution of the contracts for concessions and rentals have
been identified, and of penalties in the amount of 600 342 BGN have been imposed on the
concessionaires. Violations are most often related to the presence of unauthorized movable
facilities, facilities with a larger area than the specified one and a larger area than the
approved additional retail space, and failure to provide a sufficient number of lifeguards.
59
Revenues from concession and rental contracts of seacoast beaches amounted to
13,255,059 BGN as to 30 November 2013.
Measure: State commitment to a national advertisement campaign in coordination
with industry organisations and involvement of national media
The State is implementing its commitment state to conduct a national advertisement
campaign, in coordination with industry organisations and the involvement of the
national. The activities carried out for the country’s presentation as a tourist destination in the
reporting period include the following:
 Participation in international tourism and specialised exhibitions in major and
promising markets:
 Participation with an information stand in 9 international tourism exhibitions –
Ukraine, Russia, Italy, Germany, Spain, Poland, China and Romania;
 Participation with a national stand at the International Tourism Exhibition WTM,
London, UK. 28 representatives of the tourism industry and municipal administrations took
part in the exhibition.

Participation in national tourism exhibitions:

Black Sea Tourism Forum „Ecotourism – Our Green Future“;
 Tourism exhibition „Mountains of Bulgaria – Hospitality in Four Seasons“,
Pamporovo resort complex with the participation of professional organisations.
 12 thematic tours for journalists from leading media and camera crews from
Russia, Ukraine, United Kingdom, Japan, France, Germany, Austria, China were organised to
raise consumer’s awareness of destination Bulgaria and PR activities.
 An advertising campaign in print and television media in major markets –
publishing of advertising pages in the WTM catalogue, WTM Business for Meridian Club
members.

Promotion of sales, thematic seminars and workshops:
 Participation in the presentation of the summer catalogue of Thomas Cook,
Germany

Starting road show presentations in Germany together with tour operator FTI.
For the first time tourism is defined by the Government as a leading sector and
established as a separate policy in the budget, an essential resource being earmarked for
national advertising of Bulgaria through tourism, promoting the country’s cultural and
historic heritage, traditions and natural sites as well as studying the target markets of
Bulgarian tourism. The budget proposed by the Cabinet for 2014 is amounting to 18
million BGN, which exceeds several times the previous budgets dedicated to promoting
Bulgaria as a tourist destination. The Government has adopted Decisions (№ 668 and No
705) on setting up a specialised working group to conduct a proactive policy of attracting
investors and implementing existing investment projects in the country.
Additional tools that the Government will use rationally to achieve the strategic goals for
permanent and stable trend in tourism are the Operational Programme Regions in Growth
2014-2020, Axis Five „Regional Tourism“ with beneficiaries the Ministry of Culture,
60
Religious institutions of religious denominations in Bulgaria and municipalities, and
Operational Programme Innovation and Competitiveness 2014-2020. The resource to achieve
the objectives set in the Strategy for Sustainable Tourism Development in Bulgaria for the
next programming period exceed 267 million BGN.
According to Eurostat, UN World Tourism Organisation (WTO) and NSI projections for
Bulgaria, there will be two absolute statistical peaks this year – over 7 million foreign tourists
in 2013 and tourism revenues of over EUR 3 billion.
The Government policy includes removal of a number of regulations and procedures in the
field of tourism, which will not only make Bulgaria a more desirable destination, offering a
range of tourism products (marine tourism, skiing and mountain tourism, cultural tourism,
golf tourism, spa and wellness tourism, eco and rural tourism, wine and gourmet tourism), but
will also improve the quality and the price of tourism products and services offered in
Bulgaria, and make tourism in Bulgaria an attractive investment field for the realisation of
large projects. Considering the effects of Regulation 2011/24 of 2013, special attention has
been paid to the implementation of a package of measures to make Bulgaria a leading spa
destination having great potential for tourism all the year round and the possibility of
realization of the adopted EU standards related cross-border healthcare.
Bulgaria has the highest concentration of thermal mineral waters, extremely diverse in
composition and possibilities for treatments that ensure a long-term sustainability of
balneotherapy and turning it into a year-round tourism product. 423 million litres of mineral
water, of which 274 million litres of thermal mineral water, is poured per day in the country
and the Government has started a special programme for its wide use, as well as partnership
with the health insurance funds and health insurance companies of the other EU Member
States.
As a result of the communication actions in implementation of the approved programme for
national tourism advertising in 2013, according to NSI and BNB data for January –
November 2013, Bulgaria was visited by a total of 6 604 897 foreigners (excluding transit
passengers). This is 5,5% more than the same period of 2012. The revenues from
international tourism in the current account of the balance of payments, according to BNB
data for January – October 2013 amounted to EUR 2 839 500 000, which is 4,9% more than
the same period of 2012.
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Tourists from leading target markets, who have visited Bulgaria
in the period January – November 2013
State
Number of tourists
Growth of tourists
2013/2012 (%)
Greece
876 483
0,4%
Romania
880 048
1,6%
Germany
673 205
5,1%
Russia
666 561
14,7%
Macedonia
366 760
1,1%
Turkey
354 257
30,8%
Ukraine
287 213
16,2%
Serbia
280 153
10,5%
UK
251 462
-2,5%
Poland
231 988
-2,2%
Czech Republic
150 749
0,4%
France
135 226
-0,1%
Belarus
125 991
59,0%
Austria
124 642
5,3%
Italy
104 396
3,3%
Israel
97 617
4,4%
Source: MEE, NSI
62
MODERN TRANSPORT SYSTEM
Measure
Deadline
Preparation of Terms of Reference for the development of a
National Transport Strategy 2015-2025
31.12.2013
Defining the priorities for the next programming period 20142020 and finalising the development of OP Transport and
Transport Infrastructure
31.12.2013
Development of a plan for rehabilitation of the Bulgarian State Railways:

Negotiations with the creditors of National State Railways
(BDZ EAD) for restructuring company’s debts
31.10.2013

Settlement of liabilities of the National Railway
Infrastructure Company (NRIC) and „Holding BDZ” EAD
under the three-stage debt-for-property scheme
31.12.2013
Transfer of Varna Ferry Complex railway bridges from SE
NRIC to the Bulgarian Port Infrastructure Company
31.10.2013
Measures to ensure the protection of passenger rights in all
transport modalities, including through legislative changes
30.11.2013
Encouraging the dialogue between the State and the municipalities
and the professional organisations in the transport industry
30.09.2013

Implementation:
Measure: Preparation of Terms of Reference for the development of a National
Transport Strategy 2015-2025
The measure is in a process of implementation. An assignment to develop the document that
should be completed in 2016 is being prepared. The National Transport Strategy will reflect
the principles of EU transport policy set out in the White Paper of 2011; it will include an
inventory of available funds, provide an administrative capacity and contain an action plan
setting out the individual steps and deadlines for the implementation of the transport
objectives of Bulgaria.
During the process of preparation, the document will be discussed with all stakeholders– the
civil society, academia, professional organisations in the field of transport, trade unions,
NGOs, environmental organisations, etc.
63
Measure: Defining the priorities for the next programming period 2014-2020 and
finalising the development of OP Transport and Transport Infrastructure
A draft of Operational Programme Transport and Transport Infrastructure 2014-2020
has been developed, containing the following priority axes:

Development of railway infrastructure along the „basic“ and „extended“ TEN-T;

Development of road infrastructure along the „basic“ and „extended“ TEN-T;

Improvement of intermodality for passengers and cargo;

System of traffic control, improvement of safety and security;

Technical assistance.
The programme outlines the needs, describes the activities eligible for funding in the
programming period 2014-2020, as well as the potential beneficiaries, indicators to measure
progress in the implementation of the programme, priority projects for funding, etc.
Measure: Develoing a plan for rehabilitation of Bulgarian State Railways
In a very short period of time the new leadership of the Ministry of Transport, Information
Technology and Communications (MTITC) and Holding BDZ have prepared an entirely new
plan for restructuring and financial stabilisation of „Holding BDZ” EAD in the period
2013-2023. The rehabilitation plan has been developed in detail by subsidiary companies –
„BDZ – Freight Services“ EOOD and „BDZ – Passenger Services“ EOOD and aims to restore
long-term viability of the company based on realistic assumptions and measures. It contains
the planned decisive short-, medium- and long-term actions of the leadership of MTITC,
„Holding BDZ“ EAD, „BDZ – Freight Services“ EOOD and „BDZ – Passenger Services“
EOOD for the financial rehabilitation of BDZ Group.
In the past few months, short-term emergency measures have been taken to stabilise
„Holding BDZ“ EAD and its subsidiaries, which have already produced the first
concrete results:
 As of 31.05.2013, the Group of „Holding BDZ“ EAD had total debt of
BGN 704 225 000, including liabilities to financial institutions amounting to
BGN 483 523 000, trade payables amounting to BGN 142 840 000, including liabilities to SE
NRIC for infrastructure fees and additional services to the amount of BGN 109 350 000 and
other liabilities amounting to BGN 77 862 000.
 In connection with the actions taken by the management for restructuring and
financial stabilisation of the Group of „Holding BDZ“, according to preliminary data as of 31
December 2013 the total debt decreased to BGN 624 457 000 – a decrease of 11,35%, or
BGN 79 955 000 compared to the status quo at the end of May 2013. Liabilities to
financial institutions amount to BGN 430 100 000, trade payables amount to
BGN 114 057 000, and liabilities to SE NRIC for infrastructure fees and additional services
amount to BGN 87 639 000.
 The active dialogue with all creditors, which for one reason or another did not exist
over the last four years, has been restored, the goal being to achieve in the short term an
64
agreement with the major financial creditors on restructuring the debts of "Holding BDZ"
EAD. The participation of the Ministry of Finance in negotiations with creditors is an
additional guarantee for the commitment of the entire state. Agreements have been signed
for debt rescheduling/reduction with the following contractors: Postbank, Lev Invest,
Allianz Bulgaria, DEPFA Bank and SE NRIC. Negotiations are being conducted for the
conclusion of debt rescheduling agreements of the company with the second bondholders and
KfW IPEX BANK. To 31 December 2013 the first phase of the transfer of the ownership of
facilities and real property to SE NRIC under the „debt to equity“ scheme was finalised.
 As to 31 August 2013 the „BDZ – Freight Services“ EOOD is behind on operating
income compared to the same period in 2012 – BGN 13,929,000, or a decrease of 1 079 tons
in transports. During the period from September to December 2013 revenues increased by
BGN 3 2000 000 compared to the same months in 2012 and to 31 December 2013 backlog
revenues decreased by BGN 11 1000 000. Compared to the business plan for the eleven
months, revenues have not been performed only by BGN 1,531,000, and in December 2013
the revenues set out in the business plan for 2013 were performed.
 To implement the train schedule in 2013, by May 2013 „BDZ – Passenger Services“
EOOD had 266 wagons in operation though 322 wagons were needed – a shortage of 56
wagons. Since June 2013 the number of serviceable wagons has gradually increased and
shortage minimised (8 wagons). In the period 31 August – 31 December 2013, 4 diesel
multiple-units, 2 electric multiple-units and 22 engines were put into service after the
emergency repair thereof. When the new train schedul entered into force on 15 December
2013, another 47 trains were put into service, which will provide high quality and convenient
transport service.
 According to preliminary data, the Group of „Holding BDZ“ EAD is expected to end
the financial 2013 with a financial loss of BGN 5 565 000 compared to a reported loss for
2012 amounting to BGN 29 526 000 or a decrease in the reported loss in 2013 by
BGN 23 961 000 compared to 2012.
Measure: Transfer of Varna Ferry Complex railway bridges from SE NRIC to the
Bulgarian Port Infrastructure Company
The measure is in process of implementation. Date of completion: 31 March 2014.
Measure: Measures to ensure the protection of passenger rights in all modes of
transport, including throug legislative changes
Measures have been taken to ensure the protection of the rights of passengers in all
modes of transport, including through legislative changes.
 The Ministry of Transport, Information Technology and Communications (MTITC)
has launched an information campaign for the rights of passengers. The main objective of
the campaign is for all Bulgarian citizens to be aware of their rights and privileges of traveling
within the European Union. The prepared information materials clarify different situations,
such as loss of luggage, flight cancellations or delays of journeys, etc. The campaign includes
print out and phase distribution of 200 000 brochures, 1 000 posters and 1 000 stickers
containing information on passenger rights in all modes of transport, including the rights of
citizens with disabilities. The information on passenger rights contained in the brochure is
published on the official website of the MTITC: www.mtitc.government.bg, and the site
65
http://www.transportinfo.bg. The campaign is organised in connection with a Decision of the
European Parliament and of the Council on the European Year of Citizens (2013).
 The Law amending the Law on Railway Transport has been drawn up. The Bill
was approved by a Decision of the Council of Ministers of 3 September 2013 and submitted
to the National Assembly. One of the planned changes is associated with the specification of
provisions for the implementation of European legislation concerning the rights and
obligations of passengers using railway transport. The amendment will ensure enhanced
protection of consumers of railway transport services.
Measure: Encouraging the dialogue between the State and municipalities and
professional organisations in the transport industry
In order to encourage the dialogue between the state and municipalities and professional
organisations in the transport business to the Minister of Transport, Information Technology
and Communications, four Public Councils have been set up by mode of transport –Road
Transport, Railway Transport, Air Transport and Water Transport. Council meetings are held
every first Tuesday of the month. Members of the Public Council are representatives of
academia, professional organisations, NGOs, trade unions, regional administrations,
civil society, etc.
During the reporting period 5 meetings of the Public councils by mode of transport have been
held.
In October 2013 the Sectoral Council for Tripartite Cooperation in Transport and the Subsector councils for Tripartite Cooperation in Transport resumed their functions.
Measure: Building a modern, balanced and integrated transport structure in the
basic and extended Trans-European Network on the territory of Bulgaria
As of 11 December 2013, the financial resource of Operational Programme Transport 20072013 (OPT) or the grant assistance is 100% allocated to individual projects in priority areas.
BGN 2 111 730 363, which is 54% of the programme budget, is paid to the beneficiaries.
Expenditure certified to the Commission (only part of the EU) amounted to
BGN 1 564 424 024 or 49% of the budget of EU co-financing. Received interim payments
from the European Commission amount to BGN 1 506 594 515, which is 47,4% of EU cofinancing under the program. On the basis of these financial results OP Transport will not
lose money in 2013, according to the N +3 rule.
On 17 December 2013 the European Commission approved the second amendment to
OP Transport. The second amendment of OP Transport is mainly targeted at:
 Transfer of EUR 20 million from Priority Axis 2 „Development of road
infrastructure along the Trans-European and major national transport axes“ to Priority Axis 1
„Development of railway infrastructure along the Trans- European and major national
transport axes“.
 Transfer of EUR 122,1 million from Priority Axis 4 „Improvement of the maritime
and inland waterways navigation“ to Axis 3 „Improvement of intermodality for passengers
and cargo“.
66
 National Company „Strategic Infrastructure Projects“, which is responsible for
building and maintaining „Struma“, „Hemus“ and „Black Sea“ motorways, is included in the
beneficiaries under OP Transport.
During the reporting period a confirmation from the European Investment Bank was received
that the funds of the Credit Agreement may be used to cover the shortfall in funding of the
project for the rehabilitation of the railway section Septemvri – Plovdiv. The possibilities for
financing the railway project Parvomai – Svilengrad are being discussed.
The following programme implementation indicators have been fulfilled:

Rehabilitated – over 200 km of railways;

Constructed – 18 km of new railway lines;

Constructed – 13 new metro stations with 13 km of metro lines;

Constructed – over 140 km of motorways (MW).
During the reporting period the following infrastructure projects were launched:

On 31 June 2013 – construction of Lot 2 of the „Struma“ MW;

On 22 August 2013 – rehabilitation of the Central Railway Station in Sofia;

On 19 September 2013 – construction of the bypass of the town of Montana;

On 12 November 2013 – construction of BULRIS (second phase);

On 18 November 2013 – rehabilitation of the railway station in Pazardgik.
The following infrastructure projects have been completed and put into operation:
 On 15 June 2013 – Opening the final part of Lot 4 of „Trakia“ MW, completing
the project;
 On 23 June 2013 – The section from Dolna Dikania to road junction Doupnitsa
North (14 km) – Part of Lot 1 of the „Struma“ MW is open to traffic;
 On 19 August 2013 – The section between Sofia ring road and „Hemus“ MW at
the area of Yana Station (8,5 km) is open to traffic.
All major infrastructure projects under the OPT are in a process of implementation, as
follows:
 Reconstruction and electrification of the Plovdiv – Svilengrad railway line along
corridors IV and IX, Phase 2: Parvomai – Svilengrad section;
 Rehabilitation of the railway infrastructure in some sections of the Plovdiv –
Burgas railway line;
 Modernization of the Septemvri – Plovdiv railway section – part of the TransEuropean rail network;

Rehabilitation of the Central Railway Station in Sofia;

Construction of „Maritza“ MW, Lot 1 and Lot 2;

Road E-85 (I- 5) Kardzhali – Podkova;

„Struma“ MW, Lots 2 and 4;

Bypass road of the town of Vratsa – Route I-1 (E79);
67

Bypass road of the town of Montana – Route I-1 (E79);

Construction of Kalotina – Sofia MW – Lot 1: Western arc of Sofia ring road;

Bypass road of the town of Gabrovo;
 Sofia Metro Extension Project: Phase III Lot 1 „Tzarigradsko shosse – Sofia
Airport“ and Lot 2 „Mladost 1 Residential area – Mladost 4 Business Park“;

River Information System in the Bulgarian stretch of the Danube river – BULRIS;

Information vessel traffic management system (IVTMS).
Contracts have been signed for granting financial assistance: to Lot 3 of „Struma“ MW
(on 10.06.2013); for the preparation for the completion of „Hemus“ MW (on 12.07.2013);
for the construction of the bypass road of the town of Montana (22.08.2013); for the
rehabilitation of station complexes along TEN-T – „Rehabilitation of the station complex
in Sofia Central Railway Station“, „Rehabilitation of the station complex in Burgas railway
station – Passengers“, „Reconstruction and rehabilitation of reception building Pazardzhik –
Phase II“ (23.08.2013).

Preparation of the next programming period 2014-2020
The priorities in the railway sector are as follows: the overall completion of the
modernisation of the Burgas – Plovdiv railway line, and modernization of the Sofia –
Septemvri section of the Sofia – Plovdiv railway line. The other two projects, which are
included in the list of priorities under Operational Programme Transport and Transport
Infrastructure to be financed in the programming period 2014-2020, are the modernisation of
the Karnobat – Sindel railway line and the rehabilitation of the Ruse – Varna railway line. The
modernisation of the Vidin – Medkovets and Sofia – Dragoman railway line is expected to be
financed through the Connecting Europe Facility.
The most difficult section of „Struma“ MW, which covers the Kresna Gorge, will be for
the next programming period in the road construction sector. Depending on the available
financial resources, construction works will be carried out in on Vidin – Montana and Mezdra
– Botevgrad sections. Other priority projects include „Sofia – Kalotina“ MW and the section
of „Hemus“ MW up to the Pleven – Lovech road junction, and a tunnel under Shipka peak.
In terms of passenger and freight intermodality, priorities are the construction of an
intermodal terminal in the North Central Planning Region of Bulgaria – Russe, and the project
„Construction of the third metro diameter of Sofia Metro“.
It is envisaged to implement projects for the development of information systems in
navigation, upgrading existing systems and those under construction; supply of specialised
vessels; modernisation and construction of facilities for the reception and treatment of waste
in Bulgarian ports of national importance; improving the quality of air navigation data and
information, and improving environmental management in the field of civil aviation.
With funds under the Connecting Europe Facility, jointly with the Republic of Romania, it is
envisaged to implement a project for improving the navigation on the Danube; construction of
the railway section between Sofia and Dragoman; rehabilitation of the Vidin – Medkovets
railway section, and reconstruction of the road between Kalotina and Dragoman (12 km).

Other infrastructure projects

On 15 August 2013 the new passenger terminal of Varna airport was opened.
68
The investment in the construction of the terminal is estimated at about BGN 75 million. It
was built in about 20 months on 20,000 m2, which is 3 times larger than the old terminal. The
terminal has 25 check-in counters for passengers, large arrival and departure areas, modern
systems of passengers and luggage services, attractive shopping areas and comfortable open
spaces.

On 4 October 2013 the new Marine station of the Port of Burgas was opened.
The facility is part of the „Super Burgas – a public access area“ project – Phase I. The
overall project involves the reorganisation of existing spaces in the port of Burgas and
provides for the creation of a free public access area, which will bring together sea, road and
rail transport. The construction of the Marine Station makes it possible to realise the concept
of opening the city to the sea, relocate and restructure the coastal industrial zones and identify
new areas for public services. The total investment amounts to BGN 3 298 million. The
passenger terminal area is 2 700 m2 and can accommodate about 100 000 passengers per year.
 On 18 November 2013 began the reconstruction of the railway station in
Pazardgik.
The investment is over BGN 3,5 million, and construction activities must be completed in 8
months. The scope of the project includes the restoration of the subways under the platforms,
which are an important pedestrian link for people of the town of Pazardgik.
 On 04 December 2013 the opening ceremony of the second terminal of Burgas
airport was held.
The concessionaire of Varna and Burgas airports „Fraport Twin Star Airport Management“
AD has invested BGN 80 million in the design and construction of the terminal, and in the
infrastructure at Burgas Airport. This is the largest investment in Burgas Airport in recent
decades. The second terminal at Burgas Airport is an excellent example of a successful
public-private partnership, the result of which is a beautiful and modern airport. The airport
will facilitate the development of tourism and economy in the region and in Bulgaria. The
building of the new terminal at Burgas Airport is a modern facility, meeting the highest
European standards, and fully consistent with the requirements relating to the accession of
Bulgaria to the Schengen area. The terminal is located on nearly 21,000 m2, and has large
arrival and departure areas.

On 10 December 2013 the extension of Terminal 2 of Sofia Airport was opened.
About BGN 2 million was invested in the implementation of the project. The extension of the
terminal will improve services for passengers from the Schengen Area and beyond, and will
meet the needs of the airport related to the increasing number of passengers. Sofia Airport has
been granted category III B, which allows the aircrafts to land at a minimum visibility of 75
meters. Few airports in the world can operate in such conditions. The new category will
reduce the number of airplanes that are diverted to alternative airports in bad weather. This
will save inconvenience to passengers and airlines, and will not lead to higher ticket prices
and service charges.
 On 8 November 2013 in Budapest, Hungary a European rail corridor for
competitive freight transport № 7 „Orient“ Prague – Vienna/Bratislava – Budapest –
Bucharest – Constanta – Vidin – Sofia – Thessaloniki - Athens was put into operation
For nearly three years, thanks the collaboration of 7 European countries (Czech Republic,
Slovakia, Austria, Hungary, Romania, Bulgaria and Greece), their 8 rail infrastructure
managers and 1 capacity allocation authority, have created the „Orient“ corridor in order to
build a strong connection between Central and Southeast Europe and established a connection
69
to Asia via the Black Sea and the Aegean Sea, which will provide a good, reliable service on
the basis of harmonised technical and procedural conditions. Bulgaria was represented by
experts from the MTITC and SE NRIC.
 A scheme for the manipulation of driving theory test was uncovered and
terminated.
The scheme was uncovered at the regional directorate in Sofia. 110 exam procedures were
checked and it was found that in 38 of them candidates for drivers had been given the answers
in advance. A review of random tests, completed from the beginning of the year to July 2013,
identified over 190 violations. It is suspected that all 19 employees of the Executive Agency
„Road Administration“ that conducted examinations have participated in the scheme. The
Head of the Sector was dismissed, and five of the employees who had made most of the
violations were proposed to be subject to disciplinary proceedings. The others are denied the
opportunity to conduct examinations while the investigating and prosecuting authorities are
deciding the case. What is new is that the examiners in Sofia can come only from the central
administration. Also, the draws for location of the exam will be determined electronically and
work is done to make a switch to electronic tests. Their counterfeiting is extremely difficult.
The interest in electronic tests is growing rapidly – tablets are used in more than 50% of the
exams in the country, and there are areas where the percentage exceeds 90.
70
REDUCING DISPARITIES BETWEEN REGIONS
Measure
Deadline
Partnership with the National Association of Municipalities in
Bulgaria
Permanent
Drawing up a pilot programme for integrated development of
regions and municipalities in Northwest Bulgaria lagging behind in
their development in the period 2014-2020
31.12.2013
Adopting and implementing Regional development plans of level 2
regions in the period 2014-2020 to achieve smart, sustainable and
inclusive growth and reduce the disparities between regions in
Bulgaria
31.12.2013
Restoring the Decentralisation Council
30.09.2013
Amendments to the Water Act with the purpose to: possibly change
the ownership of Water Supply and Sewerage Systems and
installations; carry out relevant activities by the Water Supply and
Sewerage Associations; extend the current regulatory period to
achieve planned changes.
30.09.2013
Approval of the Water and Sewage Sector Development Strategy
by the Council of Ministers
31.10.2013
Accelerated and efficient reforms in the Water Supply and
Sewerage Sector. Introduction of permanent civil control on the
results of activities of Water Supply and Sewerage Operators and
service prices
31.12.2013
Implementation:
Measure: Partnership with the National Association of Municipalities in Bulgaria
An agreement between the Council of Ministers and the National Association of
Municipalities in the Republic of Bulgaria was signed in October 2013 an. The priorities of
central and local government outlined in this Agreement refer to real and sustained local
government reforms, coherence and complementarity between national and municipal
policies, effective use of EU funds by 2020, and transparent and efficient interaction between
authorities.
71
Measure: Drawing up a pilot programme for integrated development of regions and
municipalities in Northwest Bulgaria lagging behind in their development in the
period 2014-2020
A discussion was held in the Council of Ministers in early November 2013 regarding the
inclusion of the Northwest Region in the Partnership Agreement 2014-2020 as a pilot area
where the model of integrated territorial investment will be applied and an Integrated
Territorial Development Strategy of the Northwest Region will be prepared. The document is
developed by a team of Sofia University „St. Kliment Ohridski“ on the basis of the Regional
Development Plan for the Northwestern Region (2014-2020), adopted by the Council of
Ministers. The results were presented at the meeting of the Regional Development Council of
the Northwest Region, held in December 2013.
Measure: Adoption and implementation of Regional development plans of level 2
regions (NUTS 2 ) in the period 2014-2020 to achieve smart, sustainable and
inclusive growth and reduce the disparities between regions in Bulgaria
At the end of July 2013 the Council of Ministers adopted the regional development plans of
level 2 regions in the period 2014-2020. These documents define the strategies for integrated
development of level 2 regions by 2020, aiming to achieve intelligent, sustainable and
inclusive growth. The main task of the plans is to justify the necessity of interrelated activities
in different sectors to create better conditions for socio- economic and territorial development
and overcome the existing inter-regional and intra-regional disparities. Regional development
plans set out the strategic framework for territorial orientation of national sectoral policies,
including the development of operational programmes co-financed with European Union
funds. They provide a strategic platform for the development of regional strategies for
development and municipal development plans.
Measure: Restoring the Decentralisation Council
On 31 July 2013 the Council of Ministers adopted a Decree on the Establishment of the
State Governance Decentralisation Council (SGDC). Chairman of the Council is the
Minister of Regional Development. Members of the Council are deputy ministers, governors
and local government representatives.
The aim is to improve the interaction between central and local government authorities in
order to restore the process of decentralisation. The ultimate goal is to improve services
provided to citizens and businesses, the main provider of which is municipalities.
Two meetings were held in 2013. The first one adopted the Work Programme of the
Decentralisation Council by the end of 2013 and discussed the report on the implementation
of the Programme in 2011-2012. The report was approved with a Decision of the Council of
Ministers of 22 November 2013. The second meeting adopted the Programme for the
implementation of the Decentralisation Strategy in 2014-2015 (Road map) and a review of
the implementation of the Work Programme for 2013. Most of the measures to be
implemented in 2014-2015 are aimed at enhancing the financial autonomy of local authorities.
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Measure: Amendments to the Water Act with the purpose to: possibly change the
ownership of Water Supply and Sewerage Systems and installations; carry out the
relevant activities by the Water Supply and Sewerage Associations; extend the
current regulatory period to achieve planned changes
The 42nd National Assembly of the Republic of Bulgaria adopted the Law amending the
Law on Waters. Instructions are being prepared for Water Supply and Sewerage companies
with state and municipal participation in relation to the preparation of lists of Water Supply
and Sewerage systems and facilities which are public state property and public municipal
property and used thereby for the purpose of carrying out structural reforms in the sector. The
secondary legislation to the Law on Waters is being upgraded. An Ordinance on the
organisation and activities of Water Supply and Sewerage associations has been prepared and
is due to be adopted.
An extended Draft Law amending the Law on Waters, which also addresses other basic
public relations in the water sector, including the Water Supply and Sewerage sector, has
been prepared. The interdepartmental coordination of the project is forthcoming.
Measure: Approval of the Water and Sewerage Sector Development Strategy by the
Council of Ministers
A draft Strategy for the development and management of Water Supply and Sewerage
in Bulgaria has been prepared. The Strategy has been developed for the purpose to
implement the provisions in the Law on Waters. The strategy in line with the National
Strategy for Management and Development of the WSS Sector, developed by the Ministry of
Environment and Water and adopted by the National Assembly in 2012. The draft Strategy
was presented and discussed with the public on five public discussions in Burgas, Veliko
Tarnovo, Varna, Plovdiv and Sofia. The draft Strategy will be submitted to the Council of
Ministers in January 2013.
Measure: Accelerated and efficient reforms in the Water Supply and Sewerage
Sector. Introduction of permanent civil control on the results of activities of Water
Supply and Sewerage Operators and service prices
The Government is conducting accelerated and effective reforms in the WSS sector.
During the first six months the work of the Government has been focused on reforming
the Water Supply and Sewerage Sector in order to make it a financially, technically and
environmentally sustainable sector, providing water supply and sewerage services of high
quality at affordable prices for consumers. For this purpose, Water Supply and Sewerage
associations should start to work effectively and the assets of WSS companies should be
disclosed to the public, i.e. should become a public municipal or public state property.
A detailed schedule has been developed for 2014, as well as a procedure for the removal of
assets off the companies’ balance sheets and signing of contracts for management,
maintenance and operation of WSS systems and facilities and the provision of WSS services
by WSS operators in the outlined areas.
For the first time in 20 years, it will be invested in the construction and rehabilitation of
dams for drinking water. The completion of two dams – „Luda Yana“ near Panagiurishte
and „Plovdivtsi“ near Rudozem, and the rehabilitation of the Studena dam and the waste
water treatment plant in Pernik will begin. These projects should be completed by 2017. A
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Programme has been developed to solve the problem of seasonal or all year round water
regime in some settlements.
In addition to amending the Law on Waters and preparing a Strategy for Management and
Development of the WSS Sector strategy for the development and management of the Water
Supply and Sewerage sector in the Republic of Bulgaria, during its first six months the
Government works for the introduction of permanent civil control on the results of the
activities of Water Supply and Sewerage Operators and service prices.
 All 51 regional master plans for WSS infrastructure are ready, agreed by the
regional development councils. WSS associations and municipal councils are in the process of
adopting the plans.
 All stakeholders participate in the public hearing such as the Union of WSS
operators in the Republic of Bulgaria, branch trade unions, local authorities, the Ombudsman
of the Republic of Bulgaria and interested agencies take part in the approval of business plans
and adoption of new prices for WSS services of WSS operators by the State Energy and
Water Regulatory Commission (SEWRC).
 Measures have been taken to create conditions for the implementation of measures
outlined in the Law amending the Law on Waters, restructuring of companies in the WSS
sector in line with the deadlines set out in the Law.
During its first six months the Government has been working actively to also implement
the other measures included in the Government’s Programme for Governance,
Development and Justice.
 As part of the implementation of measure „Preparation of proposals for amending
the legislation in the area of Regional Development – Law on Regional Development and its
implementing Regulation”, the impact of the Law on Regional Development and its
implementing Regulation was assessed at meetings of the Regional Development Councils
in October 2013. Opinions and proposals for amending the regulatory framework targeted at
the need for making amendments to regional development legislation were summarised by the
members of the Regional Development Councils. In the beginning of December 2013, a round
table „Current Problems and Improving the Legislation for Regional Development“ was held
with the participation of representatives of ministries, regional governors, trade unions,
universities, NGOs and associations working in the field of regional development. The results
and recommendations of the evaluation of the impact of legislation on regional development
and the conclusions and recommendations of basic studies on the territorial scope of level 1
and 2 areas, and interconnecting the processes of territorial and regional planning were
presented. Participants united around the preliminary document outlining the framework
for future legislative amendments, presented at the meeting. Roundtable participants are
expected to make suggestions and comments on the amendments in the regulatory framework
in relation to the document.
 In order to build integrated public transport systems in the areas of big cities
within Priority Axis 1 „Sustainable and Integrated Urban Development“ Operation 1.4
„Sustainable Urban Transport Systems“ under Operational Programme „Regional
Development“, BGN 403 million has been provided for the development of integrated urban
transport in 7 major cities – Sofia, Plovdiv, Varna, Burgas, Pleven, Russe and Stara Zagora.
The focus will be on creating a more energy efficient, effective and faster urban transport,
building more accessible secondary infrastructure of public transport networks and
introducing more environmentally friendly modes of public transport. A unit responsible for
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supporting the implementation of projects for integrated urban transport has been set
up within the Managing Authority of Operational Programme „Regional Development“.
During the reporting period Varna Municipality signed a contract for public transport with
„Public Transport“ AD, which resulted in a contract for delivery of 70 buses under the
project.
 To implement Measure „Combating landslide, erosion and abrasion
processes“ during the reporting period, the following was done:
Geo preventive measures and activities
 Preventive activities on the territory of the Republic of Bulgaria were carried out
through state-owned companies „Geoprotection“ – Varna, Pleven and Pernik and VAT
performance to the amount of BGN 167,304 was reported.
 Procedures under the Public Procurement Act were carried out and 4 procurement
contracts were signed; a report was prepared to open a public procurement procedure for
additional preventive activities.
Effective control over construction in landslide areas
 9 preliminary permits were issued for geo protective measures and activities or
construction of buildings and structures in landslide areas and 2 instructive letters on received
correspondence for the issuance of preliminary permits.
Geoprotective measures and activities to limit landslides, abrasion processes along the
Black Sea coast, and erosion processes along the Danube.
 Actions were taken to complete transitional projects frozen under an Act (Form
10) – „Strengthening a landslide in Iztok residential area in the town of Oriahovo“ – phase II
and „Draining of the village of Panaretovtsi“, Sliven Municipality. Acts were signed (Form
11) and construction works carried out;
 Actions were taken to solve the problems related to projects „Town of Tsarevo –
strengthening a landslide in North Beach“ and „Strengthening a landslide in Sarafovo
residential area – phase III.2, Bourgas Municipality”, unilaterally terminated by the Ministry
of Regional Development and Public Works in 2010, currently operative under an enforced
court decision. An additional report containing proposals for a solution was developed.
Other activities related to the implementation of the measure:
 At its ninth sitting, the thematic working group for the development of OP Regions
in Growth 2014-2020 adopted a decision under priority axis № 7 „Risk Prevention“ to support
activities related to the prevention of the risk of landslides, erosion and abrasion processes. A
Methodology for prioritisation of landslides in Bulgaria was approved. 1 755 registered
landslides were evaluated by means of approved eligibility criteria. A list of 246 landslides
was prepared for which graphic material was made. They will be evaluated by weighting
criteria and prioritized.
 The work of the interdepartmental working group tasked to develop a draft
National Programme for Disaster Protection 2014-2018, and a 2014 draft annual plan for
the implementation of the National Programme for Disaster Protection was finalised. The
final versions of both documents were developed and adopted by the working group.
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The Government of the Republic of Bulgaria reported the following results on
programmes for cross-border cooperation for which Bulgaria is designated as Managing
Authority:

Cross-Border Cooperation Programme Bulgaria – Serbia 2007-2013
In the period 01 June – 31 December 2013, 14 contracts for grants totalling EUR 2 445 769
were signed. The amount of disbursed funds under these contracts is EUR 3 531 373.
As a result of the measures taken, the amount of certified funds for 2013 is
EUR 4 919 669 and no funds will be lost as a result of applying the n +3 rule. The
amount of certified funds is greater than the amount of disbursed funds as part of the
funds were paid in the period January – June 2013.

Cross-Border Cooperation Programme Bulgaria – Turkey 2007-2013
In the period 01 June – 31 December 2013, 14 contracts for a grant totalling EUR 3 676 715
were signed. The amount of the funds under the contracts is EUR 2 941 073 21 projects
totalling EUR 6 331 582 were approved for funding under the third call for proposals.
As a result of the measures taken, the amount of certified funds for 2013 is
EUR 4 505 530 and no funds will be lost as a result of applying the n + 3 rule. The
amount of certified funds is greater than the amount of disbursed funds as part of the
funds were paid in the period January – June 2013.

Cross-Border Cooperation Programme Bulgaria – Macedonia 2007-2013.
 In the period 01 June – 31 December 2013 27 contracts totalling EUR 4 042 402
were concluded. The amount of disbursed funds under the grant contracts signed is
EUR 1 899 110.
As a result of the measures taken, the amount of certified funds for 2013 is
EUR 3 246 676 and no funds will be lost as a result of applying the n + 3 rule. The
amount of certified funds is greater than the amount of disbursed funds as part of the funds
were paid in the period January – June 2013.
As a result of the audits, the management and control systems of the three programmes
were assessed positively.

Cross-Border
Cooperation
Programmes
Serbia/Macedonia and Turkey 2014-2020
between
Bulgaria
and
As a result of the efforts made and intensive negotiations with the European Commission,
Bulgaria managed to negotiate three separate programmes with Serbia, Turkey and
Macedonia to be implemented again in the next programming period, and categorically
rejected the idea of the European Commission to create a single programme, which would
have complicated the application and significantly impeded the absorption of funds. The first
meetings of the working groups for programming were held after the written opinion of the
European Commission was received.
Cross-border cooperation programmes for which Bulgaria has been designated National
Partner Authority:

Cross-Border Cooperation Programme Romania – Bulgaria 2007-2013
The advance and final funds disbursed under national co-financing agreements in the period
01 June – 31 December 2013 are about BGN 1,2 million. Within this period costs of
Bulgarian partners of EUR 30 million were verified. The Ministry of Regional Development
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has obligations related only to payment of the national co-financing under grant contracts.
Resources from the European Regional Development Fund are disbursed by the Managing
Authority in Romania. The amount of verified costs also includes expenditures of the
European Regional Development Fund, which are paid by the Managing Authority in
Romania.
According to data of the Managing Authority in Romania, the amount of expenditure certified
by the end of 2013 is EUR 69 877 435 38. The funds that will be released are to the amount of
EUR 2 160 812 95 (ERDF).

European Territorial Cooperation Programme Greece – Bulgaria 2007-2013
The verified expenditures of Bulgarian partners in the period 01 June – 31 December 2013
amount to EUR 9 070 803. The funds were disbursed by the Managing Authority in Greece.
According to data of the Managing Authority in Greece, the goal in accordance with the n
+3/n +2 rule for 2013 of EUR 76 399 997 is achieved.

Transnational Cooperation Programme for South East Europe 2007-2013,
 One contract for national co-financing with a Bulgarian partner worth BGN 17,
602 was signed.
 The disbursed advance and final resource under contracts for national co-financing
amount to BGN 48 627.

Expenditures of Bulgarian partners amounting to EUR 109 308 30 were verified.

Joint Operational Programme Black Sea Basin 2007-2013
 The disbursed advance and final resource under contracts for national co-financing
amount to BGN 8 321.

Expenditures of Bulgarian partners worth 109 308 30 Euro were verified.

INTERREG IVC 2007-2013
Expenditures of Bulgarian partners worth EUR 194 670 were verified.
As a result of the active role of the Government and intensive communication between the
European Commission and partner countries in Southeast Europe, the European Commission
decided to create a new transnational programme – Balkans-Mediterranean Arc (not yet
approved as final name of the programme). The programme will involve partners from
Greece, Bulgaria, Cyprus, Albania and Macedonia. Thus within the new programming period
Bulgaria will participate in two transnational programmes (this one and the Danube
programme).

Management of road projects under EU Territorial Cooperation Programmes
Documents have been prepared for the verification of costs incurred for three projects for
Cross-Border Cooperation Romania – Bulgaria. Requests for the appointment of first level
controllers for two of the projects under CBC Romania – Bulgaria have been prepared.
Addendum 4 to the Financing Agreement for one of the project has been prepared and
submitted. 65 km of roads (second and third class) have been rehabilitated. The
rehabilitation of 14 km of the national road network is due to start soon.
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
Implementation of the EU Strategy for the Danube Region
In 2013, the main efforts of Bulgaria were concentrated on incorporating the Strategy
priorities in the draft Partnership Agreements, Operational Programmes and Cross-Border and
Transnational Cooperation Programmes that will contribute to the implementation of the
strategy and multiplication of the synergy between initiatives.
Within the Second Annual Forum on the EU Strategy for the Danube Region and the meeting
of regional ministers in October 2013 in Bucharest, the Regional Development Minister, in
his capacity of National Coordinator, explained how the objectives of the Danube Strategy
were covered by the drafts of the Partnership Agreement in the programming period 20142020 and the Operational Programmes. He also outlined how they would be reflected in the
process of the forthcoming programming of cross-border cooperation, taking into account the
best practices of the current programming period. Best practices for the planning of the
relevant regional policies and programmes were exchanged at the forum and the ministerial
meeting. Potential opportunities for joint projects in line with the priorities of the Danube
Strategy to improve the effectiveness of regional development policy were discussed with the
Ministers of Serbia and Romania, with whom the Ministry of Regional Development is
implementing regional development programmes.
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HIGHER EMPLOYMENT, REDUCING UNEMPLOYMENT
Measure
Deadline
Preparing to determine the poverty line for 2014, based on NSI data,
according to the methodology for determining the poverty line
On 30.11.2013
Preparation of a draft Decree of the Council of Ministers adopting
the new poverty line in 2014 and co-ordination of activities on
coordination procedure and consultations with social partners
31.12.2013
Restoring dialogue with social partners within the National Council
for Tripartite Co-operation
31.12.2013
Expansion of active measures on the labour market and creating new jobs for temporary
employment to mitigate the effects of rising unemployment:

Developing the activities related to forecasting future trends
in demand and supply of labour. Use of forecast results
when developing and implementing sectorial policies.
Taking into accounting their impact on employment in the
process of planning
31.12.2013
Developing a mechanism for including the Results of the
forecasts of demand and supply of labour in Bulgaria when
developing and implementing state policy
30.10.2013
Preparing a „Youth Initiatives“ pack, after consultation with
social partners, through amendments to the Law on
Promotion of Employment related to the increasing of
employment opportunities for young people in the
framework of the secured budget for 2013
30.10.2013
Increasing the preparedness for employment of young
people and reducing unemployment through the
implementation of the National Plan for the Implementation
of the European Youth Guarantee by increasing the
opportunities for internships, apprenticeships, providing
subsidised employment for first job, activation of young
people who are not looking for work, job training for lowskilled under the guidance of a mentor. Encouraging young
people’s entrepreneurship in innovative enterprises
31.12.2013

Program „Career Start“ is implemented in order to provide
employment for people 29 years or younger
30.11.2013

Strengthening regionalisation by diversifying and improving
the quality of regional employment programmes and
including disadvantaged unemployed people in various
forms of activation, literacy and training
31.12.2013
Subsidised employment of disadvantaged groups (youth,
people with disabilities, unemployed people over the age of
50, etc.). Priority commitment of the private sector
On 30.11.2013




79


Support for the unemployed of older age groups by
providing training in key competencies and subsidised
employment to provide extra length of service needed to
meet retirement eligibility
On 30.11.2013
Updating the National Programme „Support for retirement“
in order to include it in the National Action Plan for
Employment in 2014 in order to start them in January 2014
On 30.11.2013
Introducing the Swiss rule for indexation of pensions from 2014
within the framework of the budgetary procedure for 2014
31.12.2013
Functioning of the Advisory Board for optimisation of the social
security system to the Minister of Labour and social policy
30.09.2013
Implementation of the Action Plan containing measures for the
Republic of Bulgaria to align the regulatory framework and policies
for people with disabilities with the provisions of the Convention on
the Rights of Persons with Disabilities (2013-2014)
31.10.2013
Performance:
Measure: Preparing to determine the poverty line for 2014, based on National
Statistical Institute (NSI) data, according to the methodology for determining the
poverty line
After projections based on NSI data and consultation with social the Decree of the Council
of Ministers was adopted to update the poverty line for the country for 2014 to BGN
251, which in 2013 was BGN 241
Survey data on household budgets in Bulgaria conducted by NSI is used each year to calculate
the poverty line. The poverty threshold is determined in order to guarantee the minimum
living needs for food and non-food goods and services.
Measure: Restoring dialogue with social partners within the National Council for
Tripartite Co-operation (NCTC)
The work of the NCTC is restored after adopted amendments to the Law for publicity of
property of persons occupying high state, public and other positions in the public and private
sectors of the 42nd National Assembly,.
The representatives of the Council of Ministers to the National Council for Tripartite
Cooperation were appointed with a decision of the Council of Ministers of 21 June 2013 –
Deputy Prime Minister and Minister of Justice Ms. Zinaida Zlatanova and Minister of Labour
and Social Policy Mr. Hasan Ademov.
16 minutes from conducted meetings were signed between August and December 2013.
The Standing committees to NCTC involving representatives of social partners have
conducted 17 meetings including: the Commission on labour legislation – 8, Commission on
income and standard of living – 4, the Commission on security relations – 3 and the
Commission on budgetary policy – 4.
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Consulted are five draft laws submitted by MPs, the Draft Law amending the Law on the
State Budget for 2013, a draft Law on the State Budget for 2014, the tax laws for 2014, draft
laws on the budgets of the State Social Insurance and National Health Insurance Funds for
2014, updated amount of the poverty line in 2014, the minimum wage, the updated
Employment Strategy of the Republic of Bulgaria for 2013-2020, the National Plan for
implementation of the European Youth Guarantee, the National Action Plan for Employment
for 2014 and etc.
Measure: Expanding the active measures on the labor market and creating new jobs
for temporary employment to mitigate the effects of rising unemployment
 The first draft model for predicting the development of the labour market in
the long term is prepared. The preparation for a study on the needs of employers of labour
force with certain characteristics begins.
 On 18 December 2013 the Council of Ministers adopted a National Plan for
Implementation of the European Youth Guarantee.
In the second half of 2013 Labour Offices provided services to 17 699 unemployed people 29
years or younger, including 7 974 people under the age of 24, within four months of their
registration with the office. 2 461 people 29 years or younger were included in measures of
the Law on Employment Promotion.
 On 21 December 2013 the Council of Ministers adopted a National Action Plan for
Employment 2014
 Young people with higher education who are registered with the Labour office are
provided with opportunities for work experience and practical skills acquisition by working in
public administration. Young people are included in the „Career Start“ programme and given
positions that match their education. In the second half of 2013 the programme included 1 473
young people.
 Under the procedure for development of a National Action Plan for Employment,
after evaluation 256 regional employment programmes (that would provide jobs to 2 000
unemployed people) were approved for funding and included in the plan. The scope of
activities is wide – public order preservation and municipal property (schools, kindergartens),
environmental activities, support for tourism development, excavation and maintenance of
monuments of culture.
 In implementing the measure for subsidised employment of disadvantaged groups
(youth, disabled, unemployed over the age of 50, etc.), as of 31 December 2013, a total of
38 219 people have been worked under programmes and measures, of which:

young people under 29 – 3 562;

over 50 – 1 535 unemployed;

disabled – 942 unemployed persons;
 long-term unemployed – 152 unemployed persons have worked under measures
with priority involvement of the private sector.
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 In order to support the unemployed of older age groups through training in key
competencies and subsidised employment aiming to provide additional length of service
needed to meet retirement eligibility, the following was done in the second half of 2013:
 221 persons were included in project „Improving the employability of unemployed
persons through increased professional and key competencies“;
 22 unemployed people were included in the National Programme „Support for
retirement“;
 677 unemployed persons were included in the measure for unemployed over the
age of 50 (Article 55a of EPA).
 The National Programme „Support for retirement“ is included in the NEAP
in 2014 expanding the circle of beneficiaries, as the condition for inclusion, namely the
lack of service record for retirement, was extended from 16 to 24 months.
Measure: Introducing the Swiss rule for indexation of pensions from 2014
Amendment to Art. 100 of the Social Security Code was adopted, which establishes a socalled „Swiss rule“ for indexation of pensions. The provision provides that pensions granted
until 31 December of the preceding year shall be updated annually by July 1 with a decision
of the Supervisory Board of the National Social Security Institute by a percentage equal to the
sum of 50% of the increase in insurance income and 50% of CPI for the previous calendar
year.
This way the income of pensioners will be better protected and all pensions will be indexed
on 1 July 2014. BGN 120 million has been planned to cover the planned indexation of 3%.
Measure: Functioning of the Advisory Council for the Optimisation of the Social
Security System to the Minister of Labour and Social Policy
In the period since its establishment in July 2013, the Advisory Council has held 10 meetings
to finalise the discussion of short-term measures to optimise the social security system, which
is proposed to take effect from 2014.
The most important part of the discussion on the proposed pension system reform is changes
to the conditions for retirement, the restoration of the so-called "Swiss rule" for indexation of
pensions, issues related to the maximum amount of one or more pensions (so-called „Ceiling“
of pensions), the maximum amount of social security income, etc.
Measure: Implementing the Action Plan containing measures for the Republic of
Bulgaria to align the regulatory framework and policies for people with disabilities
with the provisions of the Convention on the Rights of Persons with Disabilities
(2013-2014)
The Government of the Republic of Bulgaria is implementing the action plan containing
measures for the Republic of Bulgaria to align the regulatory framework and policies
for people with disabilities (2013-2014) with the provisions of the Convention on the
Rights of Persons with Disabilities. As of December 2013 the following has been done:
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 The working group on coordination for the implementation of the Action Plan
continues working on the implementing the „Development of mechanisms and
identification of authorities responsible for coordination, monitoring and independent
monitoring“ measure under the Convention on the Rights of Persons with Disabilities of
the UN. The main tasks of the group are: coordinating the implementation of the two-year
action plan, developing a mechanism for coordination and monitoring in accordance with
Art. 33 of the Convention on the Rights of Persons with Disabilities, as well as determining
the implementing bodies.
 An Interagency Working Group developed a draft Concept for the application
of Art. 19 of the Convention on the Rights of Persons with Disabilities and in
implementation of the action plan for the Republic of Bulgaria to align the regulatory
framework and policies for people with disabilities with the provisions of the Convention on
the Rights of Persons with Disabilities (2013-2014).
 An international seminar entitled „Convention on the Rights of Persons with
Disabilities and the Action Plan for its implementation“ was held in Sofia on 11 and 12
November 2013.
 Interagency Working Group developed a draft initial Report of the Republic of
Bulgaria on the application of the ratified Convention on the Rights of Persons with
Disabilities of UN.
 Interagency Working Group drafted a project for easy to read version of the
Convention on the Rights of Persons with Disabilities in pursuance of paragraph 10 of the
Action Plan containing measures for the Republic of Bulgaria to align the regulatory
framework and policies for people with disabilities with provisions of the Convention on the
Rights of Persons with Disabilities, adopted by the Council of Ministers with Decision № 868
of 19 October 2012.
Apart from the measures planned for the first stage of the implementation of the
Government Programme, the Ministry of Labour and Social Policy is working on the
implementation of all social priorities in Programme of the Government „Statehood,
Development and Justice“. The results are as follows:
Measure: Adopting a National Strategy for long-term care and an action plan for its
implementation
The National Strategy for long-term care was adopted at the meeting of the Council of
Ministers on 12 December 2013
The strategy aims to create conditions for independent and dignified life for the elderly and
people with disabilities by improving access to social services and their quality, expanding the
network of these services in the country, de-institutionalisation, and promoting interaction
between health and social services.
The draft National Strategy for long-term care comprises a conceptual framework for the
development of long-term care in Bulgaria, which is based on the current state of services for
elderly people and people with disabilities and key challenges in the sector. The key measures
for the realisation of the objectives in the field of development policy of long term-care are
structured in several key areas: expanding access to social services, improving their quality
and promoting interaction between health, social and education services; promoting
deinstitutionalisation of the elderly and people with disabilities placed in institutions and
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promoting deinstitutionalisation of care; providing support for individuals and professionals
who care for the elderly and people with disabilities; increasing efficiency and improving
mechanisms for financing services.
The Strategy will be implemented through the development and implementation of an Action
Plan for its execution, which will be adopted by the Council of Ministers. It will include
specific measures, projects and activities, institutions responsible for their implementation, the
terms, amount and funding sources.
Measure: Provision of integrated services for early childhood development for
children aged 0-7, and their families under the social inclusion project, financed by
the International Bank for Reconstruction and Development
On 21 October 2013 the Council of Ministers approved an amendment to the Loan
Agreement (draft social inclusion) between the Republic of Bulgaria and the
International Bank for Reconstruction and Development and proposed the National
Assembly, pursuant to Art. 85 Para. 3 of the Constitution of the Republic of Bulgaria, to ratify
a law amendment to the Loan Agreement.
Law amending the Loan Agreement was ratified by the National Assembly. The loan was
extended until 30 September 2015.
Measure: Strengthening the process of deinstitutionalisation of care for the elderly
and people with disabilities by expanding the network of home services, social
services and improving the interaction between social and health services
An inter-institutional working group was created to develop variations to the terms and
conditions for the activities of the National Programme „Assistants for people with
disabilities“.
The Council of Ministers adopted amendment to Decision of the Council of Ministers for
adoption of standards mandated by the state in 2014, thus increasing the standards of social
services delegated by the state.
Measure: Implementing a sectorial approach to ensure qualified workforce for high
-quality jobs in traditional sectors of the economy and promote employment in hightech, new energy sectors, sectors with high added value, including „green jobs“ in
order to reduce unemployment
In the second half of 2013, 183 unemployed persons were included in subsidised employment
„green jobs“ under Art. 55E of the Act on Employment Promotion
Measure: Subsidised employment for people with low qualification, including Roma,
will be combined with literacy, motivation and key competencies training in order to
prevent extreme poverty and provide skills and qualification
A National programme for training unemployed people on social benefits is included in the
draft National Action Plan for Employment 2014. The goal is to provide opportunities for
participation in training (literacy, motivation and professional training and acquisition of key
competences) of persons on social benefits accruing community service.
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As a result of the work of mediators appointed under the „Activate inactive“ 5 959 inactive
persons were registered with Labour Offices in the second half of 2013. 1 576 persons were
given jobs; of them 974 were employed under programmes and measures.
Measure: In terms of the training courses it is essential to ensure access,
particularly for the unemployed in villages to improve the quality of education
The draft National Action Plan for Employment 2014 allocates funding for the inclusion of
more than 12 000 unemployed people in training for acquiring professional qualifications and
key competencies. There are funds for transportation costs of students who live in places other
than the place of training. This will ensure access to training for unemployed from small
settlements.
Measure: The Employment Agency will develop its capacity to provide individualised
services, more electronic services, information opportunities for the unemployed,
expanding its market niche segment to higher-quality jobs
A new official website of the Employment Agency is developed using the latest
achievements in the field of web design and programming - user-friendly interface, speed and
search engines, including:

Section visible to all Internet users;
 Section accessible only to employees of the Employment Agency Regional
Offices, which will publish documents for internal use in the agency;
 Multiuser back office, through which pre-authorised staff cam complete the
modules and update the information;

An Interface allowing employers to publish available vacancies;
 Job seekers can fill out the electronic registration form at Labour Offices, and the
information is automatically forwarded to the relevant employment office;
 Data submitted via the two new electronic services can be imported into the
information system of the National Employment Agency.
Measure: Increase of the minimum wage
By Decree of 31 October 2013 on January 1, 2014 the minimum monthly wage was
increased by nearly 10% to BGN 340. In 2013, the minimum wage was 310 BGN.
Measure: Freezing the age and length of service required to retire and introducing
flexible conditions for retirement when the person is up to 2 years away from
retirement (age and/or length of service) after consultation with social partners
With the Law on the State Social Security Budget for 2014 changes were made, relating to the
conditions for retirement of workers under the biggest third labour category. For this
category in 2014, the conditions for retirement remain the same as those of 2013,
namely:
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
months;
for women – age: 60 years and 8 months; pensionable service: 34 years and 8

for men – age: 63 years and 8 months; pensionable service: 37 years and 8 months.
On 18 December 2013 the National Assembly adopted the Law on Amendments to the Social
Security Code (promulgated, SG. 111 of 12.27.2013 on ), with which are accepted and other
changes also related to the conditions for retirement, effective from 1 January 2014.
 Amended is Art. 69, Para. 1 of CSR as military personnel entitled to a pension
upon release from service regardless of their age, after 27 years of pensionable service, two
thirds of which actually served as military personnel in the Defense and Armed Forces of the
Republic of Bulgaria. This restores conditions for entitlement to pension of military personnel
before the amendments of 1 January 2013, eliminating the age of retirement.
 Modified is the provision of § 4 Para. 1 of TFP of CSR, which regulates the
pension rights of people who worked in first and second category of labor, and conditions for
retirement by 2013 remain. Until December 31, 2014 including those who worked 10 years
under first category or 15 years under the second category, may retire at the age of 47 years
and 8 months for women and 52 years 8 months for men in the first labor category or 52 years
and 8 months for women and 57 years and 8 months for men in the second category of work,
and if pensionable service and retirement age add up to a total of 94 for women and 100 for
men.
 The conditions for retirement of teachers remain the same – until 31 December
2020 they will be eligible to receive a pension for pensionable service and age three years
earlier than the age of art. 68, Para. 1 and pensionable service of 25 years and 8 months for
women and 30 years and 8 months for men.
 When discussing the Law Amending and Supplementing the Social Security Code
(LASSSC), the National Assembly did not accept the proposal for granting a pension for
reduced pension service and age to people lacking up to 24 months of retirement service and
/or age.
The conditions for retirement in 2014 remain the same for people working under first,
second and third work category.
Measure: Update the size of the monthly family allowances for children depending
on the capabilities of the state budget
On 21 June 2013 the Council of Ministers adopted a Decree whereby single targeted
assistance for students enrolled in first grade at a state or public school in 2013/2014 is hereby
set at BGN 250. That assistance supported the families of over 48 300 first graders, so they
can get an equal start in school.
The draft state budget for 2014 sets differentiated amounts for monthly benefits for children
until they finish secondary education, but no later than 20 years of age. Amendments to the
Law on Family Allowances for children introduce a rule for determining higher monthly
benefits for:

Second child in the family – BGN 50;
 A child with permanent disabilities – 200% of the support for a second child –
BGN 100;
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
A twin – 150% of the support for a second child – BGN 75.
Measure: Update the monthly allowance for children with disabilities at a ratio of
70% of the minimum wage
The amount of the monthly allowance for children with disabilities is increased from
BGN 217 to BGN 240, as outlined in the draft state budget for 2014.
Measure: Improving the criteria for granting certain types of family benefits;
Improving control in order to prevent fraudulent receipt of family allowances for
children
A working group is created to develop a draft Law amending the Law on Family Allowances.
Measure: Improving of the purposefulness of social benefits, increasing the
efficiency of social assistance programmes
Ordinance № RD07-6/25.10.2013, amending and supplementing Ordinance № RD-07-5 of
2008 on the terms and conditions for granting allowance for heating, creates a legal
possibility to keep the amount of assistance from the previous heating season
unchanged, while taking account of changes in the price of electricity for households and
ensuring better social protection of the most vulnerable social groups.
The Minister of Labour and Social Policy determined the heating target benefit for heating
season 2013/2014 in the monthly rate of BGN 65,72, to prevent a reduction in the
amount of aid in line with the decrease in the price of electricity. Thus an actual increase
of the aid of about BGN 6 per month for the upcoming heating season was realised.
On 21 December 2013 the Council of Ministers of the Republic of Bulgaria adopted a Decree
amending the Decree № 17 of the Council of Ministers from 2007 to determine the terms and
conditions for disbursement of funds targeted for diagnosis and treatment in hospitals of
persons who have no income and / or personal property.
The amendments create optimal conditions for efficient use of limited budgetary resources in
the interest of people of this vulnerable group who have an urgent need of hospital. This will
tackle the discrepancy between statutory obligations and responsibilities of the structures of
the Social Assistance Agency and their actual resource availability.
The proposed changes guarantee that the activities of participants in this process will be
consistent with their functional qualification, professional and institutional competence, which
will significantly improve the results of the implementation of this good social safety net.
In 2014, all the students placed in specialised institutions for children (homes for children
deprived of parental care, homes for children with physical disabilities, home children with
mental illness) and social residential care services – transitional housing, crisis centre and
family-type accommodation will receive spending monthly allowance of BGN 33. These
funds are determined annually by Decision of the Council of Ministers for the respective
year and are paid by the budgets of respective municipalities.
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Measure: Promoting employment and training supported long-term unemployed
people of working age for their reintegration into the labor market
In implementation of the National Programme „Activation of inactive persons“ 33
psychologists and 10 case managers are employed to provide psychological services to
support and motivate unemployed persons, incl. and long-term unemployed and
discouraged workers. Case managers are intermediaries between individuals and institutions
that provide social, health, education and other services, complementing mediation services
offered by labour offices. In the second half of 2013, 777 unemployed persons received
individual psychological support; 944 unemployed persons took part in different forms
of group support; 1 210 unemployed persons benefited from individual counselling
provided by case managers.
490 Job Search Workshops were conducted in the second half of 2013 (July – November). By
participating in the workshops, 2 613 unemployed gained or improved their job search
skills and motivation, as well as confidence needed to convince the employer in their
capabilities.
Measure: Synchronising the national legislation in the field of anti-discrimination
with changes in European legislation
A draft Law amending and supplementing the Law on Protection against
Discrimination, aiming to synchronise national legislation with the European one, has been
prepared. The bill was approved by the Cabinet and submitted to the National Assembly in
November 2013. The bill was assigned to the following committees in the National
Assembly: Commission on Human Rights and Citizens' Complaints (leading) and the
Committee on European Affairs and Control of the European Funds.
Measure: Developing Law on Gender Equality
An interdepartmental working group was formed to prepare a draft law on gender
equality in the implementation of the commitments arising from the accession of Bulgaria to
the European Union and the Action Plan for implementation of the final recommendations to
the Republic of Bulgaria made by the UN Committee the Elimination of Discrimination
against Women (CEDAW).
On 18 December 2013 the Council of Ministers of the Republic of Bulgaria adopted
a National Action Plan to promote equality between women and men for 2014. Special
attention is paid on the implementation of measures to promote equality between women and
men in decision-making processes; capacity building in the central and local government,
judiciary, social partners and the general public and to raise awareness and sensitivity on
issues of gender equality and non-discrimination, as well as take concrete steps for updating
the National Strategy for promoting gender equality for the period 2009-2015, with a time
horizon 2020.
Combating violence against women in all its forms, including domestic violence, is also one
of the priorities of Bulgarian institutions and organisations for 2014.
The government reports other results, not set in the Programme and Action Plan „First
stage of implementation of Government’s Programme in terms of completion of the
current budget cycle and planning the new one“:
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 The government is implementing a measure outlined in the programme for
adequate yearly updating of the amount of compensation for a child of up to 2 years of
age.
Since July 1, 2013 the allowance for child (1-2 yr. o) increased from BGN 240 to BGN 310,
and reached BGN 340 with the Law on the State Social Security Budget for 2014.
 Measure of the government's program: Extension of the programme for
targeted energy assistance, by updating the differentiated minimum income (DMI) for heating
for all target groups. The government has pledged to increase the threshold for access to
targeted assistance for heating, so that to extend the programme for targeted energy assistance
and more people in difficulty can receive state support. With the increase of the
differentiated minimum income for heating of 15 BGN, while maintaining the principle
of differentiation, the income limit of all 16 risk groups is extended, thus the programme
for targeted energy assistance will increase by about a quarter. For heating season 20132014 the programme covered 251 876 210,711 people were covered during the previous
heating season.
 A Decree of 18 November 2013 was approved, thanks to which an additional
BGN 50 is expected to be paid to pensioners whose total pension or sum of pensions, along
with supplements and compensation for December 2013, amount to BGN 251
inclusive. Additional 50 BGN (so-called „Christmas bonus“) were paid for December
2013.
 A draft Law amending and supplementing the Law on Health and Safety was
developed in order to improve the quality of control over occupational hazards.
Determining the specific rights, obligations and responsibilities of the Deputy Chairman of
the Committee on the working conditions and those of the representative of employees on
health and safety issues would provide the basis for improving the quality of social dialogue.
 A draft Regulation on the minimum requirements for microclimate in the
workplace was developed, setting the parameters of the microclimate in the air, such as
temperature, humidity, air movement and heat exposure, as well as minimum requirements for
the protection of workers from existing or potential health and safety risks, caused by the
parameters of the microclimate at the workplace in buildings, and adverse weather conditions
when working outdoors.
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QUALITY EDUCATION AND PROFESSIONAL TRAINING
„Education is a field in which the social factor best overlaps with the factors of
competitiveness and growth. It will continue to be priority for the government“
Plamen Oresharski
Prime Minister of the Republic of Bulgaria
Measure
Deadline
Suggestions for improving the system of delegated budgets in
education. Introduction of additional factors for evaluation of the
development of the learning process
31.10.2013
Amending the Law on Vocational Education and Training
30.11.2013
Strategy for the Development of Higher Education in the Republic
of Bulgaria 2014-2020
31.12.2013
Performance:
Education and science are priorities in the policy of the government. The government has a
clear vision that education is not an expense but rather an investment and therefore there will
be lot of work in this regard. For the first time, after the budget for education was frozen for
four years, the funds earmarked in the state budget of the Republic of Bulgaria for education
for 2014 are increased. The overall budget is BGN 3 062 900 billion, and this amount
includes an additional BGN 100 million from the central budget of the Republic of Bulgaria.
Measure: Suggestions for improving the system of delegated budgets in
education. Introduction of additional factors to evaluate the development of the
learning process
 BGN 40,1 million is allocated in the state budget of the Republic of Bulgaria to
improve the quality of pre-school and school education. Part of the funds will be absorbed to
improve the system of delegated budgets. This will be achieved through:
The Draft Law on the State Budget of the Republic of Bulgaria for 2014 (Budget Act)
supplements the provisions of the Education Act governing the implementation of the
system of delegated budgets. The goal is to improve the mechanism for distribution of funds
for education. An amendment would ensure a mandatory supplement for fixed expenses
that are not directly dependent on the number of children / students. This will close gap
between large and small schools and will reduce the scale effects and dependence of budgets
only on the number of children / students. Improving the system of delegated budgets aims to
focus on the quality of education. According to the new formula schools that show better
results between external evaluations will receive additional funds.
 A funding model was developed based on uniform expenditure standards of
extracurricular educational institutions when organising the leisure time of
students. The funds are planned within the resources for structural measures and development
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programmes of education in the amount of up to BGN 100 million of the draft Law on the
State budget of the Republic of Bulgaria for 2014. This measure is intended to stop the
process of closing extracurricular units, and achieve sustainable and predictable funding
for their existence.
Measure: Amendment to the Vocational Education and Training Act
Proposed Amendments to the Vocational Education and Training Act. The goal is
gradual introduction of the dual system of education, which combines both learning and
working. BGN 8,6 million is planned for improving the system of vocational education. The
long-term goal of this policy is to gradually overcome youth unemployment and provide a
“first job opportunity” to graduate students. In order to attain these objectives amendments to
the Vocational Education and Training Act are directed towards:
 Establishing a system for quality assurance in vocational education and training;
 Establishing a system for identification and recognition of informally acquired
knowledge, skills and competencies;
 Implementing the National Qualifications Framework;
 Ensuring a flexible system for vocational education and training;
 Introducing regulated professions necessary for the development of regions and
strategic sectors of the economy;
 Directing funds to vocational schools;
 Increasing the single cost standard for vocational training;
 Upgrading the facilities in vocational schools;
 Investmenting in workshops, laboratories and other facilities for specialised and
practical training;
 Establishing of a close link between vocational education and the business in order
to prepare students for the needs of the regional economy.
An inter-institutional working group was created to develop an action plan and financial
support of the reform of vocational education and training.
Measure: A Strategy for the Development of Higher Education in the Republic of
Bulgaria 2014-2020
A draft of the Strategy for Development of Higher Education in the Republic of
Bulgaria 2014-2020, which sets out measures and activities aimed at reforming higher
education in order to synchronise it with other national policies.
So far the draft of the strategy was discussed at the meeting of the Council of Rectors, as well
as with students. The document could be found on the website of the Ministry of Education
and Science, where one could also find an email address for comments and
recommendations. By the end of January 2014 all received proposals will be summarised and
discussed by the committee, which will propose the final version of the Strategy.
Additional BGN 21,5 million is allocated in the State Budget for 2014 for higher
education reforms. The aim is:
 Improving the quality of higher education, by establishing a link between
education and business;
 Directing funding towards universities with students with the best professional
development;
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 Motivating those willing to be trained in pedagogical, technical-engineering and
other careers in fields that are in high demand;
 Return of science in universities – directing funds towards research infrastructure
and increasing opportunities for students to be involved in research projects during their
studies.
Apart from the measures of the first stage of implementation of the government
program, the following was done during the reporting period:
Measure: National strategy for the professional development of pedagogical staff
In implementing this measure, a National Strategy was drafted and additional BGN 2 million
allocated. The objective of the strategy is to develop and promote measures to attract young
teachers in secondary education.
The Draft National Strategy for the professional development of pedagogical staff was
discussed at regular meetings of the Sectorial Council for Tripartite Cooperation and the
Public Council at the Ministry of Education and Science. The Strategy outlines measures to
attract young teachers in secondary education by:
 Providing scholarships to teaching majors students;
 Creating opportunities for internships for 4th and 5th year students in a real school
environment;
 Introducing the position „assistant teacher“;
 Providing opportunities for preferential loans and lower rents to teachers in remote
areas.
Amendments to Regulation № 5 relating to reducing the time to acquire professional
qualifications have been initiated. Changes in terms of career development for teaching
staff in order to reduce the deadlines for transition from junior teacher, senior teacher, etc. are
planned.
The Project „Qualification of Pedagogical specialists“ under OP Human Resources
Development 2007-2013, has already trained 5 943 specialists teaching the following
topics:
 „Training teachers to work with children with special educational needs”;
 „Training teachers to acquire knowledge, skills and competencies to work in
multicultural environment“;
 „Training pedagogical specialists to acquire knowledge, skills and competencies
for the assessment of students”;
 „Training kindergarten teachers to work in groups for compulsory pre-school
preparation“.
Measure: Reforming vocational education and training. Commitment to the needs
of the labor market. Development of public-private partnership
 A draft National Strategy for Lifelong Learning for the period 2014-2020 was
developed and published for discussion for consultation on the website of the Ministry of
Education and Science and the website for public consultation (www.strategy.bg) of the
Council of Ministers.
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 A draft Decree on the National Council for lifelong learning as a permanent
body to the Council of Ministers for the implementation of state policy in the field of
lifelong learning was prepared.
 The following were developed:
 Draft Decision amending Decision of the Council of Ministers of 20 July 2009,
laying down the list of regulated professions in the Republic of Bulgaria;
 Draft Law amending the Law on the recognition of professional qualifications.
 A draft National Strategy for the development of pedagogical staff, which was
discussed at regular meetings of the Sectorial Council for Tripartite Cooperation and the
Public Council at the Ministry of Education and Science.
 5 943 teaching professionals were trained under the „Training of teaching
professionals“, financed by OP Human Resources Development 2007-2013.
 In late October 2013 the Council of Ministers adopted a strategy for reducing the
share of early school leavers (2013-2020).
The strategy was developed following a recommendation of the European Council of 28 June
2011, concerning policies to reduce early school leaving (2011/C 191/01), as well as the
strategic framework for EU cooperation in education and training. The goals of the strategy
will be achieved through three key measures:
 Prevention, which aims to tackle the causes for early school leaving;
 Intervention, which aims to create conditions for reducing early leaving;
 Compensation, which aims to help early school leavers to re-engage in education
or acquire skills.
The Implementation of measures set out in the document will lead to achieving the national
target for Bulgaria – the share of early school leavers to fall below 11% until 2020 (12,5%
for 2012). The strategy requires the implementation of intersectorial approach at national,
municipal and school level, guaranteed by the Coordination Mechanism between institutions,
with the involvement of the NGO sector in the development and implementation of specific
policies for education and improvement of material and technical, social and psychological
and teaching conditions, including through public-private partnership opportunities.
Measure: Strengthening public organisations (BAS, SAA, TWO) through sustained
funding for research focusing on the results of completed tasks
A procedure is carried out to support scientific conferences with international
participation held in Bulgaria, meeting the priorities of the National Strategy for the
Development of research. 19 scientific events were financed.
 Information events for European research programmes and initiatives were
organised to promote the opportunities that various financial instruments offer to support
research projects.
 Competitive procedures and documentation were developed for:
 Joint Bulgarian-Chinese research project (2014-2016);
 Joint research projects between Bulgaria and the German Academic Exchange
Service (DAAD) to be implemented in 2014-2015;
 Joint research projects between Bulgaria and Ukraine for 2014-2016;
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 A programme for cooperation in the field of science and technology between the
Governments of the Republic of Bulgaria and the Republic of India 2014-2016 was prepared;
 BGN 2 million in national co-financing was provided for research
projects under the Seventh Framework Programme of the European Commission and the
European Cooperation in Science and Technology – COST.
 The first work programme for 2014-2015 under the Framework Programme for
science and innovation „Horizon 2020“ is in a process of preparation.
 The list of national research organisations that can accept foreigners to develop
research projects is updated.
 A regulation on research and innovation is being updated to bring together
instruments to support science and innovation – Fund „Scientific Research“ and the National
Innovation Fund.
 41 contracts with young scientists are signed under the procedure for selection
of Ph. D. students, post-doctoral students and young scientists for a month long training in
high-tech research centres and infrastructures.
 A Methodology for the professional development of young scientists is
prepared.
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PROVIDING HIGHER QUALITY AND MORE AFFORDABLE
HEALTHCARE
Measure
Deadline
Supporting state and municipal medical institutions in smaller
communities by establishing a methodology on the procedure and
criteria for subsidising municipal hospital care in inaccessible and
remote areas, in accordance with The National Association of
Municipalities
31.12.2013
Updating medical standards approved by the Minister of Health in
order to meet the requirements and competence level of medical
structures with the needs of the population to ensure basic medical
care, staff and equipment
31.10.2013
Starting a procedure for updating the National health card in order to
create conditions to meet the needs of the population for different
types of medical care (outpatient, emergency, hospital care) on
national, regional and municipal levels
30.09.2013
Carrying out an analysis and developing specific plans and measures
to restore and optimise operations in municipal hospitals in remote
and inaccessible areas (resuming work in the hospital in the town of
Devin)
30.11.2013
Creating regulations for consultative advice and feedback with district
hospitals, as well as with more advanced structures within the system
for the timely provision of necessary medical assistance
31.10.2013
Amending Regulation № 34 for acquiring a specialty within the
health care system related to facilitating the admission process,
optimisating of the process of specialisation and updating the
nomenclature of specialties in the healthcare system
31.10.2013
Change in Regulations for the unified state requirements for acquiring
higher education in the regulated medical professions
31.10.2013
Improving the existing, developing and implementing a new legal
base for emergency services
31.12.2013
Assessment of the condition of emergency medical services regarding
the population's access to emergency medical care. Regulating the
criteria for provision of the population with medical teams according
to indicators for population size, area size, characteristics of
morbidity, health infrastructure and others
31.12.2013
Establishing criteria and standards for territorial distribution of
emergency medical structures. Preparing a relevant distribution map
of emergency services
31.12.2013
Change in pricing policy of medicines to curb the trend of price
increase and steps for their further decrease
31.12.2013
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Performance:
A National Health Strategy 2014-2020 is established, and an action plan for its
implementation is being developed. The proposed measures meet the conditions for economic
sustainability, boosting the effectiveness and cost-concentration of resources. Their
implementation will contribute to easier access to health services. The National Health
Strategy is a pre-condition for receiving EU funds for the „Health” sector. The document
meets the criteria set by the European Union. After broad public discussion, with the World
Health Organisation and the World Bank included, the strategy was adopted by the Council of
Ministers on 21 December 2013.
Measure: Supporting state and municipal hospitals in smaller communities by
establishing a methodology on the procedures and criteria for subsidising municipal
hospital care in inaccessible and remote areas, in accordance with The National
Association of Municipalities
A Methodology for Subsidising was developed. A list of medical institutions in small and
inaccessible areas that will receive a grant of BGN 6 million was compiled. Based on
objective criteria, developed in very close collaboration with the National Association of
Municipalities in the Republic of Bulgaria, a list of 36 municipal hospitals in inaccessible
and remote areas was compiled. The hospitals will receive state funding for emergency
medical assistance in order to guarantee access of the population to quality and timely
health care services.
Measure: Updating the medical standards approved by the Minister of Health in
order to meet the requirements of competence level of hospital structures with the
needs of the population to ensure basic medical care, staff and equipment
So far the Medical Standards Council has drafted and adopted 40 draft medical
standards, two of which have already been published in the State Gazette, 5 have been
published on the website of the Ministry for public discussion, and the rest are in the process
of final legal technical design and new standards are constantly being finalised. The purpose
of the update is for medical standards to be updated according to the current indicators of
quality and completeness of medical activity. Part of the new standards also aim to facilitate
the work of smaller medical facilities – some of the heavy demands concerning their
personnel and technical security have been changed. This will ensure proper operation,
without lowering the quality of medical care.
Measure: Starting a procedure for updating the National health card
The work on the creation of the new National Health Insurance Card has started. Its
creation is a must to ensure and secure the needs of the population of outpatient care, inpatient
care and emergency services at national, regional and municipal levels. An extensive
discussion was held with professional and patient organisations and representatives of various
institutions on the parameters of the methodology for creation of a National Health Insurance
Card and district health cards. The National health Insurance Card will be mandatory and the
reflected needs of the population will allow for more efficient and effective spending of the
NHIF, which will enter into contracts only with medical facilities that meet certain
criteria. This will guarantee quality of service, paid with public funds and balance the number
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of hospital beds per specialty to meet the needs of the population, and will ensure effective
and sufficient provision of financial resources.
Measure: Carrying out an analysis and developing specific plans and measures to
restore and optimise operations in municipal hospitals in remote and inaccessible
areas (resuming work in the hospital in the town of Devin)
The provision of quality medical care at municipal hospitals in remote and inaccessible areas
is directly related to the financial support from the state. Therefore the state started
subsidising medical institutions in small and inaccessible places, selected on the basis of
objective criteria designed in collaboration with the National Association of
Municipalities in the Republic of Bulgaria. The funds will be provided to medical
institutions for the provision of emergency medical services.
The hospital in the town of Devin is about to resume work. The state has transferred the
necessary for this purpose subsidy. As a result, healthcare services will be resumed in three
municipalities: Devin, Dospat and Borino.
The objective is to ensure access to quality and timely health services to residents of small,
inaccessible and remote locations.
Measure: Creating regulations for consultative advice and feedback with the district
hospitals, as well as with more advanced structures within the system for the timely
provision of necessary medical assistance
The Regulation on the conditions and procedures of national and republican consultants
was amended in August
The lack of enough specialists-Republican consultants was taken into account. Thus it is now
possible for Republican consultant to provide consultative aid on the territory of more than
one administrative area.
National consultants are given the opportunity to create expert councils on the respective
specialty, on specific issues or activities. These councils assist the national consultant in
setting policy in the respective field, allowing for a wider representation of leading specialists.
Measure: Amending Regulation № 34 for acquiring a specialty within the health
care system related to facilitating the admission process, optimisating of the process
of specialisation and updating the nomenclature of specialties in the healthcare
system
Amendment to Regulation № 34 for acquiring a specialty within the health care system is in a
process of preparation. Requests from student councils are being additionally specified and
clarified. At the basis of activities under this measure is the implementation of best practices
in human resource management – planning, recruitment, training and retention of staff,
tailored to the needs of medical professionals and social needs achieved in the EU and in line
with its regulations and directives.
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This measure aims to:
 Facilitate the admission of postgraduates and the application process: The
enrollment exam was removed. Postgraduates will be assessed solely on the basis of
qualifications when the number of applicants does not exceed that of available positions.
Exams will be held in the case when the number of candidates exceeds the number of
available graduate positions.
 Removing the remaining procedural difficulties for postgraduates associated with
admission to a state exam in order to acquire a specialty. The deadline for higher education
institutions to declare the number of available positions is reduced from three to two
months. There will be a relaxed regime for admission to the state examination for specialty –
graduate students who have completed the appropriate curriculum and individual plan by 30
November will be allowed to take the exam in December. Those who have completed the
appropriate curriculum and individual plan by and 30 April will be eligible to take the exam
in May.
 Organising state examinations for acquiring specialty twice a year + 1 more at the
discretion of the rector of the university, i.e. introducing the possibility of a special session;
 Encouraging employees in emergency centres and workers in remote and
inaccessible areas to specialise. Extended is the period within which the centres for
emergency medical assistance defined as institutions, carrying out practical training, may train
graduate students. A competition based on qualifications for those working in emergency
services will be conducted before announcing the competition for other approved
positions. There will also be a reception by documents of persons working more than two
years in medical or health facilities opened in remote areas.
 The deadline for post-graduate trainings in emergency medical centres certified as
practical training institutions was extended, and the document competition for emergency
medical staff will be held before announcing the competition for remaining established
positions. Provision is made for entrance based on qualifications for medical staff with more
than two years of service in medical and health institutions operating in areas away from
district centres.
 Carrying out state policies to encourage medical staff to be trained in specialties in
which there is a shortage of personnel in the health care system. Neonatology is another
specialty where entrance based on qualifications is an option for post-graduates in statefunded institutions.
 Updating the curriculum through expanding practical training with a focus on
prevention and on improving the organisation of training. The procedure for updating the
curriculum is regulated. The Minister of Health is responsible to initiate the process every five
years.
 Refinement of nomenclature of medical specialties, i.e. removing programmes of
study where no training takes place, and introducing two new subjects intended for masters in
pharmacy, three new subjects under the professional field of Healthcare and two new subjects
in the field of military medicine.
 An expected outcome of the changes is the “unblocking” of the specialisations
system in healthcare by upgrading qualifications of health professionals and meeting national
needs for doctors of medicine in areas of expertise where there is shortage of qualified
professionals.
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Measure: Change in Regulations for the unified state requirements for acquiring
higher education in the regulated medical professions
The Regulation on the unified state requirements for kinesitherapists was prepared. It is
currently undergoing inter-agency review. Until now, kinesitherapy, although a regulated
profession, was not subject to unified state requirements. This document also defines
mandatory medical subjects at universities.
The unified state requirements for medicine, pharmacy and dentistry are under preparation
and expected to be finalised by the end of March 2014. The objective of intended
amendments is to alleviate existing regulations as regards the ordinances on unified state
requirements. Persons who have completed their curriculum obligations in compliance with
the requirements of the respective ordinance on the specialty of Medicine, may acquire their
degree in Dental Medicine through recognition of the mandatory basic learning and general
medical disciplines, and vice versa.
Measure: Refining the existing, elaborating and introducing new regulatory base
for Emergency medical services
An Emergency medical services development strategy was developed and is currently
undergoing public discussion. Necessary changes have been identified following a detailed
analysis of the system of emergency medical care with a view to keeping staff from leaving
the system; ensuring a safe working environment; upgrading the quality of services and access
to health care in regions with no health institutions.
Intended changes aim towards better quality and timely medical services for patients and
improved working conditions within the system through:
‒
clear rules of interaction between emergency medical centres and other health
institutions;
‒
specialisations for emergency medical staff;
‒ enhanced relations between the National emergency call system and the single
European emergency number 112 and emergency medical aid.
Measure: Evaluating the emergency medical system in terms of patient access to
emergency medical care. Establishing criteria to ensure an adequate number of
medical teams based on population indicators, serviced area, disease settings, health
infrastructure, etc.
System evaluation is contained within the new Emergency medical services development
strategy for 2014-2020. The Strategy was presented before directors of Emergency medical
centres, the Bulgarian Association of Emergency Physicians, media representatives, the
National Council for Tripartite Cooperation. Based on analyses made and criteria established
a more effective structure of the system of emergency medical care will be created. There will
be four levels of hospital care:
 II level emergency centres – facilities and staff to cover no less than 60% of
emergency pathology.
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 I level emergency centres – facilities and staff to cover over 90% of emergency
pathology. There will be eleven first-level centres in the country intended for emergency
patients in serious condition. They will be correspondingly equipped with necessary technical
tools and staff.
Institutionalization of emergency hospital centres will allow for clear definition of the way to
perform emergency diagnosis and treatment, relative independence of the structure in terms of
income and expenses and effectively separate emergency and planned patients.

Specialised health institutions for emergency medical care:
‒
At a national level based on needs and the national heath map;
Narrowly specialised or containing structures in the main emergency fields of
paediatric care, paediatric surgery, burn care, toxicology, ophthalmology, cardiology and
cardiac surgery, psychiatry, etc.
‒

National emergency medicine centre
It is the aim of the centre to provide non-stop, twenty-four-hour emergency services for
patients countrywide, as well as urgent consultations to other domestic health institutions. The
centre will operate as a strategically methodical, consultation, science and practical, logistic
and qualification entity within the system of emergency care. The centre will provide
continuing medical training for all emergency care professionals.
The measure will help to establish a clear structure for emergency medical care and more
timely and quality health services, since mobile teams will transport patients, depending on
the seriousness of their condition, to the appropriate level of health centre.
Measure: Establishing criteria and standards for territorial distribution of
emergency medical structures. Preparing a relevant distribution map of emergency
services.
The measure is part of the Emergency medical services development strategy and the National
health map. Upon launching level-based emergency care, criteria and standards for territorial
distribution will be implemented in practice.
Measure: Changing drug pricing policies in order to contain the price-rising trend
and take steps towards price reduction
A National drug policy concept was elaborated and is currently under public debate.
The National drug policy concept will provide opportunities to determine major domains of
the drug sector, namely:
‒
‒
‒
‒
‒
Policy 1 – Manufacture, permitted use, import and parallel import;
Policy 2 – Clinical tests and drug safety;
Policy 3 – Wholesale and retail trade in medicinal products;
Policy 4 – Price regulation of medicinal products;
Policy 5 – Pharmaceutical education and science.
The common goals of the drug policy concept may be defined as follows:
‒
Quality – quality, safety and efficiency of all medicinal products;
‒
Access – availability and accessibility of basic medicinal products;
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‒ Rational use – prescription and use of therapeutic medicinal products proven in
practice and cost-effective medicinal products by health professionals and patients,
respectively.
In parallel with common goals, the drug policy includes specific objectives directly related to
the implementation of the current national health policy and the socio-economic situation in
the country.
Objectives of the Drug policy concept:
‒ Competitive development of the manufacture of medicinal products in
compliance with good manufacturing practices (GMP);
‒
Responsible and ethical conduct on the part of pharmaceutical manufacturers;
‒ Compliance with clear criteria and rules of conduct for manufacturers,
participants in the drug distribution system and state institutions;
Transparency and publicity of the decision-taking process of state institutions
in the field of manufacture/import, permitted use and parallel import of medicinal products;
‒
‒
Promotion of electronic healthcare in compliance with national programmes
and EU law;
Protection of human rights and dignity when carrying out clinical tests of
medicinal products and safeguarding of citizen health and life by maintaining a working drug
safety system;
‒
‒ Access to quality, effective and modern treatment with regard to the interests
of all actors in the pharmaceutical sector and cost-effective management of public finances
intended for medicinal products.
Expected results under the Concept:
‒ Provision of quality, accessible medicinal products in compliance with clear
rules for stakeholders in the pharmaceutical branch and patients;
‒
Increased quality of pharmaceutical services;
Effective and rational use of public funds within the pharmaceutical sector and
guaranteed financial sustainability of the sector;
‒
‒ Increased satisfaction of patients and health professionals with the operation
and results of the pharmaceutical system.
Measure: Priority interest in maternal, child and school healthcare. Health services
in schools, kindergartens and crèches
In compliance with state commitments to policies related to the demographic crisis and
child healthcare, the Ministry of Health has reintroduced the Fund for Assisted
Reproduction and Immune Prophylaxis to its budget for 2014. The Fund will ensure
direct and quick transfer of funds intended for in vitro procedures.

Creation of registers of prematurely born children and diabetes patients.
 The National framework contract for 2014 provides for an increased number of
clinical pathways for childbirth and raising new-borns, as well as pathways under the
Maternal healthcare programme and prophylactic examinations for children as referred
from GPs to paediatricians.
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 Introduction of changes to the Fund for Assisted Reproduction towards its
transition to a Centre for Demographic Policy and Assisted Reproduction to address the need
for active policies under the conditions of a demographic crisis.
 Introduction of a new clinical procedure for Prenatal invasive diagnostics for
pregnant women on the basis of indications from biochemical screening. This procedure
will guarantee free prenatal testing for pregnant women where indications are present. Under
the procedure, pregnant women will be hospitalised within 12 hours for the purpose of
amniocentesis. Until now, this activity was regulated as being “highly specialised”, extremely
low valued and never used in the practice of health institutions when dealing with patients
with health insurance cover; as far as pregnant women are concerned, the procedure was
either paid by patients themselves or patients were admitted for treatment under other clinical
pathways. Procedure implementation will allow free testing and help avoid continuous and
unnecessary hospitalisation.
 All children will have access to annual prophylactic urine tests in out-patient
facilities to ensure early detection of kidney diseases.
 In-patient treatment for women with pathologic pregnancy was introduced to
provide adequate care and timely prevention of complications and problems during childbirth.
Women with pathologic pregnancy have never been entitled to non-stop surveillance during
the most vulnerable stages of their pregnancy (after week 37). Policy changes provide for inpatient treatment of pathologic pregnancy within this period.
 Treatment with immune suppressors for children with corticoresistant and
corticodependent nephrotic syndrome is introduced under the National Social Security Fund.
Moreover, monitoring will be provided to patients with neuromuscular diseases on noninvasive ventilation.
 Actions will be initiated under a number of national programmes targeting
improved national reproductive health and addressing the current demographic crisis:
‒ National programme for tracking and rehabilitation of prematurely born
children (the programme includes funding of Synagis treatment for prematurely born children
in 2014);
‒
National programme for reproductive health and fight against infertility;
‒ National programme for prenatal diagnostics and prevention of pathological
processes associated with pregnancy.
Besides measures outlined in the Government’s Programme, the following was achieved:

Stabilization of state health institutions and the system in general
An example of this is the hospital in the town of Stara Zagora which was found in a state of
actual bankruptcy. A plan was prepared for its stabilization and restructuring. First signs of
financial stability are already there. A declaration of commitment to the Bulgarian Medical
Association and the Bulgarian Dentist Association was signed to guarantee payment of inand out-patient care until the end of 2013. The commitment is active and proves that where
there is a will to communicate, there is a way to find solutions.
 On 18 December 2013, two years after being „frozen”, the National
Framework Contract for 2014 was signed.
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An agreement was reached between the National Social Security Fund and the Bulgarian
Medical Association to increase funding for more than 24 clinical pathways which are
currently underfinanced. Within 30 days of hospital discharge patients will also be entitled to
two mandatory examinations, and additional testing, if such is recommended by their
physician. The framework contract provides for a streamlined procedure for treatment of
acute conditions with follow up physiotherapy.
 An amendment to Regulation № 40 introduces a clinical pathway for
Mucoviscidosis along with a procedure for dispensary observation of patients in functionally
independent centres with adequately trained medical staff.
 The National Programme for Prevention of Chronic Non-Contagious Diseases
(CND) for 2014-2020 was prepared and adopted.
The strategic objective of the National programme for prevention of chronic non-contagious
diseases for 2014-2020 is to improve the health of the population and increase the quality of
life through reduction in premature deaths, disease and consequences for the health
(disability) due to main NCDs (cardiovascular diseases, new malignant formations, chronic
pulmonary diseases, diabetes) associated with risk factors such as smoking, alcohol abuse,
unhealthy eating habits and low physical activity.
 A National Suicide Prevention Programme for 2013-2018 was prepared and
adopted.
The goal of the programme is to reduce the incidence of suicide attempts and the number of
deaths by suicide.

The Stop and Examine Yourself Project was resumed.
Previously frozen, unable to boast for a single test and expected to expire by the end of 2013,
this project is currently up and running. About 40 000 people have undergone examination.
The project will be extended with a view to achieving its objectives.
This will allow for many Bulgarian citizens to undergo free screening for three types of
oncological diseases.
 An agreement with the Norwegian Financial Mechanism was signed for EUR
15 million.
Projects with the following objectives will be funded:
‒
Improving the system for control and treatment of diabetes;
‒ Improving the system for prevention, timely diagnostics, treatment and
rehabilitation of patients with rare diseases;
‒
Improving the prevention of vaccine-preventable diseases;
‒
Improving the system of psychical care in Bulgaria;
Improving access to quality sexual and reproductive health care services for
teenagers between the ages of 10 and 19 and other vulnerable groups;
‒
‒
Improving the quality of prenatal diagnostics;
‒
Improving the quality of neonatal care by means of modernising neonatal
units;
‒ Improving the quality and access to health care for children with mental,
infectious and genetic diseases, and children with onco-hematologic diseases;
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‒ Providing home care for pregnant women and children up to the age of 3 with
an emphasis on risk groups;
‒
Fellowship programme for Roma students in medicine or healthcare-related
programmes.
 By Decree of 27 December 2013, the Council of Ministers has adopted the
following text: individuals who exercise their right to pension (for contribution period
and age) to pay a fee of BGN 1 for every visit to a physician, dentist or health institution.

There are also positive results in the field of medical assessment.
Regulatory changes have given members of the Medical Advisory Committee (TELK) and
the National Medical Advisory Committee (NELK) the right to practice medicine. This is a
way to “unclog” the system and reduce waiting time for patients awaiting decisions, since at
present only 20% of committee members are not of retirement age. Test packets used for the
purpose of medical assessment funded by the budget of the National Social Security Fund
were optimised – tests made will be valid for up to a year which will help patients and
conserve public resources alike.

Bulgaria became an associate member of Eurotransplant
After signing the agreement between the Transplantation Executive Agency and
Eurotransplant, the Agency may, in the absence of Bulgarian recipients, announce organ
availability abroad and publish information about Bulgarian patients currently in need of
emergency transplantations abroad.
104
STABILITY, SECURITY AND LEGALITY
Measure
Deadline
Structuring the system for protection of national security through a
framework law and legislation governing the organisation and
operation of the National Intelligence Service, the National Service
for Protection, the Military Information Service and a new law on the
Ministry of the Interior (MoI)
31.12.2013
Defining the functions and operation of units within the system for
protection of national security
30.10.2013
Differentiating and regulating the rights and responsibilities of
political and professional management figures in the ministry
31.10.2013
Merging the General Directorate for Countering Organised Crime
and the State Agency for National Security to effectively counter
organised crime and high-level corruption, international terrorism
and extremism
31.10.2013
Promoting action to fight offences against the person and property of
citizens (so called petty crime) and crimes against the state budget
(contraband, VAT-related fraud)
31.12.2013
Establishing a new system for planning MoI activities based on
security environment analysis and flexible use of resources
according to crime concentration
31.10.2013
Enhancing control on implementation and reporting of MoI
operations. Introducing criteria and measurable indicators for
assessment of police performance
30.09.2013
Establishing criteria with clear indicators to properly assess
investigative work, operative search, and security activities
30.09.2013
Introducing a continuing staff education programme to upgrade
qualifications and achieve requalification
31.12.2013
Exercising control over the opening, conduct, progress and closing of
cases under operative reporting and requests for use of special
investigative means (SIM) through a system of measures designed to
control the use of SIM
31.10.2013
Increasing public trust. Publishing the MoI work programme,
planning transparency and periodic preparation of public reports by
the MoI. Improving organisation as regards access to public
information
The measure is
permanent and
under
implementation
105
Implementation:
Measure: Structuring the system for protection of national security through a
framework law and legislation governing the organisation and operation of the
National Intelligence Service, the National Service for Protection, the Military
Information Service and a new law on the Ministry of the Interior
 A framework law governing the management of the national security system
was drafted. By 20 December 2013, the law will be presented before the Security Council to
the Council of Ministers.
The framework law will set out the rights and responsibilities of the President, the
National Assembly and the Council of Ministers within the system of national security.
 The structure of the system for protection of national security is in
development.
 Planning, interaction and control mechanisms within the system for protection
of national security are under preparation.
Measure: Differentiating and regulating the rights and responsibilities of political
and professional management figures in the Ministry of Interior (MoI)
A new Law on the Ministry of the Interior (LMoI) was drafted. It has already passed
discussions with all ministry-related professional and non-governmental organisations and the
academia. The draft was adopted at a meeting of the Council of Ministers on 30.10.2013 and
presented before the National Assembly. The law will:
 Differentiate and regulate the rights and obligations of political and
professional management figures in the Ministry of the Interior;

Define the functions and activities of the Ministry of the Interior;
 Optimise the structure and interaction within and outside MoI, organisation of
work processes, management of financial, material and human resources.
 Create an Operative-Technical State Agency (OTSA) (LMoI amended and
supplemented, State Gazette, 9 August 2013). Technical transition of MoI networks,
information archives and databases to OTSA facilities has been completed.
 Determine implementation rules for the Law on Special Investigative Means
with a view to enhance control over their use.
Measure: Merging the General Directorate for Countering Organised Crime
(GDCOC) and the State Agency for National Security (SANS) to effectively counter
organised crime and high-level corruption, international terrorism and extremism
 Some functions of the GDCOC – MoI were assigned to SANS (in accordance
with the Law implementing and supplementing the Law on the State Agency for National
Security of 14 June 2013) and amendments to the Rules on implementation of the Law on
MoI (promulgated, SG, № 70 of 09.08.2013).
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 The General Directorate of the National Police was restructured after GDCOC
was taken out of the structure of MoI; technical transition of GDCOC networks, information
archives and databases to SANS facilities has been completed.
 The joint MoI – SANS instruction regulating responsibilities and
collaboration in the fight against crime was drafted. The aim is to create clear
collaboration mechanisms through timely and legal performance of tasks with maximum
efficiency and optimal use of available resources.
 The rules on coordination and collaboration between the bodies of the
Prosecution, MoI, SANS and the Customs Agency in the course of the investigation work
were developed.
 The rules on coordination and collaboration between MoI and the
Prosecution were endorsed. The rules concern operational cases, inspections and urgent and
initial investigative measures.
Measure: Establishing a new system for planning MoI activities based on security
environment analysis and flexible use of resources according to crime concentration
 The short-term programme of the MoI was completed ahead of time. Its goals
and objectives were clearly formulated and it was publicly announced by the Minister of the
Interior in the beginning of the government mandate (June 2013) and published on the MoI
website.
 A system for effective resource management was introduced, auxiliary
personnel was cut down by 10%, financial control was strengthened which has led to MoI
budget deficit reduction from BGN 93 million as of 01 June 2013 to BGN 12,5 million as of
31 December 2013.
 Unusual for the ministry activities have been terminated (signal security
services provided to citizens against remuneration and other commercial activities). Control
over the organisation and implementation of public procurement procedures was introduced
through the development of new rules for their execution.
 Property management gaps were eliminated through a new concept and plan for
management of unused MoI property and new internal rules on the acquisition and
management of immovable ministry property. By 31 December 2013, MoI has divested itself
of 26 unused properties. The same will soon be the case for another 144 properties.
 A Methodology for allocation of MoI transportation means was endorsed. 423
vehicles used for administrative purposes instead of operative work were discharged.
 The vicious cycle of donations to the MoI was brought to an end. By order of
the Minister of the Interior of July of this year donations to the ministry are prohibited.
 The control over the use of SIM was improved to ensure legality of MoI
operations. As a result, as of December 2013 wiretapping has dropped more than twice (as of
the end of 2012 there were 5 300 requests for SIM; their number as of 30 December 2013 is a
little over 2 247).
 Nine records management offices were closed down at the central MoI building
to be replaced by unified case management, thus creating conditions to organize and carry out
MoI incoming and outgoing correspondence.
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 Restructuring MoI administration – ministry units not involved in tasks under
key activities are subject to staff cut downs – 10% by the end of 2013 and another 5% by mid
2014. This will contribute to over 5% higher wages for police officers starting the beginning
of next year.

Short result overview for the period of 1 June – 31 December 2013.
‒ Three organised crime groups for wet job operations were neutralised, and a
total of 26 people arrested;
‒ Three laboratories for manufacture of synthetic drugs were shut down (two in
Sliven and one in Varna);
‒
Two cannabis greenhouses were uncovered (in Plovdiv and Pazardzhik);
Two locations for the manufacture of cigarettes were exposed (in the town of
Elin Pelin, Sofia District; and in the village of Dalgo pole, Plovdiv District);
‒
‒
Confiscated illegal goods without excise labels:
‒
over 26 446 863 bits of cigarettes;
‒
over 104 011 kg of bulk tobacco;
‒
over 36 877 litres of alcohol;
‒
over 4 tons of marijuana were confiscated;
‒ over 26 tons of cannabis were confiscated (first time to use a helicopter to
locate illegal plantations).
Measure: Establishing criteria with clear indicators to properly assess investigative
work, operative search, and security activities
Using established criteria and measurable indicators to assess investigative work,
operative search and security activities carried out by MoI district directorates.
Using measurable and comparable criteria (3) and indicators (17) to assess investigative
work, operative search results and efficiency of prevention and security work and compare
and evaluate the performance of MoI Sofia Directorate and MoI district directorates.
Measure: Promoting action to fight offences against the person and property of
citizens (so called petty crime) and crimes against the state budget (contraband,
VAT-related fraud)
 Restructuring of the General Directorate of the National Police whose
functions, after GDCOC was taken out of the MoI structure, are related to countering
distribution of narcotic drugs, contraband and other crimes.
 Carrying out monthly joint activities of the MoI and the Customs Agency to
counter contraband, VAT-related crimes, intra-Community acquisition of goods and other
crimes defrauding the state budget.
 Planning was improved, work organisation was changed and strict control
over operational and search and guard and security activities was introduced based on
data concerning crime concentration. The new “interactive crime map”, which reflects the
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geographical distribution of crime at a national scale, will be used to effectively allocate MoI
resources.
 A control system for patrol and guard activity was introduced, which includes
GPS use, functional and organisational control by the head of the territorial structure, the MoI
Inspectorate Directorate and the Human Resource Directorate.
 MoI analytical work has been up scaled – the Operational Analysis Unit and the
Strategic Analysis Unit were joined into a common analytical structure to provide information
support to MoI management based on a common analysis of the dynamics of the security
environment.
 The draft of the new Law on MoI gives a definition to “non-regular MoI
employee” to organise a better response to so called petty crime.
Measure: Exercising control over the opening, conduct, progress and closing of
cases under operative reporting and requests for use of special investigative means
through a system of measures designed to control the use of SIM
 A new work organisation as regards the use of SIM was established with a view
to enhance control and eliminate malpractice.

control.

Rules for the application of the Law on SIM were created to ensure better
Registers to track the use of technical SIM means were introduced.

Terms and procedures were introduced in reference to storing and using
technical SIM equipment.
Measure: Introducing a continuing staff education programme to upgrade
qualifications and achieve requalification
 A shift in human resource management is taking place in the MoI – it includes
elaboration of a personal assessment system for staff employees (qualification, professional
contribution to the job and integrity). The assessment is connected to professional
development and wages. New rules on entering service, career development and release from
work are being developed; a continuing training programme for employees is being
introduced with a view to upgrading qualification and achieving requalification.
 A programme intended to promote loyalty and good results among employees
was adopted and changes took place in the existing system for planning and assessment of
the activities of MoI.
109
MODERN JUSTICE AND LEGAL CERTAINTY
Measure
Deadline
Introducing measures to overcome unbalanced workload among
magistrates
Introducing clear and transparent criteria and requirements regulating
the assignment, activity and assessment of administrative heads
within the judicial system
31.12.2013
Constructive collaboration with the judicial system to implement the
recommendations of the European Commission within the
framework of the Cooperation and Verification Mechanism
determined by Decision of the European Commission of 13
December 2006
31.12.2013
Open involvement of the non-governmental sector and professional
organisations in defining the strategic and programme priorities in
the area of justice
31.10.2013
Implementation:
Measure: Introducing measures to overcome unbalanced workload among
magistrates
The Government maintains good cooperation with the judicial branch while respecting its
independence. As a result of the excellent working relations, the Government has proposed
BGN 30 million increase of the judiciary budget for 2014. The Supreme Judicial Council has
adopted measures to reduce magistrate workload by deciding to announce competitions for
vacant positions within the judiciary. October 2013 saw the first competition for magistrates
in three years.
Measure: Introducing measures to overcome unbalanced workload among
magistrates
 The dialogue with the Supreme Judicial Council has improved while respecting the
principle of avoiding interference or influence over the judiciary. During the last six months
suspicions about interventions in the independent judiciary system have decreased
significantly. The current partnership is to the benefit of the state and the normal operation of
institutions.
 Specific measures were adopted to solve workload problems among magistrates
and elaborate a national judicial map.
 Calls for procedures towards less workload and better access to justice were
opened – the Supreme Judicial Council held the first competition for magistrates in three
years and took initial steps towards closing down military courts and transferring magistrates
to civil courts.
110
 Specific measures were adopted to find solutions to everyday problems in the
work of magistrates – BGN 3 million and a building were provided to the Sofia City Court
and Sofia Prosecution Service by force of government decisions.
 The 2014 budget of the judiciary was increased by BGN 30 million compared to
2013, which is an accomplishment under the current economic crisis.
 An analysis of the Strategy for the Judiciary was performed by nongovernmental organisations. On the basis of this analysis an Updated strategy until 2020
was drafted. The draft is underpinned by key priorities as provided for in the 2010 document,
while new priorities are also included to meet the recommendations of the European
Commission and public expectations for full independence of magistrates, civil participation
in choices concerning key positions within the judiciary and in judicial processes, more
transparency and better access to justice. New priorities include: ensuring the independence
of magistrates, enhancing magistracy’s performance and accountability, increasing public
trust through participation – analysis of criteria related to the election of jurors, problem
solving concerning experts and expert opinions. The updated strategy draft will be
presented before the magistrate community and the general public for discussion by mid
January 2014.
 Work on key draft laws was intensified. The new Criminal Code has been under
revision for three years. As to May 2013, work has not even started in terms of defining key
criminal offences like terrorism, financial crime, computer crime, crime against intellectual
property, crime against peace and humanity, etc, all of which are topics of particular interest
for the European Commission. A special work group consisting of active magistrates,
representatives of the academia and non-governmental organisations, and experts from the
Ministry of Finance, the Ministry of the Interior, the Ministry of Defence, the Customs
Agency, the Patent authority, the State Agency for National Security, etc, has been working
since July 2013
The draft of the new Criminal Code contains a significant number of texts typical of
Bulgarian criminal law and criminal law in general. In parallel, Bulgarian international
commitments in the area of crime fighting, particularly as regards to EU criminal law, were
taken under consideration. The general part provides for a variety of new solutions as
compared to the existing Criminal Code of 1968. It is proposed to have the option of
restricting the effects of judgments which have obtained the force of res judicata in an EU
member state when punishments are involved. New regulations on catching criminals are
superior to existing texts which do not work in practice. The aim of new provisions is to give
real opportunities for state authorities and citizens alike to react promptly in crime situations.
Another complex and challenging problem has found new solution – combination of crimes
some of which constitute aggregate offences and others recidivism. An entirely new concept
of recidivism was elaborated. Imprisonment terms were reduced compared to existing
provisions in the 1968 Criminal Code. Existing options for state confiscation of property
acquired from criminal activity were supplemented in compliance with Bulgarian
international commitments. The draft adopts a new approach to criminalisation of crimes of
terrorism and terrorist financing to ensure full compliance with relevant European and
international law.
Another essential achievement is that the new draft formulates the constituent elements of IT
offences. In the end of December 2013 the Criminal Code draft was presented for public
discussion and agreement before all ministries, the Supreme Judicial Council, the
Supreme Court of Cassation, the Supreme Administrative Court, the Commission on
Protection of Discrimination, and other stakeholders.
111
Measure: Constructive collaboration with the judicial system to implement the
recommendations of the European Commission within the framework of the
Cooperation and Verification Mechanism determined by Decision of the European
Commission of 13 December 2006
The measure pertains to the draft of the Law amending and supplementing the Judicial
System Act, which includes amendments to reflect the recommendations of the European
Commission within the framework of the Cooperation and Verification Mechanism to be
presented before the professional community for discussion not later than February 2014.
Measures: Open involvement of the non-governmental sector and professional
organisations in defining the strategic and programme priorities in the area of
justice
An analysis of EU practices dealing with experts, expert opinions and judicial enforcement
proceedings was carried out. This is a matter of key importance concerning the expansion of
civil participation in the process. This analysis and the analysis of national case law will serve
to introduce changes to the regulatory framework.
An assessment of the implementation of the Judicial Reform Strategy by non-governmental
organisations was carried out. The assessment will help draft an updated judicial reform
strategy which is in its final stage. The updated strategy will be presented before the
magistrate community in the beginning of January 2014.
Measure: Ensuring legal certainty in the economic and social life through better
legislation
By decision of the Council of Ministers, implementation of the government measure dealing
with legal certainty in the economic and social life through better legislation will be supported
by the Law amending and supplementing the Administrative Procedure Code. The latter
provides for more options for public discussion on legislative drafts and pilot evaluation of
the impact of drafts of laws and codes.
112
PROMOTION AND PROTECTION OF BULGARIAN CULTURE.
SPIRITUAL HERITAGE – A NATIONAL PRIORITY
Measure
Deadline
Creating a permanent Public Advisory Committee on the development
of modern culture in Bulgaria
30.09.2013
Joining the declaration on youth access to culture, initiated by the
Association of Bulgarian Employers in the Field of Culture and the
Bulgarian Association of Youth workers
31.12.2013
Supporting and promoting creative innovations by expanding National
Culture Fund programmes: Creative Debuts, Mobility, Scientific
Research on Cultural Processes and Young Creative Talents under the
31.12.2013
Analysing and evaluating performance efficiency of cultural centres
abroad. Supporting the promotion of Bulgarian artists abroad.
Promoting international partnerships of Bulgarian cultural institutes
30.11.2013
Implementation:
Measure: Creating a permanent Public Advisory Committee on the development of
modern culture in Bulgaria
A permanent public advisory committee on the development of modern culture in
Bulgaria was created in the end of July 2013. The Committee is an expert advisory body on
forming opinions, comments, initiatives, and solving problematic issues within the
competence of the Minister of Culture as set out in the Law on Protection and Promotion of
Culture, the Law on Cultural Heritage, the Film Industry Law, the Law on Community
Houses, The Law on Public Libraries, the Law on Sponsorship Schemes, the Law on
Copyright and Related Rights, the Law on Administrative Regulation of Production of and
Trade in Optical Discs, Stampers and other Media Containing Subjects of Copyright and
Related Rights, the Law on Mandatory Deposit of Copies of Printed and Other Works, the
Radio and Television Act, the Law on 13 Centuries Bulgaria National Endowment Fund, and
in compliance with principles of transparency and publicity.
The Committee will comprise representatives of non-governmental organisations active in the
field of culture, members of the academia and media, and representatives of civil
organisations, based on the principle of voluntary participation.
Measure: Joining the declaration on youth access to culture, initiated by the
Association of Bulgarian Employers in the Field of Culture and the Bulgarian
Association of Youth Workers
The Ministry of Culture has joined the declaration of the Association of Bulgarian Employers
and the Bulgarian Association of Youth Workers of 12 August 2013 in Sofia.
As a result, a joint working group was created with the participation of experts from the
Ministry of Culture, the Ministry of Education and Science, the Ministry of Youth and Sports,
the Ministry of Regional Development, the Ministry of Labour and Social Policy, and various
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non-governmental bodies. The work group will aim to draft a National action plan on
expanding youth access to culture. Information and good practices from state agencies and
municipalities was collected. Review and analysis of data will follow with a view to
determine specific measures to be included in the plan. The structure of the national plan is
under discussion and pending approval.
Measure: Supporting and promoting creative innovations by expanding Natulan
Culture Fund programmes: Creative Debuts, Mobility, Scientific Research on
Cultural Processes and Young Creative Talents under the National Culture Fund
Calls for proposals were published under the Mobility and Debuts programmes.
Implemented actions promoted the participation of Bulgarian artists in international cultural
forums and visits to Bulgaria of foreign managers and producers in the field of culture and
arts. Creative professionals (artists, performers, directors, choreographers, musicians, writers,
painting artists, photographers, etc) were given the opportunity to make first attempts at
professional art. The government, via a variety of events, creates a favourable environment
for young artists to debut their art in public.
Measure: Analysing and evaluating performance efficiency of cultural centres
abroad. Supporting the promotion of Bulgarian artists abroad. Promoting
international partnerships of Bulgarian cultural institutes
 Competitions for the position of director in Bulgarian cultural institutions abroad,
namely Berlin, Bratislava, Budapest, Vienna, London and Prague, took place. Similar
competitions for institutes in Moscow, Skopje, Warsaw, Paris and Rome are under way.
Action was taken to reform the structure and operation of institutions by expanding their
scope of work in the field of culture-related industries, education and promotion of cultural
tourism. Results will be achieved through a series of events such as days of the Bulgarian
cinema, participation in international arts exhibitions and festivals of stage arts, Bulgarian
language training courses, small tourism fairs, etc. A draft Agreement on the establishment
and operation of cultural institutions between Bulgaria and China is under negotiation; similar
discussions with the Ukraine are under way.
 Preparations are underway for the programme for the Bulgarian EU presidency to
begin in the second half of 2018. The Ministry of Culture will put forward a proposal to
establish a Bulgarian institute of culture in Brussels. It will have the usual functions of any
Bulgarian representation abroad with an emphasis on cultural aspects of 2018 Bulgarian
presidency.
 Bulgarian institutes of culture abroad continually promote and support Bulgarian
artists and art works of culture on the international market of cultural goods by facilitating
their participation in international events abroad.
Actions in support of Bulgarian artists abroad:
 The Ministry of Culture is a member of the network of the European national
institutes for culture (EUNIC). Bulgarian institutes of culture abroad are partners in a variety
of joint projects initiated by capital cities in Europe. These events, without a doubt, stimulate
international cooperation and promote Bulgarian artists and artworks in the global art market.
 The Ministry of Culture is a national coordinator of the selection procedure for
Bulgarian candidates for 2019 European capital of culture. The first session of the evaluation
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committee for pre-selection will take place between 10 and 12 December 2013. Тhe
committee will make a final proposal by the end of 2014, while the EU Council of Ministers
of Culture will deliver a final decision in May 2015.
 The Ministry of Culture is a national coordinator for the implementation of the EU
programmes Creative Europe and Europe for Citizens for 2014-2020.
 Bulgaria and Romania coordinate participation of EU member states under Priority
Area 3 Promoting culture, tourism and contacts between people of the Danube Strategy.
 Counteraction to illegal trafficking of cultural properties has been strengthened. A
Memorandum of Understanding between the governments of the Republic of Bulgaria
and the United States of America was developed. The memorandum is dealing with
restrictions imposed on certain archaeological and church and ethnological material
from the Republic of Bulgaria, signed on 14 January 2014.
 In 2013, Bulgaria was elected a member of the Committee in charge of the
implementation of the Convention dealing with prohibition and prevention of illegal
import, export and transfer of ownership rights over cultural properties. In 2014, the
country is expected to host the next session of the Committee Bureau.
 A number of anniversaries of prominent Bulgarian figures of culture were
recognized in the UNESCO Calendar of Anniversaries of Great Personalities for 2014 and
2015, as adopted by the General Conference in November 2013: 100 anniversary of the birth
of Boris Hristov, 100 anniversary of the death of Yavorov, 100 anniversary of the birth of
Prof. Tsvetana Romanska (ethnographer) and 1200 anniversary of the birth of St. Methodius.
A relevant national programme is under preparation.
Ways of promoting international partnerships of Bulgarian institutes of culture:
 The Ministry of Culture launches and supports, in logistic and financial terms,
Bulgarian cultural events abroad. Between 30 September and 30 November 2013 the State
Museum of History in Moscow hosted the exhibition “Legends Come to life. Thracian Gold
from Bulgaria”. In compliance with a five-year Cooperation Agreement between the
Bulgarian Ministry of Culture and the Louvre Museum, an exhibition of Thracian treasures is
expected to take place in Paris in 2015. Negotiations and preparations for exhibitions of
Bulgarian religious images in leading museums in Monaco and the Ukraine are under way.
 Days of Bulgarian culture are planned to take place in Algeria in 2014 in response
to this year’s Days of Algerian culture in Bulgaria.
 On the occasion of the 65th anniversary of the diplomatic relations between
Bulgaria and China a series of culture events on either side are under preparation. Bulgaria
has committed to hosting a conference of the ministries of culture for Central and Eastern
Europe + China (16 + China) in 2015.
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ACTIVE FOREIGN POLICY
Measure
Deadline
Adopting a programme to guide the technical and organisational
preparation of all ministries and central institutions expected to
assume leading roles in EU bodies during the presidency over the
Council of the European Union
31.12.2013
Meeting MFA commitments under the Capability Targets Packages
for 2013: creation of a database of civil experts, organisation of
their training and implementation of necessary changes in the legal
and normative regulations as regards their involvement in
international missions and operations
31.10.2013
Implementation:
Measure: Adopting a programme to guide the technical and organisational
preparation of all ministries and central institutions expected to assume leading
roles in EU bodies during the presidency over the Council of the European Union
The following steps were taken within the reporting period to ensure full involvement in
the process of forming and implementing EU policies on key matters and preparation
for the first rotation presidency of the Republic of Bulgaria over the Council of the
European Union in 2018:
 Representatives of the Bulgarian state administration took part in the official
meeting with representatives of the General Secretariat of the Council of the European Union.
Key aspects of national preparation for the upcoming presidency were discussed and key
guidance to assist preparation was given during the meeting.
 The Ministry of Foreign Affairs (MFA) analysed the experience of member states
former holders of the presidency after the coming into force of the Lisbon Agreement. The
results were used to highlight commitments, challenges and potential problems the country
could face during the process of preparation for the presidency.
 A Draft Concept for Bulgaria’s preparation for presidency of the Council of
the European Union during the second half of 2018 was prepared. The Concept was
presented before the Council for European Affairs on 23 November 2013.
 A meeting with Bulgarian experts posted in European institutions was held on 8
November 2013 to explore the possibilities for strengthening collaboration between the
national administration and national experts abroad, with a view to implementing national
priorities in the EU and improving conditions concerning the posting of national experts to
European institutions and their later reintegration in national administration.
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Measure: Meeting MFA commitments under the Capability Targets for 2013
The progress of implementation of the Capability Targets for 2013, adopted in June 2013
at a meeting of defence ministers, was reviewed in the end of October 2013. Meetings of the
joint working group on civil experts were held on 21 June and 9 October 2013 in connection
with the implementation of the non-military objectives of the Alliance. All relevant ministries
and agencies have submitted their official opinions regarding the Regulation on the terms and
conditions of participation of Bulgarian civil experts in international crisis management
missions and operations of the Ministry of Defence. An updated version of the Regulation is
currently under preparation.
Work has started on the COMPASS database and the majority of relevant ministries and
agencies have submitted their lists of experts. 130 names of experts were provided by the
Ministry of Labour and Social Policy, the Ministry of Finance, the Ministry of Economy and
Energy, the Ministry of Transport, Information Technologies and Communications, the
Ministry of Regional Development, the Bulgarian Red Cross, etc.
Measure: Balanced, rational foreign politics founded on Bulgarian national
interests and North Atlantic values

(CFSP):
Participation in the elaboration of EU Common Foreign and Security Policy
‒ Active involvement in EU discussions and decision taking on matters
regarding increased migration flows.
Constructive input to the formation and implementation of CFSP/CSDP
(Common Security and Defence Policy) and strengthening of civil and military capacity to
prevent conflicts and manage crisis;
‒
‒ Commitment to partner input to further and strengthen CSDP with an emphasis
on European countries members of NATO but not the EU, with the focus of Bulgaria placed
on EU membership candidates from the Western Balkans and Eastern Partnership countries;
‒ Creation of conditions to promote stability, development, trust and cooperation
in the Caucasian and the Black Sea regions through CFSP/CSDP instruments, etc.

Development assistance:
The first bilateral development assistance project with Georgia was
implemented – training for six experts from the Georgian Ministry of Agriculture in three
executive agencies of the Bulgarian Ministry of Agriculture and Foods.
‒
Training possibilities for foreign students in Bulgaria and scholarships along
the lines of the development policy were explored with the assistance of Bulgarian foreign
representations in Tbilisi, Kishinev, Skopje and Hanoi.
‒
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Measure: Establishing an effective regional policy and using efforts to reinstate the
country as generator of policies and initiatives towards promotion of multilateral
cooperation and advancement of existing initiatives in South East Europe and the
Black Sea Region
 Promoting bilateral political relations and strengthening the dialogue with all
countries in South East Europe.
 Supporting the European perspectives of countries from the Western Balkans
in so far as expected requirements are met and the neighbourhood principle is complied
with:
‒ Bulgaria supported granting Albania’s status as a candidate country for EU
membership and the start of negotiations for a Stabilisation and Association Agreement
(SAA) with Kosovo.
‒ Bulgaria has confirmed its principal support for the Republic of Macedonia,
subject to certain conditions including signing a Neighbourhood Agreement with Bulgaria.
In relation to Serbia, emphasis is placed on respecting the rights of the
Bulgarian minority in Serbia.
‒
‒
Bulgaria has taken active participation in the political debate regarding EU
policy towards Bosnia and Herzegovina caused by the standstill in the process of its European
integration.
 Promotion of bilateral political relations with Eastern European countries
‒ A Consultation plan between the Ministries of Foreign Affairs of Bulgaria and
Ukraine in 2014 and a Memorandum for Cooperation in European and Euro-Atlantic
Integration between the governments of Bulgaria and the Ukraine were signed.
‒ A Protocol on strengthening cooperation and consultation between the
Bulgarian MFA and the MFA of Georgia and a Cooperation Plan for 2014 were signed.
 Strengthening of existing regional initiatives in South East Europe and the
Black Sea Region
‒ Bulgaria has assumed the rotation chairmanship of the Organisation of
the Black Sea Economic Cooperation (OBSEC) on 1 January 2014. Key priorities include
promotion of cooperation; political and economic stability in the Black Sea region; reinforced
effectiveness and visibility of BSEC based on the project oriented approach; strengthened
collaboration with sectoral partners and specialised bodies; increased operational capacity of
the organisation.
‒ The Republic of Bulgaria maintains its position as an active and productive
partner under the South-East European Cooperation Process (SEECP) and the Regional
Cooperation Council (RCC) with a national policy emphasis on continuing processes of
European integration in the region.
Measure: Active bilateral relations

Bilateral European cooperation
MFA has completed the approval procedure for the Agreement on settling
property issues between Bulgaria and the Federal Republic of Germany which will be ratified
by the National Assembly.
‒
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‒ Collaboration with the German embassy and the Ministry of Culture was
successfully completed; a Government agreement regarding the German school in the German
embassy in Bulgaria was signed on 24 September 2013 in Sofia.
‒
Bulgarian general consulate in Milan resumed its functions.
 Development of bilateral political relations with countries from North and
Latin America and the Caribbean
MFA is making efforts to maintain bilateral contacts at high- and highest
level’s with the USA in order to implement new joint defence and security initiatives, create
good conditions to encourage Bulgarian export, attract investments and technologies, extend
bilateral cooperation in the field of culture and education, update the contractual and legal
regulations, find new common ground on international matters and work to gain US support
in relation to fundamental Bulgarian foreign political interests and priorities. Bulgaria will
continue to maintain its efforts for visa-free travel of Bulgarian citizens to the US.
‒
‒ A Canadian visa centre was opened in Sofia. The first round of negotiations
under the Social security agreement to be signed between Bulgaria and the province of
Quebec, Canada was completed.
 Promotion of bilateral political relations with countries in the Middle East
and Africa
‒
A number of agreements with countries from the region are signed or about to
be signed.
Measure: Strengthening Bulgaria’s role as a major, adequate and visible partner on
a regional and global scale through UN membership and participation in other
international organisations
‒ As a member of the organisational committee of the Peacebuilding
Commission Bulgaria joins UN efforts to support peace and stabilisation in various countries.
BGN 100 000 in humanitarian aid was granted to the United Nations Relief
and Works Agency for Palestine Refugees by Regulation of the Council of Ministers.
‒
‒ Bulgaria was elected a member of the Executive Council on the UN World
Tourism Organisation for 2014-2016 at the annual WTO conference.
‒ Promoting Bulgarian candidacy for membership in the UN Human Rights
Council for 2019-2021 is a priority.
Measure: Supporting the efforts of Bulgarian communities abroad to safeguard and
promote Bulgarian identity, culture and spiritual heritage
 Broadening cooperation in the field of culture, science and education through
bilateral dialogue
‒ An agreement was signed between the Archives State Agency and the Yad
Vashem Holocaust Memorial in Israel in the context of the 70th anniversary of the rescue of
Bulgarian Jews in 2014.
‒ MFA continues to support the educational and cultural exchange between
Bulgaria and the Ukraine, and Bulgaria and Moldova.
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Measure: Providing quality consular services
Electronic consular services, integrated in the National visa information system, were
introduced in all Bulgarian consulates. The result is faster, better quality one-stop shop
services.
Measure: MFA contribution to activities intended to deal with migration pressure
The following steps were taken towards implementing the National operational plan of
measures to curb migration pressure:
An invitation was extended to the Turkish state for a meeting of the Central
Joint Bulgarian-Turkish Border Commission in Sofia. The Commission met to discuss
outstanding issues.
‒
‒ MFA held consultations with all EU Member States and Central European
countries to request cooperation on the refugee problem. As a result, Slovakia, Hungary,
Austria, the Czech Republic, the Netherlands, Switzerland and Croatia granted material,
technical and financial aid.
MFA submitted a proposal to the Bulgarian Red Cross (BRC) to investigate
available aid options under bilateral agreements with the national Red Cross organisations of
member states of the International Federation of Red Cross and Red Crescent Societies. The
Geneva-based headquarters has informed the BRC that approx. 180 000 Swiss francs was
allocated to aid the refugee situation.
‒
‒ As a result of Bulgarian commitment made at high level meetings during the
opening of the 68th session of the UN General Assembly in New York, the International
Migration Organisation (IMO) has expressed readiness to send some of its central and
regional office employees to Sofia. IMO, through the Voluntary Assisted Return Programme
is expected to provide a return option to their home countries for approx. 250 persons of other
(non-Syrian) nationality to allow the entry of new Syrian refugees into the country.
Since the beginning of 2014, the technical team of the UN High Commissioner
for Refugees will begin training employees of the State Agency for Refugees (SAR).
Intensive training courses will be provided to border police officers. The technical mission
will continue until SAR capacity is fully built, and protection systems are sustainable enough.
‒
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THE STATE ON THE DEVELOPMENT OF SPORT
Measure
Deadline
Adoption of a National Physical Education and Sport Development
Programme 2013-2016
31.12.2013
Acceleration of the procedure for the elaboration and adoption of a
new Sport Act, a Regulation on the Terms and Procedure for
Financial Assistance for Sport Activities and Sport Categorisation
Methodology
31.12.2013
Undertaking urgent repair and reconstruction measures for the Winter
Sport Palace facility
31.10.2013
Implementation:
Measure: Adoption of a National Physical Education and Sport Development
Programme 2013-2016
The National Physical Education and Sport Development Programme 2013-2016 has
already been adopted. This Programme provides clear guidance and sets out specific action
and deadlines for implementation of the tasks and objectives defined within the National
Physical Education and Sport Development Strategy for Bulgaria for the period up to 2022.
The prescribed priorities reflect the role of state and local authorities and of sport organisation
in the realisation of the general concepts on physical education and sport development, in
compliance with the economic and social priorities of the government’s agenda.
These priorities involve encouraging physical activity, exercise and social tourism among the
public as a factor for improving public health; promoting exercise and sport within the
educational system; creating conditions for selection and progress of children with evident
sports talent; strengthening the position of elite sport as a mean for increasing the national
prestige of Bulgari; scientific and medical support for sport activities; construction and
modernisation of sport facilities in the countries, including mass sport centres in
municipalities.
The measures outline the mechanisms for implementation of priorities at national and regional
level; they set out the applicable deadlines, the responsible institutions and public
organisations, as well as measurable indicators to be applied when assessing results. Sport
policy will be financed through public funds from the new operational programmes and also
by creating conditions for public-private partnership.
Measure: Acceleration of the procedure for preparation and adoption of a new Sport
Act, a Regulation on the Terms and Procedure for Financial Assistance for Sport
Activities and Methodology of Classification of Sports
 A new Sport Act, Regulation on the Terms and Procedure for Financial
Assistance for Sport Activities and a Sport Categorisation Methodology are currently
being developed.
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 The draft version of the Act amending and supplementing the Physical Education
and Sport Act was adopted on the basis of a Decision of the Council of Ministers. The draft
was adopted at first reading by the National Assembly.
The proposed changes have been consolidated with the provisions on municipal funding and
support of sport organisations. Wider funding opportunities are envisaged for the construction
and repair of sport facilities – state and municipal. Following adoption of amendments, the
Ministry of Youth and Sport will issue the relevant by-laws – namely two regulations,
which will regulate, on the one hand, funding of sport activities of licensed sport organisations
– training activities and competitive activities in state sport schools and, on the other hand –
the activities related to the construction, reconstruction and modernisation of sport sites and
facilities and social tourism sites and facilities used by sport schools.
 A draft amending and supplementing Regulation N-1 on the Terms and Procedure for
Financial Assistance for Sport Activities has also been prepared by the Ministry of Youth and
Sport.
 A Sport Categorisation Methodology has also been developed. The new healthy
exercise, public sport practice and social tourism programmes of the Ministry of Youth and
Health have already been adopted, namely the Sport and Leisure for Children Programme, the
Learn to Swim Programme, the Kindergarten Sport Programme, the Sport for the Disabled
and Children at Risk Programme, the Sport Development for All Programme, the Student
Sport Development Programme.
The purpose of the methodology is to assess the level of development of sports through
categorisation of the different types of sports in accordance with the level of influence and
popularity in society within the meaning of Article 17b, par. 2, item 1, note “c” of the
Physical Education and Sport Act (PESA).
The rate of influence and popularity of the respective type of sport provided by a licensed
sport federation is one of the main factors for the attestation of sport federations for licence
renewal.
 The Rules of Procedure of the Bulgarian Sports Lottery have also been amended.
The changes introduced are aimed at increasing the funds available for support of physical
education and sport: 18% (instead of 17%) of the proceeds and almost 100% (instead of 50%)
of the funds from unclaimed prized will be invested in the development of sport.
 In implementation of the measure for updating of statutory, regulatory and strategic
documents in the field of youth policy in support of the needs of young people in the country,
the Council of Ministers adopted a draft Act amending and supplementing the Youth
Act. The draft was adopted at first reading in plenary.
 Decision of the Council of Ministers dated 19.12.2013 adopts the Updated National
Youth Strategy (2014-2020). The draft version was promulgated for public discussion which
was completed by means of a coordination procedure with other ministries. The draft has been
submitted for approval by the Council of Ministers. The Strategy outlines the main
frameworks, the vision and priorities for young people in the country. The Strategy highlights
the need for comprehensive action aimed at improving youth development policies, creation
of quality accessible education, training and overall personality development, equal
opportunities for all young people in terms of education and the labour market and promotion
of their active civil position. Implementation of the Strategy will ensure compliance in the
action of stakeholder institutions and will significantly increase the effect of their activities.
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 An Action Plan for 2013 has been prepared and adopted by the Council of Ministers
in implementation of the National Youth Strategy 2010-2020. The Action Plan was prepared
on the basis of information gathered from state institutions responsible for sectoral policies
and from the municipalities of the Republic of Bulgaria.
The above statutory acts complete the circle of legislative changes connected to public
sport needs and youth needs.
Measure: Undertaking urgent measures for the repair and reconstruction of the
Winter Sport Palace facility
Certain preliminary measures have been taken. The relevant designs for the repair and
reconstruction of the Winter Sport Palace facility have been approved and work on these is
expected to commence in 2014.
Measure: Affirming the core values of the Olympic movement and support for the
preparation of Bulgarian participants in the Olympic Games
 The measures undertaken by the government in the field of elite sport are as
follows:
Financial support for the preparation of Bulgarian sportsmen for participation
in the Winter Olympics (07-23 February 2014 in Sochi, Russia) has already been ensured.
The funds required for participation of the Bulgarian delegation in the Games have been
transferred to the Bulgaria Olympic Committee.
‒
The programmes for financial assistance of sport federations for 2014 have
already been approved. The Ministry of Youth and Sport is working to introduce a new
funding policy in line with European standards. Approximately 90% of the funds allocated
under the Olympic preparation programme will be directed towards 21 Olympic federations.
‒
‒ A Programme on holding regional, European and global championships on the
territory of the Republic of Bulgaria has been developed for the first time.
A list of elite sportspersons and their trainers has been drawn up, for whom,
provided that certain requirements have been met and certain criteria fulfilled, personal
funding will be provided.
‒
‒ A sport categorisation methodology has been developed. The programmes and
categorisation of leading federations have been presented for discussion by the Public
Council. The said sport categorisation takes into account the suggestions made by the
Bulgarian Olympic Committee.
A Research and Applied Activities Council has been established, for the first
time, for the purpose of providing support and control over the training activities of national
teams.
‒
 Measures related to mass sport:
The Minister of Youth and Sport has approved the new programmes for 2014
aimed at healthy exercise, public sport practice and social tourism: Sport and Leisure for
Children Programme, the Learn to Swim Programme, the Sport Development for All
Programme, the Student Sport Development Programme, the Sport for the Disabled and
Children at Risk Programme and the Kindergarten Sport Programme.
‒
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‒ Contracts with 10 licences multisport federations were signed, ahead of
schedule, under the Sport Development for All Programme. MYS has approved funds in the
amount of BGN 935 000 aimed at active inclusion in healthy exercise programmes of
Ministry of Defence and Ministry of the Interior officers, employees and officials, veteran
athletes, etc.
‒ 204 children’s sport programmes have been approved. Contracts with sport
clubs in the total amount of BGN 1 000 000 are currently being finalised.
The Learn to Ski project of the Bulgaria Ski Federation for 2013-2014 has
been funded by the MYS, ahead of schedule, in the amount of BGN 450 000.
‒
The Protection of Talented Children Measures Programme for 2013 has been
implemented. 150 scholarships have been paid out to children who have demonstrated evident
talent in the field of sport (state sport school students and special school students with
physical or sensory disabilities).
‒
 Promoting sport among the disabled:
The organisation and execution of the 22nd Summer Deaflympics 26.0704.08.2013 in Sofia was significantly facilitated. The medals won by Bulgarian athletes are as
follows: 1 gold, 4 silver and 6 bronze medals.
‒
 Measures related to the management of ownership and state participation in
commercial companies:
The Minister has tightened financial control over the commercial companies
for which he acts as principal. As a result, revenue has been increased and opportunities for
outflow of funds and abandonment have been limited.
‒
Legal and factual activities have been undertaken to secure the funds required
for repair of the Winter Palace.
‒
‒ Legal measures have been introduced to grant the use of Yunashki Salon sport
facility free of charge to the municipality of Varna which will further the development of
local sport clubs in Varna.
‒
The Borovets alpine base has undergone repairs.
A procedure has commenced for construction of a holiday/rehabilitation home
for veteran athletes.
‒
‒ A concept has been reached regarding the state and perspectives for the future
development of sport properties and those which are no longer necessary will be offered for
sale in accordance with the statutory procedures.
‒ The contractor for a public procurement regarding repair works on two stateowned sport schools in Plovdiv and Pleven has been selected.
 Measures relating to municipal councils:
A Municipal Council of Sport and Social Tourism Issues has been established.
The Council acts as an advisory group unit which discusses issues related to the
implementation of state policies in the field of sports and social tourism. The Council
comprises 36 prominent personalities of good standing in society and in sport – experts,
lecturers and chairpersons of sport federation. An expert panel on physical education and
sport has been set up in support of the Minister of Youth and Sport.
‒
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 Measures relating to youth policy:
Decision dated 15 August 2013 of the Council of Ministers approves the
Report on Youth for the period of 2010-2012. This document reports on the implementation
of youth policies in the country on the basis of specific measurable indicators set out in the
National Youth Strategy (2010-2020) and outlines the situation of young in the country as
well as progress on the respective line policies.
‒
‒ A Public council has been established to act as an advisory group discussing
issues related to implementation of government youth policies.
Measure: Resolving ownership issues relating to sport bases and construction and
modernisation of sport infrastructure
 A Sports Properties Classification, Running and Management Concept has been
elaborated.
 The procedure for repair and reconstruction of the state-owned sport schools „Georgi
Benkovski” in Pleven and „Vasil Levski” in Plovdiv has commenced.
 The following projects involving the construction, repair and reconstruction of sport
sites and facilities are underway:
‒ Construction of football grounds at G. S. Rakovski Comprehensive School in
Veliko Tarnovo – phase I;
‒ Construction of a multifunctional sports ground in the town of Bania, Karlovo
municipality.
‒ Construction of a Home for veteran athletes – for the first time in the history of
Bulgaria.
125
DEFENCE, SECURITY AND PARTNERSHIP
Measure
Deadline
Introducing changes to the Armed Forces Development Plan to
balance defence capabilities
31.12.2013
Preparation of a strategic overview of defence and security
31.10.2013
Review of military service structures as a preliminary step to a
comprehensive review of defence and security
30.11.2013
Implementation:
Measure: Introducing changes to the Armed Forces Development Plan to balance
defence capabilities
A review was carried out on the progress of implementation of the Armed Forces
Development Plan. Proposals for its amendment were submitted to and discussed by the
designated defence panel. They will create opportunities for maintaining the capabilities of
military units for performance of their assigned missions and tasks. A decision has been
reached against the reorganisation of 68th Special Forces Brigade into a regiment, while
Bezmer airbase will retain its current structure and personnel. The disbandment of Logistics
brigade surplus materials storage bases has been cancelled. Calculations and plans have also
been prepared for restoration of a mechanised battalion stationed in Vratsa, comprising of 205
servicemen, in 2014. The adopted proposals will preserve the existing capabilities of the
Armed forces and over 800 positions for military and civil officers.
A set of objectives regarding the capabilities of the armed forces has also been approved.
Its implementation will require approximately BGN 2,3 billion. BGN 100-290 million will be
required on an annual basis until 2020 – the period which will see the greatest load.
Measure: Preparation of a strategic overview of defence and security
Preparation of a strategic overview of the defence and security system is commencing,
with the aim of enhancing the efficiency of the entire defence sector so that our armed forces
are capable, prepared and equipped with the necessary resources to perform their three main
missions – “Defence”, “Supporting international peace and security” and “Contributing to
national security in peacetime”. It remains to be proposed to the Council of Ministers to adopt
a decision assigning to the Security Council with the Prime Minister to prepare a report to be
submitted to the National Assembly to begin the strategic review of the defence and security
system.
Within this strategic review, a further review of armed forces structures will also be
performed and will serve as the basis for a new Plan for Armed Forces Development until
2020.
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Measure: Restructuring and improving the system and structure of military
education
The Government of the Republic of Bulgaria works towards changes in military education
aimed at:
‒ Ensuring closer link between military education and modern defence and
security realities and practices;
‒ Strengthening the leadership model of training future commanders;
‒ Placing military education in a competitive context – in terms of civil
education both in the country and abroad;
‒ Improving foreign language training.
Implementation of these tasks has required complete overhaul of the legislation in the field
of military education and qualifications – regulated professions, state requirements, staff
tables, job descriptions and requirements to academic staff, regulations, curricula, etc.
In compliance with the new curricula approved by the Minister of Education and Science, a
change has been introduced in training and planning documentation and existing lecture
materials are being updated. The changes, introduced through the new framework of military
education, are still in their first pilot year. The Higher Naval School is currently running a
pilot training programme for 6 degree students under an 18-month plan for obtaining military
qualifications and an officer rank.
An analysis is carried out on the efficiency of the new model of interceptor training at
the Military Academy, involving 14-month specialised training preceded by a 10-month
course in English and followed by a month and a half of traineeship at the very positions
which the officers will take following graduation.
Active international cooperation with higher military education institutions continues and
intensifies. The National Military University offers computer-assisted training with actual onsite activities which, in addition to Bulgarian and American students, was attended also by
Romanian, Moldovan and Serbian students.
Bulgarian cadets and students are trained in civil specialties at military schools of EU member
states under the Erasmus programme while their colleagues from Romania, Poland and the
Czech Republic study in Bulgarian higher military schools.
Measure: Improving the legislative framework in the field of defence and the armed
forces and the Reserve Act in October 2013
The Council of Ministers approved the draft Act amending and supplementing the
Defence and Armed Forces Act.
 A Decision of the Council of Ministers is currently undergoing a coordination process
for the approval of a draft Act amending and supplementing the War Invalids and War
Victims Act (WIWVA). The aim of the draft law is to improve the social status of war
invalids and victims of war. The draft will create more favourable conditions for social
integration of disabled veterans and war victims. Medication costs of disabled veterans are to
be entirely covered by the state budget while war victims, pursuant to Article 4, items 1, 2 and
4 of WIWVA will only pay part of the cost. Better opportunities will be provided for use of
existing holiday homes. War victims will, pursuant to Article 4, item 2 of WIWVA be entitled
to free use of bus and coach services and the national railway network. A supplement to the
statutory war disability pension is envisaged for those with 50% and over 50% reduced
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capacity for work. The changes proposed by the draft will ensure the implementation of the
Equal Opportunities for Disabled People Strategy for 2008-2015.
The members of the Advisory Council on Disabled Veterans, Veterans and War Victims
of Bulgaria at the Council of Ministers, chaired by the Minister of Defence, were appointed
by means of an Order of the Prime Minister of the Republic of Bulgaria. A meeting of the
Advisory Council was held on 26.09.2013 where the Group discussed the draft law and ruled
that the latter be submitted for inter-departmental coordination. The draft was submitted by
the Ministry of Defence on 31 October 2013. The Ministry of Finance refused to coordinate
the draft on the grounds that the proposed changes may result in unfair treatment in
comparison to other categories of disabled people as well as in disrupted equality of insured
people pursuant to Article 3, item 3 of the Social Security Act. The Ministry of Labour and
social Policy and the Ministry of Transport, Information technologies and Communications
supported the draft on the condition that additional financial means are provided, while the
Ministry of Health proposed that the cost of medicinal products be covered by the state budget
and paid through the budget off the Ministry of Defence.
Given the importance of the issues to be elucidated, a second session of the Advisory Council
on Disabled Veterans, Veterans and War Victims of Bulgaria was scheduled for 16 January
2014. A reduction in the proposals set out by the draft will be discussed due to the lack of
financial resources to secure the draft law in its entirety.
 A new Reserve Act is being developed.
In implementation of the Republic of Bulgaria Armed Forces Reserve Act, the voluntary
principle of manning military formations with reserve officers was introduced in 2012 for the
first time. The Armed Forces Development Plan of the Republic of Bulgaria, adopted by
means of Letter No 333/2010 of the Council of Ministers, sets out which military formations
must be manned with reserve officers, as well as the applicable deadlines.
Three competitions were carried out towards the end of 2013 for 1,611 positions in the
voluntary armed force reserve. Only 472 positions have been filled. Following the
competitions, the issues attending the entire activity of manning armed forces with voluntary
reserve were carefully reviewed and systematized. The analysis of the results clearly indicated
the inefficiency of the reserve officers’ recruitment model, the awkwardness and ineptitude of
the procedure. As a result, steps have been undertaken to improve the process of recruiting
candidates to serve in the voluntary reserve and the terms and procedures applicable to the
relevant competitions. Currently a plan is in place for a review of the regulatory framework
regulating the armed forces reserve of the Republic of Bulgaria. The aim is to discuss, by the
end of July 2014, the option of whether a draft amending and supplementing the Armed
Forces Reserve Act of the Republic of Bulgaria could be prepared to ensure improved
conditions guaranteeing the efficiency of the procedure of manning the armed forces from the
voluntary reserve pool.
Measure: Active participation in national, NATO and EU security and defence
policies
The NATO Capability Target Package 2013 for Bulgaria was adopted at a meeting of the
Defence Ministers of NATO member-states held in Brussels (4-5 June 2013). The package
places certain high-technology capabilities requirements before our country and proposes
guidelines for narrow specialisation during participation in operations. Special attention is
paid, for the first time, to the development of non-military capabilities to be used at the
Stabilisation and Reconstruction stage of a NATO operation. The package for Bulgaria sets
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out requirements for implementation of a total of 55 capability targets and proposes setting up
of 50 formations for the needs of collective defence. In total, the financial resources necessary
(in 2012 prices) for the commitments undertaken under the Capability targets 2013 on behalf
of the Ministry of Defence for the 2014-2028 period are in the amount of
BGN 2 311 758 230. Performance of these commitments will result in increased defence
capabilities of the Bulgarian armed forces and their operational compatibility with other
Alliance allies.
Work on the formation and preparation of the planned six Land Forces battalion military units
is still under way, along with their certification as a major building block of armed forces
capabilities for action under all three missions. Three of the planned six units have already
been formed, with the third being certified in November 2013.
The formation of a qualitatively new and much more efficient armed forces reserve on
the basis of the Reserve Act continues. The recruitment of voluntary reserve officers also
continues with view of manning the reserve as part of the unified armed forces set.
Servicemen from the first voluntary reserve module took their oath on 26 July 2013, at the
Unified Preliminary Preparation Centre in Pleven.
The annual summit of SEDM Ministers of Defence in Brdo, Slovenia, adopted the decision
for the multinational SEEBRIG headquarters to be situated in Bulgaria after 2017.
Bulgaria has committed to host the South-Eastern Europe Brigade (SEEBRIG) HQ for a
period of 6 years starting from 2017.
At the session of the Foreign Affairs Council with the participation of EU Defence Ministers,
Bulgaria supported Italy’s proposal for an operation to combat illegal human trafficking in the
Mediterranean region.
Bulgarian armed forces have provided active assistance to the general population and local
authorities in the controlling and/or overcoming the consequences of disasters and accidents.
In implementation of the third mission of the armed forces – Contribution to national security
in peacetime, Land forces servicemen with specialised equipment took part in the
extinguishing of fires which broke out in different areas of the Straldzha and Elhovo
municipalities in Yambol District, the Svilengrad, Dimitrovgrad and Mineralni bani
municipalities in Haskovo District, in several villages in Stara Zagora District, in a village on
the outskirts of Sofia, in Atia and Sozopol, in Rila National Park and at a firing range near
Kazanlak. Thirteen Land forces formation comprising 656 servicemen and 90 pieces of
equipment managed to combat these fire outbreaks. A Mi-17 air force helicopter was used to
investigate and put out the fire. The rescue operations of July 18th at the Oranovo mine also
employed a Mi-17 helicopter. A total of 86 actions were carried out by the end of November
2013 comprising 11 investigation and destruction modules involving the destruction of 1,415
different ammunitions.
The Bulgarian army has commenced the Joint Efforts Operation which involves road
preparation in the direction of the border region, where engineering and technical
facilities with a length of around 32 km will be constructed along the state border with
the Republic of Turkey in the vicinity of Lesovo village (pyramid 268) until Kraynovo
village (pyramid 206). The purpose of this enclosure is to prevent illegal penetration into the
territory of our country on behalf of foreign citizens and to direct those citizens to border
crossing point checks. A total of 107 km of roads have been rehabilitated, with the cost of
the operation reaching BGN 600,000. The deadline for completion of the facilities is
February- March of 2014. The Ministry of Defence has provided the State Refugee Agency a
list of 36 vacated army areas – 26 in South and 10 in North Bulgaria. Terrains on the territory
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of Harmanli, Momchilgrad, Samokov and Telish are currently being coordinated and prepared
for transfer.
Refugee medical care at the Elhovo hub was provided with the participation of 64 medical
specialists, of which 42 medical doctors, 10 nurses and 12 drivers.
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COMPREHENSIVE ADMINISTRATIVE REFORM
The Government of the Republic of Bulgaria has taken into account the importance of
continuing the administrative reform and has defined two major measures, as follows:
Measure
Comprehensive administrative reform on the basis of a functional analysis of institutions and
the common framework – streamlining the number of administrative units
Attracting and training highly-qualified specialists in the public sector
Implementation:
Measure: Comprehensive administrative reform
In implementation of its goals, the government has resumed the operation of the
Administrative Reform Council (ARC) with the Deputy Prime Minister for Economic
Development of the Republic of Bulgaria acting as Chair.
In August 2013, ARC approved the main directions for administration optimisation:
 Decreasing the statutory rates, as set out in the Public Sector Internal Audit Act,
for minimum number of internal audit units;
 Aggregation of administrative structures for improved coordination in policy
implementation and optimisation of structures;

Reorganisation of central government territorial units;

Removing certain non-specific activities from the administration;

Reorganisation of administrations with overlapping functions.
During the reporting period the ARC has approved and adopted the following:

Methodology for identification of key positions within the state administration;
 Methodology for the creating a model of competencies for positions within the
state administration;

Methodology for assessment of competencies;

Methodology for planning succession within the state administration;

Methodology for planning human resources in the state administration;

Mechanism for mobility-based career development;

Mobility procedure for the state administration;

Employee rotation mechanism with a specific administration.
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
A Decision of the Administrative Reform Council dated 20 December 2013
adopts the draft of the State Administration Development Strategy for 20142020.
The Strategy contains a critical analysis of the current situation of state administration, while
identifying the main deficits in its functions related to the rule of law, planning and budgeting,
communication and interaction with citizens and the business, administration structures,
servicing citizens and businesses and human resources and employee skills management.
On the basis of the deficits identified in the functioning of Bulgarian administration, a set of
four strategic goals has been outlined, the achievement of which will tackle such weaknesses.
The goals are as follows:
‒
Efficient government and rule of law;
‒
Government in partnership with citizens and businesses;
‒
Transparent and responsible government;
‒
Professional and expert government;
Strategy implementation will achieve comprehensive modernisation of administration and its
processes and will meet the increasing expectations of citizens and businesses.
 The number of central administration structures in 2013 is 126. This number
includes the administration of the Council of Ministers, the different ministries, state agencies,
executive agencies, all structures reporting to the National Assembly and all administrative
structures established on the basis of a statutory act and having executive functions.
There are 436 territorial administrative structures (district administrations, municipal
administrations and specialised territorial administrations).
There are a total number of 114 612 permanent positions in the central administration
(including the Ministry of Interior).
In 2013 the number of employees within the central administration, district administration and
specialised territorial administrations has gone down by 0,4%. Compared to 2012, the staff
of the Council of Ministers Administration has been reduced by 6%. Ministerial staff
(excluding the Ministry of Interior) has gone down from 7 325 permanent positions (as
of December 2012) to 7 260 permanent positions (as of December 2013).
‒ Council of Ministers Decree dated 31 March 2011 closes down Lozenets
sport and rehabilitation centre;
Council of Ministers Decree dated 08 July 2013 transfers the National
European Youth Programmes and Initiatives Centre to the Ministry of Youth and
Sport;
‒
Council of Ministers Decree dated 02 August 2013 transfers the Geodesy,
Cartography and Cadastre Agency and the National Construction Control Directorate
to the Ministry of Investment Planning.
‒
 Several statutory changes aiming implementation of the following measures
were submitted for public discussion:
Transfer of the special unit providing support to the National Compensation
Housing Fund to the Ministry of Finance;
‒
‒
Transfer of the School of Public Finances to the Public Administration
Institute;
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‒
A 10 per cent reduction in the administrative staff of the State Commission on
Gambling.
Measure: Attracting and training highly-qualified specialists in the public sector
Since August 2013, more than 500 Bulgarian students from the country and abroad have
undertaken apprenticeships, received career guidance and obtained real skills for work in the
state administration.
Specific amendments and supplementations to the Administration Act have been prepared
regulating student traineeships and apprenticeships in state administration and statutory
functions will be delegated, allowing the Council of Ministers to regulate the rules of
organisation and performance of such traineeships by means of a designated decree.
The State Administration Student Traineeships Portal www.staj.government.bg
provides opportunities for apprenticeships for Bulgarian students studying abroad.
A student essay competition was held under the patronage of the Deputy Prime Minister of
Economic Development. Students were asked to write proposals and suggestions on ways to
boost the country’s economic development. Thirty students from across the country and
abroad took part in the competition.
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ELECTRONIC GOVERNMENT, DIGITAL BULGARIA
The Electronic government is one of the policies outlined in the Programme of the
Government of Republic of Bulgaria – „Statehood, Development, and Justice”.
Electronic data consolidation and unification across ministries, agencies, municipalities
Technical and financial optimisation of communication and connectivity between ministries,
agencies and municipalities
Statutory and administrative changes allowing the transition to an electronic archive
Internet coverage project for the country with free (where possible) public access
Upgrading the electronic citizen authentication and identification project for access to services
– as part of e-government
Analysis and maintenance of existing components and components under construction – as
part of e-government
Progress report on implementation of the National Broadband Access Development Strategy
for the Republic of Bulgaria (2012-2015)
Analysis and progress report on the implementation of the National Digital Bulgaria 2015
Programme activities and their updating and supplementing
Improving sectoral legislation (the Electronic Communications Act, the Postal Services Act)
and regulation as a result of interaction between institutions and the non-governmental sector
within municipal councils
Updating sectoral policies in the field of electronic communications and postal services in line
with sectoral trends and priorities
Finalisation of the process of digital TV/radio broadcasting in the Republic of Bulgaria,
including the provision of decoding devices to individuals with specific social needs
Implementation:
An inter-ministerial workgroup has been established with the task to develope the E-Government
Strategy of the Republic of Bulgaria (2015-2020). The workgroup is chaired by the Deputy
Minister of Transport, Information Technologies and Communications. Members are
representatives of state institutions, NGOs, educational establishments and business associations.
The deadline for finalisation of the Strategy has been set for 15 February 2014.
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Measure: Electronic data consolidation and unification across ministries, agencies,
municipalities
Certain conditions – both in terms of resources and statutory conditions – are required for the
consolidation and unification of electronic data across ministries, agencies and municipalities.
September 2013 saw the approval of a project entitled Upgrading of existing and
establishment of new e-government central systems with view of enhancing the information
and communication environment aimed at improved administrative services offered to
citizens and businesses under Operational Programme Administrative Capacity. Adequate
conditions will be ensured for consolidation of central and municipal administration websites
via portals federated to a Single Access Point for Electronic Administrative Services. The
goal is to set up at least 5 such access points with connection to 30 central level registers. This
is the next step towards a „digital administration” which will result in reduced costs for the
administration, adequate information exchange and interaction between their systems, more
efficient public governance and facilitated access of citizens and businesses to electronic
services.
Measure: Technical and financial optimisation of communication and connectivity
between ministries, agencies and municipalities
The Single Electronic Communication Network (SECN) was officially launched on 20
August 2013 for the needs of state administration and national security.
The SECN was created through administrative, financial and technological integration of the
National State Administration Network and the Single Communication Network.
This administrative and financial integration ensures the single administrative and financial
responsibility for the functioning, maintenance, optimisation and further development of
SECN and special purpose communication sites.
The modern technologies used in the construction of SECN allow virtual unification into a
single national information infrastructure of all ministerial, departmental and local
administration networks while preserving their information independence and autonomous
management and excluding any form of unauthorised access to information. Currently, the
number of interconnected departments and divisions is 1 300.
The launch of SECN provides the state, for the first time, with a single, modern, internal
network furnished with the most up-to-date communication technologies for the needs of
national security and e-governance. SECN saves the state more than BGN 30 million from
departmental budgets for data transfer costs.
This technical solution allows the use of cloud services for the needs of state administration
and the implementation of different initiatives in the field of e-governance.
The single network has the potential of becoming a major gravitational centre for integration
of participants in those processes, given that modern IT and cloud services require precisely
the presence of this type of communication environment.
Measure: Statutory and administrative changes allowing the transition to an
electronic archive
 An Inter-departmental Work Group has been created, in connection with the
transition to an electronic archive, comprising members of the Ministry of Transport,
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Information Technologies and Communications and the State Archive Agency. The Work
Group has drafted a Regulation on the terms and procedures for preservation, storage,
access to and use of electronic documents in state archives.
 A Methodological Code was published on 10 October 2013 which regulates
the handling of valuable documents. The Code defines the common principles and main
rules and provides methodological guidance for work with electronic documents. A great deal
of international and national legislation has been reviewed for the purpose, along with
documents and standards issued by international and national organisations, forums, etc.
 A draft amending and supplementing the National Archives Fund Act has
been prepared. This draft aims to regulate the terms and procedure for the protection,
storage, access to and use of valuable electronic documents held in state archives.
 A sectoral Electronic Archiving Strategy has been developed and is currently in
the process of inter-departmental coordination.
Measure: Internet coverage project for the country with free (where possible) public
access
The Electronic Communication Networks and Information Systems Executive Agency
(ECNISEA) is a direct beneficiary under Regional Development Operational Programme. On
24 October 2012 the ECNISEA and the MA of Regional Development Operational
Programme signed a grant agreement for “Support for building critical, secure, safe and
reliable public ICT infrastructure”.
Approval by the European Commission was received on 09.12.2013, grating state assistance
for building of a critical, secure, safe and reliable infrastructure for broadband next
generation access (NGA) for e-governance and creating conditions for the development
of broadband services for citizens and businesses in economically backward and remote
areas in the Republic of Bulgaria.
Project notification proves that it meets the eligibility requirements for state aid and does not
distort the free market.
This is a breakthrough in EC policy and unprecedented solution for similar projects in other
regions, saving work that would have taken 12-18 months.
The regions covered by the project have a total area of 7 919 sq. metres or 7% of the
country’s territory. The area is home to 277,765 persons, i.e. 8% of the population living
outside district towns and the capital or 4% of the population of Bulgaria.
The realisation of the project will create prerequisites for e-government development in the
selected regions by providing connectivity of state and public institutions in these areas,
including educational, cultural, social and health establishments, to the Single Electronic
Communication Network. Encouraging broadband use results in enhanced competitiveness of
local economy and hence in increased employment and improved living standard.
The project fully complies with the Digital Agenda for Europe and is in line with the
implementation of the National Broadband Access Development Strategy for the Republic of
Bulgaria. The next programming period will also provide for funds designated for broadband
infrastructure construction allowing coverage of national territory in accordance with
European recommendations as set out in Europe 2020.
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ECNISEA is currently preparing a procedure, to be implemented in the event of available
capacity, for the provision of free public access to electronic administration services in public
buildings with a point of presence on the Single Electronic Communication Network.
Measure: Upgrading of the electronic citizen authentication and identification
project for access to services – as part of e-government
 A national electronic identification and validation scheme has been elaborated.
The scheme complies with the Proposal for a Regulation on electronic identification and trust
services for electronic transactions in the internal market.
 A proposal for amendments in the legislation related to electronic identification
and the creation of a statutory regulated and implemented electronic identity register has also
been prepared.
 As part of a pilot project, 5 000 eID cards have been issued, comprising a special
medium on which natural persons may store their eID certificate.
 Use of the eID model is planned for: the connections established between 32
registers administrated and supported by central administration. The 50 internal electronic
administrative services and 24 electronic public services as well as 50 electronic
administrative services for Sofia Municipality, approved in their preliminary form, await
implementation and integration within the systems of Sofia municipality.
Measure: Analysis and maintenance of existing components and components under
construction – as part of e-government
The successful functioning of eGovernment depends on the proper operational maintenance of
the infrastructure environment of its systems with view of ensuring continuity, reliability,
efficiency and accountability of existing integrated system solutions which provide interaction
between automated information systems and centralised electronic services.
A public procurement procedure is commencing with the object of: Providing comprehensive
operational maintenance of the infrastructure environment efficiency of eGovernment
systems, which involves:
 Ensuring hardware and communication connectivity elements efficiency at Boyana
eGovernment Technical Control Centre and Evksinograd eGovernment Technical Centre;
 Providing operational maintenance of the Single Electronic Document Exchange
Environment (SEDEE);
 Providing operational maintenance of the Single Access Point for Electronic
Administrative Services (SAPEAS);
 Providing operational maintenance of eGovernment Interoperability Registers
(Registers and Data Register – RDR; Electronic Services Register – ESR; Data Objects
Register – DOR).
As part of the procurement, the selected contractor will analyse the existing information
systems of SAPEAS, SEDEE and Interoperability Registers, as well as the current status of
all their components, the level of integration with other eGovernment systems and
communication infrastructure (PKI, synchronization server, etc.) and, following the analysis,
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will prepare a detailed report on the state of SAPEAS, SEDEE and Interoperability Registers
IS, with substantiated proposals for optimisation and further development.
Measure: Progress report on implementation of the National Broadband Access
Development Strategy for the Republic of Bulgaria (2012-2015)
An in-depth socio-economic analysis is carried out on the supply and demand of ICT and
Internet-based product and services, based on Digital Agenda for Europe indicators. The
conclusions of the analysis will be included in the Progress Report on the implementation of
the National Broadband Access Development Strategy for the Republic of Bulgaria. On the
basis of this report the first draft of the National Next Generation Access Plan will be
prepared, aimed at achieving Digital Agenda for Europe objectives.
The document will elaborate an infrastructure investment plan taking into consideration
existing infrastructure. This process will be in full compliance with the draft Regulation on
measures to reduce the cost of deploying high-speed electronic communications networks
and will provide for measures to improve legislation and regulation with view of facilitating
the investment process and reducing investment costs, including by means of passive
infrastructure sharing.
The achievement of strategic broadband access objectives is a significant part of the regional
development plans for the six Bulgarian regions for which broadband internet access
measures are envisaged, as well as encouraging the development of local ICT companies and
the use of digital technologies in educational establishments, on behalf of local businesses
and citizens.
Measure: Analysis and progress report on the implementation of the National
Digital Bulgaria 2015 Programme activities and their updating and supplementing.
The analysis reflects the progress achieved in the realisation of National Digital Bulgaria
Programme measures and activities in implementation of Digital Agenda for Europe
objectives. Twenty-nine of the total 89 tasks planned to be completed by different
departments in the field of electronic communications, broadband access, eGovernment,
education, R&D, intelligent transport systems, environment, financial instruments, internet
management, were already completed by December 2013.
Major progress has been made in terms of broadband access coverage and penetration, with
the latter indicator revealing a 2,5% growth for the last year.
With regards to household internet access, the analysis reveals that in 2013 more than half of
households (53,7%) in Bulgaria have internet access in their homes, which marks a growth of
2,8 percentage points in comparison to the previous year. Similar is the increase in the relative
share of households using broadband access (2,8 percentage points), with this indicator
reaching 53,6% for 2013, i.e. almost all households with an internet connection have fast and
reliable connections. Over a 5-year period the relative share of households with internet
access has increased with 24,1 percentage points, while the use of broadband connection
indicates a growth of 27,5 percentage points.
Use of ICT and especially internet access and use, is a key factor affecting the manner in
which businesses manage their activities, run e-commerce initiatives and interact with
national public authorities. In January 2013 the share of enterprises with internet access
reached 89,1%, i.e. 1,7 percentage points more than in the previous year. The type and speed
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of connection is also improving – 77,9% of enterprises use fixed broadband connection.
Mobile broadband connection via a mobile device is available to 33,3% of enterprises.
Compared to 2012, this indicator demonstrates a growth of 7,9 percentage points.
In January 2013, 28,2% of enterprises dispatched electronic invoices while those receiving
electronic invoices suitable for automated processing are 43,5%-16,2 percentage points more
than in 2011.
The share of people using the internet to shop for personal (non-company) needs is gradually
increasing. For the current year, 12,1% of individuals between 16 and 74 years of age have
made online purchases within the last twelve months, which is 2,9 percentage points more
than in the preceding year.
Among internet-using enterprises, 82,5% have received information from public
administration authorities and 86,4% have made use of the opportunities for downloading
different types of forms (tax, accounting and statistical forms and templates, etc).
Interest in the dispatch or online completion of forms is increasing, with an increase in the
amount of 2,0 percentage points compared to the preceding year and a 89,0% share of
enterprises making use of this service.
Measure: Improving sectoral legislation (the Electronic Communications Act, the
Postal Services Act) and regulation as a result of interaction between institutions
and the NGO sector within municipal councils
 A Public Council was established within the Information Technologies and
Communications Sector under the Minister of Transport, Information Technologies and
Communications. In the course of the discussions held so far, several important issues have
been reviewed, with regards to: legislation hindering the operation of cable operators
including their interaction with TV operators; finalization of the process of TV digitalisation;
the Proposal for a Regulation of the European Parliament and of the Council laying down
measures concerning the European single market for electronic communications and to
achieve a Connected Continent was also reviewed with view of preparation of the national
position in this direction. Discussion and review of the first draft amending and
supplementing the Postal Services Act is scheduled for January.
 The draft amending and supplementing the Postal Services Act has the following
main accents: differentiation of the universal postal service from other postal services;
introduction of requirements based on EU rules on services of general economic interest and
improving the postal security of packages. The proposed changes will facilitate the process of
enforcement of rules in a liberalised market for postal services while also guaranteeing the
sustainable development of the main postal operator – Bulgarian Posts EAD.
Measure: Rescue aid to state-owned companies – Bulgarian posts EAD
Measures have been taken for rescue aid to Bulgaria posts EAD by providing compensation
from the state budget in return for the unfair burden of performing the universal postal service
in 2011, in the amount of BGN 9 500 000.
The company has successfully initiated diversification of its portfolio of commercial
activities, including offering Bulgarian Sport Totalizator services in 264 post offices,
operations on the voucher market, etc.
Steps towards improving sectoral legislation in the field of postal communications have
also been taken.
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Measure: Finalisation of the process of digital TV/radio broadcasting in the
Republic of Bulgaria, including the provision of decoding devices to individuals with
specific social needs
The transition towards digital over-the-air television in the Republic of Bulgaria has
been successfully finalised and the population has access to modern TV services as offered
by the digital era.
 The analogue over-the-air TV signal in the Republic of Bulgaria was discontinued
on 30 September 2013.
 96,2% of the population of Bulgaria are provided with digital over-the-air TV
signal (8-15 free Bulgarian television programmes).
 180 326 decoding devices have been provided to individuals with specific social
needs in order to enable the receipt of over-the-air digital TV signal (total number of those
entitled to such devices is up to 210 711).
 Measures have been taken for those places which are not covered by a digital
over-the-air signal and, on the basis of responses received from mayors/deputy-mayors, a total
of 84 municipalities have been identified which have received funds (in the amount of BGN
600,000) collected through savings made by the Ministry of Transport, Information
Technologies and Communications for access to digital TV content depending on the level of
lack of coverage. These funds were made available towards the end of 2013 while currently
local self-government authorities and operators of the three types of platforms (over-the-air,
satellite and cable) are working towards specific practical solutions which will ensure access
to TV content to individuals with specific social needs in the affected territories.
The reported measures are part of the comprehensive package of programme
intentions of the government of the Republic of Bulgaria.
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Appendix 1
IMPLEMENTATION OF OPERATIONAL PROGRAMS, as of 31.12.2013 (euro)
Contracted Amount (GFA)
Operational Programme
Budget
Total as of
31.12.2013
%
Implementati
on of the
budget
Transport
Environment
Regional Development
2 003 481 166
1 800 748 085
1 601 274 759
1 984 790 224
2 899 141 584
1 571 954 790
Development of the
Competitiveness of the
Bulgarian Economy
1 162 215 552
1 059 118 332
91,13%
56 819 427
53 706 015
1 213 869 575
Technical Assistance
Human Resources
Development
Administrative Capacity
TOTAL
PRD **
OPDF
Total - agricultural and
fishing funds
ТBС Б-S
ТBС Б-М
ТBС Б-Т
TOTAL ТBС
TOTAL:
Source: CoM
Actually paid amounts
Total as of
31.12.2013
99,07% 1 112 663 351
161,00%
765 619 272
98,17%
911 050 145
%
Implementati
on of the
budget
Verified costs
Total as of
31.12.2013
Certified expenditures
%
Implementati
on of the
budget
Total as of
31.12.2013
%
Implementati
on of the
budget
55,54% 1 016 731 591
42,52%
494 734 193
56,90%
743 068 900
50,75% 1 016 731 591
27,47%
491 411 193
46,40%
731 803 020
50,75%
27,29%
45,70%
671 520 748
57,78%
642 526 480
55,28%
636 201 462
54,74%
94,52%
31 293 838
55,08%
27 744 498
48,83%
27 734 858
48,81%
1 190 226 808
98,05%
733 868 761
60,05%
653 267 265
53,82%
651 827 472
53,70%
180 789 087
168 787 473
93,36%
98 024 309
54,22%
90 373 061
49,99%
88 146 818
48,76%
8 019 197 651
3 231 343 097
101 168 996
8 927 725 226
2 969 530 129
90 813 062
111,33% 4 319 043 858
91,90% 1 960 644 234
89,76%
40 776 526
53,86% 3 668 445 989
60,68% 1 925 097 637
40,31%
40 776 526
45,75% 3 643 856 415
59,58% 1 828 429 557
40,31%
57 297 894
45,44%
56,58%
56,64%
3 332 512 093
3 060 343 191
91,83% 2 001 420 759
60,06% 1 965 874 162
58,99% 1 885 727 450
56,59%
34 089 013
19 944 697
29 504 775
83 538 485
34 473 471
15 875 799
23 048 881
73 398 152
38,37%
42,62%
38,21%
39,32%
29,57%
36,31%
30,20%
31,40%
9 766 030
6 579 180
8 624 307
24 969 518
28,65%
32,99%
29,23%
29,89%
11 435 248 229
12 061 466 569
49,50% 5 554 553 383
48,57%
101,13%
79,60%
78,12%
87,86%
13 078 279
8 500 306
11 272 426
32 851 012
105,48% 6 353 315 629
10 078 563
7 241 312
8 910 250
26 230 125
55,56% 5 660 550 277