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The Administrator of the Panama Maritime Authority, Fernando Solorzano has confirmed that Panama has ratified the International Convention on Civic Liability for Bunker Oil Pollution Damage, 2001.

The legislation requires ships of 1,000 gross tons (gt) and above to carry on board the Bunker Convention Certificate, which is intended to attest that insurance or other financial security to cover liability for pollution damage is in place.

In a statement, to confirm the entry into force of the Bunkers Convention, the Panama Maritime Authority said "Regarding the ratification of the Bunker Convention 2001 by the Republic of Panama, this Administration informs that the Convention has been adopted by law N°. 7 of January 14, 2009 and the instrument will be deposited into the Secretariat of the International Maritime Organization before the end of January 2009."

The Bunkers Convention establishes in Article 7.1 that “the registered owner of a ship having a gross tonnage greater than 1000 registered in a State Party shall be required to maintain insurance or other financial security, such as the guarantee of a bank or similar financial institution, to cover the liability of the registered owner for pollution damage in an amount equal to the limits of liability under the applicable national or international limitation regime, but in all cases, not exceeding an amount calculated in accordance with the Convention on Limitation of Liability for Maritime Claims, 1976, as amended”.

Article 7.2 establishes that “a certificate attesting that insurance or other financial security is in force in accordance with the provisions of this Convention shall be issued to each ship after the appropriate authority of a State Party has determined that the requirements of paragraph 1 have been complied with”.

Based on Article 14, paragraph 2 of the Convention, the Panama Maritime Administration will be able to issue the Bunker Convention Certificate in May 2009. The paragraph says “For any State which ratifies, accepts, approves or accedes to it after the conditions in paragraph 1 for entry into force have been met, this Convention shall enter into force three months after the date of deposit by such State of the appropriate instrument."

In a bid to encourage prompt certificate applications, the Panama Maritime Authority said "Owners/Operators are encouraged to apply for the renewal of the certificates as soon as possible, in order to avoid delays towards the expiration date of the previous certificate.

"For renewal of the certificate the vessel only need to submit the proof of insurance or other financial security, and evidence that the payment has been made," the Panama Maritime Authority said.