MINISTRY OF AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT
GEF Project (APCP): AGRICULTURAL POLLUTION CONTROL
PROJECT
Study under topic: Designation of Nitrates Vulnerable Zones and economic
impact of Nitrates Directive implementation in the Republic of Croatia
Terms of References
INTRODUCTION
The Agricultural Pollution Control Project (APCP) reinforces the development objective of
the Agricultural Acquis Cohesion Project (AACP) that aims at "developing sustainable
systems and capacities within the MAFRD to ensure timely compliance with EU acquis
conditions in the rural sector". The APCP will provide incremental support for nutrient
management activities in the agricultural sector to assist the country to comply with the
requirements of the EU Nitrates Directive and thereby assist the government in establishing a
competitive agricultural sector and with meeting its international commitments to improve the
waters of the Danube River and Black Sea.
The APCP global objective is to reduce the discharge of nutrients into waters draining into the
Danube River and Black Sea. The APCP objective is to significantly increase the use of
environmentally friendly agricultural practices by farmers in Croatia’s Pannonian Plain in
order to reduce nutrient discharge from agricultural sources to surface and ground water
bodies. The APCP support will help reduce costs and barriers to farmers adopting improved
and sustainable agricultural practice. It will also help develop mechanisms to move from
demonstration level activities to operational projects that reduce non – point nutrient pollution
to the Danube River and Black Sea.
In support of this, the project will assist to the Government of the Republic of Croatia to: (i)
promote mitigating measures for nutrient reduction from agricultural sources to surface and
ground water bodies (manure management) through a Nitrates Mitigation Investment Fund
(NMIF), (ii) implement a national agri – environment measures (Code of good agricultural
practices), and (iii) start a public awareness campaign that would disseminate the benefits of
project activities. Outcomes envisaged under the project include, inter alia, improvement in
soil and water quality, increased awareness of environmental issues in agricultural sector and
among farmers, increased number of farmers adopting agri-environment measures and an
increased area of agricultural land using the code of good agricultural practices.
Key success indicators include:
• At least 40% of the farming population in the project counties adopting preventive and
remedial measures to reduce nutrient discharge;
• At least a 10% reduction in discharge of nutrients into surface and groundwater in the three
project counties;
• Increased national awareness of linkages between local actions and impact on water nutrient
load.
I)
Background
The Republic of Croatia as a candidate and a future member of the European Union assumed
the obligation to harmonize its legislation with the acquis communautaire. This includes the
implementation of regulations pertaining to water protection. One of these regulations is
particularly important from the viewpoint of agriculture and to the Council Directive on the
protection of waters against pollution caused by nitrates from agricultural sources
(91/676/EEC), hereafter referred to as the Nitrates Directive.
Nitrates Directive requires from the EU Member States to identify areas where surface and
ground water are polluted or threatened to become polluted if no preventive measures will be
implemented, in accordance with the criteria stated in Annex I.
There are three criteria for identifying waters:
1. Freshwaters, in particular those used or intended for the abstraction of drinking water,
which contain or could contain, if action pursuant to Article 5 is not taken, more than the
concentration of nitrates laid down in accordance with Directive 75/440/EEC.
2. Groundwater which contains more than 50 mg / l nitrates or could contain more than 50 mg
/ l nitrates if action pursuant to Article 5 is not taken;
3. Natural freshwater lakes, other freshwater bodies, estuaries, coastal waters and marine
waters which are found to be eutrophic or in the near future may become eutrophic if action
pursuant to Article 5 is not taken.
Furthermore, the Nitrates Directive requires from the EU Member States to designate as
Nitrates vulnerable zones (NVZ) all known areas of land in their territories which drain into
the waters and contribute to pollution as Nitrates vulnerable zones, in order to reduce nitrogen
discharge from agricultural sources into waters. Farmers within Nitrates vulnerable zones
shall operate in accordance with the measures of the action programmes which will be
adopted by each of the Member States. In the process of designating vulnerable zones, the
following parameters shall be taken into account – the physical and environmental
characteristics of waters and land, the understanding of the behavior of nitrogen compounds
in the environment (water and soil); and the understanding of the impact of the action.
Although the concentration of nitrate in waters in Croatia is monitored for a long time, the
location of selected monitoring stations and their distribution and frequency of measurements,
do not meet the requirements of the implementation of the Nitrates Directive and the degree
of determined eutrophication.
In order to better prepare for the implementation of the Nitrates Directive it is necessary to
conduct a series of measurements related to water quality including the establishment of a
network of stations for monitoring, assessment of surface and groundwater, forecasting the
state of water based on data from monitoring stations for monitoring and other relevant
indicators, and assessing the economic impacts of the Nitrates Directive implementation in the
Republic of Croatia.
The implementation of Nitrates Directive includes certain expenses for producers, but also
long term benefits paying back for the costs accrued.
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Farmers' costs include one-off and current expenses. The main one-off expense for holdings
in order to meet the requirements will be the installation or upgrading of storage capacity for
liquid manure/stable manure in accordance with the capacity. Other one-off expenses may
include additional equipment and fence at certain points (for example by water courses). Main
current expenses will refer to maintenance, amortization and costs of financing capital
expenditures for liquid manure pits, transport of surplus liquid manure/stable manure to
neighboring farms and keeping records. In addition to the above mentioned, expenses related
to a loss of income may occur as a result of lower yield due to restrictions regarding the
nutrient maximum that may be used.
The effect of restriction for mitigation of nitrogen will differ regarding the agricultural
practice, manure management skills, manure storage accessibility and land where it will be
distributed. In most cases the implementation of measures for nitrates reduction will result in
lower farm expenses and lead to improved management skills. Besides farmers, the
Government of the Republic of Croatia will also bear expenses regarding the implementation
of the Nitrates Directive. The Government shall monitor the Directive’s implementation. In
the case of non–adherence or inadequate application, the European Commission may
determine penalties which represent a potential expense and shall also be taken into account.
There are many benefits resulting from compliance with the Nitrates Directive requirements
and they are mostly related to the provision of public goods and services. Reduction of
nitrates in waters with higher nitrates concentration also has impact on animal health and
welfare, as well as humans and water ecosystems. Epidemiologic studies have shown the
connection between the intake of nitrates and health risks, including chronic diseases of
stomach, oesophagus, prostate and bladder. The nitrates themselves are not carcinogenic, but
under certain conditions they may form nitrites, which may react as carcinogenic substances.
Water nitrogen load increases eutrophication and causes the acceleration of growth of plants,
algae and formation of dense plant layers in rivers that lead to forming of toxins and massive
dying of fish and invertebrates. In addition to the excessive growth of algae it causes damage
to power plants. Due to the change in water quality the potential income from recreation,
tourism, fishing and nautical tourism also decreases. The aesthetic changes of landscape may
also decrease income from vacationists and accompanying activities. Values of properties
nearby such waters are lower.
Visual impression and algae smell in eutrophic water courses may reject tourists and visitors .
In taking a long-term view it may have significant economic impact at local communities,
especially on those relying on tourism. In regards to the drinking water supply, eutrophic
water courses require significantly higher expenses for the purification process. Reduction of
the pollution by nitrates in long term has an extremely positive impact to the condition of
drinking water and a possibility for not buying bottled water for drinking.
II) Scope of work
Working under the guidance of the APCP Livestock/Nitrates Management Technical
Specialist (LNMTS) and in close collaboration with the Nitrates management and policy
advisor the Expert team will:
1. Establish criteria and methodology for designation of Nitrates vulnerable zones (NVZ)
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(including areas disposed toward eutrophication) taking into account EU legislation relating to
this area and the practices of different member states.
2. Develop a methodology for assessing the pressure from agriculture to pollution of surface
and groundwater by nitrates and phosphorus considering similar projects in EU countries.
Criteria and methodology referred to in points 1 and 2 need to be approved by the MAFRD
and MRDFWM before further work to identify NVZ.
3. Identify surface and ground waters which contain or could contain, if preventive actions are
not taken, more than 50mg/l nitrates. Detailed explanation of methods and criteria is required,
in particular for waters that currently do not exceed the limit of 50mg/l nitrates, but could
exceed the limit in the near future if preventive measures are not taken.
4. Identify trophic waters or waters that could become trophic in the near future, if preventive
measures are not taken. It is necessary to explain in detail methods and criteria, in particular
for waters that are not currently trophic, but they could become trophic if preventive measures
are not taken.
5. Designate land which drains into surface, ground and trophic waters. A Consultant will take
into account that the land directly above the polluted ground water does not necessarily mean
that contamination drains into the water below it, as there are many factors affecting the water
course from surface to ground water courses, especially if impermeable rock layer is present.
Also, the land which is not directly above the polluted ground water may drain into it due to
various underground streaming.
6. Define a risk of water pollution by nitrates and eutrophication based on the following:
a) Relief, hydrological, hydrogeological and pedological characteristics of soil which drains
into polluted or trophic waters or those which could become such in the near future if
preventive actions are not taken.
b) Agricultural practice (cultivated crops, land, land soil cultivation, livestock density, usage
of fertilizers and manure, etc.) in the designated areas.
7. Designate Nitrates vulnerable zones (NVZ) with clear borders based on the analysis
conducted in previous steps.
With applying of geostatistical methods create "a map of pressure from agriculture to
pollution of surface and groundwater with nitrates," scale 1: 100,000, in digital form with the
attribute database.
8. Define criteria and methodology for assessment of costs and benefits related to the
implementation of the EU Nitrates Directive in the Republic of Croatia. This step shall be
approved by the MAFRD and MRDFWM before the assessment of next step.
9. Prepare at least 2 scenarios for the implementation of Nitrates Directive
a) Whole country as a Nitrates vulnerable zone;
b) Part of the territory (for example 40-50%) is designated as Nitrates vulnerable zone;
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10. Assess total long-term costs or benefits resulting from (non) compliance with the EU
Nitrates Directive, separately for each scenario. The whole spectrum of costs and benefits for
farmers will be included in assessment; economic sectors like fishing, tourism, electric power
production, and river transport, etc; costs and benefits of the public sector and society as a
whole.
11. Undertake review and analysis of the implementation and the basic content of the Action
Programs in EU countries within the framework of the Nitrates Directive implementation.
12. Identify constraints and lessons learnt from the implementation of the Action Programs in
EU countries and determine their relevance to the Republic of Croatia providing the key
recommendations for the future Action Program in Croatia.
III) A study result will be a written report including:
1. Detailed description of methodology and criteria used for designation of Nitrates vulnerable
zones (NVZ) and economic impact of the Nitrates Directive implementation.
2. A map designating surface and ground water bodies containing more than 50mg/l nitrates
as well as trophic waters.
3. A map designating surface and ground waters currently not containing more than 50mg/l
nitrates or trophic water bodies that could become such in the near future if preventive
measures are not taken.
4. A map with clear borders of areas and land that drains into trophic water bodies or waters
polluted by nitrates or waters that could become such if preventive measures are not taken.
5. A map designating a degree and a type of pressure onto surface and ground waters resulting
from agricultural practice on land draining into surface and ground waters.
6. A map with clear borders of zones vulnerable to nitrates. This, as well as all other maps
shall be accompanied by textual explanation, also including designation on accuracy degree,
i.e. confidence (high, marginal and "face" confidence).
7. Total estimated costs and benefits, including costs and benefits of farmers, public sector,
business sector (fishing, tourism and other non–agricultural economic activities) and overall
welfare impact.
8. Comprehensive overview of the basic content and implementation of the Action Programs
in EU countries within the framework of the Nitrates Directive and the recommendations and
guidelines relevant to Croatia, based on lessons learned from the implementation of these
programs in EU and the assessment of the pressure from agriculture to pollution of surface
and groundwater in Croatia.
9. Conclusions and recommendations providing clear answer to the question:
Are methodologies and results reliable and accurate to be taken into consideration and

accepted by the European Commission.
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
Which uncertainties, warnings and restrictions existed during the work.
Should the Republic of Croatia declare Nitrates vulnerable zones (NVZ) partially or

on the whole territory and take into account:
- Total analysis of the most cost–effective options for Croatia, in particular in relation to
various scenarios of partial declaration of NVZ opposed to the whole territory approach;
- Accessibility, robustness and reliability of data;
- Fact that approximately 50% of Croatian territory is porous soil and karst;
- Technical and administrative capacities.

Proposals for further activities
Note: Items 1., 7. and 8. from the Section II. of this Terms of References, recommendatons
and final report must be delivered to the Client in Croatian and English.
IV) Funds ensured by the APCP and institutions participating in activities
The Client will ensure the transfer of the use of all necessary documents and the
documentation that already exist in state institutions (MAFRD, MRDFWM, Paying Agency
for Agriculture, Fisheries and Rural Development, Croatian Agricultural Agency, Croatian
Waters) for the implementation of these activity and the preparation of the study.
V) Reporting obligations
Team leader submits reports to the Project coordinator. At the beginning of the activity Team
leader will propose a detailed Work Plan. He/she will prepare a concise monthly progress
reports in accordance with the Plan and prepare a final report as described in Section III.
VI) Duration
Activity will last 180 man/days, on the basis of the Work Plan approved by the Project
coordinator (LNMTS) during the initial mission. A final report shall be submitted by January,
2012 while estimated start of the work will be August, 2011.
VII) Personnel
Team leader will be responsible for optimal mobilization of his/her experts and regulation of
their number in accordance with the project requirements and within the budget.
Team leader will protect the Client’s interests and ensure timely supervision and control of
works in order to avoid any disturbances and unexpected events during their execution.
VIII) Personnel qualifications
Within the Expert team it must be ensured engagement of experts with adequate qualifications
and experience in order to achieve effective completion of the required scope of services.
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In order to ensure timely completion of works and effective usage of financial means the
Team leader will maintain continuous activity of key experts, one for designation of NV
zones and the other for the field of economic analysis as well as experts on application of
geostatistical methods and production of digital maps with the attribute database.
Team leader is responsible for arrangements of key experts and eventually other personnel
engaged in the completion within the planned timeframe for the implementation of activities.
1) Team leader
Job description
-
Managing the work of the key experts and the whole Expert team;
Preparing the Work Plan of the Expert team;
Responsible for logistics;
Checking whether services are performed in accordance with the Work Plan;
Consulting Client on all issues regarding financial means,
Checking and confirming interim and final reports and accompanying documentation.
Qualifications
Post graduate degree in agronomy, agro-economy or environmental science;
Minimum 10 year experience in the research in the field of agriculture and
environment protection
Minimum 5 years of experience in the implementation of Nitrates Directive and
analysis of its impact on producers and society as a whole
Successful participation in minimum 2 projects in the last 5 years including similar
activities;
Evidence on experience in team management;
Excellent knowledge of English in written and spoken form;
Very good computer skills;
Excellent communication skills;
Experience in international projects is an advantage.
Estimated duration of activities: 20 working days
2) Expert for the assessment of the nitrates vulnerable zones
Qualifications
Expert shall have the following minimal qualifications and experience:
Graduate degree in hydrology, agronomy, environmental science or similar field;
Minimum 5 years of experience in designing and implementation of Nitrates
vulnerable zones in EU
Long experience in the implementation of EU Nitrates Directive and agri –
environmental measures at the national level;
Excellent knowledge of English in written and spoken form;
Very good computer skills;
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Excellent communication skills, preferably with experience in agricultural
consultation;
Previous experience on internationally financed projects is an advantage.
Estimated duration of activities: 75 working days
3) Expert for economic analysis
Qualifications
Postgraduate degree in economy; or agronomy
Minimum 5 years of experience in economy of environment protection, preferably
in agriculture and/or water sector;
Experience in implementation of complex economic analysis and assessments,
including assessment of environmental economic parameters; assessment of impact on society
and similar;
Experience in assessment of monetary value of ecosystem parameters in preparing
national policies in agriculture and environment protection;
Excellent knowledge of English in written and spoken form;
Very good computer skills;
Excellent communication skills, preferably with experience in agricultural
consultation;
Previous experience on internationally financed projects is an advantage.
Estimated duration of activities: 65 working days
4) Expert in the field of geostatistics and the application of GIS technology
Qualifications
- Graduate degree in computer sciences, information technology, geography, agronomy or
related field;
- At least 5 years experience in the application of GIS technology and geostatistical methods,
especially in producing maps in digital form;
- Excellent knowledge of written and spoken English and Croatian language;
- Excellent computer skills;
- Previous experience on internationally financed projects is an advantage.
VII) Monitoring and evaluation
Implementation of agreed commitments will be directly monitored by the LNMTS (project
coordinator).
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