Summary
The aim of this contract solution is to create a public call for tenders that is orientated towards environmental services while also providing food supply to canteens in Rennes urban area.
An association between Collectivité Eau du Bassin Rennais (EBR) and the city of Rennes initiated the first call for tenders in 2015 to supply Rennes canteens (10,000 meals per day, a budget of 50,000€ per year). There were three applicants (two pork and one dairy producers). Those three farmers had committed to improve their agricultural practices for the length of the contract (3 years) using the French IDEA method, which includes a system of 42 sustainability indicators. When applying to the call, the farmers decide their output price based on their cost of production, transport cost to canteens and an additional adjustment cost towards more environmental friendly practices. EBR also gives them an annual bonus payment according to their environmental contribution using an incentive term mentioned in Article 17 of the French public markets rules. A farmer who contracts with the city of Rennes and EBR gets a fair price of his output and a bonus payment for the environmental service he provides to enhance drinking water quality.
From this first experience, EBR and 15 municipalities in Rennes urban area launched a second public call for tenders to supply canteens in this area (20,000 meals per day) in 2017. There were 20 applicants (meat, fruits and vegetables, dairy, wheat …). The farmers
who have contracted for 4 years under this call are either direct sellers or sell their output through downstream firms (the agricultural cooperative Le Gouessant, Establishment Bigard or the new dairy cooperative Lait Sprit d’Ethique).
Objectives
- Improve drinking water quality in Rennes urban area in Brittany, France
Public Goods
drinking water – and
further ecological benefits
Problem description
Collectivité Eau du Bassin Rennais (EBR), the local government which produces, manages and distributes drinking water supply within the Rennes urban area, has committed to provide solutions to improve water quality (e.g. reduction in nitrogen and pesticide use) in Rennes urban area in Brittany (10th urban area with 710,000 inhabitants). Rennes urban area is composed of 56 municipalities and provides drinking water for 480,000 inhabitants. Drinking water catchment areas are located in an intensive agricultural area (2,000 farms). Two water basins are concerned. The first one is located in Northeastern Rennes, where agricultural production is mainly dairy production. The second one is located in Western Rennes with animal production (dairy, pig and poultry productions).
