Overview of TV Procurements Made by Local Municipalities - საერთაშორისო გამჭვირვალობა - საქართველო
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Overview of TV Procurements Made by Local Municipalities

12 January, 2022

Transparency International Georgia studied state procurements conducted by the municipalities[1] in 2020 for receiving broadcasting services.

The study revealed the following:

  • 18 out of 63 municipalities conducted the procurements of broadcasting services, in particular, 14 tenders and 4 simplified procurements took place;
  • As a result of state procurements 15 local broadcasters received more than 686 thousand GEL;[2]
  • Main objects of the procurements were to purchase the social advertising, making and airing  commercials and spreading socially significant information. However, some of the agreements implied airing municipalities` activities, the materials prepared by municipalities` press centers and production of TV shows.
  • Large-scale procurements were made by Rustavi, Marneuli, Gurjaani, Kutaisi and Ninotsminda municipalities;
  • Kvemo Kartli TV-Radio Company received the biggest amount of money, 160 thousand GEL, from state procurements;
  • For some broadcasters the funds received from state procurements constitute  the important share in the total revenue  - in most cases it is more than 20% and sometimes exceeds even 50%.

Procurements Conducted by Municipalities

According to the data of the State Procurement Agency, in 2020 procurements from local televisions (so-called regional broadcasters) for disseminating of various information[3] was made by a total of 18 municipalities.[4] The total sum paid for procurements exceeds GEL 686 thousand.[5]

In terms of money the biggest procurers are Rustavi, Marneuli, Gurjaani, Kutaisi and Ninotsminda municipalities, whereas between the broadcasters the biggest tender, worth of GEL 160 thousand, was won by Kvemo Kartli TV-Radio company.

 

 

Type of Procurements Conducted by Municipalities

According to the procurement documents, main procurement objects[6] for local municipalities are social advertising, translation of city assembly meetings, making and airing the commercials, publishing advertisements and spreading socially significant information. However, the procurement list also includes issues like broadcasting information about municipality`s activities in the news digest, airing the materials prepared by the municipality's press-center, producing and transmitting TV shows, making talk shows, etc.

In addition to broadcasting services, in particular cases, procurement implies the dissemination of information not only via television, but also via other platforms of the broadcaster like Radio, Web and Facebook pages.

 

Financial Problems of Local Broadcasters

For some of the regional broadcasters state procurements have traditional character and take place on an annual basis. The funds received from state procurements[7] constitute the important share for broadcasters - in most cases it is more than 20% and sometimes exceeds even 50%

 

 

*GNCC webpage does not provide data on the total revenue of Parvana in 2020

According to the data of 2020, 89 TV channels are broadcasting in the country.[8] However, according to the total revenue, none of the regional televisions are included in the top ten.

 

 

*The total revenue does not include non-broadcasting revenue and state funding

**TV Imedi revenue includes TV Company Imedi, GDS and TV Company Maestro

 

Moreover, the 10 most profitable TV companies occupy 91% of the market. The funding left for the rest of the TV channels equals only GEL 10 million.

 

*The total revenue does not include non-broadcasting revenue and state funding

 

 


[1] The study does not include Tbilisi Municipality, for the list of the municipalities, visit ​​http://mreg.reestri.gov.ge/

[2] The amount of actual payment is counted, Last seen on Public Procurement website 27.12.2021

[3] Including 3 simplified procurements

[4] Kutaisi, Zestafoni, Chiatura, Sachkhere, Gurjaani, Poti, Senaki, Akhalkalaki, Borjomi, Ninotsminda, Rustavi, Marneuli, Gori, Kareli, Khashuri, Chkhorotsku, Samtredia and Chokhatauri municipalities

[5] Including the simplified procurements in the amount of GEL 43 thousand.

[6] According to the Law on Broadcasting it is prohibited to finance a broadcaster by an administrative body, political party, official or public servant, as well as to purchase its services and direct or indirect financing or co-financing of the preparation and / or broadcasting of broadcasting programs, except in cases such as educational, cultural, public, Security and law enforcement programs. The administrative body is authorized to purchase the services of the broadcaster for the placement of social advertisements.

Law on Broadcasting, 661 (1.2)  https://matsne.gov.ge/ka/document/view/32866

 

[7] Total revenue includes: archive rental, announcements, web banner revenue, content sales, broadcaster owner donations, product placement, advertisement, airtime sales, state funding, sponsorship, other, other non-broadcasting revenue, donations from other persons, other broadcasting, TV shopping, technical services

[8] 2020 Annual Report of National Communications Commission, https://www.comcom.ge/uploads/other/7/7775.pdf

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