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Eggs and Hens Instead Newspapers

December 5, 2011

Food companies “Koda,” “Kumisi XXI”, “Ioli” and “Nugeshi” won the competition in the framework of the Tbilisi City Hall’s project for the promotion of small-business in the capital.

Newspaper “EkoPalitra” reported that the above-listed companies won the auction announced in the framework of the project “1 000 Booths” with their names or with the names of physical persons. The Companies acquired right to place booths in trading spots for five years.

“Unfortunately, the Companies paid large sums for those trading spots to win the online auction. In some places, press-booths were working previously; so, if we could buy newspapers and magazines there before, now we will be buy only hen, egg and other groceries there,” EkoPalitra wrote.

According to the Tbilisi City Hall, auction was not held for 270 out of total 1000 booths because nobody had applied for those spots. The City Hall representatives clarify that a company might purchase license for those spots only for 1000 GEL.

“The places, which remained beyond auction, are located in the suburbs of the city in economically disadvantageous places and those companies did not pay 1 000 GEL for them. In parallel to it, the places which were assigned to the hen and egg producing companies are located in central streets and they paid several thousand of GEL for lease-agreements. It is unreal for a press-distribution company to pay such huge a lease-price for booths. So, it was unfair to create similar competition conditions for every company. A big food company, which does not have its own network in the city except several small shops, is ready to pay large sums to reinforce its positions on the market. So, the statements about creating equal conditions for business-companies were absurd. In fact, the project seriously damaged the small business because it had to compete large companies,” EkoPalitra wrote.

IPN

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