By Febrius Wibisana, GPSNR Executive Committee Member & Co-Chair, GPSNR Smallholder Inclusion Working Group
For those who do not know me yet, my name is Febrius Wibisana and I have been a rubber smallholder in Indonesia for over 25 years. At GPSNR, I represent the smallholder category at the Executive Committee level. I am also the co-chair of the Smallholders Representation working group.
In June 2022, I was invited by the Partnership for Forests or P4F to the P4F Forum with their partners and projects from across the world. They wanted me to speak about my experience at GPSNR on smallholder inclusion in the sustainability conversation in natural rubber. The experience gave me the opportunity to put some thought into our work over the last three years – the challenges, the successes and carving the path forward.
I am writing this to share some of those reflections with my fellow GPSNR members.
Reflection 1: It is impossible to have holistic sustainability solutions in natural rubber without smallholder participation
GPSNR Impacts & Assurance Associate Si Yuan and myself at the P4F Forum in London
We live in a world where 6 million smallholder farmers produce almost 90% of the world’s natural rubber. In such a world, any conversation on change in this supply chain has to include smallholders.
In its second General Assembly in 2020, GPSNR members passed a resolution to include smallholders as a category within the membership. We started with 28 odd smallholders, including myself, engaging in conversations on sustainability, capacity building and the meaning of true inclusion and having the smallholder voice heard at various decision making levels. Today, I represent over 130 smallholders across 10 countries in the GPSNR Executive Committee.
To bring smallholders into each conversation, we work closely with country level champions and local government entities for outreach and engagement. Interpretation facilities and key documents being translated to smallholder languages are some small but significant steps we take at GPSNR to further facilitate smallholder participation.
Reflection 2: Membership does not guarantee active participation
While many of our smallholder members are actively engaged in core decision making and at the working group level, many find it difficult to do so. The digital divide, language barriers and a skewed equation of structural power could be some key reasons for this. Some smallholders simply may not have the time for it.
Yet, as we embark on transforming the entire supply chain, we need active smallholder voices to join and remain in the GPSNR fold. To this end, the smallholder representation working group has put forward a resolution with proposed changes in smallholder membership structure, where smallholders will have to participate in the General Assembly to take up ordinary membership. All others will be classified as affiliate members by default. You can take a look at the resolution here.
Reflection 3: Making a supply chain sustainable requires thorough capacity building at all levels
There are more than 2 million smallholders in Indonesia. Yet, despite being the largest producer, it has the lowest productivity in the world. This is because of diseases and poor planting materials. Many other rubber producing nations face similar problems.
If we are to make this supply chain sustainable, equitable and fair, and achieve the desired state that the GPSNR Theory of Change spells out, smallholders have to be equipped with the skills and resources. The capacity building working group has already kicked-off the first such projects in Indonesia with SNV-Proforest and Koltiva. GPSNR has also received funding pledges from Renault, Goodyear, Michelin and Pirelli for other projects, but scaling them requires more. Funding information is available here for any one in the natural rubber industry.
Capacity building will also equip smallholders to participate further in GPSNR decision making and other processes.
As we move forward, I am energised by the progress GPSNR has made so far on smallholder participation. In our attempt to move towards more active engagement, we need the support of all our members. Our ability to meet in person will further strengthen this support, and I look forward to working with all of you to transform the supply chain.
For the strategy and objectives working group, the development of the assurance model will be on priority for the next few months. To this end, they have finalised the draft terms of reference for an Assurance Model taskforce, which will be presented to the Executive Committee in their next meeting. Once approved, recruitment will begin extensively. The risk subgroup is also finalizing a document to be shared with the Executive Committee for their feedback.
Smallholder Representation Working Group
The group has submitted a resolution ahead of the July 22 General Assembly to restructure smallholder membership within GPSNR to enhance active participation. You can take a look at it in the GA Booklet here. In the next few months, they will begin planning smallholder workshops in Malaysia while also working on the smallholder policy equivalent. In case you missed it, they have also published an RFP recently to pilot agroforestry workshops for smallholders. Find it here. Preparations for a workshop for smallholders in Malaysia have also begun, which would be held in Q3 of 2022.
Policy Toolbox Working Group
In the last month, the group has finalised two major resolutions presented to the July General Assembly – one on the implementation guidance and the other on the disclosure requirements for year one reporting. Take a look here. Additionally, they have also finalised the guidance and templates for reporting for manufacturers and end users. If you are an end user or manufacturer who has not yet received the guidance and/or the templates, please write to the secretariat at info@gpsnr.org.
For the next couple of months, the working group will be busy with finalising the operational guidance for the compliance panel and will continue conversations on the transparent reporting roadmap for years 2 and 3.
Capacity Building Working Group
After the kick-off of the GAPs coaching project in Indonesia with SNV and Koltiva, the group is busy in the development of GPSNR’s knowledge sharing platform, which includes smallholder interviews, compiling and assessing responses of member surveys and holding focus group discussions. At the same time, they are working on advancing Capacity Building plans for Indonesia, Thailand and Côte d’Ivoire.
A couple of months ago, RubberWay was proud to introduce its contributions to sustainable natural rubber to members of GPSNR.
Data obtained through RubberWay contributes to helping users meet the GPSNR Reporting Requirements. A crosswalk analysis done by the RubberWay team showed that it provides 89% coverage of the 37 GPSNR Policy Components, of which 18 Policy Components are directly satisfied by RubberWay while 15 are partially contributed to.
RubberWay meets 33 out of 37 GPSNR Policy Components through direct and indirect contributions.
The webinar hosted by GPSNR gave RubberWay the chance to provide an overview of its solution from the perspective of both tire makers and processors.
The sharing by tire makers highlighted the motivations for their participation in RubberWay and the ways in which RubberWay’s results have enabled them to engage in efforts on the ground.
Similarly, natural rubber processors are able to apply data from RubberWay to implement field actions while also using the tool as a channel to facilitate communication directly with smallholders.
Users are able to utilise data generated through RubberWay to inform risk mitigation measures. RubberWay also provides its users with a channel for supplier engagement.
More detailed information on how RubberWay contributes to achieving GPSNR’s goals for sustainable natural rubber can be found in the RubberWay white paper. Access to the complete crosswalk analysis is also available upon request.
ABOUT RUBBERWAY
RubberWay is a digital risk mapping solution that helps upstream actors to detect environmental and social risks across the natural rubber supply chain. Risk data obtained through RubberWay generates actionable insights for users like tire makers and processors to drive change towards sustainability within the industry.
With over 50,000 questionnaires completed to date, the RubberWay dataset is set to increase with growing participation of users, enabling expansive reporting of sustainability risks across sourcing countries globally.
The Global Platform for Sustainable Natural Rubber (GPSNR) is an international multi-stakeholder, voluntary membership initiative seeking to lead improvements in the socioeconomic and environmental performance of the natural rubber value chain. Members of the platform include tire manufacturers, rubber producers and processors, vehicle makers, NGOs, and smallholder natural rubber producers.
As of June 2022, GPSNR has 135 smallholder members from 10 countries. Smallholder members on the Platform have consistently advocated for the Platform to implement initiatives on agroforestry and were a catalyst for GPSNR’s commitment on agroforestry announced at COP26 in Glasgow[1].
To advance engagement with smallholders on agroforestry, GPSNR is seeking to hire a consultant to develop coaching materials on rubber agroforestry systems, and to conduct a pilot series of “Introduction to Agroforestry” workshops for smallholders in two to three countries in 2022.
Proposed programmes should be implemented in line with GPSNR environmental and social commitments and values, based on the GPSNR Policy Framework[2].
To collate and prepare global, country, and region-specific peer-reviewed evidence and best-practice materials on agroforestry for natural rubber systems
Content on environmental, economic feasibility of rubber agroforestry systems
Where feasible, collated material to be disseminated to GPSNR smallholder members and their communities even where workshops are not planned for in 2022
Materials would be translated by GPSNR under a separate budget
To conduct pilot workshops for GPSNR smallholder members and their communities, including active integration of women, youth, and minority representation, to introduce agroforestry concepts and practices, and provide guidance and answers for the following questions:
What is possible to grow in your region or specific location, and how can this be achieved? Possible considerations include:
Appropriate farm design
Cultivation practices
Cost estimation
What is the market availability, demand, and potential economic/financial model and value chain of recommended crops, or of particular products, in your region?
How can agroforestry investments benefit smallholders economically, environmentally, and socially?
Deliverables
GPSNR has identified the following countries where materials, and workshops, should be prioritised in 2022:
Cambodia: strong enthusiasm from smallholders, NGOs, and other partners to organise and kickstart agroforestry in the country, where little to none have been implemented at present
Indonesia: agroforestry possibilities and practices would vary widely across the country’s major rubber-producing regions; there is strong interest from smallholders as well; critical to blend or merge more traditional concepts such as jungle rubber with evidenced-based and structured forms of agroforestry
Thailand: a well-organised and budding agroforestry movement is taking root especially in southern Thailand (termed “sustainable natural rubber” by smallholders and the Rubber Authority of Thailand); workshops could further provide a boost to smallholders in the region and country
Next tier of countries: Cote d’Ivoire, Vietnam, Sri Lanka, Myanmar
The consultant may propose other priority countries in their proposal and justify their choice of countries based on metrics of their own construction.
The proposal should include key details such as the following:
Methodology of content and curriculum development
Proposed teaching or coaching pedagogy and approach for the workshops
List of local partners or experts, if any, that could be engaged for the workshops
Target number of smallholders in each country
Future Plans
In addition to the pilot series of workshops in 2022 in at least two countries, the consultant should present an outline to consider how the series of pilot “Introduction to Agroforestry Workshops” can be expanded (in terms of countries, content, level of engagement etc.) beyond 2022.
3. TENDER EVALUATION FACTORS
GPSNR will rate proposals based on the following factors:
Responsiveness to the requirements set forth in this Request for Proposal
Relevant past performance/experience/accreditation of the bidder on agroforestry and agricultural production
Samples of work (e.g., previous training or coaching programmes in target countries)
Technical expertise/experience of bidder and bidder’s staff
Proposed timeline of operations
GPSNR reserves the right to award to the bidder that presents the best value to GPSNR as determined solely by GPSNR in its absolute discretion.
4. Expected Timelines
The work shall begin by July 2022 and the various phases shall be completed in accordance with the approximate timeline below:
Activity
Due Date
RFP publication
3 June 2022
Submission deadline for proposals
1 July 2022
Contract Award
8 July 2022
First Workshops Conducted
September 2022
Second Workshops Conducted
October 2022
If Proposed: Third Workshops Conducted
November 2022
Final Review and Project Conclusion
December 2022
Consultants should detail a project timeline with milestones that are approximately in line with the above timeline.
Consultants will also provide fortnightly or monthly progress updates to the GPSNR Capacity Working Group, or on an as-needed basis.
5. Budget
The Platform is anticipating that the total budget of no more than 35,000 EUR be allocated to the project. The approximate expected breakdown for each Stage is as such:
Bidders should outline their expected budget expenditure in the proposal.
Payment terms shall be proposed by the bidder and discussed with GPSNR, in line with each Stage of the project.
6. Evaluation Factors
The proposal should include the following:
A workplan that outlines all key activities in line with the stated Objectives and Deliverables
Timeline and key stages of operations
Budget, including detailed breakdown of expected manpower, logistics, and costs
Description of past work and proof of technical expertise on natural rubber agroforestry systems is highly critical for this RFP
A list of project team members with their roles in the project and associated qualifications
Deadline for submission has been updated to 8th July 2022
1. Introduction
The Global Platform for Sustainable Naural Rubber is an international, multi-stakeholder, voluntary membership initiative committed to improving the socioeconomics and environmental performance of the natural rubber value chain. Development of the GPSNR was intiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in 2018. Members of the platform include tire manufacturers, rubber suppliers and processors, vehicle makers and NGOs. Representatives from each of these stakeholder groups have contributed to the development of the Singapore-based platform and the wide-reaching set of priorities that will define strategy and objectives.
The GPSNR aims to support the natural rubber sector to become more sustainable. Key element in achieving this is to ensure there is capacity among smallholders and industrial plantations to adopt best practices in NR production.
GPSNR, through the GPSNR Capacity Building Working Group (Indonesia National Subgroup), is seeking hire a consultant to assess and recommend suitable locations and nursery operators to receive certified planting materials (to be delivered by GPSNR).
Certified planting materials will be distributed to the selected service provider in January 2023, for planting and distribution to smallholders by September 2023.
Proposed programmes should be implemented in line with GPSNR environmental and social commitments and values, based on the GPSNR Policy Framework1.
There are approximately 2.25M smallholders in Indonesia, representing 83% of national natural rubber production (3.6 M tonnes). Smallholders cultivate less than 2 ha of land with an average yield of slightly below 1 ton/ha, as compared to state and private commercial plantations achieving 1.4 ton/ha and 1.5 ton/ha respectively.
Indonesia’s average rubber yield is significantly lower than neighbouring countries in Southeast Asia; such low yield is due to low-quality clones, limited knowledge of Good Agricultural Practices (GAP) and aging trees.
Most rubber trees in Indonesia were planted from 1978-1991 through several government schemes. Given that rubber trees only have a 25-year productive lifespan, with steeply declining yields thereafter, almost all rubber trees planted under these schemes have passed their peak production. Whilst there is no formal data available on tree aging in Indonesia, the Ministry of Agriculture estimates around 600,000 – 700,000 ha of natural rubber plantations need rejuvenation. Replanting should ideally occur on about 4% of plantations annually to ensure a stable output. Yet, it is estimated that between 2010 and 2017 replanting of only 1.3% was undertaken.
Using the right clone makes a tremendous difference in a rubber tree’s lifetime yields. The productivity of rubber clonal and seedling-derived plants is almost 3 x lower than for certified clones. Across the region, only 5% of farmers received their seedlings through a government programme. Certified nurseries are only located in provincial and district capital cities resulting in limited access to high-yielding planting materials for remote smallholders.
Additionally, poor tapping techniques are another major cause of low yields and can decrease the productive life of trees by up to 50%. It is estimated that an average smallholder with 1.5 ha of rubber will earn 57% less than the Indonesian minimum wage.
Five provinces contribute 66.5% of national production: South Sumatra, North Sumatra, Jambi, Riau, and West Kalimantan. South Sumatra province is Indonesia’s largest and most productive area. Its natural rubber area is almost 23% of the total national productive area and smallholders’ plantations take up 98.5% of this area. The productivity of smallholders in South Sumatra is the highest among smallholder areas in Indonesia, producing 1.3 ton/ha, and more likely to have received GAP training. In 2019 the government announced a replanting plan for 2019 – 2027, with a focus on South Sumatra (92,600 ha), South Kalimantan (76,550 ha) and Jambi (69,900 ha). However, this plan has no large-scale lending programme associated with it and is to be executed by local governments and has not yet been implemented. Demand for replanting is strongest in Jambi, where 40% of farmers are willing to undertake replanting. Demand is lowest in West Kalimantan, where only 1 farmer out of 79 was contemplating. Most likely the demand in Jambi is due to peak planting being undertaken in 1995 – 2005 and the majority of the trees are approaching their maximum productive age, and Jambi farmers are more aware of the importance of good quality clones and their impact on yield – they also have the highest rate of nursery clone purchase – and have suffered less from disease.
Source: Financial Assessment of Smallholder Natural Rubber Production in Indonesia. July 2020. USAID Green Invest Asia, HeveaConnect, SNV and Financial Access.2
The consultant should assess and make recommendations on the following:
Location
Provide detailed rationales for where certified planting materials are most needed amongst the following regions:
Northern Sumatra
Southern Sumatra
Central Sumatra
West Kalimantan
East Kalimantan
Based on the consultant’s assessments, the GPSNR Capacity Building Working Group (Indonesia National Subgroup) may prioritise funding for specific regions based on relative productivity, coverage of existing coaching services, socio-economic needs, or other considerations.
Nursery Operators
Assess detailed business models of existing nursery operators and projects that outline the long-term environmental, financial, operational and social sustainability of the proposed budwood garden under their management. This should include, but is not limited to, the following:
Operational, staff, and maintenance costs of the budwood garden
Method of distribution of planting materials to smallholders
Selling price of planting materials to smallholders, e.g., Recommended Retail Price (RRP)
Other key business plan considerations
Based on the consultant’s recommendations and decision by the GPSNR Capacity Building Working Group, the identified nursery operator will be expected to enter into a Contractual Agreement with GPSNR to ensure geographic and financial accessibility for smallholders to receive the planting materials.
Logistics
The consultant should manage logistics such as the safe transportation of the clonal materials from the source (to be determined by GPSNR) to identified nursery operators
Technical Training and Verification
The consultant should work closely with the identified nursery operator to ensure that the clonal materials are correctly managed. This includes the following:
Conducting essential training and supervision on the grafting process for the identified operators
Supervision to ensure proper grating procedures is adhered to
Manage the necessary technical verification, i.e., validation of the quality of the established budwood garden
All of the consultant’s activities are to operate in line with principles and values set forth in the GPSNR Policy Framework3 such as commitment to environmental protection and sustainability, zero deforestation, community engagement and FPIC etc.
The consultant may also be expected to work closely with the GPSNR Capacity Building Working Group (Indonesia National Subgroup) to fine-tuned or further augment the clone selection and delivery timelines.
Key Metrics
The proposal should elaborate on how the following key metrics can be achieved and measured:
Methodology to identify suitable locations and nursery operators
Methodology to conduct technical training and supervision on the grafting process
Methodology on transportation and other logistics
Overall expected costs
Proposals are also encouraged to include key metrics of importance not listed above.
A workplan that outlines all key activities of the deliverables (as outlined in 3. Expected Deliverables above)
Timeline and key stages of operations (based on 5. Expected Timeline below)
Budget, including detailed breakdown of expected manpower, logistics, and costs (based on 6. Budget below)
Description of past work and technical expertise that is relevant to this RFP
A list of project team members with their roles in the project and associated qualifications
5. Expected Timelines
The work shall begin by July 2022 and the various phases shall be completed in accordance with the approximate timeline below:
RFP publication
3 June 2022
Submission deadline for proposals
8 July 2022
Contract Award
1 July 2022
First Full Review
October 2022
Delivery of clones
January 2023
Second Full Review
April 2023
Distribution of planting materials to smallholders
September 2023
Consultants will also provide fortnightly or monthly progress updates to the GPSNR Capacity Working Group, or on an as-needed basis.
6. Budget
The Platform is anticipating that the total budget of no more than 26,000 EUR be allocated to the Four Stages of the project. The approximate expected breakdown for each Stage is as such:
Payment terms shall be:
30% at the signing of the contract
20% upon the First Full Review
20% upon the Second Full Review
30% upon the delivery of planting materials
7. Evaluation Factors
GPSNR will rate proposals based on the following factors:
Responsiveness to the requirements set forth in this Request for Proposal
Relevant past performance/experience of the consultant
Samples of work (e.g., previous training or coaching programmes in Indonesia)
Technical expertise/experience of bidder and bidder’s staff
Proposed timeline of operations
GPSNR reserves the right to award to the bidder that presents the best value to GPSNR as determined solely by GPSNR in its absolute discretion.
Deadline for submission has been updated to 8th July 2022
1. Introduction
The Global Platform for Sustainable Naural Rubber is an international, multi-stakeholder, voluntary membership initiative committed to improving the socioeconomics and environmental performance of the natural rubber value chain. Development of the GPSNR was intiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in 2018. Members of the platform include tire manufacturers, rubber suppliers and processors, vehicle makers and NGOs. Representatives from each of these stakeholder groups have contributed to the development of the Singapore-based platform and the wide-reaching set of priorities that will define strategy and objectives.
The GPSNR aims to support the natural rubber sector to become more sustainable. Key element in achieving this is to ensure there is capacity among smallholders and industrial plantations to adopt best practices in NR production.
The GPSNR aims to support the natural rubber sector to become more sustainable. Key element in achieving this is to ensure there is capacity among smallholders and industrial plantations to adopt best practices in NR production.
GPSNR, through the GPSNR Capacity Building Working Group (Indonesia National Subgroup), is seeking to procure approximately 40,000 certified plants from licensed and accredited institutions in Indonesia. The planting materials are to be delivered by January 2023 at the latest for replanting at selected nursery or budwood garden sites (exact locations to be determined).
Proposed planting programmes should be implemented in line with GPSNR environmental and social commitments and values, based on the GPSNR Policy Framework[1].
There are approximately 2.25M smallholders in Indonesia, representing 83% of national natural rubber production (3.6 M tonnes). Smallholders cultivate less than 2 ha of land with an average yield of slightly below 1 ton/ha, as compared to state and private commercial plantations achieving 1.4 ton/ha and 1.5 ton/ha respectively.
Indonesia’s average rubber yield is significantly lower than neighbouring countries in Southeast Asia; such low yield is due to low-quality clones, limited knowledge of Good Agricultural Practices (GAP) and aging trees.
Most rubber trees in Indonesia were planted from 1978-1991 through several government schemes. Given that rubber trees only have a 25-year productive lifespan, with steeply declining yields thereafter, almost all rubber trees planted under these schemes have passed their peak production. Whilst there is no formal data available on tree aging in Indonesia, the Ministry of Agriculture estimates around 600,000 – 700,000 ha of natural rubber plantations need rejuvenation. Replanting should ideally occur on about 4% of plantations annually to ensure a stable output. Yet, it is estimated that between 2010 and 2017 replanting of only 1.3% was undertaken.
Using the right clone makes a tremendous difference in a rubber tree’s lifetime yields. The productivity of rubber clonal and seedling-derived plants is almost 3 x lower than for certified clones. Across the region, only 5% of farmers received their seedlings through a government programme. Certified nurseries are only located in provincial and district capital cities resulting in limited access to high-yielding planting materials for remote smallholders.
Additionally, poor tapping techniques are another major cause of low yields and can decrease the productive life of trees by up to 50%. It is estimated that an average smallholder with 1.5 ha of rubber will earn 57% less than the Indonesian minimum wage.
Five provinces contribute 66.5% of national production: South Sumatra, North Sumatra, Jambi, Riau, and West Kalimantan. South Sumatra province is Indonesia’s largest and most productive area. Its natural rubber area is almost 23% of the total national productive area and smallholders’ plantations take up 98.5% of this area. The productivity of smallholders in South Sumatra is the highest among smallholder areas in Indonesia, producing 1.3 ton/ha, and more likely to have received GAP training. In 2019 the government announced a replanting plan for 2019 – 2027, with a focus on South Sumatra (92,600 ha), South Kalimantan (76,550 ha) and Jambi (69,900 ha). However, this plan has no large-scale lending programme associated with it and is to be executed by local governments and has not yet been implemented. Demand for replanting is strongest in Jambi, where 40% of farmers are willing to undertake replanting. Demand is lowest in West Kalimantan, where only 1 farmer out of 79 was contemplating. Most likely the demand in Jambi is due to peak planting being undertaken in 1995 – 2005 and the majority of the trees are approaching their maximum productive age, and Jambi farmers are more aware of the importance of good quality clones and their impact on yield – they also have the highest rate of nursery clone purchase – and have suffered less from disease.
Source: Financial Assessment of Smallholder Natural Rubber Production in Indonesia. July 2020. USAID Green Invest Asia, HeveaConnect, SNV and Financial Access.[2]
The overall objective of the Pilot Provision of Certified Planting Materials project is to deliver approximately 40,000 plants by January 2023. GPSNR has identified the following clones for procurement:
IRR 220
IRR 112
RRIC 100
The service provider should also detail the initial certification process prior to delivery of clones.
The proposal should justify whether GPSNR should proceed with all of any of the three clones above, and the recommended number of clones to procure.
Submitted proposals should also provide brief justifications and details on the costs, timeline, and rationales for each of the clones listed above, and provide rationales for where the clones are most needed amongst the following regions:
Northern Sumatra
Southern Sumatra
Central Sumatra
West Kalimantan
East Kalimantan
The GPSNR Capacity Building Working Group (Indonesia National Subgroup) may prioritise funding for specific regions based on relative productivity, coverage of existing coaching services, socio-economic needs, or other considerations.
Service providers are also expected to operate in line with principles and values set forth in the GPSNR Policy Framework[3] such as commitment to environmental protection and sustainability, zero deforestation, community engagement and FPIC etc.
The selected service provider may also be expected to work closely with the GPSNR Capacity Building Working Group (Indonesia National Subgroup) to fine-tuned or further augment the clone selection and delivery timelines.
Key Metrics
The proposal should elaborate on how the following key metrics can be achieved and measured:
Total planting materials delivered by January 2023
Initial certification of clonal materials
Overall expected costs
Level of details in justifications for selected clones and recommended regions for replanting
Propoals are also encouraged to include key metrics of importance not listed above.
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