President Yameen on economic offensive in Japan

President Abdulla Yameen has held meetings with prominent businessmen, economists, and industrialists during his current state visit to Japan.

Yameen has held meetings with the senior figures at the Japan Bank for International Cooperation (JBIC) and the Japan International Cooperation (JICA), as well as tourism and business leaders – including the president of the Hitachi company.

The second day of the president’s visit also saw a meeting with Japanese Minister for Internal Affairs Yoshitaka Shindo, with the prospect of a Japanese embassy in the Maldives being discussed.

In his meeting with the JICA governor Hiroshi Watanabe, Yameen discussed means of obtaining funds for various development projects in the Maldives. The president broached the subjects of financial assistance for the Maldives airport development project, as well as a project to be focused on the island of Ihavandhihpolhu.

He further thanked the Senior Vice President of JICA Hidiaki Domicia for the assistance that JICA has extended in the implementation of projects in the Maldives under the aid of the Japanese government.

As the coordinating body of Japan’s overseas development assistance, JICA oversaw projects worth US$450 million to the Maldives in development assistance between 2004 and 2010.

Projects benefiting from Japanese aid have included the first mechanisation of fishing vessels between 1973-76, the development of Malé’s seawall between 1987-2003, and the extension of loans amounting to US$34 million for post-tsunami reconstruction.

During a meeting with Hitachi’s President Toshiaki Higashihara yesterday, Yameen thanked the company for its cooperation with the State Trading Organisation and for its interest in energy-related projects in the Maldives.

Investment opportunities

Yameen also met with leaders of the Japanese tourism industry, including senior officials from travel agencies, travel publications, tour guides, and the media.

After providing information about current tourism development projects in the country, Yameen noted that the Maldives’ global recognition as a high level tourist destination made it one of the most beneficial areas in which foreign businesses can invest.

The president also noted the need for foreign assistance to further develop the tourism sector, reasserting that the current atmosphere in the country is peaceful after some political turbulence at the time of his taking office.

Yameen assured investors that the Maldives is currently in the collective mindset of overcoming differences, maintaining peace, and promoting development.

President Yameen also attended a forum titled ‘Maldives Investment Promotion Forum’ – organised by the Japan External Trade Organisation, and attended by senior businessmen of the country.

Thanking investors for their interest in the country, Yameen provided details of investment opportunities currently available in the Maldives.

According to the President’s Office website, he highlighted that the current government’s intention to introduce numerous incentives for foreign investors in a bid to further strengthen the country’s economy.

Earlier this month, Yameen revealed that legislation will be proposed during the next parliament which will create special economic zones, will he feels will be “likened to cities in Dubai or the Emirates”.

The new laws would enable investors to have “freeholds” in the country and allow investors “to engage in really, really long gestative projects,” he told investors.

“What we would like to confirm for the foreign investors who come to the Maldives is that foreign investors should feel that Maldives is your second home here.”

“We are going to open up the Maldives in a huge way to foreign investors. Our thirst cannot be quenched. The opportunity to foreign investors is going to be enormous. So have faith and trust in us,” Yameen said.

The president has continued to outline future investment opportunities in the country to Japanese investors this week.

The areas he mentioned include the handling of incidents that arise due to natural disasters, environmental protection, education, health, youth empowerment, sports, agriculture, human resources, security, and infrastructure development.

Together with President Yameen, Minister of Economic Development Mohamed Saeed, and Minister of Tourism Ahmed Adeeb also attended the investment promotion forum.

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GMR arbitration verdict to take up to two months

The government has confirmed that arbitration proceedings regarding the terminated GMR contract – expected to be concluded this week – may take up to two months to reach a verdict.

President Abdulla Yameen had recently stated that the government had failed to reach an out of court settlement with the Indian infrastructure giant, which is seeking US$1.4billion in compensation after the premature annulment of its 25-year concession agreement.

“But the thing is, the GMR is seeking a huge amount as compensation. This government, however, does not believe that we can – or indeed that we need to – pay such a large amount as compensation,” Yameen stated prior to his departure to Japan earlier this week.

“So their [GMR’s] decision now is to wait until the arbitration case is concluded. So we will carry on after the arbitration case is completed,” he continued.

Yameen revealed his intention to seek further foreign investment in the development of Ibrahim Nasir International Airport (INIA), with Japanese, Singaporean, and Middle Eastern investors all being courted.

The president confirmed that the arbitration case had commenced and that both Minister of Defence and National Security Mohamed Nazim and former Attorney General Azima Shakoor had attended the hearing as witnesses from the state.

“Those from our government who were handling the matter at the time have attended the first session’s hearing and provided the necessary information,” Yameen said.

New facilities

“We are not seeking just one single investor for the airport. This is because development of the airport will be a huge project,” Yameen told the media on before his departure on Sunday (April 13).

“What we are speaking about is a new airport. We want it to be an iconic building with additional runway, an additional terminal and new terminal facilities.”

The Maldives Airport Company Limited (MACL) has today confirmed that a second runway will form a crucial part of any new development – the need for which has come to the fore again this week as the state of the airport’s runway partly to blame for the bursting of landing aircraft’s tire in December 2011.

United Arab Emirates’ General Civil Aviation Authority found that the burst tire of a landing Emirates flight was partly caused by the accumulation of standing water on the runway.

The reports advised the Maldives Civil Aviation Authority to “ensure that Operators utilising Male’ airport are fully aware of the runway condition until the runway enhancements are finalised”.

Demands for a second runway – not included in the initial agreement – were among the criticisms levelled at the US$500million GMR concession agreement, before the deal was declared void ab initio (‘invalid from the outset’) by the Dr Mohamed Waheed government.

With speculation about excessive foreign influence accompanying the anti-GMR campaign prior to the contract’s termination, President Yameen has assured that overall  management of the airport will stay in the hands of MACL.

New investors

“We are also thinking about making the airport into one that can carry over 5 million passengers. We want the airport to be one that can cater to tourism growth within the next 50 years,” Yameen explained this week.

“Therefore, this is a project worth at least 600 to 800 million dollars. Of the various components of the airport, we are approaching Japan to invest in terminal facilities and a terminal building. So this trip [to Japan] is not one where we are seeking a single party to develop the whole airport.”

He further stated that Vice President Dr Mohamed Jameel Ahmed had held positive discussions with Kuwait over airport development assistance while he had personally met with Saudi Arabia’s infrastructure giant Bin Laden Group, who also expressed interest in the project.

While the Minister of Economic Development Mohamed Saeed and Minister of Tourism Ahmed Adeeb are working on a concept design of the airport, the senior management of Singapore’s Changi airport were being mooted as consultants for the development.

Yameen will travel to Singapore later this month to inaugurate the Maldives Investment Forum, a government initiative to showcase ‘high level’ investment opportunities in the country, including the development of INIA.

The president has previously assured foreign investors that future investments will in the Maldives are safe, and will soon be protected by enhanced legislation.

“We are going to open up the Maldives in a huge way to foreign investors. Our thirst cannot be quenched. The opportunity to foreign investors is going to be enormous,” he told potential developers earlier this month.

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President Yameen holds talks with Japanese prime minister

During his official visit to Japan, President Abdulla Yameen has met with Emperor Akihito, in addition to holding a summit meeting with Prime Minister Shinzo Abe.

According to the President’s Office website, the discussions during Tuesday’s summit meeting included multiple areas where the two countries could cooperate.

The Japanese prime minister hosted a dinner in honour of the Maldivian president, during which Yameen praised Japan as having been the Maldives’ most generous post-independence development partner.

The areas discussed during yesterday’s meeting were said to include environmental sustainability, clean energy, defense, maritime security, fisheries, tourism, infrastructure development, communications, broadcasting, human resource development, youth empowerment, disaster risk reduction, climate change mitigation, trade, and investment.

After conclusion of the meeting, Shinzo Abe told the press that the Maldives and Japan shared similar fundamental values of freedom and democracy, and that the two countries had agreed to work together to deal with both regional and global issues.

He further affirmed Japan’s commitment to promote bilateral cooperation in combating climate change, with leaders signing a joint statement at the end of the summit.

In a statement released to media, President Yameen spoke of the close ties between the two countries, and of the mutual extending of aid at times of need.

“Ten years ago, the Maldives was affected by the Asian Tsunami. Japan’s response to our appeals for support and assistance in our recovery efforts was overwhelming.”

“In 2011, Japan was struck by the Great Eastern Japan Earthquake and Tsunami. The Maldivian people, keen on showing their solidarity and support for those in affected areas, donated 700,000 tuna cans to be dispatched to Japan.”

“We were glad that we were of some assistance to Japanese when they were in time of need. To date, the response to that appeal remains a record in the Maldives – a confirmation of the special bonds of friendship between our two peoples,” the statement read.

During his visit, President Yameen has also extended an invitation to the Japanese Prime Minister to conduct an official visit to the Maldives.

On his first day in Tokyo, the President met with Maldivian families and students residing in Japan.

While speaking of the goals he wished to achieve during his visit, the president also remarked that “one of the highest priorities of the government is to transform the political instability among Maldivians into a development outlook”.

The President’s Office website further report Yameen as stating that a country with a politically motivated people would not be able to sustain harmony.

Japan is the biggest bilateral donor to the Maldives, with data from the Japanese International Cooperation Agency showing that the east Asian nation had given over US$450 million to the Maldives in development assistance between 2004 and 2010.

President Yameen was quoted as telling those president at yesterday’s honorary dinner that “it was likely today, there is not a ‎single Maldivian who has not ‎benefitted, both directly and indirectly, from ‎support and assistance ‎by Japan.‎”

Projects benefiting from Japanese aid have included the first mechanisation of fishing vessels between 1973-76, the development of Malé’s seawall between 1987-2003, and the extension of loans amounting to US$34 million for post-tsunami reconstruction.

Japan is also one of the Maldives largest trading partners, importing over US$3million worth of fish from the Indian Ocean nation in 2012.

President Abdulla Yameen was invited to make an official state visit to Japan during December 2013 by Japanese Ambassador to the Maldives Nobuhito Hobo. At the time, Japan gifted 200 million Japanese yen (US$ 1,956,400) in grant aid for medical supplies.

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Averting climate change catastrophe is still possible, says environment minister

Minister of Environment and Energy Thoriq Ibrahim has called for a cap on global temperature rise, and pledged to increase renewable energy to 30% in the next 5 years.

“Averting catastrophe is still possible,” said Thoriq in a statement released yesterday (April 14).

“The impacts of climate change are already being felt, and that is why we are calling for a cap of 1.5 degree Celcius.”

Thoriq’s pledges were made in response to the Intergovernmental Panel on Climate Change (IPCC) report entitled ‘Climate Change 2014: Mitigation of Climate Change’, released on March 31.

The IPCC report contends that the world, in many cases, is ill-prepared for risks from a changing climate. However, it also argues that there are opportunities to respond to such risks, though the risks will be more difficult to manage the higher the levels of warming.

The report confirms that carbon emissions have risen more rapidly during the last decade, and that a rise in our current temperature would make the effects extremely difficult to manage. It further urged leaders to invest in low carbon energy projects in order to limit global warming to 2 degrees celcius.

The statement by Thoriq explains that the Maldives – with its low lying islands vulnerable to a rise in sea levels – has been actively campaigning the impacts of climate change for 27 years.

“We are determined and actively working towards increasing our share of renewable in the electricity production of populated islands by 30% within next 5 years,” stated Thoriq.

“The Maldives is committed to introduce cost effective renewable energy as part of a diverse, low-carbon and secure energy mix in our low carbon development.”

The IPCC report prompted calls from Foreign Minister Dunya Maumoon for the international community to switch from ” ‘business-as-usual’ mode to ‘action now’ “.

“Let this report be the much needed impetus for this September’s Climate Summit in New York, and let us all put our names in history books for saving the planet for our children, in Paris next year”, said Dunya shortly after the report’s publication.

Policies in progress

In keeping with these statements, the Ministry of Environment had recently revealed plans to set up a climate research institute in the Maldives.

Speaking as the guest of honour at the second forum on climate held in the Maldives, Minister Thoriq said that this forum was an important step in mitigating the risks of climate change that low-lying island states experience, reported local media outlet CNM.

Introduced in the Maldives in July 2012, the Monsoon Forum has taken a multi-hazard approach, integrating issues on forecasts and warning information with concerns regarding geological hazards like earthquakes and tsunamis.

This forum – organised jointly by the Maldives Meteorological Service and the Regional Integrated Multi-Hazard Early Warning Systems – is geared as an opportunity for dialogue between hydro-meteorological scientists, who generate climate information and promote the application of forecasts and warning information for enhanced management of climate change risks.

Thoriq said that these meetings were crucial as different institutions have to anticipate possible impacts and develop a set of potential responses or management strategies to minimise them. He was also reported to have highlighted the importance of having a climate research institute in the Maldives.

In addition, the ministry recently held an international renewable energy investor’s conference, focusing on the development of solar energy, in a bid to transform the Maldives’ energy sector.

Held on March 26, the ministry reported that a total of 78 participants from government organisations, the World Bank, foreign consultants, and investors discussed photovoltaic systems at the conference.

The conference came after the government last week outlined it’s strategic aims for renewable energy in a proposal named ‘Accelerating Sustainable Private Investments in Renewable Energy programme’ (ASPIRE).

Published March 21 2014, this report detailed some of the difficulties faced by the Maldives, as well as future plans to increase the proportion of sustainable energy consumed in the country.

After the publication of the IPCC report, Thoriq stated that there was “no room at all for any hesitancy”.

“Bold and urgent actions are the order of the day. Now is the time for world leaders to show leadership, implement bold and urgent actions and avert future generations from impending danger before it’s too late. Humanity cannot afford further delay.”

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Police clear roads to address parking problems

The Traffic Police Department of the Maldives Police Service has carried out a special operation in Malé to address the difficulties in parking.

The operation, which was carried out on April 10, involved clearing the roads and parking areas of unwanted items such pallets and litter.

This operation cleared over 100 unwanted pallets from the streets, and was part of a wider initiative by the police to address parking difficulties.

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Growing for the future: Hydroponics in the Maldives

Agricultural practices are ingrained in the traditional Maldivian lifestyle. However, Mohamed Shafeegu – Director of Seagull Maldives – argues that with space at a premium and most foods imported, the art of agriculture is at risk of being lost forever.

“They will forget,” warns Shafeegu, “before they know what to do, food security will be a big problem – it will come.”

The answer to a sustainable farming future, according to Shafeegu, is hydroponics.

Hydroponics is a branch of horticulture which uses water to deliver minerals and nutrients to plants rather than soil – allowing farmers to grow crops in places where soil is arid or unyielding.

“I think hydroponics is our future. The demand [for food] will increase with tourism, so there is a big future for agriculture. If we can plan, we can do this.”

Seagull currently operates one of the Maldives’ few farming and fishing operations on Mafaahi island – the produce of which is used to stock their cafe and supermarket in the capital Malé.

The company grows a variety of fruits and vegetables, as well as making boats, keeping goats, and fishing. According to Shafeegu, this is one of only two islands that are carrying out an agricultural project of this scale.

“They said ‘nobody can do this’ – so we tried to do it”

With space at a premium, and much of the land barely arable, the Maldives is a challenging place to grow food. Currently the Maldives imports the majority- an estimated 90% – of its food from neighbouring countries.

The company’s project on Mafaahi it one of the only businesses to be growing its own food – and with 41 different varieties of fruits and vegetables the operation seems to be a success.

The key to the fruitful harvest, according to Shafeegu, is a hydroponics model which they brought from Australia.

“We studied in Australia, and I was doing engineering. We didn’t study agriculture,” revealed Shafeegu. “The reason we did agriculture was for the challenge – because they said ‘nobody can do this’, so we tried to do it.”

As well as the hydroponic system, Seagull brought in an Australian consultant named Graham Evans who helped to evaluate the business. In his review of the Mafaahi establishment in 2008, Evans praised the island’s move towards a sustainable and environmentally friendly agricultural system.

“Changes being made on Mafaahi with the introduction of hydroponics to maximize production with limited resources is commendable. The installation of the very latest solar technology on Mafaahi for pumping water from ground wells has immediate application in many locations throughout the Maldives,” wrote Evans.

In addition to environmental benefits, the effects of the Seagull hydroponics programme can already be seen in the cost of living.

“When we started in 1996, a chilli [was] 6 rufiyaa,” Shafeegu explained. “Now the chilli is around 2 rufiyaa.” Because of these benefits, people are already starting to see the benefits of localised agriculture, he contended.

Water – a precious resource

The only limitation on the potential of hydroponics is water itself, stated Shafeegu.

“We need a lot of water. Now the system we are doing in Mafaahi- we need around 2 thousand tons of water in storage. Because in the rainy season, we get a lot of rain from the roof.”

“If we can desalinate water, it costs a lot of money, but if you can go solar it will be much better.”

Desalination continues to be a huge issue in the Maldives. The lack of fresh drinking water in the country’s 190 inhabited islands – made worse with the contamination of groundwater following the 2004 tsunami – leaves most communities reliant on rainwater and vulnerable to shortages during the dry seasons.

Pioneering attempts to desalinate water using the excess heat from electricity generation have recently been launched in Kaafu atoll, although they remain in their infancy.

“Because we have done 20 years of agriculture, now the island is suffering, so we have to go for another form of irrigation. We put a line, with only a very small amount of water, given just to the roots. Now what we do is we take the pump and put water there, and a lot of water is wasted. So we have to really do a lot of quality control on the water.”

He illustrates the seriousness of this issue with a story about a neighbouring island Thoddoo, and their mis-use of water supplies.

“What has happened to this island is they have done extensive agriculture without scientific methods – what has happened now is the whole water system has gone.”

“They put chemicals in the water, and when you see people there they have white patches on them, from the chemicals – and kidney problems as well. So they are misusing because the demand is so high. And so, it [the environment] is getting destroyed, the control is not there, awareness is not there.”

The future for agriculture

Seagull is currently bidding to extend their lease on Mafaahi, which is due to expire in June 2014.

” Now we are in a very critical situation, and the water is gone now. But we can’t invest in the future, as we are almost at the end of the lease now. I think if we don’t give to us, I don’t know to whom they will give.”

“So I think the only thing is hydroponics – the government has to invest in this,” confirmed Shafeegu.

“If they don’t do that I think we will even lose the backyard farming [a traditional farming practise on local islands]. And we will not have anything to eat. Food security will be finished. Now we have a good food security based on this backyard farming, now I think it’s going to a different level.”

The Maldives has previously been described as one of the most vulnerable countries in the world to climate-change related food security issues, due to its dependence on fish stocks regarded as likely to migrate with changing conditions in the oceans.

“They [Maldivians] will forget. I think what will happen is, they will forget even to grow their own plants. Before they know what to do, food security is a big problem, it will come,” says Shafeegu.

“But I think we can grow enough, if we can plan.”

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Slow loris to be euthanised as Environment Ministry runs out of options

The Ministry of Environment has decided that an illegally trafficked slow loris – a species recognised as ‘vulnerable’ on the IUCN red list – will be euthanised.

“After running out of other options, the ministry sees euthanasia as the only option available,” stated Assistant Director for the Environment Department Ilham Atho Mohamed.

“This decision does not affect the wild population or the conservation potential of the species. It will also help prevent further illegal trade of such species and  prevent the specimen from re-entering illegal trade,” she contended.

The slow loris was discovered by police in a January drugs raid in the capital Malé, along with more than MVR300,000 in cash.

“In the capacity of the Management Authority of the Convention of International Trade in Endangered Species of Wild Fauna and Flora (CITES) in Maldives, we have already explored all options and have come to a decision from the Ministry’s side,” Ilham told Minivan News today.

According to Ilham, there were three possible options when dealing with the animal – keeping it in captivity, returning it to the wild, or having the animal put down.

She explained that these are the three options given in accordance with the CITES resolution on ‘Disposal of confiscated live specimens of species’ which she noted was in line with international best practice.

The first option of captivity was not available in the Maldives, she noted, with no rescue centres, humane societies, or relevant university facilities.

As the CITES resolution details a number of other obstacles to keeping the creature in captivity in the Maldives, Ilham explained that the ministry had attempted to find a home for the slow loris elsewhere.

“Through the World Association of Zoos and Aquariums an announcement was made and two parties showed interest.  One from the Czech Republic and other from Brazil,” though Ilham explained that the interested parties in Brazil had not responded after initial enquiries.

Issues soon arose with the transfer to the Czech Republic, however, as the import of the animal could not be approved as it is not in accordance with World Organisation for Animal Health.

Furthermore, flights landing in Maldives are neither willing to take the animal, nor do  they meet with the IATA Live Animal Regulations. Alternatively, sea transport proved prohibitively expensive.

The second option of returning the animal to the wild was not available in the Maldives, stated Ilham, as the Maldives does not have the wild habitat of the slow loris.

“For countries that do not have the above two options this [euthanasia] is the only option and the least expensive one.”

“The resolution mentioned above also states ‘it cannot be overstressed that euthanasia may frequently be the  simplest and most humane option available’ and gives several clear advantages,” she explained.

Unnatural habitat

Following the discovery of the a number of exotic and illegal animals by police this year, the government has moved to step up customs security, in an effort to stem the flow of illegal animals being trafficked into the Maldives.

“We have instructed cargo checks and consider giving more attention to these, and will report any findings,” said Senior Superintendant of Customs Ahmed Niyaz, adding that customs were working closely with the police.

Any dangerous animals that are confiscated are handed over to the police, he said, adding that “if an animal is protected under convention they will inform the Ministry of Environment. They will then check with international bodies.”

In the majority of cases the dangerous animals will then be sent to other countries, due to insufficient space or expertise in Malé, he explained.

Aside from those trafficked, non-native species such as crocodiles have also found themselves in the Maldives, resulting in dilemmas regarding the appropriate way to handle these unusual arrivals.

In 1998, a small crocodile – or kimboo in Dhivehi – was found off the coast of a local island. The animal was brought back to the Malé and placed in a small cage as a central park attraction, where it remains to this day.

Kimboo occasionally makes it into local media and even has his own Facebook page calling for his release from his now-cramped quarters, which the World Society for the Protection of Animals has called “entirely inadequate”

Similar to the slow loris, attempts to have the crocodile relocated to have yet to produce results, with financial and legal obstacles barring kimboo’s path out of the country.

The discovery of two more crocodiles in early 2011 raised serious concerns around the containment and treatment of animals in the Maldives.

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State Trading Organisation aims to produce 1000 jobs in 3 years

The Managing Director of the State Trading Organization (STO) Adam Azim has said that the company will produce 1000 jobs within the next 3 years.

Adam Azim said that the company is looking to establish a capable work force across the Maldives, reported local media Sun Online.

“A thousand jobs will be produced with the health sector pharmacies and hypermarkets that we plan to establish,” he added.

The company has plans to invest in the development of its staff with training and education opportunities for the next four years, Azim told Sun.

“We will invest in education, regardless of the cost,” Azim said.

The state-owned STO is the country’s primary wholesaler, responsible for bringing in the vast majority of basic foodstuffs, as well as investing in oil and the tourism industry.

The company was announced bankrupt by President Yameen in November 2013, following which the companylaunched a campaign to cut operational costs by MVR50 million in 2014 (US$ 3,242,542).

More recently, in March 2014, the STO told local media that a five-star hotel it is building in Hulhumalé will be fully completed by January 2015.

STO has also announced on April 6 2014 that they will be placing three additional oil storage tanks in Kafu Fuadhoo, in a bid to increase the oil capacity.

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Transport Minister requests audits of commercial harbours following fatal accident

The Minister of Transport Ameen Ibrahim has requested audits of the infrastructure and operations of all commercial harbours in the Maldives, following the  fatal accident at Malé’s main port on Monday (April 7).

According to local media, Ameen sent a memo requesting to conduct audits of all commercial harbours in the country within three months, and to take measures without delay to address issues based on recommendations in the audit reports.

The minister also asked Transport Authority to carry out a thorough investigation of the accident and send the investigation report as soon as possible.

Last night (April 8) Vice President Dr Mohamed Jameel Ahmed met with the families of the two men who died in the accident.

The government has decided to pay the salaries of the deceased to their families until the children turn 18, as well as giving MVR 50,000 to each of the families as compensation.

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