Professional Documents
Culture Documents
Dec, 2021 GC
Addis Ababa, Ethiopia
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Abbreviation
Alt. ----------------------------Alternative
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Contents
Introduction ..................................................................................................................................... 1
Background of the Report ............................................................................................................... 1
Assumptions of the report .............................................................................................................. 5
Objective of the report .................................................................................................................... 5
Scope of the report ......................................................................................................................... 5
Limitation of the report ................................................................................................................... 5
PART ONE:- Methodology employed .............................................................................................. 6
Rationale of the report .................................................................................................................... 7
Service quality ............................................................................................................................. 7
Accessibility And Customer Acquisition ...................................................................................... 8
Infrastructure .............................................................................................................................. 8
Bank Profitability ......................................................................................................................... 8
Marketing and Branding .............................................................................................................. 8
Competitions ............................................................................................................................... 8
GIS criteria and their weight............................................................................................................ 9
Proposed site/branch GIS output Mapping/Pinning ....................................................................... 9
PART TWO :- AHP pair wise matrix comparison Analysis .............................................................. 11
1st Priority site(around Megenagna Square short listed building information) ........................... 14
2nd Priority site(around 02 local market short listed building information) ................................ 21
3rdPriority site(around kotebe Bus station short listed building information) ............................. 27
4rdPriority site(near Ayat round about ) ....................................................................................... 31
5thPriority site(Kotebe Wosen Grocery area )............................................................................... 38
Proposed Ranked Sites/Branches In Yeka Sub City summery ........... Error! Bookmark not defined.
GIS Map ......................................................................................................................................... 42
Measure recommendations of the report .................................................................................... 43
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Introduction
Meftihe general commissioning service is providing an integrated site selection analysis
for bank branch sites by its own developed integrated Geographical information system,
AHP, MCLP Matrix analysis model. Our company were enlightened to work with
Amhara Bank SC due to the emergency of the bank with huge financial mobilization and
its public trust and expectation we found that it will be a potential costumer for our
company in the finance sector. There for we prepare and present a concept note for the
establishing and organizing committee members as a result we get encouraging feedback
and reached remarked and consciousness were reach to developed for project proposal.
Our company prepared the detailed project proposal and presented to the Amhara bank
board for the clear understanding and clarification about our model. The board provide
encouraging feedback and comments incorporating the feedback and comments were
develop a pilot project in Yeka Sub City for its practical implementation and presented
for the CEO and management committee members generally four times presentation and
site supervision were performed. Finally, after the actual site supervision and analysis
with the CEO and members of the management the detail financial and legal framework
agreement proposal were submitted for final negotiation. On behalf of the bank Ato
Eliase ordered as referencing the management decision of the bank that the pilot project
was accepted and as initial phase twenty branches were planned in Yeka sub city as a
result we are expected to identify and prepare the completed report as per the order and
sign the contract agreement at a sub city base for the first phase of our analysis report.
There are 2,208 branches in throughout the country according to NBE report in June
2014 E.c From these 60% of their branches are in Addis Ababa. The major banks capital
and growth rate trends are as follows in the table below.
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selected Competitors Private Bank Branch Opening (source from each banks annual reports )
Available CBE Awash Bank S.c Dashen Bank S.c Berhan Wegagen
branches in Bank S.c Bank S.c
Year G.c
2012 695 86 64 76 22
2015 998 150 133 161 72
2018 1284 400 373 273 200
2020 1666 535 400 383 222
2500
CBE
2000
Awash
Dashen 1500
Berhan
Wegagen 1000
Linear (CBE ) 500
Linear (Awash )
0
2012 2015 2018 2020
To have comparative advantage in the site selection and take a market share in the market
we take five banks as best competent for Amhara Bank. The competitors are selected by
their paid-up capital, number of employees, number of shareholders, growth rate trends
and number of branches and its distributions through the country and particular in Addis
Ababa. We tried to analysis the branch growth rate of these compotator banks and
forecast the probability of achievements for the coming five years. The aim of these
analysis is estimated the number of branches required to open within the coming five
years that Amhara bank to come up with best competent bank and targeting to be the
leading bank in the coming ten years in service delivery, coverage, and customer
acquisitions and customer satisfaction through accessible location.
we are then prepare a site selection analysis in Yeka sub city with three priorities first
priority, second priority and third priority. Total compotator branches in Yeka sub city
are 152 by 17 commercial banks as indicated in the table below.
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Yeka Sub City Compotator Bank Branch Distributions by Site Location
Wegagen bank
Abisynia bank
Zemen bank
Berhan bank
Dashen bank
Debu Global
Bunna bank
Addis bank
Hibret bank
Abay bank
Cooperative
Enat bank
Oromia
Oromia
Anbesa
Awash
Total
CBE
Nib
No Area distributions
1 Megenagna Area 2 2 1 1 1 1 1 1 1 1 1 1 1 15
2 Century Mall Area 1 1 1 1 1 1 1 1 1 1 10
3 Gurd Shola Area 1 1 1 1 1 1 6
4 Sahelitemihiret Area 1 1 1 1 1 5
5 Civil Service Area 1 1 1 1 4
6 CMC Michael Area 1 1 1 1 1 1 2 1 1 1 11
7 Yetebaberut Area 1 1 1 3
8 Meri Area 1 1 1 1 4
9 Hayat Aea 1 1 1 1 1 1 1 1 2 1 2 1 14
10 Tafo Area 2 1 2 1 1 1 2 1 1 1 1 1 1 1 1 1 19
11 Tsebel street Area 1 1 1 3
12 Ayat to Semit Area 3 2 1 2 1 3 2 1 1 1 17
13 Wosen area 2 1 1 1 1 1 1 1 2 2 1 1 15
14 Hill side school area 1 1 1 1 4
15 Menahariaya Area 1 1 1 1 1 1 1 1 1 1 1 1 1 13
16 Zero Hulet Area 2 1 1 1 1 1 1 1 9
17 Total 21 13 11 6 5 8 11 8 9 9 15 9 7 8 4 5 3 152
Source (actual data collection )…………………………………………………………………………………………………………
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According to the integrated data analysis conducted by Meftihe General Commissioning
Service the total number of branches required in the coming five years in Yeka sub city
will be 31 having the first priority nine, the second priority will be nine and the third
priority will be thirteen within the coming five years. The data analysis and priority maps
are shown below by different criterion defined with the relative importance and pair wise
comparisons and criterion weight generated.
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Assumptions of the report
The major assumptions considered in this report are the compotator trend analysis, the
distributions of the branches and the number of branches functional by each compotator
in the sub city, the growth rate and financial capacity and share holders distributions, the
subjective and objective criteria’s are accepted by the bank, twenty branches required for
this year is approved by the management of the bank and order given to accomplish, this
report is fundamentally required by the bank CEO and the management for final decision
and further plat form to proceed the work scientifically were significantly taken to
account. Other requirements will be included while the bank fulfill the required
information for the best analysis of the number of branch’s and its distributions.
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twenty branches ordered by the management devotes from our analysis methodology.
The second factor is that we don’t have the strategic plans of the bank service coverage
growth target within ten and five years and service delivery modalities as well as
costumer distributions in the capital and regional cities and competitor’s analysis
parameters different from our developed criteria’s. Finally, this report is highly affected
by time taking decisions that makes our primary identified priority sites are hired by other
competitors. In addition to these our analysis and data collection were slightly affected by
building owner’s due to duplications of data collection and legal assignment by the bank
to conduct this analysis officially. Timely communication and appropriate feedback to
improve or proceed with our tasks influences our performance to conduct our activities in
scheduled and preplanned approaches.
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Figure1.The methodological process diagram
GIS analyses
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spacing , air quality ,noise level and availability of natural light to the staff as well as customers,
in turn influence staff productivity external customers satisfaction.
Searching the desired site/branch mainly based on objected predefined and standardized
criteria’s that can able us to conduct pair wise matrix comparison among the available
site/branch for ranking with respect to branch conduciveness to deliver excellent service to the
customers .
Infrastructure
Potential sites for the location of a new bank branch facility were identified based on predefined
criteria’s . The absence of infrastructure and others main criteria’s were used as basic selection
criteria and alternatives sites were identified.
Bank Profitability
Site selection is one of the important decision making process for firms since, if done correctly ,
it provides access to the best customers and the greatest market potential. In contrast ,poor
location choices are costly and difficult to reverse. This report deals with multiple branch site
selection in the profitability context. Due to the high level of complexity taking in to account this
methodology would work well at the lowest possible cost.
Marketing and Branding
From the marketing point of view branch banking and expansion were highly forced by the
concerned Government regulatory body achieving economic growth by attracting the unbanked
society to the bank. On the other hand local banks must be design their own marketing and
branding strategy to achieve their objective. From this, using scientific branch selection
methodology the amhara bank S.c acquire high level of branding through the predefined
criteria’s that can help to maintain standardized branding
Competitions
Bank branches selection is a competitive facility location problem that a bank in competition
with other banks to increase itself market share in order to achieve maximum benefit attempt
to establish one or more its branches of the best places in the competitive market. On the other
hand , the search spaces of problem solutions also is widespread so using simple GIS analysis
functions as well as certain techniques and heuristic algorithm. The report indicate suitable bank
branches by optimizing the location of branches in yeka sub city classified 7 zone of priority the
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required data have been collected from source and have been prepared with GIS software. To
analyzing the competitive market consider three private banks already in the working there and
we summarize hereunder
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10
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PART TWO :- AHP pair wise matrix comparison Analysis
From the identified eight prioritized site in yeka sub city GIS output we conduct pair wise matrix
comparisons for each sites by collect data about alternatives obtained building proposed by GIS.
Therefore, as per the GIS suggestion the first priority branch must opened around megenagna
square. Then the pair wise matrix comparison conduct among the alternatives building which
are sort listed with respect to the predefined criteria’s for each prioritized sites in the territory
of Yeke sub city . in megenagn square site (1st prioritized) have been acquire four alternatives
branches from the all rounded criterion rational pair wise comparisons the proposed branch
sites have been ranked as follows
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No Major criteria’s Description CODEs Weight
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1st Priority site(around Megenagna Square short listed building information)
No Name of the Building Codes Address :- Specific name Site/Br Contact person legal aspect of Tolerable Rank Other
Region/City/S of the area anch Name and the building:- Negotiation stated
ub area in Phone No renting period remarks
city/Woreda M2 & certificate and
/street name Floor others
or No
1 NO Name Alt.1 Next to lem Next to oil libia 160 m2 0902454950 Acceptable Negotiation 2nd
hotel
2 Amare Abreham and Megenagn Infront of 156 m2 0911316201 Acceptable Negotiation 1st
family Building Alt.2 Taxi station to derartu building
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3 NO name Alt.3 Next to lem From lem hotel 148 m2 0911159258 Acceptable Negotiation 3rd
hotel to gurd shoal
4 Amare Abreham and Alt.4 Megenagn Infront of 0911316201 Acceptable Negotiation Rented
family Building Taxi station to derartu building
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Pair Wise Compression Matrix Each Criteria With Respect To Alternative (Buildings)
AMARE
with respect to BISRAT AMARE Alt.4 (No AMARE priority with respect BISRAT AMARE Alt.4 (No ground priority
TOC Building Building 1 Name) ground floor vector to SSC Building Building 1 Name) floor vector
BISRAT
BISRAT Building 1 0.2 0.25 6 0.2181 Building 1 0.5 0.5 4 0.25368
AMARE 1st
AMARE 1st floor 5 1 2 2 0.3663 floor 2 1 2 2 0.352814
Alt.4 (No
Alt.4 (No Name) 4 0.5 1 0.3 0.20122 Name) 2 0.5 1 0.5 0.207359
Total 10.166667 2.2 6.5833333 9.3 Total 5.25 2.5 5.5 7.5
AMARE
with respect to BISRAT AMARE Alt.4 (No AMARE priority with respect BISRAT AMARE Alt.4 (No ground priority
FOC Building Building 1 Name) ground floor vector to FSC Building Building 1 Name) floor vector
BISRAT
BISRAT Building 1 2 0.5 4 0.34 Building 1 0.5 1 5 0.258777
AMARE 1st
AMARE 1st floor 0.5 1 2 3 0.28 floor 2 1 1 4 0.339246
Alt.4 (No
Alt.4 (No Name) 2 0.5 1 0.5 0.23 Name) 1 1 1 0.2 0.186585
AMARE ground AMARE
floor 0.25 0.3333333 2 1 0.16 ground floor 0.2 0.25 5 1 0.215392
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Ranked table 1
Weight gained in
Alternatives Buildings Codes Weight gained % Rank
BISRAT Building Alt.1 0.285 28.51% 2nd
AMARE Building 1st floor Alt. 2 0.313 31.32% 1st
Alt. 4No Name Alt.3 0.212 21.21% 3rd
AMARE Building ground floor Alt.4 0.180 17.97% 4th
Ranked Chart 1
Weight gained in %
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
Weight gained in 0.00%
% AMARE ground Alt.4 (No Name) AMARE 1st floor BISRAT Building
floor
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Picture
description
Picture
description
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Picture
description
Picture
description
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Picture
description
Picture
description
Picture
description
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2nd Priority site(around 02 local market short listed building information)
No Name of the Codes Address :- Specific name Site/Branch area Contact legal aspect of the Tolerable Rank Other
Building Region/City/ of the area in M2 & Floor person Name building:- renting Negotiation stated
Sub and Phone certificate and period remarks
city/Woreda No others
/street name
or No
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Subjective criteria for branch evaluation during site supervision
No Major criteria’s Description CODEs weight weight Given Remark
Alt.1 Alt.2
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Ranked table 2
Weight gained in
Alternatives Codes Weight gained % Rank
Ranked Chart 2
Weight gained in %
80.00%
70.00%
60.00%
50.00%
Weight gained in %
40.00%
30.00%
20.00%
10.00%
0.00%
Building 2 No name Building 1 No name
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Picture
description
Picture
description
Picture
description
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Picture
description
Picture
description
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3rdPrioritysite(around kotebe Bus station short listed building information)
No Name of the Building Codes Address :- Specific name Site/Branch area Contact legal aspect of the Tolerable Rank Other
Region/Cit of the area in M2 & Floor person Name building:- renting Negotiation stated
y/Sub and Phone No certificate and period remarks
city/Wore others
da /street
name or
No
1 No Name Alt.1 Near bus Next to 180 M2 0906887716 Acceptable 10 days 1st
station Mineral
minster
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Subjective criteria for branch evaluation during site supervision
No Major criteria’s Description CODEs weight weight Given Remark
to Alt.1
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Ranked Table 3
Weight gained in
Alternatives Codes Weight gained % Rank
No name Alt.1 0.775 77.5% 1st
Picture
description
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4rdPriority site(near Ayat round about )
No Name of the Codes Address :- Specific name of Site/Bra Contact person legal aspect Tolerable Rank Other
Building Region/City/Sub the area nch area Name and Phone No of the Negotiatio stated
city/Woreda in M2 & building:- n period remark
/street name or No Floor renting s
certificate
and others
1 Alternative 1 (No 50 Meter From Ayat round about 122 m2 0911117292 Acceptable 10 days 3
Name) Alt.1 Ayat To LemiKura infront of beg tera Ato Debebe
Administration
Office
4 Alternative 2 No Alt.2 700 meter from Ayat tafo 200 m2 0987017570 Acceptable 5 days 4
name Ayat to Tafo
2 Alternative 3 No In Front Of 700 meter from 200 m2 0913709797 Acceptable 5 das 2
name Alt.3 LemiCura Ayat roundabout Ato Markos
Administration to the right
Office
3 Alternative 4 No 700 meter from Ayat Tafo 170 m2 0920055836 Acceptable 7 days 1
Name Alt.4 Ayat to Tafo
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Pair Wise Compression Matrix Each Criteria With Respect To Alternative (Building)
Alt.2( priorit
with respect to Alt.1 No No Alt.3 No Alt.4 No y with respect Alt.1 No Alt.2( No Alt.3 No Alt.4 No priority
TOC name name name name vector to SSC name name name name vector
Alt. 1 (No Name) 1 2 5 0.25 0.175 Alt. 1 (No 1 5 0.33333 2 0.2127
44 Name) 3 66
Alt. 2 0.5 1 7 1 0.087 Alt. 2 0.2 1 0.5 1 0.0425
No name 72 No name 53
Alt. 3 0.2 0.1428 1 2 0.035 Alt. 3 3 2 1 1 0.6382
No Name 571 09 No Name 98
Alt. 4 4 1 0.5 1 0.701 Alt. 4 0.5 1 1 1 0.5
No name 75 No name
5.7 4.1428 13.5 4.25 4.7 9 2.83333 5
Total 571 Total 3
Alt.2( priorit
with respect to Alt.1 No No Alt.3 No Alt.4 No y with respect Alt.1 No Alt.2( No Alt.3 No Alt.4 No priority
FOC name name name name vector to FSC name name name name vector
Alt. 1 1 2 0.5 1 0.22 Alt. 1 (No 1 0.5 1 3 0.2307
(No Name) Name) 69
Alt. 2 0.5 1 2 0.3333333 0.11 Alt. 2 2 1 1 0.5 0.4615
No name No name 38
Alt. 3 2 0.5 1 1 0.44 Alt. 3 1 1 1 0.333333 0.2307
No Name No Name 69
Alt. 4 1 3 1 1 0.22 Alt. 4 0.333333 2 3 1 0.0769
No name No name 23
Total 4.5 6.5 4.5 3.3333333 Total 4.333333 4.5 6 4.833333
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Ranked table 4
Ranked Chart 3
Weight gained in %
40.00%
30.00%
20.00%
10.00%
Weight gained in
% 0.00%
Alt.4(Building 4) Alt.3(Building 3) Alt.2(Building 2) Alt.1(Building 1)
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Picture
description
Picture
description
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Picture
description
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5thPriority site(Kotebe Wosen Grocery area )
No Name of the Codes Address :- Specific name Site/Branch Contact person legal aspect of the Tolerable Rank Other
Building Region/City/Su of the area area in M2 & Name and building:- renting Negotiation stated
b city/Woreda Floor Phone No certificate and period remarks
/street name others
or No
1 No Name Alt. 1 wosen Next to Over 100 m2 0913597592 Acceptable Negotiation 1st
Grocery area Zemen Bank
2 Hacomal Alt. 2 wosen Kara lo traffic Over 120 m2 Acceptable Negotiation Under
building Grocery area light constructi
on
3 No Name Alt. 3 wosen Kara lo traffic 140 m2 Acceptable Negotiation Under
Grocery area light constructi
on
38
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Pair Wise Compression MATRIX Each Criteria With Respect To Alternative (Building)
with respect Alt.1(Buildin Hacomal Alt.3(Buildin priority with respect Alt.1(Buildin Hacomal Alt.3(Buildin priority
to TOC g 1) building g 3) vector to SSC g 1) building g 3) vector
Alt.1(Buildin 0.58823 Alt.1(Buildin 0.23809
g 1) 1 2 5 5 g 1) 1 5 0.333333 5
Hacomal 0.29411 Hacomal 0.04761
building 0.5 1 7 8 building 0.2 1 0.5 9
Alt.3(Buildin 0.11764 Alt.3(Buildin 0.71428
g 3) 0.2 0.142857 1 7 g 3) 3 2 1 6
Total 1.7 3.142857 13 Total 4.2 8 1.833333
with respect Alt.1(Buildin Hacomal Alt.3(Buildin priority with respect Alt.1(Buildin Hacomal Alt.3(Buildin priority
to FOC g 1) building g 3) vector to FSC g 1) building g 3) vector
Alt.1(Buildin Alt.1(Buildin
g 1) 1 2 0.5 0.29 g 1) 1 0.5 1 0.25
Hacomal Hacomal
building 0.5 1 2 0.14 building 2 1 1 0.5
Alt.3(Buildin Alt.3(Buildin
g 3) 2 0.5 1 0.57 g 3) 1 1 1 0.25
Total 3.5 3.5 3.5 Total 4 2.5 3
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Ranked Table 5
Code
Alternatives s Weight gained IN % Rank
Alt.1(Building 1) Alt.1 0.35923 35.92297 2
Hacomal building Alt.2 0.192829 19.28291 3
Alt.3(Building 3) Alt.3 0.437941 43.79412 1
Ranked Chart 4
Weight In %
50
40
30
20
Weight In %
10
0
Alt.3(Building 3) Hacomal building Alt.1(Building 1)
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GIS Map
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Measure recommendations of the report
Primarily we recommend the bank to hire the proposed sites as soon as possible due to
the delay in time will require to conduct the analysis a gain as well as we will also have a
high possibility of losing the priority sites a gain. To conduct the task in the above-
mentioned scientific way and facilitate the bank’s intervention to the market the
limitation mentioned should be improved. The strategic plan and models of intervention
should be clearly and timely communicated. To have the best of our service delivery and
improve the possibility of the success of the bank we strongly recommend that it will be
important to develop ways communication and a defined schedule time priority fellow for
our works in special distributions. Finally, we are highly motivated to contributedfor the
bank in these scientific interventions to integrate the other banking services for best level
of performance and continuous improvement with the dynamic computations
technologically and scientifically worldwide.
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References
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