`- SSF

ANNEX A
PROJECT PROPOSAL

I. Profile of the SSF Project

Title of the SSF Project: FACILITY SUPPORT FOR BAMBOO HOMESTYLE/FURNITURE

PRODUCTION

The Cooperator:

Project Co-operator is the Aklan State University (ASU)-Ibajay Campus, better known as the ASU-
College of Hospitality and Rural Resource Management (ASU-CHARRM) and is located in
Barangay Colong-colong, Ibajay, Aklan. ASU-Ibajay Campus started off in July 1971 as the Ibajay
National Agricultural and Industrial School (INAIS). It was later elevated into a tertiary education
institution, called the Western Aklan Polytechnic College (WAPC), and later on became one of the
five campuses of Aklan State University, known as the College of Hospitality and Rural Resource
Management.

ASU-CHARRM is striving for “Culture of Excellence” in Tourism, Hospitality Management, and

Allied Education Program for Sustainable Development through quality instructions, innovative and
relevant researches, responsive extension services, efficient use of resources and transparency in
governance towards poverty reduction and empowerment of the disadvantaged and vulnerable
member of the society.

In the past, DTI thru the Negosyo Center Ibajay, has extended assistance to ASU Ibajay in the
conduct of livelihood skills training on souvenirs using coco shells combined with bamboo.

In 2019, ASU-Ibajay Campus has submitted a proposal for a Shared Service Facility for Coco-
based products. Said proposal was approved by the Regional Technical Working Group in the
same year. This project aims to provide support facility to the coco-based industry; building up its
capacity in terms of production and quality of products.

Project Location: Complete Address/ with District: Naisud Livelihood Center

Barangay Naisud, Ibajay, Aklan

Industry Cluster: Bamboo Industry

Products/Service Line: Production of bamboo products from traditional to high-end bamboo
homestyle /furniture and furnishings and modern bahay kubo combined with metal, laminated
bamboo and other local materials.

Target Beneficiaries Proposed

No. of MSMEs assisted 30
(Individual MSMEs)
No. of other Individual Users 21
(bamboo pole suppliers, slat makers)

No. of Jobs Generated 102

Direct 60
Indirect 42

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Total SSF Project Cost - ₱1,481,000.00
DTI Counterpart

QTY Unit Description Unit Cost (Php) Total (Php)

1 Unit Bamboo Pole Cutter Php 57,000.00 Php 57,000.00

- Motor = 2hp, 1PH rating capacity, 220V, 60hz
- Blade = 14” dia x 80 TCT
- Capacity = 1pole/minute
- Bamboo Diameter = Maximum 6” diameter
- Accessories = 2 sets C-Clamp and 2 sets of Blow torch
with 11 kg LPG Tank
1 Unit Twin Rip Saw Php 200,000.00 200,000.00
- Motor = 3HP, 1PH rating capacity,
- = voltage: 220V, 60Hz
- Blade = 12” dia x 40TCT (2 pcs)
- Capacity = 1,200 slats/day
- Length of carriage = 2.4 meters
- Accessories = Treatment Vat
Material 1.5mm thick stainless vat w/stand
Size 1’H x 2’W x 6’L
Capacity 600 slats/batch)
- Locally Fabricated by the supplier based in Manila
1 Unit Kiln Dryer with Moisture Meter Php 650,000.00 650,000.00
- Made of cement and Refractory Bricks
- Inside measurement (m) = 1.8 x 2.1 x 2.7
- Outside measurement (m) = 4 x 5 x 3
- Fuel = 3.8kg/hr bamboo or wood waste
- Construction = Double wall with heat insulator, heat
exchanger and fan inside
- Aluminum Fan Motor = 1Hp, 220 V, 60 Hz, single phase
- Temperature = 800C drying chamber
- Capacity = 1000 board feet wood/ 350 pcs round poles
- Accessories = Moisture Meter
- Locally Fabricated by supplier based in Manila

1 Unit Heavy Duty Thickness Planer Php 260,000.00 260,000.00

- Max working thickness = 500mm
- Thickness of planning = 5-205mm
- Minimum working length = 220mm
- Maximum cutting depth = 5mm
- Cutter speed = 5000 r/min
- Feed speed = 9, 6.5 m/min (3 adjustable pulley)
- Blades = 3 Blades/cutterhead
- Motor = 1 phase, 5 hp, 220V, 60Hz TEFC Copper wire
stator
- Weight = 300kg

1 Unit Band Saw Php 140,000.00 140,000.00

- Max. Cutting Width = 16”
- Max. Cutting thickness = 10”
- Saw Blade Specifications = 3050 x 6- 25 x0.52
- Saw blade speed = 10m/s
- Work Surface Size =535 x 485mm
- Workbench Tilt Range = 0°-45°
- Motor = 220V 50hz 1500W
- Total Product Height = 1750
- Net/Gross Weight = 150/185
1 Unit Bench Drill
- Capacity = 220mm (3/4”) Php 25,000.00 25,000.00
- Power = 750 Watts – 1HP

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 - Spindle Travel = 85mm
- Table size = 290mm
- Base size = 460x272mm
- Column Diameter = 72mm
- Height = 1200mm
1 Unit Table top belt sander
- Power = 940W Php38,000.00 38,000.00
- Belt Size = 100mm x 610mm
- Net weight = 6.2kg

2 Units Air Compressor Php 40,000.00 80,000.00

- Motor = 2hp
- NO. of Cylinder = 2
- Phase = 1
- Pressure = 115psi
- Capacity = 88 litters
- Accessories: spray gun (suction type, 1-liter capacity air
and spray adjustment) 60 meters, reinforced nylon air
hose with fitting, nailer/tacker for finishing and painting
-
1 Unit Dust Collector Single Bag
- Motor – 1hp, 1ph, 220v, 60 Hz Php 31,000.00 31,000.00
- Suction Port – 2 branches, 100mm diameter
- Suction Hose – 2 pcs – 100mm Diameter x 4m (L)
Corrugated Flexible vinyl plastic
- Accessories = Hose 4”x50” Dust Collector Bag

DTI Counterpart (SSF) - ₱1,481,000.00

Naisud Barangay Council, Ibajay, Aklan

96sqm Processing area and storage including Electrical Requirement and Fire Fighting Php 600,000.00
Equipment

50 sqm Lot provision for the Kiln Dryer

Grand Total Php2,081,000.00

Note: Please see attached photos and specifications of machines (pages 11-13)

Rationale/Background:

Bamboo industry is one of the priority industry clusters for assistance by the Department of Trade and
Industry in collaboration with the Local Government Unit of Ibajay, Prov’l. Gov’t. of Aklan, DENR, DA,
TESDA, and the Aklan Bamboo Council. Bamboo is turning out to be a competitive commodity within
the region, along with cacao, coffee and coco-based industry clusters. Executive Order 879 was
issued in 2010 for the Philippine Bamboo Industry Development Council (PBIDC) to promote the use of
bamboo products, for school desks, furniture and fixtures and other construction needs.
Bamboo is also a good substitute for wood. It is being utilized into various structural floors and panels
and a component of landscape designs. Bamboo protects the environment and cleanses the air we
breathe. It is a highly renewable material as there is no need to replant once the clump is already

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established.
DTI Aklan has implemented various programs to enhance the productivity and income of the local
bamboo stakeholders to include furniture makers and traders and the farmer-growers. Among the
programs implemented for the bamboo development are the bamboo forum, product updating
workshops, novelty item making, support in marketing and promotion of bamboo products, participation
to local study missions and the provision of simple tools for the processing of bamboo products.
On November 9, 2018, the Aklan Bamboo Council was created with the support of DTI, Prov’l. Gov’t. of
Aklan, DENR, DOST, TESDA and Office of the Prov’l. Agriculturist to facilitate implementation of
projects for the development of the Bamboo Industry in the province.  Two bamboo players are from
Ibajay and both are officers of the Council.
As of date, 89 bamboo players were identified to be assisted by the sector. Fifty-one (51) are actively
involved in the production of furniture/home-style lounge chairs, bahay kubo, souvenirs, kitchen wares,
bamboo poles, and slats. Of the fifty-one (51), twenty-two (22) skilled bamboo furniture producers are
located in Ibajay. Bamboo raw materials such as anu-nuo and kawayang tinik are accessible in the
said town and nearby municipalities.
With the growing demand for innovative bamboo homestyle/furniture products in the market,
particularly in Boracay and other resorts in the province, the Naisud Bamboo Association together with
the other bamboo producers and ASU-Ibajay see the need to upgrade the simple carpentry tools and
equipment and acquire machines through the Shared Service Facility Program of DTI.
The proposed SSF will help increase production and produce standardized and high-end bamboo
homestyle /furniture and furnishings such as lounge chairs, console tables, coffee table sets, wall
frames, and modern bahay kubo combined with metal, laminated bamboo and other local materials.
This will also provide access to other MSMEs in the neighboring towns, as well as, promote youth
entrepreneurship among senior high and college students in the municipality.

With this, additional income for bamboo processors and farmers can be achieved and would
significantly impact the quality of life of its stakeholders and likewise generate more employment
opportunities in Ibajay and nearby towns.

Objectives:

 To provide upgraded support facility to the bamboo-based industry;

 To produce standardized and high-end bamboo homestyle /furniture and furnishings such as
lounge chairs, console tables, coffee table sets, wall frames, and modern bahay kubo combined
with metal, laminated bamboo and other local materials.
 To increase the sector’s production capacity to 50%-100% leading to increase in domestic sales
and income;
 To enable the beneficiaries to strengthen existing buyers and penetrate new markets.

Organization Management:

ASU-Ibajay will serve as the Cooperator and, therefore, would be responsible for the overall operation
of the SSF project thru the community extension service program of the university. As a whole, ASU
Ibajay takes charge of the effective implementation of the project.

The acquisition of upgraded bamboo related machines shall be operated as a shared service facility
which shall be located at the Livelihood Center of Bgy. Naisud, Ibajay, Aklan. Said equipment will be
maintained by the Naisud Barangay Council thru the team leader, Mr. Caren Prado and to be

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supervised and monitored by ASU-Ibajay thru the project manager and the project coordinator . The
Naisud Barangay Council has passed a Resolution on May 19, 2020 converting the Boxing Center of
Bgy. Naisud into a Bamboo Livelihood Center where the proposed SSF shall be located.

Location Production Center /Team Machines

Barangay Naisud, Ibajay, Aklan
Leader
Naisud Livelihood Center/ Bamboo Pole Cutter, Bamboo
Chairperson, Naisud Bamboo Twin Rip Saw, Kiln Dryer,
Association Thickness Planer, Band Saw,
Bench Drill, Belt Sander, Air
Compressor, Dust Collector
Single Bag.

The Naisud Livelihood Center shall cater primarily to the members of the bamboo furniture maker’s
association of Naisud and MSMEs of barangays Regador, Ondoy, San Isidro, Colong-Colong, other
barangays in Ibajay. A Memorandum of Agreement (MOA) will be entered into by ASU-Ibajay and
Brgy. Naisud, Ibajay, Aklan on or before end of October 2020 relative to management and equipment
handling and maintenance.

The team leader of the livelihood center will take charge of the volume of products produced by each
user/beneficiary and sales generated. They will submit a monthly report of production to the
Cooperator thru the Project Coordinator of the community extension service program of ASU-Ibajay.
They will also include in the report any problem/s that may arise in the course of operation.

In addition, the SSF center manager/team leader with ASU-Ibajay shall manage and allow the use of
machines by other individuals/ MSMEs who are non-members for their individual production, subject to
a usage fee.

A usage fee shall be implemented for the maintenance and operation of the machines in the amount of
P10.00/per hour per machine used. The Center’s team leader will also be responsible for monitoring/
reporting of production of other MSMEs/ individual who are not member of the group.

The ASU President shall oversee the implementation of the SSF project, while the ASU-Ibajay Campus
Director will serve as the Project Manager. The Project Manager will take charge in the supervision of
the SSF project/s in Ibajay and shall provide STRUCTURE
PROJECT status report to the ASU President. The Project
Coordinator shall be responsible for the monitoring and report preparation & submission; shall
coordinate with DTI; and shall coordinate/inform the center/s concerned of any problem/ concern that
will arise in the course of operation.

The Cooperator, thru its Project Coordinator, shall facilitate the report from the center and submit the
same to DTI. It shall be the responsibilityASU PRESIDENT
of the Cooperator, through its designated Project Manager
and the team, to manage the overall operation(Overseer)
of the SSF project.

ASU Ibajay
Campus Director
(Project Manager)

Project Coordinator
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Production/Livelihood Center –
Bgy. Naisud
(Team Leader)
 Community Extension Service Program

Expected Outputs:

With the implementation of the project it is envisioned to achieve the following:

1. Improved product quality;

2. Developed standardized and high-end bamboo homestyle /furniture and furnishings such as
lounge chairs, console tables, coffee table sets, wall frames, modern bahay kubo, and
souvenirs combined with metal, laminated bamboo and other local materials.
3. Increased production capacity for bamboo furniture/homestyle, and Kubo by 50%-100% yearly;
4. Increased market shares to include hotels/resorts in Aklan, LGUs, Schools, construction and
tourism industry, souvenir shops;
5. Increased in domestic sales by at least 50%-100% yearly;
6. Increased in job generation by at least 50% yearly (direct and indirect bamboo industry
workers);
7. Assisted at least 51 MSMEs and other individual users/students.

II. SSF Project Implementation

Production:

The SSF is expected to produce standardized and high-end bamboo homestyle /furniture and
furnishings such as lounge chairs, console tables, coffee table sets, wall frames, modern bahay kubo,
and souvenirs combined with metal, laminated bamboo and other local materials.

Current Percentage
Projected
Products Production Increase
Volume with SSF
Volume/Year with SSF

Sala Sets/Lounge chairs 114 *150 32%

High-end Bamboo Sala Set 10

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 High-end Bamboo Console Table 24

High-end Bamboo Mirror Frame 24

Bahay Kubo (regular size) 28 **32 14%

* Sala sets/Lounge chairs projected volume with SSF is a production of 50 tradional and 100 high-end
lounge chairs

**With SSF, the project will produce and transform the current tradional Bahay Kubo to a high-end
modern bahay-kubo.

Baseline data for the estimated production volume of high-end bamboo products was based on the
existing high-end bamboo and metal products available in Kalibo.

The new equipment is expected to provide 32% increase in production of lounge chairs and introduce
the production of high-end bamboo homestyle /furniture and furnishings such as lounge chairs, console
tables, coffee table sets, wall frames, modern bahay kubo, and souvenirs combined with metal,
laminated bamboo and other local materials.

Waste Management

The facility will be operating in a zero-waste management program. The waste materials will be used
as fuel to the kiln dryer while other materials including the dust will be used for vermicomposting facility.
The composting facility with the existing production capacity of 25 tons a month is designed to support
the agricultural initiatives implemented under the extension programs like cultivating and propagating
planting materials including bamboo.

Bamboo Propagation and Production in Aklan

To ensure enough supply of bamboo raw materials, the Department of Environment and Natural
Resources (DENR) along with their existing extension program has implemented programs to
strengthen the bamboo propagation and cultivation to the identified farmer communities all over Aklan
in line with their national greening project.The Department of Agriculture, with the support of
Congressman Teodorico Haresco of the 2nd District of Aklan, has committed to fund the establishment
of a Bamboo nursery worth P500,000.00 for ASU-Ibajay. This will answer the sustainability of raw
materials for bamboo processing.

Aklan has plenty of resources which, if harnessed and utilized to the fullest, can propel it to greater
economic growth. With the existing inventory of bamboo clumps in Aklan, bamboo furniture producers
will have sufficient source of raw materials. DENR and DA will be supporting the sustainability of raw
materials.

Based on the data gathered from DENR, the province of Aklan has a total of 2,975 hectares bamboo

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plantation provincewide. Of the total, 200 hectare plantation inside the forest land is financed by DENR
and implemented by peoples organization. The sector can produce approximately 187,006 poles/year.
50% of the total bamboo poles is converted into furniture/homestyle, bahay kubo, and souvenirs. 35%
is being sold as plain poles and slats, and 15% for fish pens and for other purposes.

The Center in Bgy. Naisud shall act as the node in the future supplying raw materials (slats) to
individual MSMEs producing furniture and furnishings.

Market/s:

Current Market Projected Market with SSF

The current market of the industry are selected
Resorts in Boracay and local buyers
(households) from Aklan, Antique, and Iloilo.
Participation to Product Exhibits in the province
and in Iloilo also helped in the sales generation.
With the SSF, it is expected that customer
relationship shall be maintained with the
existing market with increased number of
orders. The bamboo sector is also expected to
expand its market to include the Local
Government Units, other resorts, hotels,
tourism and construction sector, and schools in
Aklan and nearby provinces. DTI thru the
OTOP Next Gen Program, the Provincial
Government of Aklan with the Aklan Bamboo
Council will intensify product development and
online product promotion to achieve the
objectives of the project.

Sales

Estimated Sales/Year Projected Sales for Year 1

(bamboo with combination of metal) (bamboo with combination of metal)
High-end Bamboo Lounge Chair 100 units/year
(1MSME based in Kalibo)
P7,500/unit = P90,000.00/year (P7,500 x 100 = P750,000.00)

High-end Bamboo Sala Set 10 sets/year

(1MSME based in Kalibo)
(P15,000/set = P15,000.00/year (P15,000 x 10 = P150,000.00)

High-end Bamboo Console Table 24 units/year

(1MSME based in Kalibo)
P8,000/set = P96,000.00/year (P8,000 x 24 = P192,000.00)

High-end Bamboo Mirror Frame 24 units/year

(1MSME based in Kalibo)
P2,500/unit = P30,000.00/year (P2,500 x 24 = P60,000.00

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 Current Sales/ Year Projected Sales for Year 1
(Traditional) (Traditional to modern)
Bahay Kubo (regular size): 28 units/year Modern 12 units/year
(7MSMEs)
@ P15,000/Unit = P420,000.00/year (P45,000 x 32 = P1,440,000.00)

Sala Sets/Lounge chairs: 114 sets/year 50sets/year

(19MSMEs)
@P5,000/set = P570,000/year P7,000 x 50 = P350,000/year

TOTAL = P990,000.00 TOTAL = P2,942,000.00

The new equipment is expected to provide additional 224% increase in sales of bamboo products.

Annual Projected Sales

 Products Year 1 Year 2 Year 3

  Qty. Sales Qty. Sales Qty. Sales
High-end Bamboo Lounge
Chair 750, 1,125 1,687,5
(1MSME based in Kalibo) 100 000 150 ,000 225 00
P7,500/unit
Improved tradional Lounge
Chair 350, 52 791,0
50 000 75 5,000 113 00

High-end Bamboo Sala Set

(1MSME based in Kalibo) 150, 22 345,0
(P15,000/set = 10 000 15 5,000 23 00
P15,000.00/year
High-end Bamboo Console
Table 192, 28 432,0
(1MSME based in Kalibo) 24 000 36 8,000 54 00
P8,000/set = P96,000.00/year

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 High-end Bamboo Mirror
Frame
(1MSME based in Kalibo) 60, 90 135,0
P2,500/unit = 24 000 36 ,000 54 00
P30,000.00/year
Modern Bahay Kubo 1,44 1,5 1,710,0
(regular size): 32 0,000 35 75,000 38 00
@ P45,000/Unit
2,942,000 3,828,000 5,100,500

There will be a 224% increase in the first year’s projected sales and 30% increase in sales thereafter.

The SSF Project shall generate at least P1,120,571.43 sales per year to break-even/cover the total
costs. Per annual sales projection, the project shall break-even or be able to cover annual costs on the
1st year of the operation with projected sales of P 2,942,000.00.

III. EQUIPMENTS AND SPECIFICATIONS

A Manila based company has submitted their technical specification for the Bamboo machines and
technical expertise for the design, fabrication and installation of hereunder described project as per
specification submitted.

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 Bamboo Pole Cutter

Motor: 2HP, 1 PH rating capacity

Voltage: 220V, 60Hz (optional 3 phase)
Blade: 14” dia x 80TCT
Capacity: 1pole/minute
Bamboo diameter: Maximum 6” diameter
Accessories :2 sets of C Clamp 8” opening
2 sets of Blow torch with 11 kg LPG Tank

Twin Rip Saw

MODEL: LOCALLY FABRICATED
Brand: HINOKI
Motor: 3HP, 1PH rating capacity
Voltage: 220V, 60Hz
Blade: 12” dia x 40TCT (2 pcs)
Capacity: 1,200 slats/day
Length of carriage: 2.4 meters
Accessories: Treatment Vat
Material 1.5mm thick stainless vat w/stand, Size 1'H x 2'W x 6'L,
Capacity : 600slats/batch

KILN DRYER WITH MOISTURE METER

Made of Cement and Refractory Bricks

Inside Measurement (m) :1.8 x 2.1 x 2.7
Outside Measurement (m): 4 x 5 x 3
Fuel 3.8 kg/hr bamboo or wood waste
Construction Double Wall with heat insulator, heat exchanger and fan inside
Aluminum Fan Motor :1 Hp, 220 V, 60 Hz, single phase
Temperature: 80°C drying chamber
Capacity: 1,000 board feet wood/350 pcs round poles
Accessories: Moisture Meter
LOCALLY FABRICATED
 Construction of concrete kiln dryer room 6’ x 7’ x 9’
 Supply and Installation of 2 units 1 hp motor single phase (Japan) 220volts
 Supply and Installation of 2 pcs aluminum fan blade 24”Ø
 Supply and Installation of 8 pcs parilla for pugon
 Supply and Installation of digital electrical control
 Installation of pugon made of imported light weight fire bricks
 Supply and Installation of 12” dia x 2 meters and 6” dia x 4 meters black
iron heat pipes schedule 40.

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 THICKNESS PLANER

Max working thickness: 500 mm

thickness of planning: 5~205mm
Min working length: 220 mm
Max cutting depth: 5 mm
cutter speed: 5000 r/ min
Feed speed: 9, 6.5 m/min (3 adjustable pulley)
Blades:3 blades/cutterhead
Motor: 1 phase, 5 hp, 220V, 60 Hz TEFC Copper wire stator
Weight: 300kg
TAIWAN

BAND SAW
Max. Cutting Width 16”
Max. Cutting thickness 10”
Saw Blade Specifications 3050 x 6- 25 x0.52
Saw blade speed 10m/s
Work Surface Size 535 x 485mm
Workbench Tilt Range 0°-45°
Motor 220V 50hz 1500W
Total Product Height 1750
Net/Gross Weight 150/185

BENCH DRILL

Capacity: 20mm (3/4")

Power: 750 Watts - 1HP
Spindle Travel: 85mm
Table Size: 290mm
Base Size: 460 x 272mm
Column Diameter 72mm
Height: 1200mm

TABLE TOP BELT SANDER

Power: 940W
Belt Size: 100mm x 610mm
Net weight: 6.2 kg (13.7 lbs)

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 AIR COMPRESSOR

Specifications:
Motor: 2 hp No. of Cylinder: 2
Phase: 1
Pressure: 115 psi
Capacity: 88 liters
Accessories: spray gun (suction type, 1-liter capacity air and spray
adjustment) 60 meters, reinforced nylon air hose with fitting,
nailer/tacker for finishing and painting

SINGLE BAG DUST COLLECTOR WITH HOSE AND BAG

MODEL: SF-001
Brand: HINOKI
Motor: 1HP, 1PH, 220V, 60 Hz
Suction port 2 branches, 100mmdia
Suction hose: 2 pcs – 100mm dia x 4meter Length
Corrugated flexible vinyl plastic
Accessories Hose 4” x 50’ Dust Collector Bag
TAIWAN

Prepared by: Recommending Approval:

MA. STELLA R. CALDERA MA. CARMEN I. ITURRALDE

STIDS, DTI-Aklan OIC - Provincial Director

Approved by:

REBECCA M. RASCON
Regional Director

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