Q1.Where can I find the news releases concerning SFA farm land sales?
News on the sale of farm land including land available for tender, closing of tender and award of tender can be found on our website.
Q2.Can I print out the Tender Documents from SFA’s website and use them for tender submission?
No. Parties interested to participate in the tender are advised to purchase the Tender Packet. Tenderers are required to use the submission forms and envelopes provided in the Tender Packet. The responsibility of SFA and the Government is limited to notifying purchasers of the Tender Packet on updates and changes to the Tender Documents.
Q3.Can a company or a person who is debarred by the Standing Committee On Debarment (“SCOD”), Ministry of Finance, participate in SFA tenders during the debarment?
Any company or person debarred by SCOD from participating in "all lines of business", cannot participate in all public tenders including SFA tenders during the debarment period.
Q4.Can a company whose director(s) is debarred by SCOD participate in SFA tenders?
The company can participate in SFA tenders only if:
a) the company was incorporated before and not after the effective date of debarment of the director(s);
b) the debarment was not for corruption or rigging; and
c) the company is not debarred.
Q5.Can a public listed company put in a tender which is subject to its shareholders approval if the tender is accepted, i.e. in compliance with Chapter 10 of the Listing Manual requiring shareholders approval at an EGM if the company is to make a major acquisition?
No, Tenderers are required to submit firm and unconditional offers. The following should also be noted:
a) A tender submitted cannot be withdrawn by the tenderer after the date and time for submission of tenders.
b) If a tender is withdrawn after the date and time for submission of tenders, the tender deposit will be forfeited.
Q6.If there is more than one company tendering jointly for Land Parcel(s), how should the Form of Tender be completed?
Where a tender is submitted jointly by 2 or more companies, Section 8(B) of the Form of Tender shall be completed to reflect the particulars of all the joint tenderers. See example below. If there is insufficient space in the Form of Tender, a separate sheet of paper listing the particulars of the companies jointly tendering for the Land Parcel(s) should be attached together with the Form of Tender.
Example of how Section 8(B) of the Form of Tender shall be completed to provide all information on both companies when the tender is submitted jointly by 2 companies, Company A and Company B.
Q7.What is the meaning of “Director’s resolution” mentioned in Section 8 of the Form of Tender?
The “Director’s Resolution” mentioned in the Form of Tender can be a signed letter by the company’s Directors, stating the name and NRIC of the “Authorised Person” and authorising him/her to sign on documents pertaining to this tender on behalf of the tendering company.
Q8.Can we use the grant from the Agriculture Productivity Fund ("APF") to set up the new farm?
The APF is not intended to be used towards the setting up of new farms. Tenderers are advised to ensure that they have sufficient funds to pay the fixed sale price for the Land (which must be paid in full within 90 days from the Date of Tender Acceptance) and the development of the farm (which must be completed within the Project Completion Period of 24 months, and in accordance with the Tender Proposal submitted).
Q9.Will we be able to visit the sites and how can we navigate to the correct Land Parcel?
Designated time slots for viewing, by reservation only
The Land Parcels are currently hoarded up as there are ongoing extensive land preparation works. SFA has arranged for accessibility for viewings at the following time slots. Visitors who wish to view the Land Parcels may contact Land Sales Section at 6805 2987 or Landsales@sfa.gov.sg.
Schedule for viewing:
||31 Jul 2018 AM (Tue)
7 Aug 2018 AM (Tue)
||Visitors are to note that transport will not be provided.
LCK 114A/LCK 114B : 9.30 a.m.
Please note that visitors shall be responsible for their own safety when they enter the Land.
Please contact Land Sales Section to register your interest for viewing of the Land Parcels by 24 Jul 2018. Visitors are advised to refer to the Location Plan and the signboards installed on site for the location of the sales sites.
Q10.Must a tenderer be a registered company to tender for the sites? Are joint ventures allowed?
There is no restriction on the type of entity for the submission of tender. Individuals and business entities (e.g. Sole Proprietorship/Partnership/Private Limited Company/etc) are allowed to tender, and joint ventures are allowed. The individuals and/or business entities listed in Section 8 of the Form of Tender will be collectively referred to as the “Tenderer”.
Q11.Can the tendering company include new shareholders after the award of tender?
Shareholders as at the Tender Closing Date (4 Sep 2018) must hold and continue to retain a controlling interest of more than fifty per cent (50%) of the shares in the company throughout the Lease Term. Refer to Condition 39 in the Conditions of Tender for requirements on controlling interest.
Q12.Would overseas Production Track Records be recognised and can it be used as part of my tender submission?
Yes, overseas Production Track Records would be recognised.
Q13.Can I submit documents written in Chinese about my experience/track record in China?
The Tender Proposal Form must be completed in English. However, if the original versions of your supporting documents are in Chinese, SFA can accept them. Please provide an explanation in English on the purpose of each supporting document submitted in Chinese.
Q14.For a Tenderer without Production Track Records, but who intends to use a farming system from a proven solution provider, how should Section 2 of the Tender Proposal Form be completed?
Tenderers can indicate the production output from prototype systems (if applicable) in Section 2 of the Tender Proposal Form. However, for Tenderers without track record and prototype systems, Section 2 of the Tender Proposal Form should be left blank.
Q15.If the solution provider decides to partner the Tenderer and submits a joint tender, or takes an equity stake in the tendering company, can the Production Track Records of the solution provider be used in Section 2 of the Tender Proposal Form?
Tenderers can indicate the track records and relevant experience of partners (e.g. partners in a joint tender or equity partners with shareholding in the tendering company) in the Tender Proposal Form. There are requirements on controlling interest when the Successful Tenderer is a company or includes one or more companies, including the requirement for shareholders as at the Tender Closing Date to hold and continue to retain a controlling interest of more than fifty percent (50%) of the shares in the company throughout the Lease Term. Refer to Condition 39 in the Conditions of Tender for requirements on controlling interest. The Production Track Record of the solution provider will not be considered.
Q16.Are we allowed to partner with foreign companies for this tender?
There are no restrictions on joint ventures with foreign business entities.
Questions on fixed price tender and tender mechanism
Q17.What is Fixed Price Tender System? How are the tenders going to be evaluated?
Under the Fixed Price Tender System, the sale price for each Land Parcel is fixed at the Chief Valuer’s valuation and tenders will be evaluated based on the Tender Proposal submitted (according to the Part IV - Tender Evaluation Criteria listed in Appendix F of the Conditions of Tender). Tenderers are required to submit their selection of Land Parcel(s) using the Form of Tender enclosed in the Tender Packet, as well as their Tender Proposal using the Tender Proposal Form enclosed in the Tender Packet.
Q18.Can we tender for more than one Land Parcel?
Yes, each Tenderer can tender for up to a maximum of two Land Parcels. The Tenderer can also indicate Alternative Selections. In the event that the tenderer is not awarded the Land Parcel(s) indicated as the 1st Selection, the tender evaluation committee will consider his Alternative Selections and determine if he ought to be awarded the Land Parcel(s) based on his Alternative Selections. The tender evaluation committee shall not be bound to consider the Land Parcel(s) in order of preference if the Tenderer has indicated Alternative Selections of Land Parcel(s). Please see the following example for illustration.
Tendering company XY Co Pte Ltd wants to tender for 1 Land Parcel – LCK114A, but also views LCK 114B as a suitable site. In this scenario, XY Co Pte Ltd will indicate LCK 114A as the mandatory 1st Selection and LCK 114B as the optional Alternative Section. In the event that LCK 114A is unavailable (i.e. awarded to another Tenderer), the Tender Proposal XY Co Pte Ltd submitted will be considered for LCK 114B.
An example of how Section 2 of the Form of Tender shall be completed for the above scenario:
Q19.Will I be awarded fewer Land Parcels than what I have indicated in my Selections?
No, the Successful Tenderer will be awarded according to the number and selection of Land Parcels that he indicated in the Form of Tender.
Q20.How will I be notified on the award of Tender?
SFA will inform the Successful Tenderer of the acceptance of his Tender by letter (“Tender Acceptance Letter”) sent to him by post or, if SFA deems fit, delivered to him by hand, to the address given in his Form of Tender. The date of the Tender Acceptance Letter from SFA to the Successful Tenderer shall be deemed to be the date of acceptance by SFA of the Tender (“Date of Tender Acceptance”).
Q21.When will the award of Tender be announced?
The tender evaluation process could take about 3-4 months from the Tender Closing Date. Hence, the results of the Tender would be announced in the 1st Quarter of 2019. SFA will notify all Tenderers of the outcome of their application when the results of the Tender are released in the 1st Quarter of 2019.
Q22.Who is evaluating the tenders? How will I know if the process is fair?
Tender Proposals will be evaluated against the Tender Evaluation Criteria, by a committee comprising of both external experts and relevant government agencies to ensure robust evaluation.
Q23.Is the Successful Tenderer allowed to change the technology and systems used, while maintaining the Potential Production Output declared in the Tender Proposal?
The Tenderer must adhere to the Tender Proposal (submitted in the Tender Proposal Form) throughout the Lease Term. SFA reserves the right to allow or reject the Successful Tenderer’s request to vary the Tender Proposal contained in the Tender Proposal Form during the Lease Term and SFA’s decision shall be final and binding.
Questions on payment of tender deposit and other fees
Q24.How do we make payments for the tender deposit and the fixed sale price? Are personal cheques, company cheques or cash acceptable?
Tender deposits paid at the time of tender submission shall be in the form of Cashier's Order(s) made payable to the “Agri-Food & Veterinary Authority of Singapore”. The Tenderer shall pay the tender deposit as stipulated in the Price Schedule in accordance with the number of Land Parcels tendered.
All subsequent payments of the fixed sale price shall be in the form of Cashier's Orders made payable to the “Commissioner of Lands, SLA”.
Personal cheques, company cheques or cash are not acceptable.
Q25.Can the fixed sale price be paid by instalments?
Payment shall be made in full in accordance with the Conditions of Tender. The Successful Tenderer shall submit the Cashier’s Orders to SFA in the following manner:
a) within 28 days from and including the date of the Tender Acceptance Letter, twenty-five per cent (25%) of the fixed sale price (included in which is the tender deposit), together with GST payable on the twenty-five per cent (25%) of the fixed sale price, by Cashier’s Order made in favour of “Commissioner of Lands, SLA”; and
b) on or before the date of expiry of the 90 Days Period, the balance of seventy-five per cent (75%) of the fixed sale price, together with the GST payable thereon, by Cashier’s Order made in favour of “Commissioner of Lands, SLA”.
Q26.Are there other fees that I need to pay to SFA?
In addition to the fixed sale price of the awarded Land Parcels as listed in the Price Schedule, the Successful Tenderer shall pay to SFA:
a) an alienation processing fee of S$1,000 for each Land Parcel awarded; and
b) the cadastral survey costs of the awarded Land Parcels as listed in the table below.
The Successful Tenderer shall also pay the proper amount of ad valorem stamp duty chargeable on the Tender Acceptance Letter under Article 8(b) or 8(c) of the First Schedule of the Stamp Duties Act (Cap. 312) (whichever is applicable) within fourteen (14) days from and including the Date of Tender Acceptance directly to Inland Revenue Authority Of Singapore (IRAS).
Q27.What is the expected property tax payable for the new farm land?
Upon the successful tender of the farm land, the Successful Tenderer is required to pay the property tax with effect from the date of lease commencement. The property tax is payable in advance each year and is computed by applying the applicable tax rate to the annual value (“AV”) of the property. The prevailing property tax rate for non-residential property is 10%. The AV of farm land is determined based on 5% of the estimated freehold market land value. Subsequently, the AV will be reviewed every year to take into account the prevailing farm land market values. Upon the completion of building or structures on site, the basis of assessment and the AV will be reviewed again. AV shall be determined at 5% on the estimated value of the property, including buildings if any thereon. IRAS will engage the Successful Tenderers of farm lands to better understand their high tech farming concepts and the extent of their improvements on site, and to share on the basis of assessment for property tax.
Questions on Potential Production Output
Q28.What is Potential Production Output?
The Potential Production Output is the annual Quail Egg production output for the proposed farm.
Tenderers shall provide the Potential Production Output in Section 1c of the Tender Proposal Form for the mandatory 1st Selection and each Alternative Selection (if Alternative Selections have been indicated in the Form of Tender).
The Successful Tenderer shall achieve the Potential Production Output within five years of the Date of Tender Acceptance, and maintain or exceed the Potential Production Output throughout the remaining Lease Term. If the Successful Tenderer fails to achieve the Potential Production Output, SFA shall be entitled to re-enter the land and resume possession of the Land without refund of Land Premium or compensation of any kind.
Q29.Will Successful Tenderers still be required to meet the 90% land utilisation requirement even if they can meet the Potential Production Output using lesser land area?
Yes. Successful Tenderers shall ensure that at least 90% of the land shall be used for production and production related purposes, i.e. the minimum Production Area for each Land Parcel must still be met, refer to Appendix F of the Conditions of Tender (Appendix F - Condition 2.1). Any deviation from this requirement is subject to the consent of SFA.
Q30.What would happen to the land if the Successful Tenderer cannot fulfil their Tender Proposal after the tender has been awarded?
Successful Tenderers must achieve the Potential Production Output within five years of the Date of Tender Acceptance, and maintain or exceed the Potential Production Output throughout the remaining Lease Term. Failure to perform the above conditions will result in a breach of contract, SFA may re-enter the land and resume possession of the Land without refund of Land Premium or compensation of any kind.
Tenderers must consider their business sustainability when declaring their Potential Production Output. Innovation and Business Sustainability accounts for 20% of the evaluation criteria, and Tenderers are required to submit their business plan as part of their Tender Proposal. SFA will assess the Tender Proposals holistically, in accordance with the 4 Tender Evaluation Criteria.
Q31.In the event of disruptions to farm production due to unforeseen circumstances such as pest or disease outbreaks, would SFA relax the requirement for meeting the Potential Production Output?
Successful Tenderers are required to adhere strictly to the Potential Production Output declared in the Tender Proposal Form. In the event of pest or disease outbreaks, SFA would assess the situation and consider granting extensions of time to achieve the Potential Production Output on a case by case basis.
Q32.How would SFA track and assess the Potential Production Output?
Successful Tenderers are required to submit reports on the farm's production output to SFA on a quarterly basis and also engage an independent public accountant/accounting firm to carry out annual audits of the production outputs, if required by SFA.
Questions on lease conditions, land utilisation and farm development
Q33.When does the 20-year Lease Term start?
The Lease Term starts on the date where site possession has been granted to the Successful Tenderer. Site possession shall be granted to the Successful Tenderer upon receipt of the full payment of the Tendered Sale Price, prevailing GST payable on the Tendered Sale Price, cadastral survey cost and other costs, e.g. stamp duty, and alienation processing fee. The exact date shall be stated in the Letter of Possession.
Q34.Can I change my land use half way through my lease?
No change of land use is allowed. Land is tendered for the specific use (e.g. Quail Egg Farming) and Successful Tenderers are required to adhere to their Tender Proposal during the Lease Term.
Q35.What is the Project Completion Period?
The Project Completion Period (“PCP”) means the period of 24 months commencing from the Date of Tender Acceptance for the construction and the obtaining of Temporary Occupation Permit (“TOP”) or Permits for the whole of the Development.
Q36.Is Extension Premium applicable to the sites?
Successful Tenderers who cannot meet the PCP and need more time to complete the Development will need to apply to SFA for an extension of the PCP. Any extension given may be subjected to an Extension Premium based on the following schedule of rates:
Q37.Can I carry out development of the farm in phases and obtain TOP only for the 1st phase of development within the PCP? Subsequent phases will be developed only when production stability is achieved and when market demand increases.
All requests to develop the farm in phases (“Phased Development”) will be assessed on a case by case basis, taking into account the farm’s development plans and development timeline. SFA shall be at liberty to impose any terms and conditions including the payment of an extension premium based on the farm’s development plans and development timeline.
The requirement for the Successful Tenderer to achieve the Potential Production Output/Potential Business Revenue within five years of the Date of Tender Acceptance, and maintain or exceed the Potential Production Output/Potential Business Revenue throughout the remaining Lease Term will still apply for Phased Developments. If the Successful Tenderer fails to achieve the Potential Production Output/Potential Business Revenue, SFA shall be entitled to re-enter the land and resume possession of the Land without refund of Land Premium or compensation of any kind.
Q38.How do I apply for a farm licence?
Information on the application of a farm licence and the licensing conditions for various farm types can be found on our website.
Q39. Do I have to apply for a farm license before putting in a tender?
The Successful Tenderer shall be required to obtain at his own expense a licence from SFA to keep and maintain a farm in accordance with the Animals and Birds (Licensing of Farms) Rules prior to the start of any farming activity or within a period of one (1) month from the date of issue of Temporary Occupation Permit or Permits for the whole of the Development or such other time as may be required by the Authority, whichever is earlier.
Q40.If I were to exit the business, can I transfer or sell the farm land and farm license?
Any transfer or sale will be subject to SFA’s consent, which may be given or withheld at SFA’s absolute discretion. In giving consent for any transfer or sale, SFA reserves the right to impose any terms and conditions as it shall at its entire and unfettered discretion deem fit and which terms and conditions may include the levy of a fee.
Q41.Is subletting allowed?
SFA will not consider subletting the Land in its vacant or undeveloped state, and at any time prior to the date of issue of TOP or Permits for the whole of the Development. After TOP or Permits for the whole of the Development has been obtained and throughout the remaining Lease Term, no subletting is allowed without the prior written consent of SFA, which may be given or withheld at SFA’s absolute discretion.
Q42.Can I have a visitor centre and retail outlets?
Land is tendered for specific use (i.e. Quail Egg Farming). The allowable ancillary uses are Workers’ Quarters, Office and Carpark (refer to Appendix A of the Conditions of Tender). Any proposal for other ancillary uses is subject to the approval of SFA and the relevant authorities.
Visitor centre and retail outlets can be considered as part of the farm’s ancillary use, and are subject to the approval of SFA and the relevant authorities. The Successful Tenderer shall comply with URA’s prevailing guidelines which allow supporting visitor amenities as an ancillary use on farms (see current guidelines in table below). These guidelines apply on a per development basis (i.e. if a Tenderer is awarded contiguous Land Parcels, the maximum allowable Gross Floor Area for supporting visitor amenities will remain capped at the areas listed in the table below). Development Charge/Differential Premium/additional land premium, where payable, will be levied for these visitor amenities. SFA’s endorsement and planning approval by URA is required.
The total outdoor and indoor floor areas for all ancillary uses on each Land Parcel shall not exceed the areas listed in Appendix F of the Conditions of Tender (Appendix F - Condition 2.1).
Q43.What was the land previously used as? What is the soil condition of the backfill like?
The site was a former vegetable farm. The description of soil characteristics can be found in the Technical Information Booklet.
Q44.Is there a size limit to the packaging/processing centre that I can build on the farm?
If the packaging/processing centre is assessed by the relevant authorities to be ancillary in nature, there is a Maximum Floor Area limit on the ancillary uses (refer to Appendix A of the Conditions of Tender for allowable production and production-related uses, and Maximum Floor Area for ancillary uses for each Land Parcel).
Q45.What is the meaning of AMSL?
All developments within the site are subject to the building height control, example 40m above mean sea level ("AMSL"), as well as requirements and approvals by the relevant authorities. 40m AMSL refers to a maximum building height of 40m above mean sea level, this is a standard industry technical requirement. A professional architect or Qualified Person hired to design the development would be able to advise Tenderers on this requirement. Refer to Appendix F of the Conditions of Tender for the building height controls on each Land Parcel.
Q46.What is the topology of the sites?
We have attached a Planimetric Plan that indicates the Reduced Level (“RL”) on the sites in the Technical Information Booklet. Successful Tenderers are advised to carry out their own survey of the sites prior to construction works.
Q47.With high-tech and indoor farming systems, would there be more stringent requirements with respect to fire safety?
Tenderers are advised to consult SCDF on its requirements for their developments. Every development is unique and technical agencies, including SCDF, have advised that Successful Tenderers should approach them directly with their development plans.
Q48.Can the requirement on minimum Production Area be waived for a multi-storey farm where the total floor area within the building has met the requirement? In such a scenario, can the remaining land be left vacant or be used for vehicle driveways?
For multi-storey farms where the total floor area within the building has met the minimum Production Area, requests to waive the requirement on minimum Production Area will be assessed on a case by case basis. The requirement to comply with the cap on Floor Area for ancillary uses, as stipulated in Appendix A of the Conditions of Tender must still be met. Generally, vehicle driveways to serve production or production-related purposes will contribute towards the minimum Production Area.
Q49.There are requirements from various technical agencies in this tender (i.e. PUB/NEA/SCDF/etc), can we have information on who to contact for further details on these requirements?
The contact persons for the various technical agencies are listed in the Tender Documents – Conditions and Requirements of Relevant Authorities/Public Utility Licensees (For Tenderers’ information only).
Q50.What are the infrastructures and services already provided for and what does the Successful Tenderer need to set up?
PUB is implementing a sewerage system to serve Lim Chu Kang which is estimated to be completed after end 2020. Before the completion of the sewerage system, the Successful Tenderer will be required to use holding tanks (subject to approval from PUB) to handle used water generated at the site. The holding tanks shall be constructed at the Successful Tenderer’s own cost. Upon the completion of the sewerage system, the Successful Tenderer will be required to divert the used water discharged from the Land into the public sewer. The Successful Tenderer shall bear the cost of the flow diversion including the construction of internal drain lines, sewers and other sewerage facilities necessary to effect the flow diversion. The Successful Tenderer shall also demolish all the disused sewerage facilities and holding tanks after the flow diversion.
Water supply pipelines are available in the vicinity of the Land. Tenderers are advised to contact PUB for details on the location of water supply pipelines. The Successful Tenderer shall bear the cost of connection fees, including the pipes and other facilities necessary for the connection.
There is 400A of power available from the 22kV/LV electrical substations ("ESS") under construction by SFA. The ESS is expected to be completed and commissioned by 31 Dec 2019. The indicative completion date of 31 Dec 2019 is based on the assumption that the proposed ESS works can be carried out and completed as scheduled without any complications or delay. The State shall not be responsible for any delay in completion of the proposed ESS works, whatsoever. If the farm operation requires more than 400A of power, the Successful Tenderer shall construct their own 22kV/LV ESS as part of their farm development within their land parcel.
There are no existing gas mains in the vicinity of the Land.
Q51.Can the location of vehicle ingress/egress as shown in the Control Plan be relocated to another place?
The locations of vehicle ingress/egress were planned with consideration of the traffic arrangements of the surrounding Land Parcels, and the Successful Tenderer shall take access from the designated ingress/egress location as indicated in the Control Plan. Prior approval from LTA is required for any deviation from the designated ingress/egress locations.
Q52.Can quails be slaughtered on-site for processing and distribution?
Any proposed slaughtering / processing facility on-site will have to comply with the requirements of other agencies (such as PUB, NEA, URA, SLA and NParks). For more information on these environmental and pollution control requirements, Tenderers are advised to refer to these agencies requirements specified under the Conditions of Requirements of Relevant Authorities/Public Utility Licensees (for Tenderers’ information only).
Q53.We notice that there are some structures (e.g. greenhouse and concrete pavements) on Land Parcels LCK 114A and LCK 114B. Can these structures be retained for use by the Successful Tenderer use?
These structures will be demolished. The Land Parcels will be turfed with grass and delivered to the Successful Tenderers.
Q54.Can we use the Land Parcels for the production of hen eggs? [Updated - 25/7/18]
Quail Egg Farming is allowed on the Land Parcels. It means the production of quail eggs intended for human consumption.
The production of hen eggs is not an allowable farming activity.
Q55.Can the area of the treatment ponds count towards the Production Area? [Updated - 25/7/18]
Treatment ponds built to support farming activities can be considered under allowable production-related purposes, and will be considered as Production Area.
Q56.Will the area of an office/worker’s quarter on the second storey of a two-storey building (where the first storey is used for production) count towards the allowable Maximum Floor Area for ancillary uses? [Updated - 25/7/18]
The Maximum Floor Area for ancillary uses includes both outdoor and indoor floor areas, thus the area of an office/worker’s quarter on the second storey of a two-storey building will count towards the Maximum Floor Area for ancillary uses.
Q57.After the award of tender, will SFA be able to provide assistance on the removal of underground debris or materials? [Updated - 25/7/18]
The description of soil characteristics can be found in the Technical Information Booklet available for download on website. The Successful Tenderer shall accept the Land on an “as is where is” basis and shall not require SFA to remove any encroachment, building, structure, fixture, fitting or thing present on, under or within the Land.