Farms

General Questions

Q1.Where can I find the news releases concerning AVA 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 AVA’s website and use them for tender submission?

No. You have to purchase the Tender Packet from AVA Service Centre for tender submission. Parties interested to participate in the tender are advised to purchase the Tender Packet. The responsibility of AVA 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 AVA 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 AVA tenders during the debarment period.

Q4.Can a company whose director(s) is debarred by SCOD participate in AVA tenders?

The company can participate in AVA 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a) A tender submitted cannot be withdrawn by the tenderer after the date and time for submission of tenders.

b) If a tender is withdrawn after the date and time for submission of tenders, the tender deposit will be forfeited.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.

QnA_Q6b

Q7.Will we be able to visit the sites and how can we navigate to the correct Land Parcel?

AVA is not conducting any site show round. The Land Parcels are currently hoarded up, and can only be accessed from the access points along Neo Tiew Road (“Designated Access”). Visitors shall be responsible for their own safety when they enter the Land, and AVA and/or the Government shall not be held liable for any losses, damages, injuries, claims or demands. Signboards measuring 3.8m in height have been installed on each of the 3 Land Parcels since the tender was launched on 31 Oct 2017. Visitors are advised to refer to the Location Plan and the signboards for navigation.

Q8.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”.

Q9.Can the tendering company include new shareholders after the award of tender?

Shareholders as at the Tender Closing Date (9 Jan 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.

Q10.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. Tenderers must list the types of produce, and in particular, the production output of Fin Fish.

Q11.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, AVA can accept them. Please provide an explanation in English on the purpose of each supporting document submitted in Chinese.

Q12.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.

Q13.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.

Q14.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

Q15.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.

Q16.Can we tender for more than one Land Parcel?

Yes, each Tenderer can tender for up to a maximum of three Land Parcels.

Q17.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.

Q18.What is the reason for allowing Alternative Selections?

In addition to the mandatory 1st Selection, Tenderers can choose to 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.

Scenario
Tendering company XY Co Pte Ltd wants to tender for 1 Land Parcel - LCK 70A, but also views LCK 70B as a suitable site. In this scenario, XY Co Pte Ltd will indicate LCK 70A as the mandatory 1st Selection and LCK 70B as the optional Alternative Section. In the event that LCK 70A is unavailable (i.e. awarded to another Tenderer), the Tender Proposal XY Co Pte Ltd submitted will be considered for LCK 70B.

Example of how Section 2 of the Form of Tender shall be completed for this scenario

Form_of_Tender_Tranche2

Q19.How will I be notified on the award of Tender?

AVA will inform the Successful Tenderer of the acceptance of his Tender by letter (“Tender Acceptance Letter”) sent to him by post or, if AVA deems fit, delivered to him by hand, to the address given in his Form of Tender. The date of the Tender Acceptance Letter from AVA to the Successful Tenderer shall be deemed to be the date of acceptance by AVA of the Tender (“Date of Tender Acceptance”).

Q20.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 2nd Quarter 2018. AVA will notify all Tenderers of the outcome of their application when the result of the Tender is released in 2nd Quarter 2018.

Q21.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.

Q22.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. AVA 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 AVA’s decision shall be final and binding.

Questions on payment of tender deposit and other fees

Q23.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) issued by a bank in Singapore and drawn in Singapore Currency 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.

Q24.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 AVA 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”.

Q25.Are there other fees that I need to pay to AVA?

In addition to the fixed sale price of the awarded Land Parcels as listed in the Price Schedule, the Successful Tenderer shall pay to AVA:

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.

CadastralSurvey_Tranche2

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).

Questions on Potential Production Output

Q26.What is Potential Production Output?

The Potential Production Output is the annual Fin Fish production output for the proposed farm. Production of Non-fin Fish does not contribute to the Potential Production Output. 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, AVA shall be entitled to re-enter the land and resume possession of the Land without refund of Land Premium or compensation of any kind.

Q27.How do I determine whether my Fin Fish production output falls under “Grow-out Operation” or “Hatchery Operation”?

The Fin Fish production from your farm would be defined as a “Grow-out Operation” should the final commodity from the farm be at a stage ready for human consumption (e.g. the farm sells table sized Fin Fish to consumers).

The Fin Fish production from your farm would be defined as a “Hatchery Operation” when the farm produces early life stages of Fin Fish (e.g. Fin Fish fry or fingerlings sold to other farms for further grow-out).

Q28.Is there a timeframe for the rearing of Fin Fish for it to be considered as Potential Production Output? [Updated - 12/12/2017]

There are two modes of operation as stated in Section 1c of the Tender Proposal Form:

  • Grow-out Operation, which refers to processes and systems related to the rearing of Fin Fish to a stage ready for human consumption and;
  • Hatchery Operation, which refers to processes and systems related to the breeding, hatching and rearing through the early life stages of Fin Fish.

The timeframe for each operation is elaborated below.

Timeframe for Grow-out Operation

The timeframe for the rearing of Fin Fish (in a Grow-out Operation) for it to be considered as part of the Potential Production Output would differ depending on the species. As a general guideline, the timeframe for the rearing of Fin Fish (in a Grow-out Operation) should be longer than 6 months. Fin Fish kept for the sole purpose of Trading cannot be counted towards the farm’s Potential Production Output. Tenderers are advised to seek clarification from AVA for the species of Fin Fish they intend to rear. The Potential Production Output must be indicated in tonnes (Fin Fish)/year in Section 1c of the Tender Proposal Form.

Timeframe for Hatchery Operation
 
The timeframe for the rearing of Fin Fish (in a Hatchery Operation) for it to be considered as part of the Potential Production Output would differ depending on the species. As a general guideline, the timeframe for the rearing of Fin Fish (in a Hatchery Operation) should be longer than 2 months. Fin Fish kept for the sole purpose of Trading cannot be counted towards the farm’s Potential Production Output. Tenderers are advised to seek clarification from AVA for the species of Fin Fish they intend to rear. The Potential Production Output must be indicated in million pieces (Fin Fish)/year in Section 1c of the Tender Proposal Form.

Q29.For a farm with both Grow-out Operation and Hatchery Operation, how should the Potential Production Output be indicated? [Updated - 12/12/2017]

For a farm with both Grow-out Operation and Hatchery Operation, two separate Potential Production Output figures must be indicated in Section 1c of the Tender Proposal Form.
 
Potential Production Output for Grow-out Operation
 
The Potential Production Output for Grow-out Operation refers to the production of Fin Fish to a stage ready for human consumption. Indicate this production output in tonnes (Fin Fish)/year.
 
Potential Production Output for Hatchery Operation
 
The Potential Production Output for Hatchery Operation refers to the breeding, hatching and rearing through the early life stages of Fin Fish. Indicate the production output in million pieces (Fin Fish)/year. The production output can include (i) Fin Fish fingerlings produced for further grow-out on-site as well as (ii) Fin Fish fingerlings produced for sale.
 
The percentage of the farm used for Grow-out Operation and Hatchery Operation (excluding area for ancillary uses) must also be indicated in Section 1c of the Tender Proposal Form.

Q30.Can a Hatchery Operation use imported eggs/fry from other countries or external sources? [Updated - 12/12/2017]

Fin Fish eggs/fry imported from other countries or external sources can be used in a Hatchery Operation.
 
However, imported fry that are more than 1 month old will not count towards the Potential Production Output for the rearing of Fin Fish in a Hatchery Operation.

Q31.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 AVA.

Q32.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, AVA 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. AVA will assess the Tender Proposals holistically, in accordance with the 4 Tender Evaluation Criteria.

Q33.In the event of disruptions to farm production due to unforeseen circumstances such as pest or disease outbreaks, would AVA 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, AVA would assess the situation and consider granting extensions of time to achieve the Potential Production Output on a case by case basis.

Q34.How would AVA track and assess the Potential Production Output?

Successful Tenderers are required to submit reports on the farm's production output to AVA 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 AVA.

Questions on lease conditions, land utilisation and farm development

Q35.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 fixed sale price, prevailing GST payable on the fixed 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.

Q36.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 (i.e. Food Fish Farming) and Successful Tenderers are required to adhere to their Tender Proposal during the Lease Term.

Q37.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.

Q38.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 AVA for an extension of the PCP. Any extension given may be subjected to an Extension Premium based on the following schedule of rates:

QnA_Q22

Q39.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. AVA 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 within five years of the Date of Tender Acceptance, and maintain or exceed the Potential Production Output throughout the remaining Lease Term will still apply for Phased Developments. If the Successful Tenderer fails to achieve the Potential Production Output, AVA shall be entitled to re-enter the land and resume possession of the Land without refund of Land Premium or compensation of any kind.

Q40.How do I apply for a farm licence? Do I have to apply for a farm licence before putting in a tender?

The Successful Tenderer shall be required to obtain at his own expense a licence from AVA 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. Information on the application of a farm licence can be found on our website.

Q41.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 AVA’s consent, which may be given or withheld at AVA’s absolute discretion. In giving consent for any transfer or sale, AVA 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.

Q42.Is subletting allowed?

AVA 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 AVA, which may be given or withheld at AVA’s absolute discretion.

Q43.Can I use Aquaponic Systems on the Land?

Yes, Aquaponics is included in the list of allowable production-related purposes. If products from the aquaponic systems are intended for commercial sales, the Successful Tenderer will need to obtain the relevant farming licences from AVA.

Q44.Can I have a visitor centre and retail outlets?

Land is tendered for specific use (i.e. Food Fish Farming). The value of the land is thus fixed for Food Fish 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 AVA and the relevant authorities.

Visitor centre and retail outlets are considered as ancillary use, and are subject to the approval of AVA and the relevant authorities. The Successful Tenderer shall comply with URA’s guidelines which allow supporting visitor amenities as an ancillary use on farms (see table below). Development Charge/Differential Premium/additional land premium, where payable, will be levied for these visitor amenities. AVA’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).
QnA_Q26

Q45.Is there a size limit to the packaging/processing centre that I can build on the farm? What is the meaning of 30m AMSL?

All developments within the LCK 70A and LCK 70B are subjected to the building height control of 42m above mean sea level ("AMSL"), as well as requirements and approvals by the relevant authorities. Note that the building height control for LCK 173 is slightly lower, at 37m AMSL. 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).

As an illustration, 42m AMSL refers to a maximum building height of 42m 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.

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.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.

Q48.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).

Q49.What are the infrastructures and services already provided for and what does the Successful Tenderer need to set up?

SEWER SYSTEM
PUB is implementing a sewerage system to serve Lim Chu Kang which is estimated to be completed by 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
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.

ELECTRICAL SUBSTATION
AVA is constructing new electrical substations (“ESS”) to support the sites, the ESS will be ready and commissioned by mid-2019. Upon completion of the ESS, there will be 400A of power available from the 22kV ESS. If the farm operation requires power supply of more than 400A, the Successful Tenderer shall construct their own 22kV/LV ESS as part of their farm development within their Land Parcel. The Successful Tenderer shall bear the cost of connection fees, including the cables and other facilities necessary for the connection.

GAS
There are no existing gas mains in the vicinity of the Land.

Q50.Can sea water be drawn to be used in the farm

The sites do not have direct access to sea water. Tenderers are advised to consult the relevant authorities such as PUB with regards to matters regarding water supply.

Back to Top LAST UPDATED ON Tuesday, December 12, 2017
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