EXTENSIONS FOR COMPLETION OF SALES AND PURCHASES OF STATE LAND (Rationale)

Mr Low Thia Khiang asked the Minister for National Development what is the rationale for allowing developers time extensions to complete the sales and purchases of state land and whether he will provide a detailed list of developers and particulars of sites that were granted such extensions from 1993 up to the current year.

The Parliamentary Secretary to the Minister for National Development (Mr Koo Tsai Kee) (for the Minister for National Development): Mr Speaker, Sir, first, I would like to thank the Member for asking this question to allow the Ministry to clarify some points.

The successful tenderer of a Government land sale site is required to pay 25% of the land premium within 28 days from the date of award. The balance 75% is to be paid within 90 days from the date of award, or any further period as may be extended by the Government subject to late interest charges. These terms are quite clearly spelt out in the tender conditions.

Provisions for time extensions are made in the tender conditions as the successful tenderer may sometimes require a longer time-frame to arrange financing for the full payment of the land premium.

Since 1993, a total of 33 cases have been granted extension of time for land premium. The breakdown is as follows: 2 cases in 1993; 3 in 1994 [these were boom times, I remember]; 16 in 1995; 2 in 1996; 2 in 1997 and recently 1998, 8 cases. These eight cases in 1998 were fully reported in the press recently. The tenderers were Centrepoint Properties Private Limited, Orchard Terminal Private Limited, Allgreen Properties Limited and the joint venture between Allgreen Properties Limited and Hoe Seng Company (Private) Limited. These tenderers have already made the initial 25% payment and have requested for an extension to pay the remaining 75%, subject to late interest charges.