The concept for the development of District Cooling Service (DCS) in Cyberjaya was mooted from the “Physical Planning Guidelines for Multimedia Super Corridor” issued by Federal Department of Town & Country Planning-Peninsular Malaysia under Ministry of Housing & Local Government.

It is intended that Cyberjaya become a world-class business and living environment through the provision of state-of-the-art multimedia infrastructure; superb quality business, housing, leisure, education, health and security services; green environment with protection of ecology and topography; human friendly urban design and the incorporation of clean and efficient energy supply and utilization.

The use of district cooling system in Cyberjaya Flagship Zone (CFZ) is therefore in line with the concept of eco-friendly city that is stressed upon on Cyberjaya.

 

1.2       On Pendinginan Megajana Sdn Bhd (“Megajana”)

Megajana was incorporated on 1 September 1998 with an authorized capital of RM 25 million and paid-up capital of RM 16 million. The principal activities of Megajana are to carry out the business of developing, owning, operating, maintaining, promoting, selling, managing and servicing district cooling system, co-generation system and electricity distribution system.

Megajana’s initial Shareholders were as follows:

Seseni Energy Services Sdn Bhd                                          51%
(a subsidiary of Metacorp Bhd Group of Companies)

TNB Energy Services Sdn Bhd                                              49%
(a wholly owned subsidiary of Tenaga Nasional Bhd)

Megajana is the sole supplier of chilled water for business premises in Cyberjaya Flagship Zone; and to-date has spent more than RM 100 million for the development of District Cooling Plant. The plant is currently supplying chilled water to 20 buildings through more than 15km of underground piping.

Megajana has been operating at a loss since financial year ended 31 March 1999. The district cooling business requires heavy upfront capital investment; and Megajana is operating under difficult business environment as it is dependant on development progress in Cyberjaya. The revenue generated by Megajana is also not sufficient to defray operating expenses and financing costs (due to the high gearing position of the company).

In mid-2006, the initial Shareholders had expressed to the Government their intention to sell-off the Company. The Government then instructed Cyberview Sdn Bhd, as the landowner of Cyberjaya to acquire 100% shares of Megajana and:

1) To revive the business model to ensure its sustainability.
2) To use Megajana as a tool to reduce the cost of doing business in Cyberjaya

 

1.3       Acquisition of Megajana by Cyberview Sdn Bhd (“Cyberview”)

On 1 March 2007, Cyberview had entered into a Share Sale and Purchase Agreement (“SSPA”) with the initial Shareholders to acquire 100% of Megajana’s shares at a purchase price of RM 2 only. The rationale behind this acquisition is basically to revive the business model of Megajana and make Megajana one of the key support services that can attract businesses to Cyberjaya. The transaction was deemed completed on 30 March 2007; with all the set Conditions Precedent duly met.

The Board of Directors of Megajana are as follows:-

1. YBhg Tan Sri Dato’ Ir Omar bin Ibrahim  –  Chairman

      (appointed with effect from 31 March 2008)

2)   YBhg Dato’ Dr Mohamed Irwan bin Abdullah
     (appointed with effect from 12 July 2007)

3)   Encik Redza Rafiq bin Abdul Razak
      (appointed with effect from 30 March 2007)

 

1.4       Business Overview

To-date Megajana has spent more than RM 100 million for the development of District Cooling Plant and are now supplying chilled water to 20 buildings from 2 delivery systems; i.e. Stage 1 System and Stage 2 System.

Stage 1 is fully operational and is running at 100% capacity, whilst Stage 2 is running at 71% capacity.

  Table 1: Current Customers                                                                                

                                                                             

Megajana’s main responsibility is to supply chilled water for air-conditioning to all building owners within the flagship zone for 24 hours without interruption. However, conventional Central Cooling System (CCS) remains a threat to Megajana as evidenced by several building owners opted for CCS. The recent take over and Cyberview’s dual role as landowner and developer for “high impact project” augurs well for Megajana. Cyberview will be able to “package” the entire deal on physical facilities; and this can include the District Cooling System (DCS).