WATER SUPPLY. A water interruption in Cagayan de Oro City affected several residents on Sunday (March 3, 2024). The interruption would run for at least 72 hours, which prompted the local government to step in between the city-run water district and its third-party bulk water supplier. (PNA photo by Nef Luczon)
CAGAYAN DE ORO CITY – City Mayor Rolando Uy on Thursday created the Cagayan de Oro Special Task Force (TF) for Water Supply and Distribution to address supply issues affecting residents.
The task force will conduct a fact-finding investigation on the conditions of the city's water supply and distribution and shall study and review possible intervention by the city government in the ongoing conflict between the city-run Cagayan de Oro Water District (COWD) and third-party supplier Cagayan de Oro Bulk Water Inc. (COBI).
"I would like to assure the public that our office and the city hall are ready with our contingency plans. We have also called on others to help us (with our problem)," Uy said.
Heading the TF is 2nd District Councilor Edgar Cabanlas, who argued that the contract between COWD and COBI is "disadvantageous to the city" as it allows COBI to impose an incremental PHP3 increase in water rates every three years.
In contrast, Cabanlas said COWD needs to secure approval for the increase from the Local Water Utilities Administration.
"The task force will meet Friday afternoon (March 8) to discuss our legal options while the council will review the contract. If the council sees that the contract is disadvantageous, then we will initiate action to revoke, annul, or cancel the contract," Cabanlas said.
In a City Council Committee of a Whole hearing, Cabanlas invited various stakeholders, including officials and representatives from COWD and COBI.
The issue stemmed from COBI advising COWD of a "disconnection of service" for failing to pay the balance of PHP426.8 million.
Through videoconferencing, COBI senior legal officer Rob Rodrigo told the City Council that the bulk water company stands in their decision to cut its water supply to COWD since they have already invested a total of PHP1.4 billion in infrastructure improvements and maintenance.
In a separate statement, COBI underscored the importance of COWD ensuring the "timely payment of its monthly invoices and its adherence to its contractual obligations for the continued provision of essential water services."
"Despite diligent efforts to maintain a cooperative partnership, COBI expresses deep concern regarding COWD's persistent delays and disregard of contractual obligations," COBI said.
COBI said prolonged and chronic delays of COWD in settling monthly invoices, exceeding the contractual timeframe by around 30 to 45 days, has created challenges for the company and its ability to fulfill its financial obligations to banks and suppliers. (PNA)
