Officials of the Cagayan de Oro Water District (COWD) met with the Office of the Government Corporate Counsel (OGCC) who assured them of assistance to resolve their payment dispute with their contracted bulk water supplier.
COWD board member Gerry Caño disclosed this, saying they met with Local Water Utilities Administration (LWUA) chief Joy Salonga and OGCC officials to discuss their problem with Cagayan de Oro Bulk Water Supplier (COBI) last Thursday. ‘We told them (OGCC) about what happened..and they said they are willing to assist us in any dialogue that may be held (between us and COBI),’ Caño said in Visayan.
This development came as the fact-finding committee chaired by Councilor James Judith II said in Saturday afternoon’s press briefing that they are finished with their inquiry and would submit their findings to the Task Force For Water Supply and Distribution sometime this coming week. ‘The results of our findings will be disclosed by the task force,’ Judith said in Visayan.
In last Friday afternoon’s meeting of the fact-finding committee, Judith read portions of a letter by COBI addressed to the 20th City Council confirming that they gave an April 12 extension for COWD to settle its collectibles amounting to P426 million. Caño said the COBI letter was ‘misplaced’ since it should have been addressed to COWD and not to the City Council.
‘Why would COBI discuss the terms of payment to the council when it’s not the council that they are charging but the COWD?,’ Caño said. During the 25-minute program aired over the City Information Office Facebook page also on Saturday afternoon, Caño also argued that COBI failed to apply for a rate increase with the National Water Resources Board (NWRB).
Caño explained that while it’s the LWUA that oversees the water utilities operating in the country, it’s the NWRB that approves the water rate hike petitions of water service providers. ‘Does COBI have a legal personality to apply for a water rate increase at the NWRB when it doesn’t even own a water treatment facility,’ he said.
At present COBI owns the pipeline at Barangay Taguanao which they have yet to turn over to COWD as per their agreement. COWD had been adamant in their refusal to pay the P426 million collectibles which includes the over P3 incremental increase in water rates that took effect in 2021 and is imposed every three years based on their 25-year-contract.
COBI sourced its bulk water supply from Rio Verde Water Consortium Inc. which operates a water treatment facility in nearby Baungon town, Bukidnon province. Despite this Caño said they are willing to negotiate with COBI but suggested that a ‘mediator’ would facilitate the dialogue between COWD and COBI.
‘We (COWD and COBI have voiced differing positions and we have issued so many statements that haven’t been diplomatic so I ask whether it’s possible for someone to facilitate the dialogue because if there’s none then a conflict would ensue and the dialogue won’t be objective,’ Caño said./Stephen Capillas of City Information Office with CIO photo by Jay Arancon
