MAYOR Rolando “Klarex” Uy issued an Executive Order on Thursday declaring Cagayan de Oro City under a state of emergency after a private bulk water supplier, Cagayan de Oro Bulkwater Inc. (COBI), announced it is cutting its supply to the Cagayan de Oro Water District (COWD).
In a city in crisis, Vice Mayor Jocelyn “Bebot” Rodriguez and majority floor leader Councilor Edgardo Cabanlas clash over putting people first during a corporate dispute risking vital services. Tensions mount, testing community unity as the struggle between civic duty and profit plays out.
Led by the vice mayor, majority of the councilors denounced COBI’s decision as ‘corporate greed’.
“CDO households should not suffer because of the COWD-COBI dispute,” Cabanlas stated, underscoring the community’s reliance on a consistent water service.
Executive Order 196-2024, dated May 1, 2024, activated the Incident Monitoring Team (IMT) to conduct a rapid damage assessment and needs analysis to determine the impact of COBI’s decision to cut off the bulk water supply.
The IMT was placed under the direction and supervision of the Special Task Force for Water Supply and Distribution, which was organized last month.
Upon learning of COBI’s letter to Rio Verde Water Consortium around midnight last Tuesday, Mayor Uy mobilized the Cagayan de Oro City Police Office (Cocpo) to secure water supply lines from Rio Verde.
The water supply chain of Cagayan de Oro became complicated in 2017 when the COWD entered into an agreement with COBI as its main bulk water supplier, guaranteeing a minimum volume of 80,000 cubic meters a day.
COBI, however, serves as a middle party in the supply chain, as it does not have its own bulk water production and treatment facilities.
Instead, COBI purchases treated water from Rio Verde, which sources it from the surface water of the Bubunawan River in Baungon town, Bukidnon, and then sells it to COWD.
In a special session held at 6 pm on May 1, 2024, the City Council passed a resolution affirming Mayor Uy’s executive order declaring the city under a state of emergency.
The City Council also passed four other resolutions related to the water emergency.
Resolution 2924-720 was passed, urgently requesting the COWD to make an emergency purchase of bulk water supply from Rio Verde Water Consortium, Inc., South Balibago Resources Inc., JE Hydro and Bio-energy Corporation, and the Mindanao Cooperative Water Service Federation, which currently serve areas unserved and underserved by the COWD.
Another resolution, 2024-721, earnestly requested the four independent water suppliers mentioned previously to supply bulk water to the COWD.
Additionally, resolution 2024-723 was passed, urging the management of COBI – Metro Pacific Water and Andrew Pangilinan, COBI president, to explain to the City Council why they should not be declared persona non grata in Cagayan de Oro for deciding to cut off the bulk water supply.
A fifth resolution, 2024-724, requested the Commission on Audit to investigate the contract between COBI and COWD.
City Councilors criticized COBI for its alleged greed in directing Rio Verde to cut off water supply to the COWD. Councilor Cabanlas highlighted the historic nature of their actions to address the water issue that has plagued the city for two decades.
City Councilor Girlie Balaba stressed that water is a human right and the government is obligated to provide clean, accessible, and affordable water to the people.
She noted that while water delivery had been privatized, the government must intervene when the private sector fails.
Councilor James Judith remarked that cutting off the city’s water supply is tantamount to an act of terrorism and a violation of human rights.
In his State of Emergency declaration, Mayor Uy invoked Section 16, the General Welfare provision of the Local Government Code.
Under a state of emergency, Kag. Judith, a lawyer, explained that the city government can exercise its police powers, allowing reasonable control over persons and property within its jurisdiction in the interest of the general security, health, safety, morals, and welfare of the people, except when legally prohibited.
Furthermore, Councilor Cabanlas criticized COBI’s decision to cut off the supply to COWD — ultimately affecting the people of Cagayan de Oro — while still assuring its supplier, Rio Verde, that it “will continue to comply with its obligation to pay RVWCI the cost of the Minimum Contracted Water Demand.”
The crisis stems from COBI’s collection of P479 million from COWD, representing the differential from the automatic price increase every three years stipulated in their 30-year contract.
COWD has disputed this debt, claiming it cannot perform the obligation to pay increased rates due to force majeure, citing net losses during the Covid-19 pandemic.
Mayor Uy also opposes the automatic escalation of prices every three years, deeming this contract provision onerous and advocating for reform.
“I am not against Cobi or any water supplier. I am against the increase every three years. May they can ask for increase every five or even 10 years,” Mayor Uy said.
He also clarified that his order to place the city under state of emergency is not siding with any parties of the controversial water contract but to protect the general welfare of the people to safe, clean and quality water.
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