By JB R. Deveza
Contributor
THE top official of the Cagayan de Oro Water District (COWD) said the city’s bulk water provider can not stop supplying bulk water to the city because of the water utility’s almost half billion peso debt.
Engr. Antonio Young, COWD general manager, said the water utility has been paying its monthly bill to the Cagayan de Oro Bulk Water, Inc (Cobi). Young said they have not been remiss in paying the bulk water supply at the agreed rate of P16.60 per cubic meter.
Cobi supplies some 80,000 cubic meters of water to COWD daily which is about 40% of the city’s needs.
Cobi had sent a notice of billing to the COWD last month insisting that the water utility owes Cobi some P437,057,627.52.
Cobi said that unless the bill is paid within 30 days from receipt of the notice, it will halt the supply of bulk water to COWD.
The notice of billing was received by the COWD on December 15, 2023.
But Young said the amount in question is still being negotiated upon by both parties as this already takes into account a rate adjustment unilaterally made by COBI in 2021.
Young said the bulk water provider raised its rate from P16.60 to P20.57 per cubic meter in 2021. He said the COWD requested the non-implementation of the measure because of force majeure due to the Covid-19 pandemic.
Young said the bulk water agreement signed by both parties on August 17, 2017, allows such actions on the part of the COWD.
Young said this is why the water utility has only been paying Cobi P16.60 per cubic meter, despite the decision of the latter to hike rates.
Young said it is this price difference, from P16.60 before 2021 to 20.57 from 2021 to 2023, that makes up the bulk of the supposed P430 million debt.
Young said they have paid their September and October bills based on the undisputed rate and are already in the process of settling the water utility’s November bill which, he said, will be paid by month’s end.
Young said they have already sought the help of the city government to ask Cobi not to implement its disconnection notice as a month of unpaid bills does not warrant such action.
He said the COWD, in a board meeting on January 12, also agreed to relay to Cobi its position regarding its supposed debt.
Disclaimer
Mindanao Gold Star Daily holds the copyrights of all articles and photos in perpetuity. Any unauthorized reproduction in any platform, electronic and hardcopy, shall be liable for copyright infringement under the Intellectual Property Rights Law of the Philippines.
