CAGAYAN de Oro City Mayor Rolando “Klarex” Uy addressed the ongoing controversy surrounding the contract between the Cagayan de Oro Water District (COWD) and Cagayan de Oro Bulk Inc. (COBI), directly responding to former Mayor Oscar Moreno’s denial of his involvement in the signing of the said contract during a press conference on Wednesday.
Uy even emphasized that if Moreno had been honest from the beginning, there wouldn’t be any issues now, in response to Moreno’s claim of being clear about his governance.
“Kung gitarong pa niya (Moreno) sa una, walay problema nga mahitabo karon,” Uy said.
Earlier today, Moreno discussed the COWD issue over Bombo Radyo, as he mentioned that the Commission on Audit (COA) previously questioned the COWD-Rio Verde contract before he became mayor, which allowed MetroPac to enter.
In a past photo, Moreno appeared to be happy while shaking hands with business tycoon Manuel V. Pangilinan, along with COWD Board of Director chairman Ed Montalvan and general manager Rachel Beja in 2017.
Pangilinan owns MetroPac, which formed a joint venture with Rio Verde to establish Cagayan de Oro Bulk Water Inc. (COBI).
COBI sent a Notice of Disconnection to COWD on February 29, threatening to cut off the water supply if the 426 million pesos debt is not paid.
Mayor Uy presented a series of fact-checks to the media, aiming to set the record straight regarding Moreno’s claims of limited participation.
Despite Moreno’s assertion that he was merely present for a photo opportunity at the time the contract between COWD and COBI was signed in August 2017, Mayor Uy emphasized that Moreno’s administration definitively influenced the agreement.
He further clarified that negotiations between COWD and COBI were already in progress when Moreno was in office, and the former mayor’s appointees held the majority in the COWD Board during the contract signing.
Mayor Uy pointed out that, contrary to Moreno’s statements, MetroPac had already submitted an unsolicited proposal to COWD for a bulk water supply agreement back in 2015, which led to a Swiss Challenge a year later with participants including Mactan Rock and Manila Water.
In addressing the issue of the P500 million interest-free loan allocated by the city in 2021 for COWD’s pipeline upgrades, which failed to materialize, Uy expressed his disappointment and questioned the lack of implementation, which was supposed to take place under Moreno’s term.
The press conference also touched on the water rate increases provided for in the contract. Mayor Uy stated that it is the responsibility of the Local Water Utilities Administration (LWUA), not the City Council, to act as the regulatory body in such matters.
Uy concluded the conference by dismissing as baseless the allegations that the current criticism of COBI was a ploy to introduce a new player to the water supply scene.
He reassured the public that his administration is committed to transparency and accountability, and will continue to investigate and address the issues surrounding the COWD-COBI contract for the best interest of Cagayan de Oro’s residents.
The debate over the COWD-COBI contract continues, with the public awaiting further developments as Mayor Uy’s administration seeks to resolve the water supply concerns in the city through the establishing of the Cagayan de Oro Special Task Force for Water Supply and Distribution through his issued Executive Order No. 109-2024.
Uy also expressed full confidence that the city government has contingency measures in place in case COBI chooses to stop supplying water to the city.
He reassured the residents of Cagayan de Oro that they need not be worried, as his administration is prepared to step in and ensure a continued water supply.
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