THE General Manager of Cagayan de Oro Water District (COWD), Engr. Antonio Young has recently addressed the public regarding the alleged outstanding balance of P426,873,163.26 that the COWD supposedly owes to Cagayan de Oro Bulk Water, Inc. (COBI).
Engr. Young asserts that the water district does not have any debt to COBI, bringing clarity to the situation that has raised concerns among residents.
The issue revolves around the water supply that COBI provides to COWD as a bulk supplier.
Engr. Young explained that since 2020, COWD has been paying COBI P16.60 per cubic meter for water. This rate remained unchanged even when COBI increased the price to P20.57 per cubic meter in 2021 and again to PHP 24.19 per cubic meter in 2024.
COWD did not agree to these rate hikes, citing force majeure due to the COVID-19 pandemic, which affected the operational and financial status of the water district.
According to Engr. Young, the discrepancy between what COBI charges and what COWD has paid is the root of the current issue.
Additionally, there have been concerns about delayed payments by COWD to COBI.
As of February 2024, COWD has been settling payments for the water volume billed in December 2023.
The process to complete payment from the receipt of the Billing Statement usually takes around 30 days.
One major reason for not meeting COBI’s increased rates, as mentioned by the COWD general manager, is the impact of the global pandemic on the economy.
During this period, in line with the Bayanihan Act, the COWD was lenient with water bill collection, did not disconnect services for overdue accounts, and did not impose penalties on these accounts.
This significantly affected COWD’s financial standing.
Moreover, COWD has kept the water rates to consumers at P21.84 per cubic meter since 2011, showing no rate increase for 13 years despite rising operational costs, such as electricity, fuel, chlorine, and others.
The so-called “debt” of P426,873,163.26 to COBI, according to Engr. Young, is the accumulated difference between the amount charged by COBI and the actual payment made by COWD (P3.97 per cubic meter) from 2021 to 2023.
COBI’s warning that it may stop supplying water to COWD if the billed amount is not settled within 30 days from receipt of their notice could lead to a dire situation.
Should this occur, it would affect 70% of the water supply in District 1 and 30% in District 2.
COWD has prepared for such a scenario, planning measures to lessen the impact of a reduced water supply and to continue serving the public.
These measures include valve adjustments, water deliveries, water rationing, and more.
The issue also involves Cagayan de Oro City Mayor Rolando Klarex Uy, who, as the city’s leader, is concerned about the potential impact on his constituents.
COWD has requested assistance from the city government to resolve the ongoing issue as the welfare of the city’s residents is at stake.
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