Oro dads okay direct water distribution amid disconnection threat

AS the April 12 deadline approaches, the Sangguniang Panlungsod on Monday passed a resolution allowing Rio Verde Water Consortium, Inc., the city’s main water supplier, to distribute water directly to city residents.

Cagayan de Oro Bulk Water Inc., (Cobi) have threatened to disconnect the water supply to city residents on April 12 unless its business partner, the Cagayan de Oro Water District (COWD), pays P426 million to them.

COWD balked in paying the P426 million saying its board of directors have yet t issue a resolution approving its payment.

Voting 15 in favor with one objection and two abstentions, the Sangguniang Panlungsod approved Resolution No. 2024-692 which allows Rio Verde to provide “end-to-end Level III water supply to all 80 barangays of Cagayan de Oro City.”

“We held a special session to approve the resolution because of the disconnection threat. We are not taking any chances,” Councilor Edgar Cabanlas, head of the city Task Force on Water Supply and Distribution said.

Cabanlas said the city government posed no objection to allowing Rio Verde Water Consortium, Inc., to distribute after the April 12 deadline set by Cobi.

He said the resolution is also a legal requirement for Rio Verde to apply for a supply permit with the National Water Resource Board.

Rio Verde was the first bulk water supplier of Cagayan de Oro in 2007 until the Commission on Audit (COA) voided the arrangement it made with COWD saying “it had no legal basis.”

COWD then entered into an agreement with Metro Pacific Water owned by businessman Manny Pangilinan to form Cobi in 2017 retaining 5 percent. Metro Pacific retains the 95 percent equity.

Cabanlas said the COA ruling applies only to COWD, a government-owned and controlled corporation.

“What can we do? We can not just stand and watch when the city goes waterless after April 12,” Councilor Joyleen Mercedes Balaba said.