Rio Verde threatens to reduce pressure

By HERBIE GOMEZ
Editor in chief

BULK water supplier Rio Verde Water Consortium Inc. showed the Cagayan de Oro Water District who has the upper hand as it threatened to cut down the water pressure unless the public utility company gives in to what it wants: a price increase.

Rio Verde wrote to COWD on Thursday, warning that it would reduce the water pressure unless the water district agreed to its new rate by Nov. 1.

The Jose Alvarez-owned company has increased its water rate by some P6 per cubic meter or from P10.45 to over P16. COWD officials however said they cannot agree to the rate adjustment at this time.

They also see the Rio Verde demand letter as “blackmail.”

Ladelle Sagrado, COWD spokesperson, said the Rio Verde demand letter was signed by Engr. Joffrey Hapitan, Rio Verde senior vice president for operations.

COWD assistant general manager Bienvenido Batar Jr. said the Rio Verde threat would likely result in a water crisis similar to the one that gripped western parts of the city and Opol town in Misamis Oriental from late September until last week.

Batar said the COWD board is scheduled to meet today over Rio Verde’s demand.

“We cannot accede at this time even if we can afford it,” said Batar, explaining that there are legal concerns to consider.

He said the Commission on Audit would disallow the payment of the new Rio Verde rate, and COWD officials would likely end up being charged before the Office of the Ombudsman if they gave in.

The COWD-Rio Verde contract set the rate at P10.45 per cubic meter. Earlier, Rio Verde’s Hapitan said the 2005 contract prevented the company from increasing its rates since it started supplying treated water to COWD.

While COWD and Rio Verde have mutually agreed to terminate the contract, a settlement has yet to be finalized; it is still being reviewed by the Office of the Government Corporate Counsel.

Sagrado said her understanding was that Rio Verde wanted to increase the price of every cubic meter it pumps into the COWD system beyond the contracted daily supply of 40 thousand cubic meters.

But Batar said Rio Verde actually wanted to increase the price of every cubic meter to over P16, including the 40 thousand cubic meters provided in the contract.

Meanwhile, Sagrado said Rio Verde refused to accept COWD’s purchase order for an additional supply of treated water last week apparently because the water district had yet to agree to pay it more.