By NITZ ARANCON
and LITO RULONA
Correspondents
THE Cagayan de Oro Water District over the weekend said it was expecting to be billed at least P19.2 million by the Manny V. Pangilinan group-controlled Cagayan de Oro Bulkwater Inc. (Cobi) for its January consumption.
COWD executives are expecting the January billing — the first from the Pangilinan group — to show a substantial increase in the price of bulk water but the distributor assured that the additional cost would not be passed on to consumers.
The monthly bulk water bill is seen to shoot up by at least 53 percent or from P12.5 million to P19.2 million based on the monthly average consumption of 1.2 million cubic meters.
“That’s what we expect and we have that covered in our budget this year,” said COWD assistant general manager Bienvenido Batar Jr..
Cobi, a new company owned and controlled by Pangilinan’s Metro Pacific Water Investments Corp., became COWD’s supplier of treated water on New Year’s Day following a December 2017 settlement reached by the water district and the previous bulk water supplier, Rio Verde Water Constortium Inc..
COWD is a part owner of Cobi with a five-percent share and two seats in its board.
The Dec. 21, 2017 COWD-Rio Verde agreement, approved by Judge Emmanuel Pasal of the 38th branch of the Regional Trial Court, made COWD’s case for nullification of the decade-old contract water moot and academic. It also allowed the new player, and the new price of bulk water in the city. Before the new year, the price was P10.45 per cubic meter; now, it is P16.
The billing from Cobi could still increase the moment the bulk water supplier starts delivering 60 thousand cubic meters a day.
For this month, Cobi could only deliver 40 thousand cubic meters a day. The reason for this is because the Pangilinan group is still dependent on Rio Verde’s facilities.
Batar said the last tropical storm to hit this part of the country last year “affected their facilities and they have asked that they be allowed to postpone that.”
He added: “At the moment, their delivery averages at 40 thousand cubic meters a day. This will go on for the first half of 2018 at least.”
Cobi is under contract to supply 60 thousand cubic meters a day to COWD.
COWD general manager Rachel Beja said water consumers here need not worry because the COWD can absorb the increased price of bulk water.
“Gitun-an man sab na sa atong hunta direktiba. Sa ilang pagto-on, OK pa man, gisuro kana,” Beja said.
Batar said COWD sees P16 per cubic meter as reasonable because Rio Verde’s P10.45 per cubic meter was the price in 2007 or a decade ago.
“Kadtong P10.45 nga presyo sa Rio Verde, nabilin man lang to nga presyo tungod sa problima sa among kontrata. Kon imo gyud nga tan-awon, duna na man gyud unta toy ilang mga waterate increases nga wala lang gyud napatuman,” said Batar.
Meanwhile, lawyer James Judith said his clients — councilors Reodulfo Lao Jr., Enrico Salcedo and Reuben Daba — would pursue their petition for the annulment of the joint venture agreement between COWD and Pangilinan’s Metro Pacific.
Judith has also not given up on a petition for his clients to be acknowledged as parties to the nullification case filed by COWD against Rio Verde.
“Bahala sila og nagkasugod apan nagpadala kita og manifestation for our intervention,” said Judith, arguing that a petition was submitted to the regional court. “Sila ra ang nagbuot-buot og padayon. Wala pa’y desisyon ang korte.”
Judith said the councilors also filed a case with the Philippine Competition Commission, “unya ma-prejudicial ang decision sa korte nga ilang gitugutan.”
He said he was preparing a supplemental petition to the PCC in connection with the COWD-Metro Pacific agreement.
“The PCC can annul or modify the compromise agreement,” said Judith.
On Nov. 15, 2017, Judith asked PCC to look into the joint venture agreement because “there is the apparent cartelization of the local water industry between the two companies in the purpose of maintaining the desired water rate to their advantage at the rate of P16.35 per cu. m., thus P5.90 per cu. m. higher than the COA-disallowed rate of P10.45 cu. m. and restricting competition for that matter.”
Judith said COWD and Metro Pacific did not submit the agreement to the PCC for review and approval.
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