By Cong B. Corrales
Editor-in-Chief
and Shiela Mae Butlig
Correspondent
THE Cagayan de Oro Bulk Water, Inc. (Cobi) will stop supplying the Cagayan de Oro Water District (COWD) until it pays its outstanding payables which have now ballooned to almost half a billion pesos.
In a document obtained by Gold Star Daily, Cobi said that as of December 13, 2023, COWD owes the bulk water supplier some P437,057,627.52. The COWD being a city-owned facility, Cobi has also copy-furnished the Office of the Mayor with the notification of collection. The notice of billing was marked as received by COWD on December 15, 2023. Gold Star Daily tried to contact the Office of the Mayor but all calls were not returned.
“If these outstanding payables are not fully settled within this period (30 days from receipt of notice), Cobi will immediately halt the supply of water to COWD until full satisfaction thereof,” the notice reads in part.
Cobi claimed that it has repeatedly pointed out to COWD its delay in settling its monthly billing and that these delays have caused strain on Cobi’s “ability to meet its financial obligations and support its continued operations.”
To date, COWD’s monthly invoices for October and November 2023 are still unpaid, while its September 2023 billing was only paid partially.
“In addition, late payment penalties imposed on the outstanding monthly invoices for January to October 2023 amounting to P4,105,613.15 were ignored,” the notice reads in part.
Cobi demanded that before it can consider allowing COWD to settle its outstanding payables, the city-owned water facility must first update all of its monthly invoices.
For his part, COWD General Manager Engr. Antonio Young explained that they have “collectibles” from Cobi, but they have not acknowledged any payables to Cobi due to the invocation of “force majeure.”
In an interview with Gold Star Daily, Young contested the billing citing the force majeure clause of their bulk water supply agreement, dated October 30, 2017.
Young pointed out that COWD acquired financial losses because it could not impose an increase in water rates during the 2021 Covid-19 pandemic
While Cobi billed COWD P20.57 per cubic meter per day, Young claimed that COWD only acknowledged the non-increase rate of P16.60 per cubic meter per day. This discrepancy amounts to P3.97, Young said.
As of December 31, 2023, Young mentioned that they have settled their billings, paying the regular bill at the acknowledged rate of P16.60 per cubic meter. The only remaining payable is for November, which they commit to settling this month.
COWD purchases 80 thousand cubic meters per day from Cobi. According to Young, if the difference of P3.97 is multiplied, it totals P10 million per month based on Cobi’s computation of P20.57 per cubic meter. Including penalties, the outstanding amount has inflated to approximately P400 million.
