THE fact-finding investigation into the water supply issues in Cagayan de Oro, which was originally scheduled to conclude on Thursday, March 14, is set to continue today, Friday, March 15.
Officials are carefully examining the details surrounding the water supply concerns affecting the city's residents.
This probe is critical in determining the future of the city's water provision, with the team expected to present their findings and recommendations to Mayor Rolando "Klarex" Uy potentially within the next week.
Previously, Mayor Uy reassured the Kagay-anons that alternative arrangements for water supply are in place in case Cagayan de Oro Bulk Inc. (COBI) ceases its services to the Cagayan de Oro Water District (COWD).
Despite not disclosing the name, the mayor indicated that another entity is prepared to step in.
In a bold statement, Mayor Uy has expressed concerns about the current contract with COBI, suggesting it might be harmful to both the government and the welfare of the city's inhabitants.
He has also criticized the consistent rate increases enforced by COBI as part of their joint venture agreement with COWD.
COBI has demanded P426 million from COWD, which Cowd officials believe could be managed through staggered payments.
However, both invited speakers from Cowd, general manager Engr. Antonio Young and board of director Dr. Gerry Caño said any payment over P1 million requires the approval of the COWD board, which has been hesitant.
The COWD board's reluctance stems from their refusal to recognize the P3 per cubic meter water rate increase charged by COBI, citing force majeure due to the COVID-19 pandemic.
Under the current agreement, COBI is authorized to raise the water rate by P3.97 every three years. Currently, COWD pays P16.60 per cubic meter to COBI.
During the investigation on Thursday, a high-ranking official from COWD echoed the call for terminating the contentious water supply contract with Metro Pac, labeling it as "disadvantageous" to the consumers of the city.
Dr. Caño, highlighted that despite the joint venture agreement (JVA) being legally binding, certain terms could be challenged if found to be against public interest, potentially leading to its cancellation.
Caño pointed out that legal scrutiny could reveal provisions within the contract that are unlawful or counter to national security, providing a basis for its termination under the Civil Code of the Philippines.
The probe also uncovered that there is no clause in the contract that permits COBI to discontinue its water supply to COWD over unpaid dues, which reportedly have amounted to P426 million due to rate adjustments by COBI.
Engr. ÌìíùYoung insists that the water district does not owe COBI, as payments have been consistently made at the rate of P16.60 per cubic meter, despite COBI's price hikes in recent years.
Young cited "force majeure" caused by the Covid-19 pandemic as a primary reason for not adhering to the increased rates imposed by COBI, suggesting that these extraordinary circumstances should be taken into account.
Dr. Caño welcomed the mayor's support and highlighted the government's authority to intervene in such matters to protect the public's welfare.
He remains hopeful that a renegotiation will yield a more equitable agreement that benefits all stakeholders involved.
