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Herbie Gomez

THE recent water crisis that gripped some areas in the city, and Opol in Misamis Oriental tells us why it is not always wise for the government and citizens to allow public utilities to become dependent on private companies that are inherently and understandably profit-oriented.

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The Cagayan de Oro Water District started without Rio Verde Water Consortium Inc.. But in 2005 or some three decades after it came into being, it took a big step backwards. Instead of looking and developing new sources of water, it contracted Rio Verde to do what it should have done in line with its mandate: look for a water source, treat, and pump it into the city’s water system. By doing that, COWD did to Cagayan de Oro water what the power industry did to electricity: outsource.

COWD’s first fault was its failure to prepare for the growing tap water demand of the city. Long before 2005, it already knew that its ground sources of water were being depleted or could no longer cope with the growing demand but it did not invest on a facility that would tap surface water, the supply of which is abundant. Rather than produce and treat its own water supply, it gave the task to a company that’s only after of profits.

Its second mistake was its surrender of its selfeliance and independence to Rio Verde. Between 2005 and now which is a full 12 years, COWD did not correct its first mistake. During this period, it should have invested on building its own facility that would make it function even without a bulk water supplier. Again, it had at least 12 years to do that but it did not. Until now, COWD has remained so dependent on Rio Verde that whenever the bulk water supplier sneezes, the city — or at least half of it — catches a cold. And each time Rio Verde gets sick or pretends to be sick, it has no obligation whatsoever to answer to Cagayanons because its contract is only with COWD, and not with the water consumers.

The present officials of COWD and Rio Verde executives don’t seem to see eye to eye, and their solution is to terminate their 12-year old contract. But where will COWD get the supply of treated water for the western areas when it did not prepare for this impending “divorce”?

The answer is Metro Pacific Water Investments Corp., another profit-oriented company owned by the Manny V. Pangilinan group. It remains unclear if the Pangilinan group would build its own facility or if it would lease what Rio Verde already set up or if would merely buy water from Rio Verde. With the 2005 contract out of the way, Rio Verde can now dictate the prices.

Quite frankly, I don’t see any other reason why Rio Verde would want to get rid of that contract other than the fact that that legal document prevents it from increasing its water rates. Now, we hear that Rio Verde has written to COWD, demanding an increase in the water rates from over P10 to over P16 per cubic meter by Nov. 1. If COWD does not accede, it threatened to reduce the water pressure. We all know by now that low pressure simply means a water crisis. COWD’s dilemma is it cannot do it without risking a Commission on Audit rebuke or a lawsuit.

I think former mayor Vicente Emano has a moral obligation to talk to his friend, Rio Verde owner and Palawan Gov. Jose Alvarez, into going slow on the COWD. No private company should ever be allowed to blackmail a public utility at the expense of consumers in the name of profit. The controversial COWD-Rio Verde contract happened during Emano’s watch, and I do not recall him raising an objection when his appointees in the COWD struck the deal with Rio Verde.

Even though the COWD enjoys some sort of an autonomy from the local government, everyone knows that its policymakers are appointees of the mayor and therefore, beholden to city hall. And so, even before the COWD can consummate or commit another mistake with this deal with Metro Pacific, Mayor Oscar Moreno should not turn a blind eye or do a Pontius Pilate. He should see to it that COWD does the right thing and not right the wrong with another wrong. At the end of the day, it is the water supply security of the city and its future that are at stake.

My worry now is that COWD is running out of options, and it is now being forced to compound the problems it created since 2005 by merely adding a third player that, based on the recent revelations of Councilor Enrico Salcedo, may end up becoming nothing more than a glorified middleman — meaning, it gets the water supply from Rio Verde and then sells it to COWD. How ridiculous is that?

I do not know if COWD realizes that it has been allowing Cagayan de Oro to be at the mercy of big businesses since 2005. And I fear the day when COWD starts contemplating on another ludicrous idea: outsource the water distribution. Pastilan.

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