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By NITZ ARANCON
Correspondent

AN executive of the Cagayan de Oro Water District yesterday allayed fears of an impending increase in water rates in the city in the wake of Rio Verde Water Consortium Inc.’s demand for a price increase, and the public utility’s joint venture agreement with Metro Pacific Water Investments Corp..

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COWD assistant general manager Benvienido Batar Jr. said an increase in the water district’s rates is unlikely even if COWD accedes to Rio Verde’s demand, and  Metro Pacific’s entry.

Rio Verde has demanded to increase the cost of its treated water from P10.45 to P16.35 per cubic meter but COWD rejected it, citing a pending case in court.

Metro Pacific, meanwhile, agreed to sell treated water to COWD for over P16 per cubic meter.

The average water consumer in the city pays COWD P288 for 10 cubic meters or P10.45 per cubic meter a month.

Batar said there was no basis for fears that COWD would pass on the increased cost of treated water to the city’s water consumers.

He said the water supply from Rio Verde represents only 30 percent of COWD’s water requirement.

Batar said 70 percent of the water supply is produced by COWD.

He explained that COWD’s revenues from the water it produces are enough to absorb the price of P16 per cubic meter.

COWD, he said, would  not be in the red even with the new price.

But even then, Batar said the COWD cannot just impose a waterate increase in the city without a public hearing and the approval of the Local Utilities  Water Administration.

He said there was nothing the water consumers here should worry about, pointing out that even if COWD pays Rio Verde or Metro Pacific P16 per cubic meter, the supply would still remain relatively cheap. Water districts elsewhere were charging more than P16 per cubic meters, Batar said.

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