Mitigating measures have been put in place should Cagayan de Oro City faces a water crisis following a threat from the bulk water supplier to discontinue supply.

Bulk water supplier Cagayan de Oro Bulk Water Supplier Inc. (COBI) issued a notice of disconnection to the Cagayan de Oro Water District (COWD) last February 29, 2024, due to the latter’s supposed unpaid balance amounting to more than P426 million since 2021.

According to COBI, COWD did not follow the provision of the contract pertaining to the water rate per cubic meter.

COBI claimed that COWD only paid P16.60 per cubic meter from 2021 to 2023 instead of P20.57 per cubic meter. For 2024, COBI is charging COWD P24.19 per cubic meter.

In a statement, COBI said ‘despite the diligent efforts to maintain a cooperative partnership, COBI expresses deep concern regarding the persistent delays and the disregard of contractual obligations by COWD.”

“In light of the COWD’s persistent disregard of its contractual obligations and the adverse impact on COBI’s financial standing, COBI is constrained to take the difficult decision to discontinue bulk water supply to COWD as outlined in their BSWA (Bulk Water Supply Agreement). While regrettable, this course of action is necessary to uphold the integrity of their agreement,” the statement said.

“COBI urges COWD to prioritize the timely payment of its monthly invoices and compliance to its contractual obligation in the interest of safeguarding the uninterrupted supply of safe and reliable water to residents and businesses of Cagayan de Oro City. It is essential to the sustained provision of water supply to the community,” it added.

COWD STANCE

However, COWD maintained that it has no unpaid balance and it did not violate any provision of the contract.

COWD Division Manager, Engineer Antonio Young, said the COWD Board of Directors had passed a resolution not recognizing the rate increase charged by the bulk water supplier.

“Nag-invoke sila og force majeure kay atong madumduman naa man covid-19 pandemic. So, nag-invoke sila og force majeure not acknowledging the increase kay kabalo man ta unsa ang impact sa covid-19 dili lang sa water district but the entire world man,” Young said.

“Let us follow what is written in the contract nga dispute resolution. Ang disputed amount which is 16.60 ni agree man mi ana among bayaran continuously, among bayaran, monthly. We’re paying around almost 40 milyon sa among tubig nga ginakuha but the disputed amount lets go to the process of resolving this,” Young added.

Young said after the COWD received the notice of disconnection from COBI, the executive committee convened to map out action plans should COBI stopped supplying water.

He said the COWD has wrote a letter to the Local Water Utilities Administration (LWUA) to seek for an advice on how to handle the matter. COWD is a government-owned and controlled corporation (GOCC) under the LWUA.

COWD is also looking at legal remedies to prevent the disconnection and has coordinated with the city government.

If worst case scenario arises, Young said the COWD Board will recommend the approval of an emergency purchase of bulk water supply from other private water players to meet the water demand for Cagayan de Oro.

Young said COWD is still open and willing to have a dialogue with COBI.