CAGAYAN DE ORO CITY (MindaNews / 09 April) — As the April 12 disconnection deadline set by the Cagayan de Oro Bulk Water Inc. (COBI) approaches, the Sangguniang Panlungsod here on Monday, April 8, passed a resolution allowing Rio Verde Water Consortium, Inc., the city’s previous bulk water supplier, to distribute water directly to residents.
COBI earlier threatened to disconnect the water supply to city residents on April 12 unless its business partner, the Cagayan de Oro Water District (COWD), pays P426 million to them,
COWD balked in paying the P426 million, saying its Board of Directors has yet to issue a resolution approving its payment.
Voting 15 in favor with one objection and two abstentions, the Sangguniang Panlungsod approved Resolution No. 2024-692 allowing Rio Verde to provide “end to end Level III water supply to all 80 barangays of Cagayan de Oro City.”
“We held a special session to approve the resolution because of the disconnection threat. We are not taking any chances,” said Councilor Edgar Cabanlas, head of the city’s Task Force on Water Supply and Distribution.
Cabanlas said the city government poses no objection to allow Rio Verde to be the water distributor after the April 12 deadline set by COBI.
He said the resolution is also a legal requirement for Rio Verde to apply for a supply permit with the National Water Resources Board.
Rio Verde is the first bulk water supplier of Cagayan de Oro in 2007 until the Commission on Audit (COA) voided the arrangement it made with COWD, saying “it had no legal basis.”
COWD then entered into an agreement with the Metro Pacific Water owned by businessman Manny Pangilinan to form COBI in 2017. retaining 5 percent. Metro Pacific holds 95 percent equity and five percent for COWD.
Cabanlas said the COA ruling applies only to COWD, a government owned and controlled corporation.
“What can we do? We cannot just stand and watch when the city go water less after April 12,” Councilor Joyleen Mercedes Balaba said. (Froilan Gallardo / MindaNews)