CAGAYAN: The Local Water Utilities Administration (LWUA) will meet with officials of the Cagayan de Oro Water District (COWD) to resolve its water rate dispute with bulk water supplier Cagayan de Oro Bulk Water Inc. (COBI).
In a statement Friday, Acting LWUA chief Eileen Dela Vega clarified that it was not the agency but the Office of the Government Corporate Counsel (OGCC) that oversaw contract negotiations between COWD and COBI.
“We were not part of the negotiations. Our role now is to (address) the impact of the water rate hike on consumers, which we regulate,” Dela Vega said.
Under the joint venture (JV) guidelines of the National Economic and Development Authority, which was the basis of COWD and COBI contract, LWUA is not required to approve the contract, she said.
In a separate statement, Mayor Rolando Uy said he is not against a water rate increase as long as it is justified, and the public is satisfied with the water provider’s services.
COBI has set over PHP3 water rate hike amid the PHP426 mil
lion debt it is trying to collect from COWD.
Uy said any water rate increase should take into account the economic slowdown caused by the coronavirus disease 2019 pandemic.
Under the contract signed between COWD and COBI in 2017, COBI is allowed to impose an incremental rate increase of over PHP3 every three years.
COWD general manager Antonio Young said the Board rejected the rate increase because of the pandemic’s impact on the local economy.
COWD charges its consumers PHP16.60 per cubic meter daily, while COBI bills COWD PHP20.57 per cubic meter of water, or a difference of PHP3.97.
COBI is a joint venture between majority owner Metro Pacific Inc. Investments Corp. and COWD, which holds a 5 percent stake in COBI. It is one of COWD’s eight bulk water suppliers.
Source: Philippines News Agency