CAGAYAN DE ORO CITY – The Cagayan de Oro City Water District has considered the call of consumers and local officials to defer its proposed 60 percent water rate adjustment for three years, understanding the added problems it might bring to residents.
Instead of adjusting the rate, the COWD asked the city government if they could apply for a loan with minimal interest and a grace period as the purpose of the proposed increase was to fund their development programs to improve their services.
CUSTOMERS heave a sigh of relief as the Cagayan de Oro City Water District has deferred its proposed 60 percent water increase for three years. (PIA-Bukidnon photo)
“They (the city government) can loan, and maybe they let us borrow with two percent, three percent interest with a grace period or (allow us) not to pay the principal for three years, only the interest. So, something like that,” COWD General Manager Engr. Antonio Young said on Friday, January 19.
Last November 28, Young presented COWD’s 10-year development plan to the city council session which included their proposal for a water rate increase of 40 percent in residential, commercial, and government categories in 2024 and an additional 10 percent hike in all three classifications in 2025 and 2026.
However, local legislators expressed opposition, prompting the city council to pass proposed Resolution No. 2023-542 to defer COWD’s proposed water rate adjustment.
Read: https://mb.com.ph/2023/11/29/defer-60-water-rate-hike-cagayan-de-oro-dads
The COWD has scheduled a public hearing for the proposal on January 30 and 31 but it was canceled due to the new development.
In case of changes, this public hearing will not be pursued since COWD requires the public to be informed about the hearing 15 days prior to the scheduled date.
The COWD top official described their decision as a move for "harmonious relationship” with patrons and the local government and brush away consumers’ additional problems with water bills while at the same time implementing their programs for development.
In a press conference on January 16, Young admitted that their revenue is more or less enough to cover their regular monthly expenses.
Hence, the proposed increase was introduced to be able to fund their capital expenditure programs, which could boost their production capacity and average consumption, increase the number of barangays to be served, and reduce their non-revenue water (NRW).
Among the COWD programs based on its 10-year development plan are the establishment of a water treatment plant and wells, pipeline replacement and extension, the installation of a sub-system, a reservoir, and tanks, and NRW reduction programs.
Young wrote a letter to the office of Mayor Rolando Uy regarding their intent to apply for a loan. The COWD has yet to receive a response.
Apart from the funding of their development programs, the COWD is also facing a major problem after one of its suppliers, Cagayan de Oro Bulk Water Inc. (COBI), ordered them to settle their over P400-million debt. Non-payment would result in an immediate halt to water supply.
COBI has been supplying 80,000 cubic meters, or almost 50 percent of this city’s water supply, but has a 70 percent supply capacity in the first district of this city.
Read: https://mb.com.ph/2024/1/17/p400-m-debt-threatens-cagayan-de-oro-city-water-supply
Young asserted that COBI will provide its official response to their request based on their January 12 meeting, but the bulk supplier has yet to provide an update as of posting time.