CAGAYAN DE ORO CITY (PIA)—"Pending negotiations with Cagayan de Oro Bulk Water Inc. concerning a recent discrepancy in water billing won't disrupt water services. If negotiations fail, we are prepared to augment the water supply in affected areas," said Antonio Young, General Manager of Cagayan de Oro Water District (COWD). 

The billing dispute between COWD and Cagayan de Oro Bulk Water Inc. (COBI) escalated after COWD received a billing statement on December 15, 2023, totaling P437,057,627.52.

The main issue evolved when COBI's alleged water rate increased from P16.60 to P20.57 per cubic meter in 2021. In response, COWD asserts to have formally requested that the rate hike not be implemented.

Citing the Force Majeure Clause on their agreement, the water district claims that the COVID-19 pandemic justifies postponing the planned rate increase.

As negotiations progress, COWD affirms that services will continue without interruption. 

"In the absence of a settlement, rest assured that the Cagayan de Oro Water District will continue to monitor the situation and negotiate with COBI. We hope for the best. However, we are preparing for the worst, particularly in dispute-affected areas,” Young said.

He confirmed that the water rate increase aligns with their agreement, but a force majeure clause allows them to request non-implementation. Despite COBI's subsequent rate increase to P24.19 per cubic meter in January 2024, COWD continues paying P16.60 per cubic meter, as stated in the request.

Young explained that COWD has maintained its prevailing water rate of P21.84 per cubic meter since 2011, citing inflation in material, electricity, and fuel prices. Despite these challenges, they have not considered increasing the water rate.

Concerning unpaid balances, COWD hopes to resolve the inconsistencies through the terms outlined in the agreement's dispute resolution process.

Young appreciates COBI's gesture in not stopping water supply delivery, seeing it as a positive sign for open communication and negotiation.

Should the dispute persist and COBI halts water delivery, an estimated 70 percent of COWD's clients in District 1 and 30 percent in District 2 of Cagayan de Oro City could be affected. 

"We are equipped with contingency measures to guarantee uninterrupted water services for our clients. We are also in active communication with COBI and are hopeful for a speedy resolution," Young said. (JAKA/PIA 10)