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HomeFront PageBreaking NewsCOWD belies P 400M indebtedness to COBI

COWD belies P 400M indebtedness to COBI


BY CRIS DIAZ

CAGAYAN DE ORO CITY: The Cagayan de Oro City Water District (COWD) denied owing P 426 million to the Cagayan de Oro Bulk Water Incorporated (COBI), the bulk water supplier of COWD, a senior official said Wednesday, March 13, 2024.

In a talked with the Mindanao Daily News, Anthony Young, the incumbent COWD General Manager, maintained that the local water district, a quasi-government owned corporation, owes nothing to COBI.

The COBI alleged that the COWD owes the bulk water supplier more than P 426 million for failure to settle the water rates increases imposed by COBI from the period 2021 to 2024.

Young said that the COWD is not indebted to COBI because the alleged debt amounting to P 426 million is not reflected in the COWD’s book of account.

COBI alleged that the COWD continue to collect the rate of P21. 84/cm to consumers since 2011 and COWD did not increase its rates since implementing the P 21.84 /cm since 2011 until 2024 or fir the last 13 years.

However, in 2020 the COWD increased water rates to P 16.60 per cubic meter from its water rates of P 10.60 per cubic meter prior to 2020 increase.

In 2021, COBI increased the rates to P20. 57/cm and in 2024 COBI increased the rates from P20. 57/cm to P24. 19/cm or a total of P7.59/cm total increase per cubic meter.

COBI is an incorporation owned and managed by the Metro Pac and COWD where Metro Pac owned 95 percent of the share and COWD with a measly 5 percent share.

One of the provisions of the agreement between the COWD- Metro Pac stated that the COWD is obliged to purchase, accept and “pay the minimum contracted water demand” to COBI, the bulk water supplier. –

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