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HomeFront PageBreaking NewsTask force recommends cancellation of COBI-COWD contract

Task force recommends cancellation of COBI-COWD contract

By: Mark Francisco

CAGAYAN de Oro City’s households won’t have to fear about losing water in their faucets after the April 12 deadline given by the city’s bulk water supplier, Mayor Rolando ‘Klarex’ Uy said on Friday in his weekly radio program, ‘Inyong Alagad, Mayor Klarex Uy’.

‘I would like to assure the Kagay-anons that they have no reason to fear about losing water (after April 12) even if (Cagayan de Oro Bulk Water Inc.) disconnects its service to its customers because we reached a decision (on this issue) after meeting with (the task force) and (Rio Verde Water Consortium on Thursday),’ Mayor Klarex said in Visayan.

Mayor Klarex confirmed that a special session will be held by the 20th City Council on Monday, April 8 to approve a resolution of no objection to the city through the Cagayan de Oro Water District (COWD) to source its water directly to Rio Verde Water Consortium.

Cagayan de Oro Bulk Water Inc. or COBI sources its water directly from Rio Verde. COBI extended its deadline to COWD to settle its collectibles worth P426 million to April 12.

But COWD is adamant against paying the amount saying that its board had not approved a resolution to pay the amount. Both the COWD and COBI are conducting negotiations to settle their dispute.

Mayor Klarex’s assurance came hours after Councilor Edgar Cabanlas, who co-chairs the Task Force on Water Supply and Distribution, confirmed in a radio interview on Friday that their fact-finding sub-committee recommended the cancelation of the bulk water supply contract between COWD and COBI ahead of their submission of their consolidated report to Mayor Klarex.

‘This recommendation (to rescind the contract) we will hand it to (Mayor Klarex to decide on),’ Cabanlas said.

The fact-finding committee is chaired by Councilor James Judith II who conducted a four-day hearing on the COWD-COBI contract. ‘The committee found the contract to be disadvantageous to the city,’ Cabanlas said.

Councilor Cabanlas said they will send the fact-finding committee report to the Commission on Audit (COA) for them to decide whether or not to file charges against those involved in negotiating the contract.

‘We will also send the report to the COWD’s board of directors because the main party involved here is not the city but the water district,’ he said.

Cabanlas said the committee report may be used as basis by the COWD board to cancel the contract with COBI. Under the contract with COBI, an incremental P3 increase in water rates will be implemented by COWD every three years. (Stephen Capillas of City Information Office)

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