AN OFFICIAL of the Cagayan de Oro Water District (COWD) on Thursday, October 19, said the water utility will not be hiking water rates in the next two years even as it forges ahead with a new agreement with its new bulk water supplier, MetroPac Water Investments Corp.
COWD general manager Engineer Rachel Beja said the water utility may likely review the water rates two years after the contract is signed.
Beja said it cannot also impose water rate hike without public hearing and approval of the Local Water Utilities Administration (LWUA).
Beja explained that water rate adjustments is likely to happen to ensure that COWD is financially stable.
"Sa karon wala pay structure sa water rate but definitely it will review in two years’ time kung ok pa ang financial condition ni COWD pero i-agi nato sa saktong proseso kay walay increase kung dili aprubahan sa LWUA (Right now, there is no structure on water rate but will definitely review it in two years’ time to know if the COWD’s financial situation is good. But we have to let this undergo the right process because if LWUA doesn’t approve it, there’d be no increase)," Beja added.
The COWD has recently awarded the contract with MetroPac as bulk water supplier after it had terminated its contract with Rio Verde Water Consortium Inc.
The water utility is just waiting for the court order that would legally terminate its connection with Rio Verde.
Metropac got the approval of the COWD board of directors and passed the public challenge in 2016.
Beja said the COWD has forged an agreement with Metropac to form a joint venture company that includes shares for both COWD and MetroPac.
Beja just received a word from the latter that the said company has been registered by the Securities and Exchange Commission.
Beja said once the 30-year bulk water supply contract between the joint venture company and the COWD is signed, the Metropac will start supplying water to COWD two months after the signing.
Under the contract, Metropac was provided with four options: to purchase water to supply to COWD, rent a water treatment facility to source out water, buy an existing treatment facility or build its own water treatment plant.
"Ang commitment ni Metropac sa contract kang COWD two months gikan
pagpirma sa contract kay kung dili siya maka-supply naa siyay bayran
nga penalty (Metropac committed in the contract with COWD that if they can’t supply water two months after signing the contract, they would pay the penalty)," Beja said.
Meanwhile, there are around 49,901 connections in COWD's west service area. From September 25 to October 6, 24,953 or 50 percent experienced low pressure to no water. After October 6, only 1,937 of these (three percent) are still experiencing low pressure to no water.
Beja said the Rio Verde has been able to discharge about 38,000 cubic meters per day as it intensified the inline boosting while the COWD has been doing the valve manipulation.
The COWD continues to deliver water especially in affected areas of Opol, Misamis Oriental, Lumbia and other few elevated areas in the city's first district.
The Rio Verde is asking another week to complete its repair works of the damage of the main pipeline.
