COWD Turns Down Water Supplier’s Rate Increase Application

COWD Turns Down Water Supplier’s Rate Increase Application

COWD Turns Down Water Supply's Request for Rate Increase

Source: Cagayan de Oro City Information Page

The Cagayan de Oro Water District (COWD) has turned down the application of its main water supplier Rio Verde Water Consortium Inc. (RVWCI) due to legal concerns.

In an article from Sunstar Cagayan de Oro, COWD General Manager Engr. Rachel Beja said, through a letter sent to RVWCI President Bienvenido Santos, that the water district could only consider paying P10.45 per cubic meter, a lesser value compared to Rio Verde’s initial rate hike bargain of P16.35 per cubic meter.

Beja said that the legal constraints that make it hard for COWD to agree with the terms of the bulk water supplier include the Fraud Audit Report of the Commission on Audit (COA), the COA disallowances, and the existence of a nullification case now rolled out in the courts.

Rio Verde made the request for a rate increase because it is also essential to the rehabilitation of the company’s water pipes which were damaged by heavy rains and floodings.

However, RVWCI Senior Vice President for Operations, Engr. Joffrey Hapitan claimed that COWD was not consistent in following the agreement it has signed with the company for over 10 years of their partnership.

Hapitan also said that it was unjustifiable for the water district to refuse the proposal since it has announced that it already has the financial capabilities to pay for the P16.35 per cubic meter.

He also mentioned the financial difficulties of the water supply company for many years which was worsened by the damaged of its underwater pipe crossing the Cagayan de Oro River.

Meanwhile, City Councilor Teodulfo Lao Jr., aid that a meeting will be conducted to look into Rio Verde’s request.

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