By BenCyrus G. Ellorin/ July 25, 2024

CAGAYAN DE ORO CITY — Mayor Rolando “Klarex” Uy reiterated his call for the rescission of the 2017 bulkwater supply contract between the Cagayan de Oro Water District (COWD) and the Cagayan de Oro Bulkwater Inc. (COBI).

When asked if he had relayed this to the interim management installed by the Local Water Utilities Administration (LWUA) at the local water district, Mayor Uy said it may no longer be necessary as he had already brought this matter to the LWUA administrator and President Bongbong Marcos.

“Ang akong gi-istorya kang President Bongbong Marcos, mao pod akong gi-istorya sa LWUA administrator Ronnie Ong sa dihang nagkahinabi kami” (What I told President Bongbong Marcos, I reiterated to the LWUA administration Ronnie Ong), Uy said, while distancing from the protests by COWD employees and the Bantay Tubig Movement against the take over of LWUA.

“Ila man kanang katungod. Sa akong bahin, ako nang napa-abot sa LWUA ug sa presidente ang akong huna-huna aron ma protektahan ang katungod sa katawhan sa tubig,” (That is their right. For me, I already brought those concerns to the LWUA and the president), he added.

The mayor disclosed that a high government official visited him at his home to relay the invitation of business mogul Manny Pangilinan for a meeting in Manila. “Mibalibad ako, apan kung muanhi siya sa dakbayan ako siyang istoryahon,” (I turned down the invitation, but if he comes to the city, I could talk with him), the mayor told journalists at the sidelines of last Wednesday’s People’s Day at the City Tourism Hall.

“Ni fly in, fly out usa ka Sabado ang maong opisyal aron ipa-abot ang imbitasyon ni Manny Pangilinan nga mag istorya kami sa Manila,” (The official flew-in and out that Saturday to relay the invitation of Manny Pangilinan for a meeting in Manila), said Uy. He added that he told the emissary to relay to Pangilinan that he wants the 2017 contract rescinded.

The mayor said he has nothing against the participation of Metro Pacific Water or COBI in the bulkwater supply business here in the city as long as the right of Kagay-anons to clean, reliable, and affordable water is ensured. COBI is 95% owned by Metro Pacific Water owned by Manny V. Pangilinan.

Once the 2017 contract is rescinded, Metro Pacific Water and COBI are welcome to participate, but the negotiations and the final contract should be transparent.

The contents of the 2017 bulkwater contract were not disclosed to the public until the ceremonial signing attended by then-city mayor Oscar S. Moreno in August 2017. The COWD did not heed the resolution of the City Council in 2018 asking for a copy of the contract.

“Nganong ila kanang gitago-tago?” (While did they keep it from the eyes of the public)? said former councilor Enrico Salcedo who now leads the Bantay Tubig Movement.

The COWD only furnished the City Council a copy of the contract on February 14, 2024, after the COBI issued a disconnection notice to pay the differential from water rate increases in 2021 and January 2024. The contract, it turned out, provides for the automatic escalation of rates every three years.

A legal fact-finding committee organized by the city government to review the contract concluded that the 2017 contract is onerous and disadvantageous to the water consumers.

“Ang akong kagustohan mao ra gyud nga ma-proteksyonan ang katungod sa katawhan sa tubig,” (All I wanted is the protection of the people’s right to water),  Uy said.

Salcedo recalled that because of the non-disclosure of the contract, the case they filed with the National Competitiveness Council in 2018 failed because they could not provide a certified true copy of the contract. They have refiled the complaint early this year, with the certified true copy of the contract.

Salcedo,  the late city councilor Bong Lao, and former city councilor Boboy Daba sought the intervention of the NCC because COBI is just a trader or ‘middle man, not a producer of treated water because they do not have water production and treatment plants. COBI buys the treated water they supply to COWD from Rio Verde Water Consortium Inc. (RVWCI).

RVWCI happens to be the former bulkwater supplier of the COWD. The bulk water supply contract ceased in 2017 after the COA ruled that the agreement was null and void. RVWCI, according to the COA was a non-responsive bidder when it tendered its services to COWD in 2004.

CONTRACTUAL DISPUTE

Problems at the COWD stemmed from a collection by its bulkwater supplier Cagayan de Oro Bulkwater Inc. (COBI) alleged debt amounting to P479 million. This is the accumulated differential of bulk water rate adjustments in 2021 and January 2024. The 2017 contract between COWD and COBI stipulated automatic bulk water increases every three years.

COWD refuses to acknowledge the levy from COBI, saying it cannot comply with the obligations as the Covid-19 pandemic prohibited them from adjusting power rates.

When the contract between COWD and COBI took effect, the price per cubic meter of water was P16.60. Based on the automatic escalation of prices every three years in the contract, COBI raised the rates to P20.57 in 2021 and P24 starting January 1, 2024.

COBI which Metro Pacific Waters, Inc. owns gave the COWD a deadline to pay the alleged debt on April 30, 2024. When the COWD refused, COBI ordered its main supplier of treated water Rio Verde Water Consortium Inc. to cut off the bulk water supply on May 1.

This prompted Cagayan de Oro Mayor Klarex Uy to declare the city under a state of emergency. It asked COWD to resort to emergency purchases from other bulk water suppliers should COBI cut off the water supply. COBI finally cut off the water supply around noon on May 14, 2024. But the court issued a 72-hour temporary restraining order. It was extended to another 17 days.

Furthermore, the court ruled that the right of the people to water should not be sacrificed because of a contractual conflict between two parties. The court has issued a Writ of Preliminary Injunction (WPI) to prevent COBI from cutting off bulkwater supply to COWD.