Solving CDO’s Thirst: The Road to Resolving Water Rate Disputes

SOURCE: PNA

Cagayan de Oro City, known for its resplendent rivers and lively communities, now confronts an arid dilemma: a rift in water rates that has left the taps of contention wide open. The Local Water Utilities Administration (LWUA) aims to steer the currents towards calm as they engage with Cagayan de Oro Water District (COWD) officials and Cagayan de Oro Bulk Water Inc. (COBI). Their mission is manifest: to dissolve the dispute that disrupts the daily flow of life for many residents.

The announcement by Acting LWUA chief Eileen Dela Vega brings clarity amidst the murky waters of authority and responsibility. She explicates that LWUA’s hands were tied during the contractual negotiations overseen by the Office of the Government Corporate Counsel (OGCC). Their mandate now: to focus squarely on the repercussions of the water rate hike for consumers, who rest at the heart of their regulatory radar.

COWD and COBI’s engagement is rooted in guidelines laid out by the National Economic and Development Authority - a blueprint that obviates LWUA’s need for contract approval. But therein lies a conundrum: how can consumer protection be balanced against contractual agreements? This question forms the crux of the impending dialogue.

In another plot twist, Mayor Rolando Uy's stance is moderate yet firm. A rate hike is within reason provided that two conditions are met: it is warranted, and the service quality satisfies the public palate. Uy’s perspective introduces a civic dimension, suggesting that a rate increase during a pandemic requires a reflective pause - a sentiment echoing through the hearts of citizens.

COBI seeks to adjust the water rate to recoup a substantial debt, a financial sword of Damocles hanging over its cash flows. This bid, set against the backdrop of an economic slowdown, is a matter of survival for the provider but piles pressure on the purse strings of both COWD and the citizens of Cagayan de Oro.

The palpable tension has its roots in a prior arrangement that permitted COBI to implement a phased water rate increase every three years. Yet, reality bites hard with COWD’s Board staunchly rejecting this planned hike, considering the pandemic’s paralyzing punch on the local economy.

The battle of the bills is evident when comparing the consumption costs. COWD charges an amount that falls shy of what COBI invoices for rendering the same volume of water. It’s a numerical narrative that lays bare a fiscal fissure needing a fix.

COBI's ownership structure reveals Metro Pacific Inc. Investments Corp. as the heavyweight, with COWD maintaining a sliver of the share pie. As one of eight bulk water suppliers, COBI’s pricing policies pulse through the plumbing of Cagayan de Oro’s water distribution.

The LWUA, standing at the helm, now faces the intricate task of navigating these troubled waters. Deliberations will demand diplomacy, transparency, and foresight to ensure that the resolution does not run counter to consumer and civic interests.

The impending meeting isn’t merely a congregation of executives and suppliers; it’s a platform to forge partnerships, mend misunderstandings, and pilot policies that prioritize the people. The journey towards a feasible solution must be participatory and people-centric.

In the quest for quenching the thirst of Cagayan de Oro’s citizens, it is imperative for water utility stakeholders to flow together towards sustainable solutions. This collaboration could set a precedent for other localities facing similar conundrums, cementing a legacy that transcends Cagayan de Oro.

As the LWUA, COWD, and COBI chart their course through this confluence of crises, the citizens of Cagayan de Oro City await with bated breath. The resolution of these water rate woes will signal more than just financial reprieve; it will stand as a testament to the resilience and resourcefulness of its people and their leaders.