PRESS RELEASE

30 MARCH 2024

TASK FORCE SECURES COMMITMENT FOR NEGOTIATIONS AMIDST

WATER SUPPLY DISPUTE

The CityHall’s task force overseeing water supply and distribution has obtained commitments from the city's bulk water
provider to actively pursue negotiations aimed at resolving their dispute with the Cagayan de Oro Water District
(COWD).

CAGAYAN DE ORO CITY - Amid concerns over the impending water supply crisis in the city, The
City Hall’s Task Force dedicated to addressing water resource challenges has achieved a
significant breakthrough. On March 15, 2024, via Video Conference Call, the Cagayan de Oro
Bulk Water, Inc. (COBI) has committed to engaging in discussions with the Cagayan de Oro
Water District (COWD), marking a pivotal moment in the pursuit of sustainable water
management.
Cagayan de Oro City Mayor Rolando ‘Klarex’ Uy has provided reassurance to the public,
affirming that his administration has prepared contingency measures should the Cagayan de
Oro Bulk Water Inc. (COBI) decide to discontinue its bulk water service to COWD following
March 31.
 ‘I don’t want the public to suffer because (of the dispute between COWD and COBI),’
Mayor Rolando ‘Klarex Uy’ said in Visayan. has underscored the urgency of addressing the
looming water crisis and has assured the public of a contingency plan to mitigate potential
disruptions in water supply.
Are you devoid of compassion?... We, the public, are mere bystanders in your dispute with
COWD, yet we stand to bear the brunt of your disconnection... That notice of disconnection is
not merely a notice; it's a blatant act of arrogance," expressed Cabanlas to Rodrigo during the
discussion.
Addressing the concerns raised, Rodrigo stated during the video conference call that they have
formally reached out to COWD management, urging them to engage in constructive dialogue to
reach a mutually beneficial compromise. "We have heard your concerns loud and clear, sir...
Please understand, Mr. Chairman (Cabanlas), we did not intend to incite panic among the
public," Rodrigo emphasized, expressing hopes of resolving the issues with COWD before the
looming deadline of March 31.
Responding to Councilor Yan Lam Lim's query regarding the possibility of renegotiating the
contract with COWD, Rodrigo indicated that their willingness to negotiate would depend on the
specific provisions of the contract that would require amendment, given their relevance to the
conditions stipulated by their creditor banks.
Furthermore, Rodrigo concurred with Cabanlas's suggestion that officials from COBI and COWD
engage in discussions with the 20th City Council to review the contract terms. He also
committed to conveying Cabanlas's request for a two-month extension to Metro Pacific
management, the majority owner of COBI, holding a 95 percent stake.
During the task force meeting convened on Wednesday afternoon under the auspices of Mayor
Klarex, bulk water suppliers including Rio Verde Water Consortium were present. They
reassured the task force of their readiness to step in and provide water supply to households
affected by the potential disconnection of COBI's bulk water supply service to COWD, as
confirmed by Stephen Capillas of the City Information Office.
The Task Force remains committed to facilitating the negotiation process and advocating for the
interests of the community. As discussions between COBI and COWD progress, stakeholders are
urged to remain vigilant and actively engage in the dialogue to ensure that the outcomes align
with the best interests of the residents.
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Cagayan De Oro Water District
On August 1, 1973, the Cagayan de Oro City Water District (COWD) was formed as the first
water district in the country. It was issued the Conditional Certificate Conformance (CCC) No.
001 on January 4, 1974 by the Local Water Utilities Administration (LWUA).
COWD was born as a self-reliant, quasi-public entity with the implementation of the Provincial
Water Utilities Act of 1973 or PD 198, which created the water districts nationwide. Under the
strong leadership of its first and brilliant general manager, Engr. Ernesto B. San Juan, COWD,
despite its independence, was able to transform itself from near scratch to an organization
clothed in efficiency, competence, credibility and success.
COWD started with only 3,500 service connections when it took over the management of the
defunct NAWASA or the City Waterworks System in 1973. This was expected from an average
water production of only 12,200 cubic meters per day distributed to consumers through
transmission lines, only 39 kilometers long.
Furthermore, the Bulk Water Supply Project (BWSP) of COWD is the first of its kind in the entire
Philippines. This is a supply agreement scheme between the COWD and the contractor for a
period of 25 years. COWD began purchasing in bulk treated water initially from Rio Verde Water
Consortium Inc. beginning January 2007 at an initial volume of 40,000 cubic meters per day.
This BWSP is coupled with a Lateral Improvement Project, which includes the laying out of
mainline pipes ranging from 300-800mm diameter primarily to be able to accommodate the
entry of bulk water supply, expand service area and further improve water service to the public.
The bulk water ownership and operation has since been taken over by the Cagayan de Oro Bulk
Water Inc. (COBI), a joint venture between Metro Pacific Water and COWD. COBI currently
supplies COWD with 60,000 cubic meters per day (cmpd) of potable water for the west side
concessionaires and 20,000 cmpd for those in the east side.

For media inquiries or further information, please contact:

MISSY JANE B. LLENARES
Communications Officer of the Cagayan de Oro Water District
Llenares.missyjane@gmail.com
09206615192