CAGAYAN DE ORO CITY: The Cagayan de Oro City Water District (COWD) denied on Wednesday, March 13, owing P426 million to the Cagayan de Oro Bulk Water Inc. (COBI), its bulk water supplier.

In a talk with The Manila Times, Anthony Young, COWD general manager, maintained that the local water district, a quasi-government-owned corporation, owes nothing to COBI.

The COBI alleged that the COWD owes the bulk water supplier more than P426 million for failure to settle the water rate increases imposed by COBI from 2021 to 2024.

Young said that the COWD is not indebted to COBI because the alleged debt amounting to P426 million is not reflected in the COWD's book of account.

COBI alleged that the COWD continues to collect the rate of P21.84 per cubic meter (m3) from consumers since 2011, and COWD did not increase its rates since implementing the P21.84 per m3 since 2011 until 2024, or for the last 13 years.

However, in 2020, COWD started to increase its rates to P16.60 per m3.

In 2021, COBI increased the rates to P20.57 per m3 and in 2024 it increased the rates from P20.57 per m3 to P24.19 or a total of P7.59 per m3 total increase.

COBI is an incorporation owned and managed by the Metro Pac.

One of the provisions of the agreement between the COWD-Metro Pac stated that the COWD is obliged to purchase, accept and "pay the minimum contracted water demand" to COBI, the bulk water supplier.