Cabanlas: COBI-COWD contract needs legal, jurisdictional review

COUNCILOR Edgar Cabanlas expressed support for the call to revisit the controversial contract between Cagayan de Oro Bulk Water, Inc. (COBI) and the Cagayan de Oro Water District (COWD) but cautioned that the 21st City Council must first establish the proper legal and jurisdictional remedies.

Cabanlas made the statement in response to the special report of Councilor Eric Salcedo, who urged the legislative body to pass a resolution asking the National Water Resources Board (NWRB) to investigate COBI’s operations in the city.

Salcedo argued that the contract was disadvantageous to consumers, particularly for imposing rate hikes every three years despite the absence of a bulk water treatment facility as stipulated.

While agreeing with Salcedo’s concerns, Cabanlas stressed that any resolution by the Council would constitute an official act of the city government and therefore must undergo careful legal scrutiny.

He explained that if COBI has a valid permit to extract water from the Cagayan de Oro River, NWRB may not have jurisdiction over the matter since its mandate is limited to water use regulation.

Instead, he suggested that the matter may fall under the jurisdiction of the Local Water Utilities Administration (LWUA). To avoid delays, he recommended that any resolution be addressed to both NWRB and LWUA.

In his report, Salcedo recalled that the city was placed under a state of emergency in April 2024 following threats of cutting the supply of water. Mayor Rolando “Klarex” Uy later issued Executive Order 109-2024 creating a special task force, headed by Councilor Cabanlas, to come up with recommendations on the issue.

Among the task force’s five recommendations was the rescission of the COBI-COWD contract, citing its disadvantageous provisions and alleged violations. Salcedo said these recommendations should not be left unacted upon.

“If this is not under NWRB’s jurisdiction, they will refuse. If it is under LWUA, then they can refer it there. What matters is we don’t let the recommendations sleep,” he said.

With this, the City Council, headed by Vice Mayor Bebot Rodriguez, passed the resolution with Councilors Imee Moreno, Aga Suan, and Yvy Emano, abstaining. (FDC/SP)