The Cagayan de Oro Bulk Water Inc. (COBI) on Thursday, March 7, urged the Cagayan de Oro City Water District (COWD) to ensure the timely payment of its monthly invoices and adhere to its contractual obligations for the continued provision of essential water services in Cagayan de Oro City.
COBI, in a statement to the Manila Bulletin, expressed deep concern regarding the persistent delays and the disregard of contractual obligations by COWD despite diligent efforts to maintain a cooperative partnership.
According to COBI, the prolonged and chronic delays of COWD in settling monthly invoices, exceeding the contractual timeframe by around 30 to 45 days, has created challenges for COBI and its ability to fulfill its financial obligations to banks and suppliers.
COBI also said that aside from the delays in settling monthly invoices, COWD also refused to pay the agreed upon bulk water rate as stipulated in the Bulk Water Supply Agreement (BWSA).
It added that while their contract mandates automatic adjustments to bulk water rates effective from January 2021 through December 2023 and subsequently from January 2024, COWD has consistently remitted payments based on outdated rates.
These automatic adjustments simply account for inflation and movements in the cost of goods and materials, according to COBI.
As a result of COWD’s persistent disregard of contractual obligations and the adverse impact on its financial standing, COBI said they are constrained to discontinue bulk water supply to COWD as outlined in their BWSA.
COBI said this course of action is regrettable but necessary to uphold the integrity of their agreement.
It urged COWD to prioritize the timely payment of its monthly invoices and compliance with contractual obligations to ensure the uninterrupted supply of safe and reliable water to residents and businesses in Cagayan de Oro City.