Oca: MCWS may face legal issues
City Mayor Oscar Moreno on Thursday said he has no problem with the entry of other water distribution utility companies, but pointed out that it’s still a long way to go especially in dealing with the legal issues that may arise with a new water player.
Moreno said he adheres to the principles of an open economy within constitutional and legal bounds.
However, he pointed out that what the City Council’s action meant when it passed the resolution expressing no objection to the creation of a parallel water system, was just a response to the “intent” made by the group of cooperatives.
“What the City Council did was simply a declaration of a ‘No Objection’. It did not ‘create’ the service provider. It merely responded to the ‘intent’ that was expressed,” Moreno said.
“While the City Council has acted the way it did, I am also aware of a legal opinion that was issued by our Legal Department, advising the City Council of related legal issues. We’re still a long way to go, and many
processes still have to be undertaken, towards that end,” he added.
Moreno did not elaborate what are the supposed legal issues raised, but pointed out that the discussion had to be with “the basic legal requirements of utilities providers”.
The mayor said while the process is still ongoing, he said the City Government is relentlessly pursuing its mission of enhancing Cagayan de Oro’s attractiveness as an investment destination, including investments in utilities.
“Furthermore, we are not losing sight to providing all the support we can possibly give to COWD (Cagayan de Oro City Water District) in its quest of efficiently serving the people of CDO,” he added.
Meanwhile, COWD spokesperson Ladelle Sagrado said they respect the City Council’s decision supporting the creation of another water system.
Sagrado said they will continue to serve the 64 barangays in the city, 7 barangays in Opol, and 1 barangay in Tagoloan.
She said they are also working on improving pressure in the elevated portions.
Sagrado maintained that their water rate remains cheap, pointing out that the current water rate for residential areas is P21.84 per cubic meter, and not P32 per cubic meter as earlier reported.
“We are not opposing with this development, but we are not also jubilant. But it is much better if this Metro Cagayan de Oro Water Service Cooperative Federation (MCWS) cooperate with us if how does this work, because engineering wise, it is not wise to put up many lines in a street, we do not know what their plan is for now,” she added.
During the weekly session last Monday, the councilors approved the proposal of Metro Cagayan de Oro Water Service Cooperative Federation (MCWS) to develop sources, process and deliver potable water to majority of the residents of barangays Bulua, Iponan, and part of Patag.
Councilor Teodulfo Lao Jr., chairperson of the committee on public utilities said this meant breaking the monopoly of water source in the city. PJ Orias