The Cagayan de Oro Water District (COWD) will need at least PHP1.9 billion in funding for its system modernization plans to better serve this city’s consumers.

In a statement Tuesday, COWD General Manager Antonio Young said the planned modernization aims to address the low – even the absence of – water supply during peak time in the morning.

Young admitted that the local water utility could not afford the needed rehabilitation, prompting the COWD’s board members, led by its chairperson Nelia Lee, to propose a rate increase to cope with the needed amount.

The City Council, however, opposed the proposal.

“Due to these numerous complaints from the consumers posted on social media, the COWD board of directors immediately held a conference to modernize its facilities, and it came out that they needed PHP1.9 billion for the program,” Lee said.

However, Councilor Joyleen Mercedes Balaba described the proposed rate increase as an “added burden” to consumers.

“COWD exists in the city for 50 years, and it’s unreasonable that they do not have enough funds for the modernization,” Balaba said.

The Council’s Majority Floor Leader Edgardo Cabanlas proposed privatization to address the modernization plans, while Councilor George Goking suggested a loan from government financial institutions or the Local Water Utility Administration (LWUA) as a remedy.

Young said they would provide additional lines to immediately address the issue temporarily, but made it clear that modernization is still the way to go.

COWD, a government-owned company supervised by the local government, is under a supply agreement with Cagayan de Oro Bulk Water, Inc., which is supposed to provide at least 80,000 cubic meters of water daily to local water concessionaires. (PNA)