COWD, 1st Water Utility To Offer Bonds

By: Rene Malferrari

Cagayan de Oro City, Aside from being the    first water district established nationwide, here is another first from the Cagayan de Oro Water District! COWD will soon issue low-risk government bonds that promise substantial earnings and prompt returns on investments upon maturity.

   This was announced Thursday by Interim General Manager Fermin V. Jarales, adding that the Securities and Exchange Commission confirmed recently that  COWD bonds are exempt from registration, being a government owned and controlled corporation  or GOCC. Jarales also added that the Province of Misamis Oriental has committed to invest in COWD bonds for one billion pesos.

IGM Jarales said that these bonds will help support COWD's priority projects that are enshrined in the interim board of directors' approved 5-year development plan for the embattled water utility. Jarales also disclosed that in the first three days of implementing  its Bill Easement and Amnesty Program, the COWD has activated a substantial number of dormant consumers, hence generating P5.6 

million in receivables. COWD is inviting concessionaires with delinquent and inactive accounts and who are having a hard time paying their bills, to avail of its Bill Easement and Amnesty Program.

 Moreover, IGM Jarales reported that the Local Water Utilities Administration or LWUA, has approved, in principle, a P50 million unconditional grant to fund the purchase of COWD's water tankers/lorries refleeting and non-revenue water or NRW reduction projects, especially in the Villa Ernesto Subdivision area in Barangay Gusa, this city.

 Jarales also presented a 9-point actionable plan that includes, among others, intensification of collection efforts. past due accounts, resolving issues on the use of stocked materials worth P153 million, finalization and validation of plans of a P225 million NRW Program to be funded by the Development Bank of the Philippines or DBP and the resolution of issues on Cagayan de Oro Bulk Water Incorporated or COBI.