Cagayan de Oro, Philippines - The Local Water Utilities Administration (LWUA) has officially taken over the management of the Cagayan de Oro Water District (COWD) as of Friday, according to an announcement from the agency. The takeover follows directives from the office of LWUA chairman Ronnie Ong, which sent details of Board Resolution 34, series of 2024, to the Philippine News Agency. This resolution outlines the steps for assuming control of COWD's operations and water supply distribution.
According to Philippines News Agency, the decision for the takeover came directly from President Ferdinand R. Marcos Jr., who approved the action after reviewing the necessary documents provided by COWD. The resolution includes plans for both short-term and long-term improvements to the water supply system in Cagayan de Oro City, such as the implementation of a non-revenue water program to reduce losses.
During this transitional period, LWUA will appoint interim board members and an interim general manager to oversee the water district's operations. The organization pledged to manage COWD's facilities, systems, and properties efficiently, adhering to stringent legal, administrative, and financial standards. The interim board has also been tasked with correcting any irregularities and addressing existing problems in COWD's accounts and obligations to LWUA, suppliers, and consumers.
The takeover follows a recent crisis in which the city's bulk water supplier, Cagayan de Oro Bulk Water Inc. (COBI), reduced the city's water supply by 40 percent over an alleged unpaid balance of PHP479 million. This reduction affected a significant portion of the city's population, particularly in the western areas. The situation was temporarily resolved when the local government obtained a restraining order against COBI, leading to the restoration of the water supply.