"We never opposed their Suawan project," said Imelda Magsuci, financial manager of DCWD.
Three hydropower plants were initially planned to be put up by Hedcor as part of the company's P7 billion 34.5 Megawatt Tamugan-Panigan-Suawan hydropower project.
The reason cited by Hedcor was the increase in construction costs, which has reportedly increased the amount beyond what was planned.
However, news reports published cited that one of the reasons was the opposition of the water utility.
"What we went against is their Tamugan project only," Magsuci clarified.
The Tamugan River, as asserted by the water utility, is the only source of surface water that is viable based on its quality and quantity here in Davao City.
Davao City Councilor Peter Laviña last week allegedly put the blame on the DCWD for the cancellation of one of the three hydro power plant projects.
"The reason for the delay is the opposition of the local water utility, Davao City Water District. The delay is already two years. For us lay people, the dispute is easily resolvable as it pertains mainly on elevation, where water would be tapped by either Hedcor or DCWD, and not on a fundamental issue on the use or misuse of water resources. Technical solutions can certainly fix the problem and both parties have plenty of good engineers," Laviña was quoted as saying.
Laviña added that he fears further delays might push Hedcor to also scrap the building of the two remaining plants that are expected to meet local energy shortage by 2010. (CPM)