CAGAYAN de Oro City Mayor Oscar Moreno said over the weekend that privatizing the Cagayan de Oro City Water District (COWD) may “substantially enhance” the water facility's ability to address the problems and concerns it is facing.
Moreno made the statement amid talks of a possible privatization of the 45-year-old water utility, a claim denied by COWD executives.
Moreno said privatization can be a way for the water district's expansions and efficiency, improve capital and financial muscle, as well as build on its technical competence.
But while Moreno is open to privatizing it, he recognizes that the road to transferring its management to the private sector is not a "walk in the park", adding that privatization does not necessarily lead to success.
"You have to have the right ingredients: timing; strategic partner/s, structural and financial design, strategic planning, etc. All these things, and more, have to be carefully though out, conceptualized, planned and implemented," he said.
"It's their call (whether they would privatize it or not). Perhaps, they want to do what they can in the meanwhile, then privatize later. This will hopefully improve COWD's position. To the extent that they can do certain things to improve themselves, they also improve their position and attract more players," he said.
Engineer Bienvenido Batar Jr., COWD acting general manager, had earlier said that the Metro Pacific Water Investments Corporation (MetroPac), the city’s bulk water supplier, had expressed interest in forging another joint venture agreement with COWD that will cover water distribution.
Batar said the proposed joint venture would mean the eventual privatization of the government owned and controlled water utility, as takeover on water distribution is also takeover on COWD's management and operations.
COWD chairman of the board of directors Eduardo Montalvan, meanwhile, said they have already declined and made it clear to MetroPac executives that it will turn down any future plans for the supposed joint venture on water distribution.
The COWD is facing problems on the increase on its non-revenue water now at 50 percent, septage or water waste treatment, and even water distribution.
Three months after MetroPac officially became COWD's bulk water supplier, the water facility is still bombarded with complaints for poor water services.
"We know that there are still areas experiencing water interruption but let us give them (MetroPac) a chance, it's been only 3 months since they started their operations," Montalvan said.