AN OFFICIAL of the Cagayan de Oro City Water District (COWD) said the P500-million assistance from the city government for the improvement of water supply in the hinterland villages will be in a form of a loan.
Ed Montalvan, COWD board of directors chairperson said, it was City Mayor Oscar Moreno who offered the financial aid to the COWD to fast-track the water projects in the hinterland barangays.
“Naa man mi loan application sa LWUA (Local Water Utilities Administration) pero hangtod karon pending pa man dugay man galihokon. So nag-offer siya para mapaspasan kay gamiton namo sa projects sa hinterland nga walay tubig (We have a loan application at LWUA but it is pending until now. So, he [mayor] offered so that we can fast-track the projects for those without water supply in the hinterlands),” Montalvan said.
He said the terms of the possible loan agreement is still being negotiated by the city and COWD.
Montalvan added that the water district is making money, but is not ready to release big amount immediately.
“The water district is making money but not enough for us to fast-track the expansion of our operation. Kung muingon siya nga kinahanglan humanon before the term ends, dili makaya sa income (If he wants the project to be finished before the term ends, the income is not enough),” Montalvan said.
Moreno last week revealed that he is proposing a P3.5 billion budget for year 2020, and a new item is included which is the financial augmentation of the city to COWD worth P500 million.
The mayor, however, pointed out that the P500 million will be returned to the city government after 5 to 7 years.
Moreno also said it is fine if the COWD will not pay any interest of the loan.
“Okay nako ana kay ang serbisyo unsay epekto ana? More and more investors will come in, more housing developments will come, that will mean more jobs, more revenues and improved economy,” he added.