CAGAYAN de Oro Water District chairman Gerry Caño reported over the weekend that the arbitration between the government-owned utility and its supplier Cagayan de Oro Bulk Water, Inc. (COBI) is now underway before the Singapore International Arbitration Centre.
In fact, COWD is expected to submit its position on the disputed billing computation at the end of this month before the body.
Caño said the COWD position will contradict and challenge the amount being pushed and calculated by COBI since 2021.
That year, COBI unilaterally implemented an increase of its rates to P20.57 per cubic meter and another P24.19 in 2024.
COBI based its stance on a provision in their 2017 contract for an increase every three years.
But COWD also cited Section 10 of their contract – the force majeure clause – due to the coronavirus pandemic in that era as the reason to suspend the increase.
This is now the subject of the dispute.
The Singapore International Arbitration Centre is the body tapped by the United Nations Commission on International Trade Law to handle contract conflicts such as this one.
Caño said the arbitration process will run for a year.
COWD, COBI dispute arbitration underway – Caño
