03/06/2026
The Cagayan de Oro City Water District (COWD) would like to explain why a water rate adjustment has become necessary.
COWD's water rates have remained unchanged since 2014. For more than a decade, despite rising operating costs, COWD has continued to provide water service without increasing rates.
Today, revenues are sufficient only for daily operations, maintenance, and limited small-scale projects. They are no longer enough to support major investments needed to improve and expand the water system, including:
• Development of new water sources
• Rehabilitation of aging pipelines
• Construction of small-scale water treatment facilities
As a GOCC, COWD does not receive regular subsidies from the local and national government and relies primarily on consumer payments to fund its operations and development projects.
*To minimize the impact on consumers, the proposed adjustment will be implemented in two phases:
First Year
• Residential rate: ₱21.84 to ₱30.58 per cubic meter (an increase of only 8.74 pesos per cubic meter)
Second Year
• Residential rate: ₱30.58 to ₱36.70 per cubic meter (an increase of only 6.12 pesos per cubic meter)
Many consumers ask why rates must increase before service improvements are seen. The reason is that these improvements require significant funding. The necessary investments must be made first before projects can be implemented and the benefits delivered.
It is also important to note that, while concerns about low water pressure and service interruptions are valid, operational data shows that more than 80% of service areas generally receive acceptable water pressure and supply. Managing water distribution across a geographically diverse service area is complex, and solutions cannot be completed overnight.
After more than a decade without a rate increase, this adjustment is necessary to ensure the improvement and long-term sustainability of the water system. It is not intended to generate excessive profit, but to provide the resources needed to deliver better service for all consumers.