Manila Water Co. Inc., the water utility firm of conglomerate Ayala Corp., is looking at a bulk water supply project in the province of Cebu.

Manila Water, in a disclosure to the stock exchange, said unit Northern Waterworks and Rivers of Cebu Inc. signed an agreement with the provincial government to look into the feasibility of supplying bulk water from Luyang river in Carmen.

?The provincial government has long since realized that concrete actions must be taken to address the water supply problem in the province. This is in line with our thrust to further improve the quality of life of our constituents as well as help the province maximize its potential as a major tourist and investment destination in the country,? Cebu Gov. Gwen Garcia said in a statement.

Manila Water president Antonino Aquino said the proposed project would provide a solution to the province?s twin challenges of dwindling water supply and deteriorating quality.

Northern Waterworks is a consortium composed of Manila Water, real estate developer Stateland Inc. and Gaisano-owned Vicsal Inc.

Manila Water earlier submitted an unsolicited proposal to undertake a $30-million Carmen Water Supply Project in Cebu City.

The project, which is still awaiting the government?s approval, aims to boost water supply in Metro Cebu by 33 percent and address serious mining and saline intrusion problems in the area.

Manila Water also expressed interest in teaming up with Atlas Consolidated Mining and Development Corp. for the planned $50-million bulk water project in Metro Cebu, which is capable of delivering up to 100,000 cubic meters of potable water per day to Cebu City and Toledo City from the Atlas dam, the largest privately owned reservoir in the country.

The dam was constructed in 1970 to serve the Toledo mine?s water requirements. The Atlas dam will have a surplus capacity of 100,000 cubic meters per day. Jenniffer B. Austria