MANILA - The provincial government of Cebu has accepted the proposal of a consortium led by Ayala-owned Manila Water Co. Inc. to deliver treated water to the entire province.

In a statement, Manila Water said Cebu Governor Gwendolyn Garcia "has accepted the unsolicited proposal of the consortium, composed of Manila Water and Stateland Inc., for a joint venture or investment with the provincial government of Cebu."

Negotiations between the provincial government and the consortium regarding the conditions of their investment are now underway. The proposed venture will be subjected to a "Swiss Challenge" where offers of other prospective investors would be entertained.

If uncontested and finally approved, the joint venture with the Manila Water consortium would supply 35 million liters of potable bulk water per day to address the requirements of Danao, Compostela, Liloan, Consolacion, Mandaue, Lapu-lapu and Cordova in Cebu. The water would be sourced from the Luyang River in the municipality of Carmen.

Cebu province would only have to pay for water it uses. It will take over the joint venture's assets once the initial 25-year cooperation period ends.

The joint investment proposal aims to replicate the improvements that Manila Water made in the East Zone of Metro Manila and help alleviate the over-extraction of groundwater in Cebu.