Ecuador grounding an ungrounded house

Hi so I’m an electrical engineer visiting some family in Ecuador and after some wiring has stopped working In the kitchen I have decided to rip out the 40 plus year old installation and reinstall. This is a bamboo farm house fed with a 2 wire overhead installation to a smart meter and then two 60 amp breakers, one is for the neutral. Both are accessible for a safe disconnect at least. That’s what the utility has provided. The meter is grounded with the ACSR cable from the overhead I assume it’s providing ground. Now the interesting part. After the meter and the two breakers the house is serviced with two tiny #12 gauge wires to a single 50amp breaker and then a whole collection of junction boxes to feed everything in the house. There is no ground wire what so ever after the meter and the third prong on the outlets have just been filled with cement. That is the way here from what I’ve observed. No grounding or bonding and the ground prong removed from appliances that require them.

With that said I will service with larger cable and provide a panel with a neutral and ground bar and run all three wires through the installation. My question is could there be something I’m overlooking grounding this one house while the other houses that are fed from the pole mounted transformer are left ungrounded and with a floating neutral? If the neutral has some electric potential to it on the line, could it be dangerous to connect the neutral in the panel to the ground bar and then to the main water pipe? Any thoughts appreciated thanks!