BEIJING - China will decide the winner of a long-awaited, multi-billion-dollar nuclear power contract this month, with companies from France and the United States in the running, state press have reported.

A man walks past a power station on the outskirts of Beijing, April 2005. China will decide the winner of a long-awaited, multi-billion-dollar nuclear power contract this month, with companies from France and the United States in the running, state press have reported. [AFP]

Related readings:  US exaggerates China defense - report  Leaders talk nuclear issues  China, US meet to restart nuclear talks  China plans new nuclear power plant  Diplomatic victory for China  China, US closing ranks over nuke issue  Kim told China: No plans for second nuke test  Fast nuclear reactor to start tests 2010  China: UN should help solve Korean nuclear issue

"The final decision will be made by the State Council, China's cabinet, at the end of the month," the weekly financial Caijing magazine reported in its current edition on Friday.

France's Areva and Westinghouse of the United States are front-runners in the bidding for four "third generation" nuclear reactors that will be built in Sanmen, Zhejiang province, and in Yangjiang, Guangdong province, it said.

China launched the bidding process in September 2004, with Russia's AtomStroyExport also competing.

A decision had been expected last year but has continually been put off.

China National Nuclear Corporation, the nation's largest nuclear power conglomerate, is in favor of the French EPR technology as it is similar to their own, Caijing quoted a company official as saying.

But Westinghouse's AP1000 technology was seen as easier to operate and understand, especially in the event of an emergency, and their price was competitive, the magazine said.

The bid was originally seen to be worth about eight billion dollars for the four reactors but China has been seeking to lower the costs by buying the reactor design and building the plants themselves, reports have said.

France's nuclear industry has long been engaged in supplying reactors to China, with four of the nation's currently operating 11 nuclear reactors French-made.

At the end of 2005, China got just 2.3 percent of its energy from nuclear power plant, but is hoping to increase that to four percent by 2020, which will make it the world's fastest developer of atomic energy.

The plan will require about two 1,000 megawatt nuclear power plants to be built annually for the next 15 years, previous reports have said.