lvchang@chinadaily.com.cn

China's nuclear giants are preparing to begin construction of the country's home-grown CAP1400 nuclear reactor, which they aim to export to South Africa.

Work on the reactor is expected to begin this year.

Construction on the first two units of the pilot nuclear power plant in Shidao Bay, Shandong province, is set to begin in the coming months, a source close to the matter said.

According to earlier reports in the local media, Chinese nuclear companies are lining up to bid for the largest tender in the country's history, an estimated 1 trillion rand ($69.1 billion) contract to build six new reactors by 2030. However, the reports noted concerns from energy officials that because the project is the first of its type in China, potential problems might exist.

"Production has begun on some 27 pieces of nuclear equipment, and they will take a long time to develop. Everything is ready, including all documents, equipment procurement and early-stage preparation work, and when the FCD (first concrete pouring date) comes around, it will open up doors for more exports," the source told China Daily.

South Africa is an attractive potential market, not only for Chinese nuclear companies, but also its foreign rivals. The World Nuclear Association said five reactor vendors were invited to make proposals, including Russian energy giant Rosatom, China's nuclear company State Nuclear Power Technology Corp, KEPCO from South Korea, French utility company EDF and Westinghouse from the United States.

Proposals should specify reactor design, the degree of localization, financing and cost, the association said.

South Africa signed an inter-governmental agreement with China in 2014, laying the foundation for cooperation, trade and exchange in nuclear technology as well as procurement. Similar agreements were also signed with France and Russia.

South Africa has definite ambitions to develop its nuclear energy capability, and has drawn up firm plans for another 9,600 megawatts in the next decade, but financial constraints are a challenge to such further development, according to Wang Wei, a professor at North China Electric Power University.

"The cash-rich Chinese companies, on the other hand, are able to provide not only advanced nuclear technology with the highest safety standards, but also money for financing the projects", he said.

Zheng Mingguang, head of the Shanghai Nuclear Engineering Research and Design Institute, a high-tech arm of the State Nuclear Power Technology Corp, told China Daily last year that the company is confident that its bid will be successful.

"But the nuclear energy industry also involves other issues, so we can't set any date yet on the final bidding process," he said.

The country hopes to land the contract using its CAP1400 nuclear technology, which is designed by SNERDI and based on the AP1000 reactor technology developed by Westinghouse.