The cost of a hydro-electric power generator to be installed in the power station of the Three Gorges Project is similar to the price of a Boeing 737 jetliner, a project official has revealed.

Companies worldwide have been engaged in cut-throat competition in attempts to win the rights to produce and sell the high-power generators to China through international bidding invited by the overseer of the project.

In June 1996, the overseer of the project, the China Yangtze River Three Gorges Project Development Corporation (CTGPC), announced in Beijing that China will buy hydro-electric power generators from manufacturers worldwide.

Big-name companies from Germany, France, Switzerland, Norway, Canada, Russia, such as Siemens, ABB, GE, and Mitsubishi, have bought tender documents, with some even forming consortia to outbid each other.

It is rare for so many influential companies to participate in a bidding competition, said a CTGPC official.

The official explained that it is "the huge commercial cost of the equipment that has aroused worldwide attention, especially at a time when the world market for generators is sluggish."

By December 18, 1996, companies from nine countries had beaten a 4 pm deadline to deliver tender documents to the overseer of the project, winning the rights to participate in the "bidding Marathon" which will not end until next summer.

China is now evaluating the bid documents.

"The stable operation of a ready-made generator is what China cares about most, and what bidders should focus on," the official said.

"Another decisive factor is the price," adding that "if a bidder can get export credits or other loans from the government and financial agencies, it will become more competitive."

The official disclosed that some companies or consortia have won credit support from their respective governments or financial agencies of their countries.

The Three Gorges Project, the world's largest hydro-electrical project, plans to install a total of 26 generators. The first group of generators are expected to start generating electricity in 2003.