Work due to begin on flagship business park

Work is about to begin on the development of an 80-acre business and technology park in Letterkenny

Work is about to begin on the development of an 80-acre business and technology park in Letterkenny. IDA Ireland is confident it will become one of its flagship centres for new investment.

As a measure of its commitment to attract new investors to the north-west, the IDA is planning to spend €4 million out its 2002 €30 million site-development budget on works in Donegal.

The bulk of the monies are being spent on developing the first phase of the new technology and business park in Letterkenny, while €750,000 has been allocated for enhancing existing industrial estates in Buncrana and Ballyshannon. Meanwhile, in Sligo, the IDA has plans for a 25-acre technology and office park adjacent to the Finisklin Industrial Estate, while work on a new 25,000 sq ft advance factory in Carrick-on-Shannon is nearly complete.

The new development in Letterkenny is part of a long-term strategy to promote the town as a centre for major development.

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"The concept that we are using is to select a small number of towns which can be developed as credible alternatives to the major cities for future growth," said IDA area director Mr Pat Loftus.

"This development will be a top-of-the-range flagship park which will have infrastructural services, including broadband access, of the highest quality. This is building for the future, we are looking at a window of 10 to 15 years before it is finished and totally occupied. The scale of it will put Letterkenny on the map."

The IDA will be targeting the international traded services, software development, healthcare and engineering sectors. He added that the level of enquiries from overseas investors appears to have picked up following a low point after September 11th.

While the IDA is reluctant to talk about specific job targets, sources suggest that that several thousand jobs could be created in the long term. It is estimated that the total investment - office buildings will be constructed in conjunction with the private sector - could exceed €50 million.

The IDA is hopeful that the positive experience of existing US firms in Letterkenny - Unifi, PacifiCare and Prumerica - will help to attract new investors.

While there have been concerns expressed about the quality of the electricity supply and ability to meet demand should new industries come in, IDA officials have expressed confidence that sufficient supplies will be available. It is working closely with the ESB on the matter.

The conversion from oil to natural gas of the Coolkeeragh Power Station in Derry - in which the ESB has a stake - will mean extra power for the north-west region, where cross-Border interconnectors are now in place. Additional power may also be generated from a number of planned wind-farm projects in Donegal and there is also ongoing investment in strengthening the grid network.

An indication of the IDA's bullish approach to Letterkenny is the fact that it currently has a 25,000 sq ft factory available in the existing business park, where over €300,000 is being earmarked for upgrading and landscaping this year. It also has planning permission for two further advance buildings of a similar size, and it is expected that work on the first buildings in the technology and business park could start later this year.

The business park will be beside the existing 25-acre business park where PacifiCare set up operations over two years ago. In effect, the new development will lead to the creation of a technology district encompassing over 100 acres.