The North's First Minister, Mr David Trimble, has said that a £5 million sterling (€7.83 million) bio-science and technology institute, to be built in south Belfast, will give a major boost to the economy.

The 40,000 sq ft building, on a site donated by the City Hospital, will be open by the end of 2001. It will house facilities for software and electronics as well as drug research and development.

"This shared expertise will enhance the attractiveness of Northern Ireland as a centre of excellence in biotechnology," Mr Trimble said. "The aim is to create a world-class research facility with a sharp focus on technology transfer that will promote research and development projects and provide significant [business] opportunities."

Mr Trimble said the North was ideally placed, with its highly educated workforce and excellent universities and teaching hospitals, to benefit from the global boom in biotechnology products.

Queen's University, the University of Ulster, and the City and Royal Victoria hospitals are supporting the new institute. It will be partly funded by money from the European Peace and Reconciliation Fund, the Industrial Development Board, the Industrial Research and Technology Unit and the International Fund for Ireland.