Glasgow's Merchant City

The hope is the park will also lead to spin-off jobs for other businesses such as bars, restaurants and hotels.

The first phase will see a software centre up and running by October 2001. Other stages include a new street within the existing College Street, Shuttle Street and Albion Street layout as well as a new courtyard and provision for a tramline.

Enterprise Minister Henry McLeish said: "I think it is a marvellous concept, and it is certainly one of the most ambitious and innovative science-based projects we've ever seen in Scotland.

"What it does do is break new ground. This is a tremendous project involving Enterprise Glasgow, involving the city, involving the academic community and, of course, financed by the private sector.

'Attractive base'

"It's a model we'd like to see repeated elsewhere.

"I think what we're really talking about is a science and technology headquarters in the heart of Glasgow.

"What it will do is provide an attractive base and development space for high-tech fields like software, ebusiness, optoelectronics, advanced engineering - the very stuff of the future as far as the Scottish economy is concerned.

Henry McLeish: "Ambitious project"

"A lot of companies in Scotland and worldwide are looking for prestigious locational space.

"This will provide that. What this does mean also is that all the agents working hard to provide the new accommodation in terms of square footage then, of course, build on the reputation of the city because in terms of the sciences, in terms of a whole range of new innovations, Glasgow is world edge.

"In that sense we've got the ingredients ."

Asked about the promise of 3,000 jobs, Mr McLeish said: "It is very realistic indeed. An awful lot of work has gone into this and I think it is absolutely right that both Scotland and Glasgow are very ambitious.

"This, as I said, is the real key to this. The link now between the private sector and the economic community and the enterprise agencies - that, I think, is the real benefit here.

"I am convinced that all the work that's been done, all the planning that's gone on, the project will do well. "