More than 120 new jobs will be created at two companies in Donegal over the next three years, the Tanaiste, Ms Harney, announced yesterday. One of the companies involved manufactures medical supplies, the other is an Internet-based research centre.

Ninety of the jobs will be created at InterVentional Technologies (IVT) Europe which already employs 60 people at its Letterkenny factory making microsurgical devices for the treatment of cardiovascular disease. Half of the jobs will require third level qualifications and recruitment has already started. IVT Europe was set up in Letterkenny in 1992 as a research and development centre for the US-based parent company to speed up European clinical trials and approval for its products.

The expansion will result in the company relocating its operations from four separate units in the town to a new purpose-built plant at the IDA Ireland business park. The new building is expected to be completed by next September and it is hoped the 90 new jobs will be created over three years.

A new Internet-based research centre in Buncrana is being set up by Network Resources America. It plans to create 35 jobs within two years. Based in Atlanta, Georgia, the company's chief executive, Mr Peter Casey, is a native of Derry. Set up in 1995 it also has offices in New York and London. Network Resources finds high level technical and management personnel for large blue-chip companies throughout north and south America.

Eleven people have been employed at Buncrana and the majority of the jobs will require third level certificate or diploma qualifications.

Ms Harney made the jobs' announcements during a visit to Derry and said it was good news for Donegal and would compensate for recent job losses in the county.

She said it was a clear indication of the success of the Government strategy to attract 50 per cent of new investment to the Border, Midlands and Western region and stressed the Government would continue to accord the region priority.

The Minister for Tourism, Sport and Recreation, Dr McDaid, welcomed the announcements and said it was particularly significant that the University of Ulster was involved in developing data facilities for the Buncrana plant.

"It is a further example of commonsense, business-like cross-Border co-operation, which benefits communities on both sides of the Foyle," he said.

Meanwhile, the IDA said there had been an average of one site visit every fortnight by prospective investors to Donegal this year. The IDA's chief executive, Mr Sean Dorgan, who addressed Letterkenny Chamber of Commerce last night, said it took time to pin down projects but they were determined to win further new projects next year.

Mr Dorgan said, however, there were issues that had to be addressed such as the quality of telecommunications and electricity supply in the region. He said progress on getting the standards up to the required international levels was slow.

In an obvious reference to local opposition to ESB pylons in west Donegal, which will be the subject of a Bord Pleanala oral hearing next week, Mr Dorgan urged Chamber members "to take a stronger and more supportive lead role locally in having better acceptance of the need for new distribution systems for electricity supply".

He was also critical of road access into the region, saying there was "disappointedly little priority for the necessary major investment in primary roads' infrastructure in this region and the timeframe being discussed is very long term".