A new generating station at Clonbulloge, Co Offaly, would generate 600 jobs during its two-year construction phase, the Minister for Public Enterprise, Mrs O'Rourke, said yesterday, after visiting the site.

She said that the new 120 megawatt peat-fired station, to be built and operated by the Finnish IVO group, would employ 50 people, while a total of 500 staff would be taken on by Bord na Mona.

"The new plant will operate at 38.5 per cent efficiency, which is a very high efficiency ratio for such an operation. This is comparable with top of the range coal plants," she said.

The plant, which will but one million tonnes of peat annually, is expected to inject £9 million to the local economy and indirectly benefit up to 3,000 people. Last month IVO beat the ESB in partnership with Foster Wheeler when tendering for the £120 million station's two-year construction and operating contract. Electricity from the plant will be supplied on a longterm contract to the ESB. IVO, which had turnover of $2.6 billion (£1.85 billion) in 1996, employs 8,000 people worldwide.