The tenancy position of Science Park Phase One is satisfactory with an occupancy rate of 85%, Secretary for Commerce, Industry & Technology Henry Tang says.

At the end of May, Science Park had signed tenancy agreements or letters of intent with 28 tenants for Phase One. It also approved the admittance of nine companies as incubatees.

Speaking in the Legislative Council today, Mr Tang said no one had asked for the surrender of tenancy or cancelled their tenancy agreements due to SARS.

He said the Science Park should be of a reasonable scale to attract technology-based companies and develop technology clusters.

The Government has no intention of shelving Phase Two construction at this time as it will risk adverse effects on Phase One.

However, he said construction of Phase Two will be divided into four modules, and the progress of the development can be adjusted in view of the market situation and prevailing conditions.