The country's Environmental Council of Zambia (ECZ) said it had allowed the project to go ahead on condition that it not include the 450 villas and golf course originally planned by the developers, Legacy Holdings Zambia Ltd.

"This is in view of the fact that the park is too small to accommodate these facilities without disturbing the ecological balance of the area," ECZ spokesman Justin Mukosa said in a statement.

Mukosa said the ECZ wanted Legacy Holdings, a subsidiary of Legacy International Group, to redesign its proposed US$260 million project on the fringes of one of Africa's longest rivers, the Zambezi, close to Victoria Falls.

Environmentalists, who argue the project would damage wildlife, have threatened to ask the courts to block the project, which, as presently envisioned by the government, would lead to construction of 480 rooms near the Musi-O-Tunya park.

The national park, which measures 66 square kilometres and is home to elephants, black rhinos and other animals, is popular with tourists due to its proximity to Victoria Falls, one of the biggest draws in southern Africa.

Officials say the project will create 2 000 new jobs, attract an additional 150 000 tourists to this country of 11,5 million and put an extra US$170 million per year in foreign exchange in Zambia's coffers.

Nampa-Reuters

Marketplace News Headlines Of The Last 48 Hours

•  Financial meltdown knocks global factories
•  Tensions brew over EU's vetting of state aid to banks
•  DBN assistance paves way for women
•  China urges developed states to take lead in climate change
•  Bridgestone puts on the brakes at US plant Japanese firm will cut jobs and stop making tyres
•  Price transparency for Nam's telecoms sector
•  Consumer debt affects health
•  The mantra of the big guns and the cries of the back streets
•  SA mining unions call for halt to new lay-offs
•  Polytechnic receives financial boost
•  Nam moves to get ban on exports to SA lifted
•  BEE firms in SA must bail themselves out, say black managers
•  Maputo remains optimistic about foreign aid flows
•  US$500m biofuels project wants Mozambican labour to produce ethanol
•  Union asks leaders not to back down on aid for decent work
•  House market will worsen in South Africa, says Absa
•  Fortescue shares surge on bid rumours by BHP and China
•   Chinese manufacturing drops sharply
•  Ryanair makes new takeover bid for Aer Lingus