A £600 million scheme to build a giant freshwater research and visitor aquarium in Stewartby is "hanging on by its fingernails", according to Bedford's Mayor.

Frank Branston believes the credit crunch could force investors to pull out of the Nirah plans, putting the entire project – and 2,500 projected jobs – at risk of collapse.

He said: "Nirah has been particularly badly hit. It had strong interest from a number of British lenders, at least one of which is a household name so ravaged by the credit crunch that it has had to issue a cash call.

"Nirah is hanging on by its fingernails while it tries to raise money in the Gulf states."

Mr Branston made his comments in this month's Bedford News, a pamphlet produced by Bedford Borough Council.

Nirah Holdings gained planning permission to build at the Quest clay pit in Stewartby last October, and had planned to start construction in 2010, with a view to opening in 2013.

The aquarium would hold around 2.5 million gallons of water, containing 5,000 species. The site is also expected to host a research institute
into freshwater habitats, three hotels and a cinema.

Mr Branston also cast doubt on the future of the construction of a Center Parcs holiday village at Warren Wood near Woburn.

He said: "Work ought to have started but its owner, American venture capitalist Blackstone, is also hit by the credit crunch."

In Bedford town centre, construction work was due to have started on a major residential development at Riverside Square directly after last month's river festival but has been delayed until September, and Mr Branston said he would not be surprised if it is longer.

The Mayor also said while the commercial part of the Church Lane shopping parade revamp is underway, the residential element has stalled.

Nirah Holdings and Center Parcs both refuted the Mayor's concerns.
Peter May, director of Nirah, said: "The credit crunch is out there, but the Nirah project is still proceeding steadily and as planned. We still have much support and are looking forward to the future."

A spokesman for Center Parcs said its delay has not been caused by the credit crunch but by red tape holding up the final stages of the planning process. Work on the holiday village will now not start until 2010 at the earliest.