Viacom has pulled out of controversial plans to create an underwater Nickelodeon resort and Theme park in the Philippines, though its developer has announced its intention to push on, hitting out against fake news which has threatened to sink the project.

Palawan, which is widely recognised the Philippines' ‘last ecological frontier’, is the site for the planned Coral World Park. Planned to open in 2020, the resort will feature restaurants and lounges six meters below sea level. Original plans had called for 1sq km of the 4sq km development to be dedicated to a Nickelodeon park, with IPs such as SpongeBob SquarePants, Dora the Explorer and Teenage Mutant Ninja Turtles included to “encourage ocean protection.”

There was significant backlash following the project’s announcement in January, with an online petition calling for it to be abandoned reaching more than 260,000 signatures. The widely-shared petition argued that the project would have destroyed the marine habitat it was claiming to protect.

In a statement, Viacom said it would “no longer be involved” in the proposed development, a decision which had been “mutually agreed” with its Philippine partner, Coral World Park.

Responding to criticism, Coral World spoke out against the “fake news” surrounding the project, stating that the proposed property is a former mining site with no trees and low coral cover, rather than the “pristine land” reported by many. The developer also added that the majority of the development would have been on land, with floating structures featuring a glass bottom hull. Coral World also confirmed the split from Viacom, saying the reason was down to the local area “not being ready in terms of infrastructure to host a world class family themed development by 2020”.

The company said it plans to move forward with its “environment friendly masterplan” – one of eight luxury branded resorts and spas planned. It also pledged to establish an enhanced marine reserve and reef conservation programme across the 16 islands in the Philippines under its ownership.

“We will continually work directly with key stakeholders in Palawan to protect and maintain the environment in the beautiful town of Coron, Palawan as it experiences exponential population and tourism growth,” said Coral World. “It is time to take a preventive approach in the protection of the area.”