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Royal Alberta Museum Curator of Ethnology Susan Berry, left, discusses the origin of a Cree horse saddle with Willard Ahenakew in Edmonton on Thursday, May 3, 2007. Mr. Ahenakew donated a paper and pencil sketch, of his creation which depicts the breaking of "an unruly horse" by his ancestor Cree guide Napeskis. The sketch and saddle are now a part of a repatriated collection obtained from the estate of the Earl of Southesk.John Ulan/CP

Construction of the new Royal Alberta Museum was put on hold Wednesday after the federal government announced it will not be moving forward as a partner in the new project.

Alberta Infrastructure Minister Jeff Johnson made the announcement at a news conference, blaming the federal government's decision on the economy.

The federal government was supposed to contribute $92 million to the $340 million museum, which was to be built in downtown Edmonton.

Without those funds, the province will now be unable to meet the Nov. 16 deadline for signing the contracts with developers.

Mayor Stephen Mandel expressed his disappointment to the news, calling it "an incredible blow to the citizens of Edmonton."

"It's very disturbing and very discouraging. I'm trying to keep my cool and my temper," he said. "The challenge is we have a great provincial government that has constantly supported this city and we thank them very much. We hope we will be able to find a way with them to build the Royal Alberta Museum, which is vitally important to the City of Edmonton and for the redevelopment of downtown."

Wildrose Leader Danielle Smith applauded the federal government's decision.

"The Harper government has demonstrated prudent leadership and fiscal responsibility by not contributing to this project at this time," she said.

"The new Royal Alberta Museum could be a valuable addition to Alberta's arts and culture scene but should only go ahead when Alberta's books are balanced and more critical infrastructure projects like new schools, the two major city ring roads and twinning the dangerous Highway 63 to Fort McMurray are completed."

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