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During her run for the Alberta Progressive Conservative leadership, Premier Alison Redford questioned the Royal Alberta Museum bidding process that had been launched by her predecessor, Ed Stelmach, but said she supported the project.

A controversial new $340-million Royal Alberta Museum has been shelved, at least temporarily, after Ottawa's behind-closed-doors promise to foot almost a third of the bill has been yanked, according to the Alberta government.

Provincial Infrastructure Minister Jeff Johnson made the announcement unexpectedly this week after Infrastructure Canada said it could not commit $92.5-million to the project, which would have seen the facility moved to downtown Edmonton and with double the gallery space.

"We're surprised, a bit shocked, we're disappointed," Mr. Johnson told reporters.

He said Alberta is still committed to the new museum, but understands that tough economic times require tough decisions, and that the province could not move ahead without cash from Ottawa.

Ottawa is still onboard with a $30-million commitment made as a centennial grant a few years ago, but Federal Minister of Public Works Rona Ambrose, who represents an Edmonton-area riding, balked at accusations that federal funding was pulled. Additional funding "was not committed nor approved by government of Canada," she said.

Mr. Johnson made the recommendation to caucus this week to put the museum on hold, according to a spokesman. But less than a month into the job as premier, Alison Redford has cancelled a number of other controversial items initiated by her predecessor, Ed Stelmach.

A land sale in the province's southeast corner dubbed "potatogate" has been axed and the plug has been pulled on request for proposals for new transmission lines. During Ms. Redford's run at the Progressive Conservative leadership, she questioned the museum bidding process that was launched by Mr. Stelmach last spring, but said she supported the project.

The province had previously earmarked $180-million over the first three years, which some critics questioned as the budget was running a deficit. But Mr. Stelmach threw open a bidding competition to designers and builders. The winner was Ledcor Design-Build, which is comprised of Ledcor Construction, DIALOG Design and Lundholm Associates Architects. Construction was supposed to begin this year and a completion date was set for 2015.

Ledcor spokesman Lee Coonfer was caught off guard Thursday and wasn't aware of the cancellation.

Edmonton's Mayor Stephen Mandel said abandoning the project is "an incredible blow" to city residents. This week, his city council gave the green light to a new downtown arena as part of a revitalization to the core.

Liberal MLA Laurie Blakeman said it was "disingenuous" to blame Ottawa and suggested the decision was an excuse to back out of a project the provincial government never really supported. NDP Leader Brian Mason insisted the project should still go ahead and described the suspension as a "broken PC promise."

Meanwhile, Wildrose Party Leader Danielle Smith called Ottawa's decision an example of "prudent leadership and fiscal responsibility."

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