Funding for the new Royal Alberta Museum has been restored by the federal government. This comes after weeks of squabbling between the two levels of government.

The federal government will put forward $122.5 Million for the project including $92.5 Million from Building Canada Fund and $30 Million previously committed.

Edmonton-Centre Member of Parliament Laurie Hawn made the official announcement Wednesday afternoon at the current home of the Royal Alberta Museum.

Federal Funding is conditional on the signing of a design-build contract by January 31, 2012 and that construction must start no later than November 30, 2012.

If the conditions are not met, the $92.5 million contribution from the Building Canada Fund would become available for other potential infrastructure projects in the Capital Region.

The museum funding had been in the headlines in recent months with the province claiming the federal government would fund $92 million of the project. But then the federal government said they would not. It now appears Ottawa will reverse that decision.

Three weeks ago, Johnson called a news conference claiming the federal government pulled two-thirds of the funding it originally promised for the project. It then set off a firestorm between parties and the two levels of government. The federal government claimed the money was never promised.

"We had very good assertions or affirmations that we were going to be able to get this funding. It was going to be there," said Johnson.

The investment should not affect Edmonton's ability to obtain cash for other projects, such as the LRT expansion.

More details to come...