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Canada has taken the next step toward acquiring a sophisticated, long-range radar system to monitor the Arctic.
Prime Minister Mark Carney’s government late Sunday cemented agreements with the Australian government and BAE Systems Australia to purchase an Arctic over-the-horizon radar system (A-OTHR).
Stephen Fuhr, Secretary of State for Defense Acquisition, signed the $2.5 billion contract with Richard Marles, Australia’s Deputy Prime Minister and Minister of Defense, in Canberra, Australia.
Additionally, because the system is manufactured overseas, a comprehensive industrial benefits agreement was also signed that includes investment in Canada’s defense industrial base.
Over-the-horizon radars are considered a critical investment in NORAD to monitor the airspace for threats from aircraft and lone-flying missiles over the Far North. The transmitting and receiving stations will be located in southern Ontario in the Kawartha Lakes region. The system is expected to be operational by 2029.
“This project is part of a broader effort to build an integrated Arctic surveillance and communications network that will strengthen Canada’s ability to monitor, understand and respond to activities in the Arctic,” Fuhr said in a statement.
“This agreement with Australia reflects the partnership approach at the core of Canada’s Defense Industrial Strategy and represents an important milestone for the Defense Investment Agency as it continues to accelerate the delivery of critical capabilities to the Canadian Armed Forces.”
Carney announced the partnership with Australia shortly after taking office last year. At the time, he estimated the entire program would be worth $6 billion.
The agreement, signed late Sunday (Canadian time), is the first of two radar units planned for the Arctic. The second unit – known as Polar Over-the-Horizon Radar (P-OTHR) – will be stationed in the far north at a location that has yet to be publicly determined. The exact coordinates and community names remain secret.
Unlike the A-OTHR system in southern Ontario, the P-OTHR network must be located deep within Canadian Arctic Archipelagoa group of more than 36,500 islands north of mainland Canada.
The statement said that as part of the project, BAE Systems Australia will work with Canadian companies to build expertise in the radar system in Canada and strengthen the country’s defense industrial base.
Construction of the A-OTHR is expected to create 2,270 jobs annually between 2026 and 2033, the statement added.
“This initiative is clear evidence of this enduring partnership in action,” Marles, Australia’s defense minister, said in a statement. “This agreement demonstrates Australia’s ability to export advanced, high-tech defense systems while protecting our national security and enabling trusted partners to benefit from Australian innovation.”
