Canada solidifies agreement with Australia to buy Arctic Over-the-Horizon Radar system

Canada has taken the next step toward acquiring a highly sophisticated, long-range radar system to monitor the Arctic.

Prime Minister Mark Carney's government solidified agreements late Sunday with the Australian government and BAE Systems Australia for the purchase of an Arctic Over-the-Horizon Radar system (A-OTHR).

Secretary of State (Defence Procurement) Stephen Fuhr signed the $2.5-billion agreement with Richard Marles, Australia’s deputy prime minister and defence minister, in Canberra, Australia.

In addition, since the system is foreign manufactured, a comprehensive industrial benefits deal calling for investment in the Canadian defence industrial base was also signed.

Over-the-horizon radars are seen as a crucial investment in NORAD to monitor airspace for aircraft and lone-flying missile threats 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 activity in the Arctic," Fuhr said in a statement.

"This agreement with Australia reflects the partnership approach at the core of Canada's Defence Industrial Strategy and marks an important milestone for the Defence Investment Agency as it continues to accelerate the delivery of critical capabilities to the Canadian Armed Forces."

Carney announced the partnership with Australia last year shortly after taking office. At the time, he estimated the overall 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 the Polar Over-the-Horizon Radar (P-OTHR) — will be situated in the very Far North at a location that has yet to be publicly determined. The exact co-ordinates and community names remain classified.

Unlike the A-OTHR system in southern Ontario, the P-OTHR network must be placed deep within the Canadian Arctic Archipelago, a group of more than 36,500 islands situated north of Canada's mainland.

The statement said that as part of the project, BAE Systems Australia will work with Canadian companies to build expertise on the radar system in Canada and strengthen the country's defence 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 a clear demonstration of that enduring partnership in action," Marles, Australia's defence minister, said in a statement. "This arrangement demonstrates Australia's ability to export advanced, high-technology defence systems while safeguarding our national security, and enabling trusted partners to benefit from Australian innovation."