Canada strengthens deal with Australia to buy Arctic Over-the-Horizon Radar system
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Canada has taken the next step in acquiring a more sophisticated, long-range Arctic monitoring radar system.
Prime Minister Mark Carney’s government confirmed agreements late Sunday with the Australian government and BAE Systems Australia to purchase the Arctic Over-the-Horizon Radar system (A-OTHR).
Secretary of State (Defense Acquisition) Stephen Fuhr signed the $2.5-billion deal with Richard Marles, Australia’s deputy prime minister and defense minister, in Canberra, Australia.
In addition, as the system is being manufactured abroad, a comprehensive industrial benefits agreement requiring investment in the Canadian defense industry base was signed.
Over-the-horizon radars are seen as an important investment for NORAD to monitor the location of aircraft and anti-missile threats in the Far North. The transmission and reception stations will be located in southern Ontario, in the Kawartha Lakes region. This program is expected to start working in 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 demonstrates a collaborative approach at the core of Canada’s Defense Industrial Strategy and marks 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 relationship with Australia a year ago shortly after taking office. At the time, he estimated that the entire system would cost $6 billion.
The deal 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 located in the Far North at a location that has yet to be publicly determined. Direct links and public names are always separated.
Unlike the A-OTHR system in southern Ontario, the P-OTHR network must be installed deep in the Canadian Arctic Archipelago, a group of more than 36,500 islands north of mainland Canada.
The statement said that as part of this plan, BAE Systems Australia will work with Canadian companies to develop technology in Canada’s radar system and strengthen the country’s defense industry base.
The construction of A-OTHR is expected to create 2,270 jobs annually between 2026 and 2033, the statement said.
“This step is clear evidence of continued cooperation,” Marles, Australia’s defense minister, said in a statement. “This arrangement demonstrates Australia’s ability to export advanced, high-tech defense systems while protecting our national security, and allows trusted partners to benefit from Australian innovation.”
