By Noclador - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=52312869
OTTAWA — In a boost to both military spending and Arctic sovereignty, Canada has finalized a multi-billion-dollar agreement with Australia to acquire an advanced long-range radar system designed to detect threats approaching through the North.
Secretary of State for Defence Procurement Stephen Fuhr signed the agreement with Australian Deputy Prime Minister and Defence Minister Richard Marles in Canberra, formalizing Canada’s plan to purchase an Arctic Over-the-Horizon Radar capability from BAE Systems Australia.
The deal commits Canada to spending $2.5 billion on the radar system as part of a broader Arctic surveillance initiative valued at more than $6 billion.
The radar is expected to become operational in 2029 and will provide early warning of airborne and maritime threats approaching Canada and North America through the Arctic.
Unlike conventional radar systems, over-the-horizon technology can detect objects far beyond the Earth’s curvature by bouncing high-frequency signals off the ionosphere. Defence officials say the capability will significantly expand Canada’s ability to monitor activity across its northern approaches.
The project is considered a key element of Canada’s ongoing NORAD modernization effort and comes as governments across the Arctic region increase investments in defence infrastructure amid rising geopolitical competition and growing activity in northern waters.
“Canada is reinforcing Arctic security through the Arctic Over-the-Horizon Radar project,” Fuhr said in a statement.
“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.”
The agreement also deepens defence ties between Canada and Australia, both members of the Five Eyes intelligence-sharing alliance.
Marles described the arrangement as a reflection of the close strategic relationship between the two countries.
“This is the biggest defence export agreement in Australia’s history,” he said in a statement. “In an increasingly complex strategic environment, Australia and Canada are committed to working together to grow our defence relationship.”
The project is expected to generate substantial economic benefits in Canada. Federal officials estimate it will contribute nearly $290 million annually to gross domestic product and support roughly 2,270 jobs each year between 2026 and 2033.
As part of the agreement, BAE Systems Australia will work with Canadian firms to develop domestic expertise in operating and maintaining the technology. The federal government also signed an industrial and technological benefits agreement aimed at ensuring Canadian companies participate in the project.
Defence Minister David McGuinty said the investment will strengthen Canada’s ability to detect and respond to emerging threats while reinforcing sovereignty in the Arctic.
“Through this partnership with Australia to deliver advanced radar capabilities, we are enhancing the Canadian Armed Forces’ ability to detect, deter, and respond to emerging threats with greater speed, reach, and precision,” McGuinty said.
The Arctic Over-the-Horizon Radar system is expected to include transmission and receiving sites in southern Ontario. A second radar project, known as the Polar Over-the-Horizon Radar, is planned for the High Arctic, although its location has not been publicly disclosed.
The federal government says the combined systems will form part of an integrated Arctic surveillance network intended to provide earlier warning of potential threats while improving awareness of activity across Canada’s vast northern territory.
With files from The Canadian Press, CBC News and The Associated Press.
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