MELBOURNE — The governments of Australia and Canada have signed an agreement for the Ottawa to purchase an Over the Horizon Radar (OTHR) system for $2.5 billion ($1.75 billion USD) — marking Canberra’s largest-ever defense export.

The contract, announced today, also marks the first time Australia has exported its locally developed OTHR system, which is known here as the Jindalee Operational Radar Network (JORN).

Australia’s defense minister, Richard Marles, said that the deal reflected the “close and long-standing friendship” between both countries.

“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,” he said in a press release.

BAE Systems Australia said it “will support both governments as the A-OTHR industry partner” and has been undertaking full lifecycle support of Australia’s JORN, according to a company news release on the Canadian contract. It has also been carrying out upgrades to the Australian radar network since it was selected for the program in 2018.

Chief Executive Officer of BAE Systems Australia Craig Lockhart said that Canada’s acquisition of Australian OTHR system represents a “significant opportunity” for industry of both countries and positions Australian companies for future exports to allies.

“Canada’s acquisition of a cutting-edge Australian OTHR system supports the strategic interests of both nations through enhanced detection and tracking of threats to North America, strengthening Five-Eyes situational awareness,” he said, referring to the intelligence-sharing alliance between the US, the UK, Canada, Australia and New Zealand.

In Australia, JORN consists of a control center and three separate radar sites throughout Australia. Each site has transmitter and receiver stations, and, according to Australia’s Defence Science and Technology Group, works by sending a high frequency radio signal skywards from a transmitter and refracted down from the ionosphere to illuminate an airborne or seaborne target.