Feds release some details of Telesat contract, shroud others in national security claims

The Liberal government has released some of the details behind the contentious $2.3 billion arctic military contract awarded to Telesat Corp. and MDA Space Ltd. earlier this year. While the timeline for initial access to military Ka-band (Mil-Ka) under Telesat’s low Earth orbit (LEO) constellation remains on track for 2028, the Department of Public Works has also revealed more details on the project’s timeline. In a response to a written question on the Order Paper, the department said initial operating capability for the arctic Mil-Ka, which will provide northern connectivity to the Canadian Armed Forces, will be achieved by 2031. Further, the Enhanced Satellite Communications Project – Polar (ESCP-P), which will include future X-band and ultra-high-frequency capabilities, will be completed by 2040 or 2041, the department said. The 15-year deal, which was announced in August and builds on a strategic partnership established in December 2025, has recently been entrenched in controversy on account of Prime Minister Mark Carney’s long-time friendship with Telesat CEO Dan Goldberg. Earlier this month, Conservative MP Jamil Jivani (Bowmanville—Oshawa North, Ont.) asked the Ethics Commissioner to probe whether Carney (Nepean, Ont.) violated the Conflict of Interest Act with regards to the Telesat contract. Jivani is not the first Tory to voice concerns about the ethics of the contract. Shortly after the contract was announced, defence critic James Bezan (Selkirk—Interlake—Eastman, Man.) called for contract details to be released. Both Carney and Telesat have repeatedly denied favouritism allegations, and Carney has stated he had no knowledge of, or participation in, any decisions related to the contract. However, during Question Period on Nov. 5, Conservative Leader Pierre Poilievre (Battle River—Crowfoot, Alta.) criticized Carney for not directly answering whether he had any discussions about the contract with his public servants, ministers, or staff. The written question, submitted by Conservative MP Jeff Kibble (Cowichan—Malahat—Langford, B.C.), asked whether the prime minister’s conflict-of-interest screen was invoked in the file. The Defense Investment Agency screened the companies involved against Carney’s list and found no conflict, the response read. However, as reported by CTV, Carney does not have an ethics screen in place with Goldberg or Telesat, and it’s unclear why one has not been established. Artificial Intelligence Minister Evan Solomon (Toronto Centre, Ont.), who is also friends with Goldberg, is subject to a screen Contract selection process dates back to 2017 The department’s response also revealed the contract was sole-sourced, rather than a competitive bid, which it attributed to the fact that “efence projects vary significantly in scope, complexity and environment, particularly in the Arctic, where remoteness, climate, infrastructure constraints and evolving operational requirements can present unique challenges.” The department continued that the contract was negotiated “in accordance with the approved procurement approach and applicable authorities.” “Due to national security, operational and commercial confidentiality considerations, further details regarding specific aspects of the procurement cannot be provided,” the department said, a phrase that was repeated four more times in its submission, including in reference to two other questions regarding the company selection process. The selection process for the project dates back to before Carney took office. The response notes in December 2017, the first of three requests for information was sent out to “provide industry with an early opportunity to provide feedback on the Enhanced Satellite Communications Project - Polar,” along with an industry day and one-on-one meetings over the following months. Between 2020 and 2024, two more requests for information were sent out, along with further industry engagement, the response said. “This extensive engagement was followed by an assessment of technical capabilities, operational sustainability, Canadian industry involvement, project timelines, and strategic context.” Kibble’s query also questioned which alternative systems or providers the contract value was benchmarked against. The department said the value for money analysis showed the effective service rate of the ESCP-P was “significantly lower than comparable government or commercial offerings,” and those other offerings did not meet the project’s “unique and challenging requirements.” “By pursuing a strategic partnership with Telesat and MDA, Canada is also advancing the development of a critical capability for the Canadian Armed Forces,” the submission read. “By partnering with two Canadian companies, we are strengthening our defence sovereignty while creating significant opportunities for future exports.” The response also noted Canada has exclusive access to, and control over, the contracted arctic Mil-Ka satellite communication bandwidth, but Telesat is permitted to sell its commercial capacity to other countries, subject to concurrence from Canada. The Wire Report reached out to Kibble for comment on the government’s submission, but did not receive a response. mcollins@thewirereport.ca

Feds release some details of Telesat contract, shroud others in national security claims

Regulatory |
By Maria Collins
|November 13, 2026

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