NATO signed a contract worth over ¤20 million (US$25 million) Thursday with a consortium including European Aeronautic Defense & Space Co. and U.S.-based Northrop Grumman Corp. to develop a cutting edge ground surveillance system. The contract addresses issues leading to the design and development phase of a high-tech radar system mounted in Airbus planes and unmanned drones so allied forces can monitor ground movements from the air. The contract is part of a wider ¤4 billion (US$5.17 billion) deal that NATO cleared a year ago to develop the system with the consortium, which also includes Galileo Avionica, General Dynamics Canada, Indra and Thales. NATO hopes to have the planes operational by 2010 as a key part of a drive to upgrade the alliance's military hardware.