The headquarters at Williamtown near Newcastle is also the official new home of Air Force’s re-formed No 2 Squadron, who will fly the AEW&C Wedgetail when it becomes operational.

Senator Hill said the opening, attended by the Member for Paterson, Bob Baldwin, was a significant milestone for Project Wedgetail, RAAF Base Williamtown and local industry.

"The headquarters is the first tangible delivery for the project, which has been leading the way for reform in Defence Materiel Organisation projects," Senator Hill said.

"In the three years since project signature, it is still ahead of schedule and on budget.

"The opening of the headquarters today also marks the beginning of long-term relationship with the Hunter region. It is the first stage of a $149 million redevelopment of the RAAF base, which includes hangars and parking areas for the AEW&C Wedgetail and improvements to the runways and taxiways.

"The construction program has created about 255 jobs on the base and more indirect jobs related to the prefabrication, supply and distribution of material for the project in the region."

Senator Hill said the Wedgetail aircraft would enhance our combat capability through leading-edge air and maritime surveillance.

"The Wedgetail is based on Boeing’s next generation 737 aircraft, which is being modified to accommodate various sophisticated mission systems and radar," Senator Hill said.

"The aircraft will have far more flexibility and capability than other similar platforms in service today."

The AEW&C Wedgetail is named after one of the largest eagles in the world, Australia’s Wedgetail Eagle. The eagle has extremely acute vision, ranges widely in search of prey, protects its territory without compromise and remains aloft for long periods of time.

The first AEW&C Wedgetail aircraft has recently been painted in what will become the re-formed 2 Squadron colours - a red lightning bolt with a floral emblem, the Fleur-de-lys, on the tail flash; RAAF roundels on the rear fuselage; and the squadron crest and Australian flag on the forward fuselage.

The current schedule has the first Wedgetail flight in Seattle in May and the first two aircraft being officially handed over to the RAAF in November 2006.