The US Government has authorised a potential sale to Peru of design and construction services for maritime and onshore facilities at the Callao Naval Base, alongside related logistics and project-support elements. The move follows a recent notification from the US Department of State to the US Congress, which is seeking approval for the transaction under the Foreign Military Sales (FMS) programme, with an estimated value of US$1.5 billion.
The Defence Security Cooperation Agency (DSCA) has delivered the required certification to the US Congress, formally advising it of the possible sale. As set out in the published details, Peru has requested equipment and services to support the purchase and modernisation of naval infrastructure at the country’s principal maritime complex.
Scope of the proposed FMS package for Callao Naval Base
The elements included-categorised as non-Major Defence Equipment-cover lifecycle facility design and construction, plus a wide range of enabling and oversight services. These comprise project management, engineering studies and services, technical support, infrastructure assessments, surveys, planning, programming, contract administration, construction management, and technical, logistics, and engineering support services delivered by the US Government and by contractors.
The final overall value will be determined by Peru’s definitive requirements and by any agreements that may ultimately be signed.
Intended outcomes and implementation arrangements
US officials in Washington said the potential sale supports US foreign policy objectives by reinforcing the security of a partner viewed as important to political stability, peace, and economic development in South America. They also stated that the work will help upgrade Peru’s port infrastructure to sustain present and future naval and logistics operations, while reducing the overlap between civilian and military activity at the existing facilities.
According to the official notification, delivering the project would require the deployment of up to 20 US Government or US contractor representatives for up to ten years, in order to provide construction oversight and management. It was further noted that the transaction would not affect US defensive readiness and would not change the regional military balance.
Naval and industrial modernisation in Callao
This prospective US investment sits within a wider effort to modernise Peru’s military capabilities, particularly in the naval domain. In that context, Peru recently signed a submarine co-development contract between Naval Industrial Services (SIMA Perú) and South Korea’s Hyundai Heavy Industries (HHI).
Signed at the Callao Naval Base, the agreement provides for submarines to be built domestically, supported by technology transfer and the gradual increase of local-industry participation.
Official information indicates the project is intended to strengthen maritime sovereignty and to consolidate a naval-sector industrial ecosystem that brings together engineers, technicians, universities, and local suppliers.
Advances in the Air Force and the Army
In parallel, the Peruvian Congress has approved the second tranche of financing for the acquisition of 24 multirole fighter aircraft for the Peruvian Air Force (FAP), under the Public Sector Borrowing Law for fiscal year 2026. The budget allocated to the Ministry of Defence is approximately US$2.35 billion, allowing progress in one of the principal military re-equipment programmes launched in 2024.
The selection process is now in its final stage, with three candidates under consideration: the Rafale F4 (Dassault Aviation), the F-16 Block 70 (Lockheed Martin), and the Gripen E/F (Saab). In September, the US Department of State approved a possible sale of 12 F-16 Block 70 aircraft through the FMS framework, valued at US$3.42 billion.
Separately, the Peruvian Army has confirmed the purchase of three PULS multiple rocket artillery systems produced by Israel’s Elbit Systems, for an amount close to US$60 million. It has also signed a framework agreement with South Korea’s Hyundai Rotem covering the future introduction of K2 Black Panther tanks and K808 White Tiger 8×8 armoured vehicles.
Taken together, these measures point to a broad strategy to modernise the Peruvian Armed Forces-within which the possible US-approved sale for the Callao Naval Base stands out as one of the most significant infrastructure projects announced so far.
Images for illustrative purposes.
You may be interested in: *The Peruvian Army has confirmed the purchase of new PULS rocket artillery systems co-produced by FAME and Elbit Systems*
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