United States authorises possible FMS sale to Peru for Callao Naval Base facilities worth US$ 1,500 million

James H. Amos • August 28, 2026 05:37

Foreign Military Sales (FMS) package for the Callao Naval Base

The United States Government has authorised a possible sale to Peru covering design services and the construction and fit-out of maritime and land-based facilities for the Callao Naval Base, together with associated project logistics and support elements. This follows one of the most recent notifications from the US Department of State to the US Congress, seeking approval for the transaction under the Foreign Military Sales (FMS) programme, with an estimated value of US$ 1,500 million.

The Defence Security Cooperation Agency (DSCA) has sent the US Congress the required certification, formally notifying it of the potential sale. According to the information released, Peru requested equipment and services intended to support the acquisition and modernisation of naval infrastructure at the country’s main maritime complex.

What the project includes at the Callao Naval Base

Among the items included-classified as non-Major Defense Equipment-are lifecycle facilities design, construction, project management, engineering studies and services, technical support, infrastructure assessments, surveys, planning and scheduling, contract administration, works management, and technical, logistical and engineering support services delivered by the US Government and contractors. The final value will depend on the definitive requirements and on any agreements that may ultimately be signed.

US officials stated that this possible sale supports US foreign policy objectives by strengthening the security of a partner regarded as important to political stability, peace and economic development in South America. It was also noted that the project would enhance Peru’s port infrastructure so it can meet current and future naval and logistics operations, while reducing interaction between civilian and military activities at existing facilities.

According to the official notification, implementing the project will require assigning up to 20 US Government representatives or US contractors for a period of up to ten years, in order to provide construction oversight and management. It was also specified that the operation would not affect US defence readiness or change the regional military balance.

Naval and industrial modernisation in Callao

The 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 Servicios Industriales de la Marina (SIMA Perú) and South Korea’s Hyundai Heavy Industries (HHI). Signed at the Callao Naval Base, the agreement provides for submarines to be built in Peru, with technology transfer and a gradual increase in local industry participation.

As officially reported, the initiative is intended to strengthen maritime sovereignty and to consolidate an industrial ecosystem linked to the naval sector, bringing together engineers, technicians, universities and local suppliers.

Developments in the Air Force and the Army

In parallel, Peru’s Congress approved the second tranche of funding for the acquisition of 24 multi-role fighter jets for the Peruvian Air Force (FAP), under the Public Sector Borrowing Law for fiscal year 2026. The budget allocated to the Ministry of Defence totals approximately US$ 2,350 million, enabling progress on one of the principal military re-equipment programmes launched in 2024.

The selection process is in its final stage and includes three options: Rafale F4 (Dassault Aviation), F-16 Block 70 (Lockheed Martin) and Gripen E/F (Saab). In September, the US Department of State approved a possible sale of 12 F-16 Block 70 aircraft under the FMS framework, valued at US$ 3,420 million.

For its part, the Peruvian Army confirmed the purchase of three PULS multiple rocket artillery systems, developed by Israel’s Elbit Systems, for an amount close to US$ 60 million, as well as the signing of a framework agreement with South Korea’s Hyundai Rotem for the future acquisition of K2 Black Panther tanks and 8×8 K808 White Tiger armoured vehicles.

Taken together, these initiatives point to a comprehensive strategy to modernise Peru’s Armed Forces, with the US-approved possible sale for the Callao Naval Base standing out as one of the most significant infrastructure projects announced so far.

Images for illustrative purposes.