The United States State Department confirmed on January 15 that it approved a possible $1.5 billion Foreign Military Sale to Peru for the design and construction of new maritime and onshore facilities at the Callao Naval Base.
The Defense Security Cooperation Agency said it has notified Congress of the determination.
According to the agency, the Peruvian government requested a comprehensive package of construction-related services and engineering support to upgrade port infrastructure at its primary naval installation. The request includes lifecycle design, construction, project management, engineering studies, facility assessments, surveys, planning, acquisition support, and logistics services. The projected value of all work and associated services is $1.5 billion.
The agency said the project will improve naval and logistics operations by modernizing Callao’s maritime facilities and reducing civilian-military interaction inside the existing base layout. As noted in the notification, “Peru will have no difficulty absorbing these articles and services into its armed forces.”
The planned work covers the full spectrum of U.S. Government and contractor engineering and oversight support, including contract administration and construction management. The State Department said up to twenty U.S. Government or contractor representatives may be assigned to Peru for as long as ten years to manage and supervise the project.
The sale does not include any Major Defense Equipment. Instead, it focuses on infrastructure modernization and long-term sustainment for naval operations. The agency said the arrangement aligns with U.S. foreign policy objectives by strengthening a regional partner it described as “a force for political stability, peace, and economic progress in South America.”
The United States has not yet identified a prime contractor for the work. The agency said the selection will be made later from a pool of approved vendors, likely through a competitive process. No offset agreements have been proposed at this stage, and any such arrangements would be negotiated directly between Peru and the chosen contractor.
The agency said the sale will not affect regional military balance and will have no impact on U.S. defense readiness.
