The U.S. State Department has approved a potential $1.5 billion sale to Peru for the design and construction of new maritime and onshore facilities at the Callao Naval Base, including long-term engineering, construction management, and logistics support to modernize Peru’s naval infrastructure.
The U.S. State Department confirmed on January 15 that it approved a potential $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 (DSCA) said it has notified Congress of the decision. According to the DSCA, Peru requested a comprehensive package of construction services and engineering support to upgrade port infrastructure at its primary naval installation. The package includes lifecycle design, construction, project management, engineering studies, facility assessments, surveys, planning, acquisition support, and logistics services, with a total projected value of $1.5 billion.
The DSCA said the project will modernize Callao’s maritime facilities and improve naval and logistics operations while reducing civilian-military interaction within the base. The notification added that Peru will be able to absorb the articles and services into its armed forces without difficulty.
The planned work will cover the full range 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 up to ten years to manage and supervise the project.
The sale does not include Major Defense Equipment, focusing instead on infrastructure modernization and long-term sustainment for naval operations. The DSCA said the arrangement supports U.S. foreign policy goals by strengthening a regional partner it described as “a force for political stability, peace, and economic progress in South America.”
The U.S. has not yet chosen a prime contractor for the project. The DSCA said the selection will be made later from a pool of approved vendors, likely through a competitive process. No offset agreements have been proposed so far; any such arrangements would be negotiated directly between Peru and the selected contractor.
The DSCA added that the sale will not affect the regional military balance and will not impact U.S. defense readiness.
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