WASHINGTON, United States — The United States government on Thursday announced it approved a $1.5 billion foreign military sale to Peru that will fund equipment and services to expand and modernize the South American country’s main naval base in Callao, where China has separately financed a major commercial port project.
The US State Department said Peru requested the package to support a long-term modernization program at the Callao naval base, which sits near Jorge Chávez International Airport in Lima and serves as the country’s principal naval facility.
The department said the approved deal will cover engineering, construction support, specialized equipment, training, logistics, and related services that the Peruvian government will use to upgrade naval infrastructure and improve operational capabilities at Callao.
US officials said the project will deploy as many as 20 US personnel from government agencies or private contractors to Peru for periods of up to 10 years to oversee, advise, and support implementation of the modernization program.
The State Department said the Defense Security Cooperation Agency notified the US Congress of the proposed foreign military sale in accordance with US arms export regulations and legislative oversight requirements.
The agency said the proposed sale will support the foreign policy and national security objectives of the United States by helping improve the maritime security and defense capacity of a regional partner in South America.
Peruvian authorities framed the request as part of a broader effort to modernize the country’s naval infrastructure, expand port capabilities, and enhance the navy’s ability to protect national waters and maritime trade routes.
The State Department said US contractors will likely serve as the principal suppliers for the project, providing design, construction, and technical support for the expansion and upgrading of facilities at the Callao base.
US officials said the project will not require the establishment of a permanent US military presence in Peru and will instead rely on rotational or temporary assignments by US government and contractor personnel.
The announcement came as Chinese President Xi Jinping this week inaugurated a large Chinese-funded deep-water port at Chancay, north of Lima, described by Peruvian and Chinese officials as South America’s first Chinese-financed mega-port.
US officials did not link the Callao naval base project to the Chinese-funded port in their formal documentation, and they described the sale as part of ongoing security cooperation with Peru.
The State Department said the modernization program at Callao will not adversely affect the military readiness of the United States and will proceed under standard end-use monitoring and compliance procedures.
The Peruvian government must now finalize contractual arrangements with selected US contractors before work on the naval base expansion and modernization can begin.
The Defense Security Cooperation Agency said the proposed sale will require no additional US government funding because Peru will finance the entire $1.5 billion package.
US officials said they coordinated the approval with relevant agencies to ensure the project aligns with US export control laws, defense trade policies, and regional security commitments.
The State Department said it will continue to work with Peru on implementation details, including timelines for deployment of US personnel and schedules for delivery of equipment and services.