The United States has approved a potential $1.5 billion Foreign Military Sale (FMS) to Peru aimed at the large-scale modernization of maritime and onshore facilities at Callao Naval Base, the South American nation’s principal naval installation. The approval covers the design, construction, and long-term program support of critical infrastructure at the base, while explicitly excluding any transfer of weapons or Major Defense Equipment, underscoring the non-combat nature of the package.
According to the approved scope, the sale focuses on equipment and services required to support the procurement, redesign, and reconstruction of port-related and land-based facilities at Callao. The package encompasses a wide range of activities, including lifecycle design work, engineering studies, construction, project management, technical support, infrastructure assessments, surveys, planning and programming, acquisition support, contract administration, and construction management. It also includes U.S. government- and contractor-provided engineering, technical, and logistics services, along with other related elements of program support.
The total estimated cost of all activities and services combined is $1.5 billion, reflecting not only the scale of physical construction but also the extended oversight and support that will span many years. US authorities have emphasized that the approval is intended to enhance infrastructure efficiency and sustainability, rather than to expand Peru’s combat capabilities or alter the regional military balance.
Callao Naval Base is located immediately north of the Port of Callao, Peru’s largest and most important commercial port, on the central Pacific coast near Lima. Established originally in the 1930s as a levee and naval arsenal, the base has expanded over decades into a complex installation supporting fleet berthing, maintenance, naval aviation, logistics, training, and medical services. It hosts a dockyard, a naval aviation base, and the Naval Medical Center, which includes the US Navy’s Naval Medical Research Unit Six, a long-standing symbol of bilateral cooperation in health and research.
Despite its central role, much of Callao’s infrastructure dates back nearly a century. Over time, the growth of the adjacent commercial port and the expansion of Lima’s metropolitan area have placed increasing physical and operational constraints on the naval base. Civilian shipping, cargo handling, port traffic, and naval operations have become tightly interwoven, creating challenges in access control, internal circulation, and security. These pressures have driven Peru to initiate a multi-year modernization effort, of which the newly approved US-backed package forms a major component.
The modernization effort is centered on the redesign and reconstruction of both maritime and onshore facilities. Core objectives include improving port capacity and berthing arrangements for naval units, reorganizing internal roadways and access points, upgrading utilities and support infrastructure, and reducing unnecessary interaction between civilian and military activities within the base footprint. By modernizing facilities while the base remains operational, the project adds another layer of complexity, requiring careful sequencing and long-term planning.
From a geostrategic perspective, Callao Naval Base occupies a uniquely important position. Situated on Peru’s central Pacific coast, it lies close to major trans-Pacific maritime routes linking South America with North America and Asia. This location places Callao at the heart of Peru’s maritime traffic flow, naval deployments, and logistical support for operations along the entire coastline and within the country’s exclusive economic zone. Any disruption or inefficiency at Callao has immediate implications for naval readiness and maritime security.
The base’s proximity to the commercial Port of Callao further heightens its strategic significance. Naval access, infrastructure layout, and security arrangements are directly intertwined with civilian port operations, making coordination essential during both routine activities and emergencies. Decisions about basing, access control, and facility design therefore have broader implications for port security, crisis response, and continuity of trade.
Adding to the complexity of the installation is its dual-use character. Callao Naval Base incorporates a high-security detention facility that has housed individuals convicted of terrorism and other high-risk crimes. Proposed in 1992, the facility became known for holding members of insurgent groups such as the Shining Path and the Túpac Amaru Revolutionary Movement, as well as former intelligence chief Vladimiro Montesinos after his extradition in 2001. The presence of the penitentiary within the naval complex has long influenced how space, access, and security are organized, making the separation of civilian, military, and detention activities a persistent structural challenge.
The approved redevelopment seeks to address these constraints by reorganizing facilities and access routes to reduce overlap and improve operational flow. By redesigning how different functions coexist within the base, Peruvian planners aim to enhance security, efficiency, and safety for personnel while limiting unnecessary civilian-military interaction.
US officials have framed the FMS approval as supporting Peru’s ability to modernize critical infrastructure and sustain naval operations over the long term. A stated objective is to provide a safer and more efficient platform for maritime and logistical activities, ensuring that Peru can absorb and manage the upgraded facilities without difficulty. The approval also explicitly notes that the package will not change the regional military balance, reinforcing its infrastructure-focused character.
The timing of the approval is notable, as it coincides with heightened attention to port infrastructure along Peru’s Pacific coast. In particular, the development of the Chinese-built mega-port of Chancay, located about 80 kilometers north of Lima, has drawn regional and international scrutiny. Developed with significant investment by COSCO Shipping, the Chancay port is expected to become a major hub for trans-Pacific trade between South America and Asia.
Against this backdrop, the modernization of Callao Naval Base carries broader strategic resonance. While the project is formally framed as an infrastructure upgrade, it unfolds in an environment where port access, logistics, and maritime influence are increasingly intertwined with great-power competition. US authorities have presented the Callao project as contributing to wider foreign policy objectives by strengthening a key regional partner and supporting transparent, long-term development of critical infrastructure.
For Peru, the modernization effort reflects a balancing act. The country maintains cooperative relationships with both Washington and Beijing, pursuing economic development and infrastructure investment while safeguarding national sovereignty and security. Upgrading Callao Naval Base allows Peru to modernize a vital military installation without acquiring new weapons systems, while benefiting from sustained US technical expertise and program oversight.
Implementation of the project is expected to span many years, reflecting the scale of construction and the challenges of rebuilding an active naval base. During this period, US government agencies and contractors will remain involved in engineering, technical, and logistical support, ensuring continuity and adherence to agreed standards. The extended timeline also underscores the long-term nature of the US-Peru defense relationship, particularly in areas related to infrastructure, training, and institutional capacity.
Ultimately, the $1.5 billion FMS approval positions the Callao Naval Base redevelopment as one of the most significant infrastructure initiatives linked to Peru’s maritime and naval posture in decades. Combining large-scale construction, sustained foreign technical involvement, and a strategically vital location, the project highlights how infrastructure modernization has become an increasingly important dimension of defense cooperation in the Pacific region.
