The US State Department has approved a potential Foreign Military Sale (FMS) to Peru involving design and construction services at the Callao Naval Base, with an estimated value of $1.5bn.
The Defense Security Cooperation Agency (DSCA) has notified Congress of the possible transaction as required by law.
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Peru seeks to acquire range of equipment and services aimed at supporting the acquisition of maritime and onshore facilities for its main naval base in Callao.
The proposed agreement covers lifecycle design, construction, project management, engineering studies and services, technical support, facility assessments, surveys, planning and programming, contract administration, construction management, and logistics support.
Both US government and contractor personnel would provide engineering, technical, and logistical assistance as part of the package.
“This proposed sale will contribute to the foreign policy objectives of the United States by helping to improve the security of an important partner which is a force for political stability, peace, and economic progress in South America,” DSCA said in a statement.
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By GlobalDataThe upgrade at Callao Naval Base is expected to enhance Peru’s port infrastructure for current and future naval operations and logistical needs.
The US also stated that the changes will “provide a safer, more efficient platform for naval operations by reducing civilian‐military interactions at the existing facility.”
The assessment indicates that Peru is prepared to integrate these articles and services into its armed forces without difficulty.
Officials do not expect this sale to affect the regional military balance. The selection of contractors will be made later from among approved vendors, with competitive bidding anticipated.
There are currently no offset agreements proposed; any such arrangements would be negotiated between Peru and the chosen contractor or contractors.
Implementation of the deal would require up to twenty representatives from the US government or US contractors to be stationed in Peru for up to ten years to oversee construction management.
Peru’s defence spending is projected to increase over the next few years, reaching $2.6bn by 2028, according to GlobalData’s report, “Peru Defense Market 2023-2028”.
