Washington has approved a proposed $1.5 billion Foreign Military Sale aimed at supporting the relocation and redevelopment of Peru’s Callao Naval Base, located near a Chinese-run port facility. The plan seeks to move the base away from Peru’s busiest commercial harbor to reduce shared waterways, limit civilian-military interaction, and create a safer, more efficient environment for naval operations, while freeing space for commercial port expansion. The Defense Security Cooperation Agency said the initiative will modernize Peru’s port infrastructure and support long-term naval and logistics requirements, while reinforcing US strategic and foreign policy interests in South America. Contractors will be selected competitively, and the project could involve the deployment of up to 20 US government or contractor personnel in Peru for up to a decade. The announcement follows sustained US scrutiny of China’s expanding port investments in Peru, including the COSCO-developed Chancay port, which has raised concerns over its potential strategic and dual-use role.
