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By Micah McCartney
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The Department of Defense has approved up to $1.5 billion in funding to support Peru’s plan to upgrade and relocate its largest naval base from the port city of Callao to a new site closer to the capital, Lima.
Newsweek reached out to the Peruvian Foreign Ministry via email for comment.
Why It Matters
The planned base lies roughly 50 miles north of Chancay, where a $1.3 billion megaport built and operated by Chinese state‑owned shipping giant COSCO opened in late 2024.
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China is now the top trade partner for both Peru and the broader Latin American region, and U.S. officials have grown increasingly wary of Beijing’s expanding influence, and a potential civilian-military dual-use role for the Chinese bankrolled infrastructure footprint in a region Washington has traditionally viewed as within its strategic orbit.
What To Know
The Pentagon’s Defense Security Cooperation Agency said Thursday it has notified Congress of the proposed sale, which was requested by Peruvian authorities.
The package includes services and equipment to support new onshore and maritime facilities tied to the Callao naval base, the DSCA said. It covers life cycle design, construction, project management, engineering services, technical support, infrastructure assessments, contract administration, and U.S. government and contractor logistical assistance.
“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,” the agency said.
It added that the project would upgrade Peru’s port infrastructure to meet current and future naval and logistical needs, while creating a safer, more efficient operating environment by reducing civilian‑military interactions at the existing site.
The DSCA also said the sale would have no adverse impact on U.S. defense readiness and would not alter the regional military balance.
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What People Are Saying
Alejandro Munante, a member of the Peruvian Congress and of the Popular Renewal party, wrote on X: "The decision reaffirms the historic alliance between Perú and the U.S.and recognizes the country as a key partner for regional stability and progress."
"While China operates the Chancay megaport, the United States is strengthening the Peruvian Navy's base of operations, allowing the country to focus more clearly on the current geopolitical scenario and consolidate its position as a relevant actor in South America."
What Happens Next
Peru has not announced a timeline for completing the relocation. Up to 20 American personnel or contractor representatives could be assigned to the site for up to a decade to provide construction management and oversight, the DSCA said.
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