US approves $1.5B sale to upgrade Peru's main naval base

ISTANBUL

The US has approved a possible $1.5 billion foreign military sale to Peru to support the design and construction of maritime and onshore facilities to upgrade the Peruvian Navy’s main base, according to a notification sent to the US Congress.

"The State Department has made a determination approving a possible Foreign Military Sale to the Government of Peru of Design and Construction at Callao Naval Base and related elements of logistics and program support for an estimated cost of $1.5 billion," the Defense Security Cooperation Agency said in a Thursday statement.

Under the request, Peru would receive a broad range of services rather than major defense equipment, including lifecycle design, construction, project management, engineering studies, technical support, infrastructure assessments, and construction management, it said. The package would also include US government and contractor engineering, technical and logistics support.

"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," it said.

It said the proposed sale would improve Peru’s port infrastructure to support current and future naval and logistical operations and provide a safer, more efficient platform by reducing civilian-military interaction at the existing base.

“The proposed sale of this construction and support will not alter the regional military balance in the region,” it underlined.

Up to 20 US government or US contractor representatives could be assigned to Peru to provide construction management and oversight for up to 10 years, it said.

The port is reportedly a competitor to Chancay, a Chinese-built mega-port some 80 kilometers (50 miles) north of the capital Lima.

The news comes as the US has been signaling a newly assertive posture in South America through its moves in Venezuela, and hints of action in Colombia – which borders Peru – as well as Cuba and Mexico.

Some analysts have pointed to US actions in South America as challenging China's growing footprint in the region.