US Plans $1.5B Investment to Modernize Peru’s Naval Base at Callao Port
The U.S. Department of State announced that it has approved a plan to modernize Peru’s naval base at the port of Callao and delivered the required notification to the U.S. Congress. The plan, which is valued at an estimated $1.5 billion, is seen as a move to counter China’s influence while the State Department highlighted U.S. interest in South America.
The naval base, which is the main facility for Peru’s navy, is located to the north of the commercial port in Callao. It dates to the 1930s and shares the waterways with the commercial port operated by AMP and Dubai World.
The Government of Peru had made a request to the U.S. to permit it to buy equipment and services to support the modernization of the maritime and offshore facilities at the Callao Naval Base. The State Department approval includes design and construction support, management, engineering, construction management, and logistics and other support. The approval also requires the assignment of up to 20 U.S. government or contractor representatives for up to 10 years to provide construction management and oversight.
The State Department said the project will improve Peru’s port infrastructure. It will also provide a safer, more efficient platform for naval operations by reducing civilian-military interactions at the existing facility.
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“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 State Department said, announcing its decision.
Analysts point out that the U.S. has been working to counter China’s presence in South America. In 2024, COSCO completed an investment reportedly of $1.3 billion to develop the new commercial port of Chancay, which is located approximately 50 miles north of Lima. The U.S. countered with an agreement to expand the relationship between the ports of Hueneme in California and Paita in Peru.