Is the U.S. investing $1.5 Billion in Peru’s main naval base to counter China’s growing influence?.

On January 15, 2026, the United States approved a possible $1.5 billion Foreign Military Sale to Peru covering the design, construction, and long-term support of maritime and onshore facilities at Callao Naval Base, as Chinese-backed port projects expand nearby.

On January 15, 2026, the United States approved a potential $1.5 billion Foreign Military Sale to Peru, covering the design, construction, and long-term support of maritime and onshore facilities at Callao Naval Base, which is Peru's primary naval base. The approved scope includes construction, engineering, and program support services and excludes weapons transfers, at a time when Peru’s Pacific coast is seeing increased Chinese investment in nearby commercial port facilities.
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The Callao Naval Base's proximity to key shipping lanes facilitates the rapid deployment of vessels into Pacific waters, and the intertwining of naval and commercial port infrastructure enables logistical efficiencies for replenishment and resupply. (Picture source: US Navy)

The request submitted by Peru focuses on equipment and services required to support the procurement and modernization of port-related and land-based facilities at Callao, and it explicitly excludes Major Defense Equipment. The approved package includes lifecycle design activities, construction, project management, engineering studies and services, technical support, facility and infrastructure assessments, surveys, planning and programming, design work, acquisition support, contract administration, and construction management. It also covers U.S. Government and contractor-provided engineering, technical, and logistics support services, as well as other related elements of logistics and program support. The total estimated cost of all activities and services combined is set at $1.5 billion, reflecting both physical construction and extended program oversight.

Callao Naval Base is the principal naval installation of the Peruvian Navy and is located immediately north of the main commercial port of Callao on the central Pacific coast near Lima. The base was originally built in the 1930s as a levee and naval arsenal and gradually expanded into a complex installation supporting fleet berthing, maintenance, and shore infrastructure. It hosts a dockyard and a naval aviation base, and it also includes the Naval Medical Center, which contains the U.S. Navy’s Naval Medical Research Unit Six. Over time, the base has remained the core hub for Peru’s naval operations on the Pacific coast, linking operational units with logistics, training, and medical support functions. Peru already initiated a multi-year effort to modernize Callao Naval Base, as a part of the infrastructure dates back to the 1930s, increasing physical constraints caused by the growth of the adjacent commercial port. The modernization effort is centered on the redesign and reconstruction of maritime and onshore facilities, with objectives that include improving port capacity for naval units, reorganizing internal circulation and access control, and reducing civilian-military interaction within the base footprint.

The geostrategic importance of Callao Naval Base, which may also explain this Foreign Military Sale, is primarily linked to its geographic position on Peru’s central Pacific coast, immediately adjacent to the country’s main commercial port and close to major trans-Pacific maritime routes connecting South America with North America and Asia. This location places the base at the center of Peru’s maritime traffic flow, naval deployments, and logistical support for operations along the entire coastline and within the country’s exclusive economic zone. Its proximity to the Port of Callao means that naval activities, port access, and infrastructure planning are directly interconnected with civilian shipping, cargo handling, and port security arrangements. As a result, decisions related to basing, access control, and facility layout at Callao have direct implications for naval mobility, logistical continuity, and the management of civilian-military interactions during routine operations and contingencies.

In addition to its naval role, Callao Naval Base incorporates a high-security detention facility that has been used to hold individuals convicted of terrorism and other high-risk crimes, integrating internal security functions within the broader military installation. The penitentiary component was proposed in 1992 and later became known for holding members of groups such as the Shining Path and the Túpac Amaru Revolutionary Movement, as well as former intelligence officials, including Vladimiro Montesinos, following his extradition in June 2001. This dual-use character has influenced how space, access, and security are organized within the base, making separation between civilian, military, and penitentiary activities a recurring structural issue. The approved redevelopment effort addresses these constraints by reorganizing facilities to reduce overlap and improve operational flow.

From an operational standpoint, the approved U.S. support is intended to improve port and base infrastructure so it can better accommodate current and future naval and logistical requirements. A stated objective is to provide a safer and more efficient platform for naval operations by reducing civilian-military interactions at the existing facility, while ensuring Peru can absorb the services and infrastructure without difficulty. The approval explicitly notes that the construction and support package will not alter the regional military balance, underscoring its focus on infrastructure, efficiency, and long-term sustainment rather than combat capability expansion. Implementation is structured to span many years, reflecting the complexity of rebuilding an active naval base.

The Callao modernization project is unfolding alongside increased attention to port infrastructure on Peru’s Pacific coast, including the emergence of the Chinese-built mega-port of Chancay, located roughly 80 kilometers north of Lima and developed with significant investment by COSCO Shipping. The modernization of Callao is framed by U.S. authorities as contributing to wider foreign policy objectives by strengthening an important regional partner, while Peru continues to balance cooperative relationships with both Washington and Beijing. Within this environment, the Callao Naval Base redevelopment stands as one of the most significant infrastructure initiatives linked to Peru’s maritime and naval posture, combining long-term construction, sustained foreign technical involvement, and strategic port geography.

Written by Jérôme Brahy

Jérôme Brahy is a defense analyst and documentalist at Army Recognition. He specializes in naval modernization, aviation, drones, armored vehicles, and artillery, with a focus on strategic developments in the United States, China, Ukraine, Russia, Türkiye, and Belgium. His analyses go beyond the facts, providing context, identifying key actors, and explaining why defense news matters on a global scale.