U.S. Greenlights $1.5 Billion Equipment Sale to Peru for Port Expansion

The U.S. State Department has approved a $1.5 billion equipment sale to Peru to support the relocation of its naval base in Callao, facilitating the expansion of the neighboring commercial port. This move will enhance Peru's trading competitiveness in light of the nearby Chinese-built Chancay mega-port.

The U.S. State Department has approved a significant $1.5 billion sale of equipment to Peru, enabling the country's efforts to relocate its main naval base in Callao. This strategic decision, announced by the Pentagon on Thursday, aims to expand Callao's commercial port facilities.

The plan to move the naval base further along the coast from its current location near Lima will facilitate the port's expansion. This development is expected to bolster Peru's maritime trade capabilities, enhancing its competitiveness against the nearby Chancay mega-port, constructed by China's Cosco Shipping Ports.

A statement from the U.S. Defense Security Cooperation Agency highlighted that the sale aligns with U.S. foreign policy objectives to strengthen partnerships promoting stability and economic prosperity. The contractors for this project will be selected competitively, as confirmed by the Pentagon.

(With inputs from agencies.)