# Peru military modernization and procurement challenges > Developing situation record from CLSTR: https://clstr.news/situations/peru-military-modernization-and-procurement-challenges > Updated: 2026-10-13T23:24:34.000Z. Sources: 4. Developments: 2. Peru is experiencing delays and logistical hurdles in its military modernization efforts. Earlier reports indicated that the Armed Forces Procurement Agency (Acffaa) suspended the construction of three ship slips at the SIMA Callao shipyard to reallocate budgets to emergency purposes, following a failed bidding process by Consorcio San Sebastián. Subsequent developments highlight broader systemic issues, with former Defense Minister José Luis Gavidia citing a “lack of political will” as a barrier to upgrading equipment. While plans were approved in 2022 to acquire 24 combat aircraft and modernize naval and land assets, the Army and Air Force continue to rely on aging equipment. To mitigate these gaps, the Peruvian Air Force has entered a $7.2 million contract with De Havilland Aircraft of Canada to renew the Performance Based Logistics program for its Twin Otter fleet, maintaining an operational rate between 87% and 90%. ## Timeline ### 2026-10-13: Peru faces military modernization delays amid logistics updates Former Peruvian Defense Minister criticizes delays in military modernization, while the Air Force awards a $7.2 million contract to De Havilland to support its Twin Otter fleet. 2 sources. https://clstr.news/cluster/peru-faces-military-modernization-delays-amid-logistics-updates ### 2026-09-26: Defense procurement updates in Peru and Colombia Peru has suspended shipyard construction at SIMA Callao due to budget reallocation, while Airbus, Leonardo, and Bell compete for a $387 million military helicopter contract in Colombia. 2 sources. https://clstr.news/cluster/defense-procurement-updates-in-peru-and-colombia --- Cite as: Peru military modernization and procurement challenges. CLSTR, https://clstr.news/situations/peru-military-modernization-and-procurement-challenges