Peru Finalizes $2 Billion F-16 Block 70 Order Amid Ministerial Resignations and Procurement Controversies

Peru has signed a $2 billion contract for 12 F-16 Block 70 fighters from Lockheed Martin, pushing forward its air force modernization despite high-level political turmoil. The deal, concluded on April 20 by Defense Minister Carlos Díaz Dañino, follows weeks of scandals including ministerial resignations over alleged irregularities.

The order comprises 10 single-seat F-16C and two dual-seat F-16D aircraft, equipped with AN/APG-83 AESA radars, F110-GE-129 engines, AN/ALQ-254 Viper Shield electronic warfare systems, and AN/AAQ-28 Litening targeting pods. Deliveries start in 2029, replacing Peru’s aging MiG-29 fleet and positioning these as Latin America’s most advanced F-16s.

$1.54 billion covers the aircraft, with $460 million via Foreign Military Sales funding ground equipment, spares, training, a simulator, limited air-to-air weapons, and a used Boeing KC-135 Stratotanker. A second phase for 12 more F-16s, targeting Mirage 2000 replacement, holds $1.5 billion in the 2026 budget.

Controversies erupted as interim President José Balcázar deferred the deal, prompting resignations from Díaz Dañino and Foreign Minister Hugo de Zela, who cited risks to national interests and procurement integrity. Allegations include unequal competition favoring Lockheed Martin over Sweden’s Gripen E/F and France’s Rafale, with Saab protesting lack of equal bid updates.

The Economy Ministry transferred $462 million as initial payment, signaling commitment despite transparency concerns and claims of a discreet signing at Las Palmas Air Base. This acquisition aligns Peru’s capabilities with Western systems, bolstering regional air power amid budget constraints and political instability.