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Peru Releases S/1.137 Billion to Launch Fighter Purchase With Three Jets Still in Contention

The initial S/1.137 billion release triggers Contraloría review followed by ACFFAA evaluations under a US$3.5 billion ceiling.

Overview

  • Supreme Decree No. 020-2026-EF authorizes about US$340 million for the La Joya project as the first tranche of a planned US$3.5 billion procurement of 24 combat aircraft.
  • The funds come from sovereign bond proceeds approved in December 2025 and are legally earmarked exclusively for the project, with disaggregation and reporting required within set deadlines.
  • The procurement file must be cleared by the Contraloría before the Armed Forces Procurement Agency (ACFFAA) conducts technical and financial evaluations under Defense Ministry procedures.
  • President José Jerí affirmed days earlier that the selection remains open between the F‑16 Block 70, Rafale 4 and Gripen, with no award decided by the Executive.
  • The decree was published hours before Congress censured Jerí, intensifying scrutiny as the FAP cites a severely degraded fleet and the urgent need to restore operational air power.