The Callao regional government has spent only 16.5% of its more than 396 million soles annual budget on infrastructure projects seven months into the year, the worst execution rate among Peru's regional governments as they enter the final year of their term.
A review of the project portfolio on the Economy and Finance Ministry's Economic Transparency Portal found that the Callao regional government, known as Gore Callao, has 80 investment projects stalled at 0% execution. Of those paralyzed projects, 25% involve improvements to schools in the region and another 19% relate to fixing local roads.
The region's budget has also shrunk over the course of the year. It started at more than 409 million soles and has since been reduced by more than 13 million soles. Measured against that original budget, execution falls to 15.9%.
Clandestine period cited as factor
Governor Ciro Castillo Rojo spent a month in hiding before a pretrial detention order against him in the "Los socios del Callao" case was suspended. He returned to the regional government headquarters in February 2026 to resume his duties as governor.
Officials from Gore Callao said this absence has affected execution rates. They explained that many of the selection processes will only begin execution this semester because the governor's administration only returned to operations in February, and reorganizing all the systems took 15 days, followed by nearly 20 more days to hire staff.
Mayor blames lack of coordination
Callao Mayor Cesar Perez said the real problem is that the governor has failed to work in coordination with local authorities. He said that in the first year, the governor worked with mayors and significant projects were completed in each district, but later, for political reasons, the governor chose not to work with local mayors despite their demonstrated efficiency in spending.
Health and education concerns
Perez also said there has been no significant progress in health and education, both functions under Gore Callao's authority. He said residents of Callao cannot afford to again elect inexperienced leaders who lack social commitment.
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