Following a new request for an extension regarding the delivery of three overhauled Mi-171 helicopters, the Peruvian Army decided to reject the request and impose a financial penalty on Milenium Veladi Corporation—the Panamanian representative of Russia’s National Aeronautical Services Company (NASC) and responsible for the work—due to non-compliance with the contractual deadline. The agreement, valued at USD 20.3 million, stipulated that the aircraft should be operational by October 2024.
Despite two previous deadline extensions— the most recent expiring on December 30, 2024— the company once again failed to meet the agreed timeline. In response to this repeated failure, the Peruvian Army imposed a penalty of approximately USD 1.9 million for delay in service delivery.
The Army’s Aeronautical Maintenance Center (CEMAE), in charge of technical oversight, rejected in January of this year a new extension request of 151 days submitted by Milenium Veladi Corporation to complete the overhaul process of the MI-MTV1, MI-171-ShP, and MI-171-Sh helicopters. This request was deemed inadmissible, leading to the initiation of the relevant administrative procedures to enforce the applicable contractual penalties.
The helicopters were part of a direct procurement process, without public bidding, due to the urgent need for operational aircraft to respond to emergencies across the country. According to a report by the newspaper La República, audit documents from the Comptroller General’s Office revealed that, despite 70% of the contract value (over USD 14 million) having already been disbursed, assembly work on the engines and main components had not even begun.
As part of the agreement, Milenium Veladi Corporation transferred the engines, blades, and other key systems of the three helicopters to Russia, leaving only the empty airframes at the CEMAE facilities. In its justifications, the company has blamed the ongoing conflict between Russia and Ukraine for the continued delays. However, sources close to the Army claim that this contingency was overlooked during the contract negotiations.
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