The Peruvian Ministry of Defence (MoD) has earmarked USD650 million to modernise its armed forces in order to step up operations against Shining Path guerrillas in the Ayacucho Valley, defence sources have told Jane's. A maximum of USD 198 million has been sidelined for the procurement of equipment in 2010 with an overall budget for a three-year period of USD650 million. Sources told Jane's that 20 per cent of these projected funds would be made available for training and doctrinal modernisation.
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