How much room did you just give your PPPs?

Governments are enlarging the space PPPs are allowed to occupy — a doubled fiscal ceiling in one country, a State funding 70% of a “private” partnership in another — while private money arrives at a post-COVID record.

Three decisions and one anchor. The ceiling counts the commitment; nothing counts the capacity to pay it.

Week of 25 August 202625 August 20264 cases · 6 slides
Paraguay · the ceiling doubles

Paraguay just doubled the room its PPPs may occupy.

Under Ley 7452/2025 — which repealed the 2013 PPP law and was brought into force by decree in February 2026 — the cap on accumulated firm and quantifiable contingent commitments, in present value and net of fiscal assets, moves from 2% to 4% of GDP. The annual Treasury payment cap doubles too, to 0.8% of GDP.

2% → 4%
of GDP — the ceiling on PPP commitments and contingencies; contract terms also stretch 30 → 40 years and state participation 10% → 25%

The design is better than the headline suggests: contingencies count inside the ceiling, and the Ministry of Economy and Finance now holds functions that were scattered across agencies. A ceiling with one gatekeeper is a real constraint.

Source · Paraguay · Ley 7452/2025 · MEF, decree Feb 2026
Vietnam · whose partnership is it

The State may now fund 70% of a “private” partnership.

Vietnam’s amended PPP law (Law 57/2024/QH15) lifts the state capital share from 50% to 70% of total investment where land clearance and resettlement are heavy, where the project sits in a disadvantaged region, or where technology transfer needs the support to pencil.

50% → 70%
the State’s permitted share of total project investment — and Decree 312/2025 now pays it out against “value of completed work”

At 70% public capital the label stops doing any work. What is left to the private partner is delivery and operation — which can be exactly right. But the value-for-money case has to be re-run at the new ratio, not inherited from the old one.

Source · Vietnam · Law 57/2024/QH15 · Decree 312/2025/ND-CP
United Kingdom · the bill arrives

£50bn bought. £136bn still owed.

NISTA’s PFI and PF2 summary data, published March 2026, counts 665 operational PFI contracts across hospitals, schools, roads, waste and IT — a combined capital investment of roughly £50 billion.

£136bn
of unitary-charge payments still to run, out to 2052–53 — against about £50bn of capital actually delivered

This is what a ceiling looks like from the far end. The commitments were affordable, one contract at a time, on the budget arithmetic of the year each was signed. The stock is what nobody voted on.

Roughly £2.70 of future charge for every £1 of capital delivered — financing, maintenance and service bundled into a payment that runs for decades after the ribbon is cut. Each contract was defensible on its own. The programme was never appraised as a programme.

Source · UK · NISTA, PFI & PF2 projects 2025 summary data, Mar 2026
Global · the anchor

Private money is back above $100bn.

The World Bank’s PPI database puts private participation in infrastructure at USD 100.7 billion — up 16% on the year and 20% on the five-year average, and the first time the threshold has been cleared since the onset of COVID.

$100.7bn
private participation in infrastructure — the demand side of every ceiling being raised above

Rising volume is not the risk. The risk is that capacity to appraise grows slower than capacity to commit — and the gap between them is filled by contracts nobody has priced at portfolio level.

A record year is also a correlation year. The deals signed into one buoyant window share a vintage — the same rate curve, the same traffic forecasts, the same currency assumptions — so they sour together, not one at a time.

Source · World Bank · PPI Database Global Report
The through-line

Raise the ceiling. Then count what fills it.

A doubled cap, a 70% public stake, a record year of private capital — and, from the country that started earliest, £136bn of bills still to pay on £50bn of assets. Room is easy to create. Capacity to pay is the thing that has to be measured:

VfMvalue for money
Re-run the case at the ratio you actually chose.
FAROPPP fiscal risk
Price the commitment and the contingency inside the ceiling.
GFSaccrual accounting
Put the stock where a legislature can see it.

Every ceiling above was set by someone who had counted the commitments. None of them had counted the capacity.

Papers, models & FARO

Every fix above points at a paper in the Austral series, and at the instrument that implements it.

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