October 19, 2015

by Daniel Davies

Moody's expects the U.S. government to continue to use P3s in sectors beyond transportation, including justice, education water and waste water.

A 24 September analysis conducted by the ratings agency outlines 11 frequently asked questions regarding  public-private partnerships. The report cites the recent Kentucky Wired deal as well as an overall increase in P3 projects entering the project pipeline, as captured by InfraDeals.

International Projections

The report touches on the differing funding mechanisms for P3s, investor types, reasons for rating action changes and lists the state governments that have expressed an interest in P3s.

The report also outlines the promotion of the P3 model in China and notes that P3s will remain an important tool for the Austrailian government to deliver infrastructure. Moody's envisions a stable pipeline over the short to medium term in Belgium, Turkey, Ireland, the Netherlands and Germany.

Moody's noted that there is continued government interest in P3s through Latin American and cites the development of new projects in countries like Columbia and Peru. The ratings' agency also reports that fiscal pressures in Brazil and Mexico may lead to more P3s, but adds that the abundance of development bank funding in both counties has limited growth in capital-market activity there.