- October 1, 2015: Vol. 8, Number 9

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US P3 market faces political headwinds: Despite much progress only P3 adoption remains slow

by Drew Campbell

After more than a year of positive momentum, shifting political winds are disrupting some plans for P3 infrastructure projects in the United States, according toU.S. Public-Private Partnerships Encounter New Road Bumps As Political Appetite For The Projects Waxes And Wanes, a report by Standard and Poor’s.

“The 2014 midterm elections brought new headwinds to the nascent market, delaying or, in some cases, derailing P3s that sponsors were investing so-called ‘spade money’ into with expectations that the deals would soon close,” says Standard & Poor’s credit analyst Trevor D’Olier-Lees.

The report notes that despite Virginia, Texas, Florida, Indiana and Colorado having used P3s for infrastructure projects, and despite these transactions seeming to have reached a watershed moment — with four deals closing in 2014 and five transactions in the first half of this year — in many cases, “decision-makers are focused on short-term benefits such a

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