According to a new report from Moody's Investors Service, the growth of infrastructure public-private partnerships (PPP) in the US has been slow and fragmented to date but the market remains positioned to become one of the world's largest.

It is expected that the sector continues growing due to four key factors: new state and federal P3 resources, political and legislative support, strong underlying legal framework for contractual enforceability and a deep capital market ready to finance projects.

Moody's says 2015 saw a record amount of availability-payment P3 projects reached financial close. Additionally, we have tracked several PPP projects during 2016. The majority of them are in planning and tender stages. Additionally, most of the projects were related to the transport and housing sectors.

Moddy's reported in a statement:

"At the federal level, the newly-passed Fixing America's Surface Transportation (FAST) Act includes a mix of provisions that may be positive for the PPP market in the longer term. One key measure is the creation of the Build America Transportation Investment Center (BATIC), which is intended to serve as a single point of contact and coordination for federal transportation expertise for states, municipalities and project sponsors. The FAST Act cuts to Transportation Infrastructure Finance and Innovation Act (TIFIA) funding appear to be severe, at about 70% from 2015 levels, but may not dampen the project pipeline, given that another FAST Act change allows TIFIA to retain uncommitted funds".

John Medina, Moody's VP Senior Analyst, said:

"Each US P3 project is unique and draws on limited local market experience. But state-level P3 activity has risen over the last three years, and nearly all P3 projects have been completed early or on time. The need for more inter- and intra-government P3 best practice sharing remains key for the US P3 market's long-term development compared to other markets where infrastructure development and funding may be more centrally aligned."