(This report is part of a Reuters series on infrastructure)

By Joan Gralla

NEW YORK, May 12 (Reuters) - New York state's "political will" for public-private partnerships could be more important than whether the state government enacts a law permitting long-term leases for roads, bridges, or high speed rail, a Fluor Corp (FLR.N: Quote, Profile, Research) executive said on Tuesday.

After a public backlash sank megadeals in New Jersey, Pennsylvania, and Texas, developers and funds that hoped to capture the double-digit returns such deals have reaped in Europe and Asia have grown wary of sinking money into the analysis needed to submit a bid, only to see the deal collapse.

"There's not really going to be a lot of smart money chasing P-3 in New York," said Robert Prieto, a Fluor Corp senior vice president, at an infrastructure conference held by law firm McKenna Long & Aldridge. The term P-3 refers to public-private partnerships.

He added: "I'm not sure that we need new legislation. I think that what we need is a heavy dose of political will right now."

Governor David Paterson said on May 4 that his aides were exploring legislation for public-private partnerships. But the state "Asset Maximization Commission," which is studying the issues, missed its April deadline for a final report.

The list of uncertainties includes how unions would be treated and whether developers will get non-compete clauses. Another question is whether the Empire State Development Corporation, the economic development agency, already has the legal authority needed for public-private partnerships.

Amy Solomon, a managing director with law firm McKenna Long & Aldridge, speaking after the infrastructure panel, said: "I do think the possibility exists that the Empire State Development Corporation does have some kind of mechanism for doing that."