Glossary

Acquisition
A transaction where a public entity or partner sells a facility to a private partner resulting in private ownership and operation.

Contract Operations
A type of public-private partnership wherein the private partner operates and maintains the public partner’s facilities over a long or short term.

Contract Management
A type of public-private partnership wherein the private partner manages and supervises the public partner’s personnel.

Desalination
Refers to any of several processes that remove excess salt and other minerals from water. (Also, desalinization, desalinisation)

Full-Service Contract
A public-private partnership wherein the public partner contracts with the private partner for a fee to operate and maintain the facility. The public partner owns the facility (although it may have been built by the private partner).

Joint Venture
An arrangement where a private partner owns a facility in conjunction with a public partner.

Concession or Built, Own and Transfer
A type of public-private partnership wherein a private partner builds, owns and operates the facility. At the end of the specified period, such as 30 years, the facility may be transferred to the public partner for a nominal fee.

Municipality
An administrative entity composed of a clearly defined territory and its population. “Municipality” commonly denotes a city, town, or village, or a small grouping of them. A municipality is typically governed by a mayor and a city council or municipal council.

Private Activity Bond (PAB)
A form of financing whereby a private entity partners with state or municipal government to receive tax-exempt financing for a project (in this case water) that is in the general public’s interest (as defined by law). The projects being financed can be either privately owned or government owned.

Privatization
The incidence or process of transferring ownership of business from the public sector (government) to the private sector (business). In a broader sense, privatization refers to the transfer of any government function to the private sector. (The term can also refer to the buyout, by the majority owner, of all shares of a public corporation or holding company's stock, privatizing a publicly traded stock.)

Public-Private Partnership
A contractual agreement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility.

Public Utility Commission (PUC)
A state-level governing body that regulates the rates and services of a privately-owned utility, such as a water, electricity, gas or telecommunications utility. PUCs are charged with balancing the needs of consumers and utilities while protecting the public, and ensuring that rates charged by regulated utilities are fair, just and reasonable. PUCs serve the consumer interest by seeking to improve the quality and effectiveness of service of regulated utilities and carriers. Such bodies can also be called Public Service Commissions, Utility Regulatory Commissions, etc.

Sustainable Water Infrastructure Investment Act (SWIIA)
A bill (H.R. 537), introduced by Congressman Bill Pascrell (D-NJ) in the 111th session of Congress that would bring water and wastewater projects out from under the state volume cap on private activity bonds (PABs), thereby significantly expanding the availability of low-cost financing for water infrastructure projects.

Sustainable Water Infrastructure Investment Coalition (SWIIC)
A coalition comprised of water industry and other interested organizations working together to promote financially sustainable water infrastructure solutions. Members include: The National Association of Water Companies, The Water and Wastewater Equipment Manufacturers Association, The American Society of Civil Engineers, The American Council of Engineering Companies, The National Council for Public-Private Partnerships, The Water Partnership Council, The American Public Works Association, United Water, ITT Corporation, The WateReuse Association, GE Water & Process Technologies, the Ductile Iron Pipe Research Association, Mueller Water Products Inc.