K&M was retained to perform technical, commercial and market due diligence for the asset purchase and cross-border lease transaction of the Burgenlandische Erdgasversorgungs AG (“BEGAS”) natural gas transmission and distribution system. BEGAS owned four natural gas transmission and distribution systems: 1) Burgenland Edelstal, Kittsee and Pama, 2) Burgenland Nord und Mitte, 3) Burgenland Sud, and 4) Jennelsdorf consisting of low, medium and high pressure grids. The systems included 6 measuring stations, 119 reduction stations, and 25 isolation stations which serve approximately 40,905 connections. K&M’s scope of work included review and comment on engineering due diligence report, financial appraisal report, and swap agreement report.

K&M was retained to perform technical, commercial and market due diligence for the asset purchase and cross-border lease transaction of the Innsbrucker Kommunalbetriebe AG (IKB) system. The IKB system provides electricity to 640,000 customers, including the city of Innsbruck. The IKB System operates at three different voltages levels: high voltage 110kV (7.8 km), medium voltage 20 kV (64.3 km) and 10 kV (30.7 km), and low voltage 400 V (751.9 km). The transmission network in the HV is mainly an overhead system. The System also includes six substations. It connects to the national network which mainly consists of 380/220kV transmission lines owned by Verbund, a quasi-government owned monopoly of Austria. K&M’s scope of work included review and comment on engineering due diligence report, electric transmission and distribution system appraisal report, and marketability of swap agreement.

K&M was retained to perform technical, commercial and market due diligence for the asset purchase and cross-border lease transaction of the 781 MW (combined capacity) Sellrain-Silz pumped storage hydro power project. The project consists of the Kuhtai and Silz power stations, the Finstertal and Langental reservoirs, and related dam and support facilities. The project is located in Stubaier Alps in northern Austria and is among the highest dam of this type in the world. The power plants entered commercial operation in 1977 and 1981, respectively. Water is first processed at the Kuehtai facility, then passes through the Silz facility. K&M’s scope of work included review and comment on engineering due diligence report, financial appraisal report and assumptions, service contract and lease agreement, power purchase agreement, pool of qualified bidders, and energy market study.

K&M was retained to perform technical, commercial and market due diligence for the asset purchase and cross-border lease transaction of The BEWAG system. The BEWAG system operates at three different voltages levels: High Voltage 110kV (632 km), Medium Voltage 20 kV (3,008.9 km) and Low voltage 400 V (4,822.8 km). The transmission system associated with HV is mainly an overhead system. The MV and LV systems have both overhead and underground systems, with the ratio of percentage of overhead representing 64 percent and 26 percent, respectively, of BEWAG’s System. It is part of the national transmission and distributions structure which mainly consists in 380/220kV transmission lines owned by Verbund. K&M’s scope of work included review and comment on engineering due diligence report, electric transmission and distribution system appraisal report, and marketability of swap agreement.

K&M was retained to perform technical, commercial and market due diligence for the asset purchase and cross-border lease transaction of 168 MW Abwinden-Asten hydro power plant, designed as a run-of-river, located on the Danube River in upper Austria near Linz. The plant is owned by Verbund, and entered commercial operation in 1979 and produces 996 million kWh per year. K&M’s scope of work included: review and comment on engineering due diligence report, power purchase agreement, financial appraisal report, and service contract and lease agreement; review pool of qualified bidders and operators; and conduct energy market study of the European and Austrian electricity market.

K&M was retained to perform technical, commercial and market due diligence for the asset purchase and cross-border lease transaction of the 328 MW Altenwörth Hydro Power Plant. The plant entered commercial operation in 1976 and is owned by Verbund. K&M’s scope of work included: review and comment on engineering due diligence report, power purchase agreement, financial appraisal report, and service contract and lease agreement; review pool of qualified bidders and operators; and conduct energy market study of the European and Austrian electricity market.

K&M was retained to perform technical, commercial and market due diligence for the asset purchase and cross-border lease transaction of three hydroelectric power stations: Achensee (79 MW), Imst (89 MW), and Kirchbichl (24 MW). The Achensee power station is net generating capacity of 79 MW, draws water from the Achensee Lake, which is about 10 km long, 1-km wide and up to 133 meters deep. The station is located 40 kilometers east of Innsbruck, and was the first project of TIWAG, constructed in the period of 1924-27. Imst and Kirchbichl hydropower facilities were subsequently developed and operated by TIWAG. For each of these assets, K&M’s scope of work included: general overview of the Austrian and central Europe energy market; benchmark equity return to investors; identifying a pool of qualified bidders; and reviewing and commenting engineering due diligence report, appraisal report and assumptions, service agreement, power purchase agreement, facility operating agreement, and lease agreement.

K&M was retained to perform technical, commercial and market due diligence for the asset purchase and cross-border lease transaction of the 54 MW (combined capacity) Innsbrucker Kommunalbetriebe AG (IKB) hydro power system. The system consists of four run-of-river hydro power stations: Obere Sill (18 MW), Ruetz (6 MW), Zwischenkraftwerk (1.6 MW), and Untere Sill (28 MW). The four stations have been owned and operated by Innsbrucker Kommunalbetriebe (IKB), and are located on both sides of the Inn River Valley near Innsbruck. The Obere Sill, Zwischenkraftwerk and Ruetz powerhouses are located just above the point where the Sill and Ruetz Rivers meet. The Untere Sill powerhouse is located downstream of the confluence of the two rivers on the Sill River. K&M’s scope of work included review and comment on engineering due diligence report, appraisal report and assumptions, service agreement, and swap agreement.

K&M was engaged by Potomac Capital Investment Corporation to perform due diligence of the Amlach, Heinfels, and Kalserbach hydropower plants in Austria in connection with a sale-leaseback transaction. The plants have capacities of 60 MW, 8.1 MW, and 11.7 MW, respectively, totaling 79.8 MW. Potomac Capital would purchase the assets from Tiroler Wasserkraft AG (TIWAG) and lease them back over a period of 97 years, after which TIWAG would have the option to purchase the assets or sign a services contract with Potomac Capital or a designated private party. K&M reviewed the electric power market in Austria and Central Europe, including the regulatory environment and future trends. K&M assessed the pool of qualified bidders and operators who may be willing to enter into PPAs and Operations Agreements with the facility owner in the future. K&M performed a technical review of the Engineering Report, Service Contract, Facility Operations Agreement, and Power Purchase Agreement Term Sheet to evaluate the reasonableness and commercial “arm’s length” nature of each. K&M also assessed the Facility Appraisal Report and commented on the fair market value of each facility. Finally, K&M compared the proposed equity rates of return for Potomac Capital’s investment with expected returns from investments in the European energy market.

K&M was engaged by Potomac Capital Investment Corporation to perform due diligence of six small hydropower plants in Austria for sale-leaseback transactions. The plants have capacities of 11.9 MW, 2.8 MW, 3 MW, 9.75 MW, 6.6 MW, and 12.2 MW, totaling 46.25 MW. Potomac Capital would purchase the assets and lease them back to the original owner over a period of 99 years, after which the original owner would have the option to purchase the assets or sign a services contract with Potomac Capital or a designated private party. K&M reviewed the electric power market in Austria and Central Europe, including the regulatory environment and future trends. K&M assessed the pool of qualified bidders and operators who may be willing to enter into PPAs and Operations Agreements with the facility owner in the future. K&M performed a technical review of the Engineering Report, Service Contract, Facility Operations Agreement, and Power Purchase Agreement Term Sheet to evaluate the reasonableness and commercial “arm’s length” nature of each. K&M also assessed the Facility Appraisal Report and commented on the fair market value of each facility. Finally, K&M compared the proposed equity rates of return for Potomac Capital’s investment with expected returns from investments in the European energy market.