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.