K&M was retained by First Fidelity International Bank to assist with the technical due diligence of two sale-leaseback transactions for the wastewater collection networks in the cities of Bochum and Recklinghausen, Germany. First Fidelity would purchase the assets from the public authority and lease the assets back to the public authority over terms of 26 and 29 years, respectively. At the end of the lease terms, the public authority would have the option to either purchase the assets or enter into a wastewater transportation services contract with the private party. K&M performed an independent technical review of the engineering due diligence reports of the wastewater collection facilities. K&M also reviewed the asset appraisal reports, services contracts, and the facility support and access agreements between the cities and the private party. K&M commented on the methodology, assumptions, and results of the asset appraisal to identify any adjustments or potential issues with the contractual arrangements, including an assessment of the transaction against “arm’s length” criteria. The wastewater assets included over 1,500km of sewerage lines serving 520,000 residents and a number of large commercial users.