K&M was retained by PNC Leasing LLC to assist with the technical due diligence of two sale-leaseback transactions for the wastewater collection networks and treatment plants in the cities of Eitorf and Königswinter, Germany. PNC Leasing LLC would purchase the assets from the public authority and lease the assets back to the public authority over a number of years. At the end of the lease term, the public authority would have the option to either purchase the assets or enter into a wastewater services contract with the private party.
K&M performed an independent technical review of the engineering due diligence reports of the wastewater collection and treatment facilities. K&M also reviewed the asset appraisal reports, the wastewater 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 224km of sewerage collection lines and two wastewater treatment plants with a service capacity of 77,250 population equivalent.