K&M was retained by State Street Bank and Trust Company to assist with the technical due diligence of a sale-leaseback transaction for the wastewater treatment plants in the cities of Moers-Gerdt and Rheinberg, Germany. The wastewater treatment plants have a combined capacity of 235,000 population equivalent (PE). State Street Bank and Trust would purchase the assets from the public authority and lease the assets back to the public authority over 26 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 report of the wastewater collection and treatment facilities. K&M also reviewed the asset appraisal report, the wastewater services contract, and the facility support and access agreement between the city 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. K&M also assessed the German wastewater market, which included an assessment of the EU and German economies, wastewater policies, and regulatory environments.