K&M was retained by PNC Leasing LLC to assist with the technical due diligence of a sale-leaseback transaction for the wastewater collection network and treatment plant in the city of Sankt Augustin, 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 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. The wastewater treatment plant has a capacity of 210,000 population equivalent (PE) and the collection network includes 315km of sewerage lines.