Citation: Arce, L.; Delgadillo, R.; Osorio-Lird, A.; Araya, F.; Wahr, C. Asset Valuation Model for Highway Rigid Pavements Applicable in Public–Private Partnerships Projects. Infrastructures 2023, 8, 118. https:// doi.org/10.3390/infrastructures8080118 Academic Editor: Carlos M. Chang Received: 11 June 2023 Revised: 18 July 2023 Accepted: 28 July 2023 Published: 30 July 2023 Copyright: © 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/). infrastructures Article Asset Valuation Model for Highway Rigid Pavements Applicable in Public–Private Partnerships Projects † Luis Arce *, Rodrigo Delgadillo, Alelí Osorio-Lird , Felipe Araya and Carlos Wahr Departamento de Obras Civiles, Universidad Técnica Federico Santa María, Valparaíso 2390123, Chile; rodrigo.delgadillo@usm.cl (R.D.); aleli.osorio@usm.cl (A.O.-L.); felipe.araya@usm.cl (F.A.); carlos.wahr@usm.cl (C.W.) * Correspondence: luis.arce.14@sansano.usm.cl or ls.arcepinilla@gmail.com; Tel.: +56-9-8295-6112 † This paper was presented at the 5th International Conference on Transportation Infrastructures (V ICTI) in Li-ma, Peru in August 2022. It has been selected for publication in this journal. Abstract: Recently, in Chile, infrastructure asset value has been incorporated into highway concession contracts. However, the current valuation model used for rigid pavements is not adapted to the standards and conditions of such projects. This study develops a valuation model for rigid pavements of interurban highway concessions and evaluates it in a case study. The proposed model captures the loss in asset value associated with the performance degradation over time, considering a typical Jointed Plain Concrete Pavement (JCPC) configuration. The value is calculated using performance indicators that represent the structural capacity and level of service provided to road users. The model represents a significant improvement compared to current asset valuation models used in highway concessions. It enables the public agency to objectively evaluate the preservation of asset value carried out by the private partner during the concession. Additionally, it could also be used as a tool to establish payments between infrastructure stakeholders. Some of the concepts applied could also be relevant for other highway assets existing in Public–Private Partnership (PPP) projects. Keywords: highway asset management; highway asset valuation; infrastructure asset; rigid pavement; pavement performance; public–private partnership 1. Introduction Asset valuation has been defined as the process of estimating the value of a physi- cal asset on a specific date [1,2]. It plays a crucial role in highway asset management by helping justify infrastructure financing needs, ensuring proper use of taxpayer funds and evaluating investments in monetary terms, among other aspects [1–3]. However, it has been noted that infrastructure asset valuation can be ambiguous and may carry dif- ferent meanings across various disciplines [2]. In fact, there is no universally accepted valuation method [1] and the selection of the most suitable method depends on the objectives of the infrastructure stakeholders [4]. Also, the selection of the valuation method depends on the characteristics of each highway asset, such as pavements, bridges, culverts or signals [5]. Valuation methods for highway assets can be based on their costs, benefits or market value. Cost-based valuation methods consider the costs incurred in asset construction or replacement [3,6,7]. Benefit-based valuation methods consider the benefits that the assets provide to society, such as savings in travel time, vehicle operating costs and other economic factors [8,9]. Also, benefit-based methods may consider the income generated by the road administrator or owner, as is the case with toll roads [4,10]. Market-based valuation methods consider the price that a buyer is willing to pay for the assets, based on recent sales of similar assets in the market [1,4]. Cost-based valuation methods are considered most appropriate for highway assets since they are not typically designed to generate income [6]. Within these methods, costs Infrastructures 2023, 8, 118. https://doi.org/10.3390/infrastructures8080118 https://www.mdpi.com/journal/infrastructures