The Chilean Ministry of Public Works (MOP) has awarded the concession contract to Grupo Costanera SpA for the Route 5 Chacao–Chonchi highway project in Chiloé, Los Lagos Region, Chile.

The project represents an investment of US$594 million and aims to enhance connectivity and improve road safety across 126 km of Route 5. Construction is expected to start in 2028 after the Detailed Engineering Project and Environmental Impact Assessment Study are completed and the Environmental Qualification Resolution is granted. The works are anticipated to last about five years, with full operations planned for around 2033. The concessionaire will also be in charge of maintaining and upgrading Route 5, with a strong focus on improving road safety. One of the main objectives of this concession is to modernize and raise the safety standards of a strategic section of Route 5, which is 126 km long, including 15 km of the Castro Bypass, thereby strengthening Chiloé's internal connectivity and its link with the mainland. Among the most significant works are the construction of a new bridge over the Pudeto River—approximately 750 meters long—, six additional bridges, 40 pedestrian overpasses, 14 grade-separated interchanges, and bypasses in the main towns along the route.

The project also incorporates substantial improvements to the existing road infrastructure, such as widened shoulders, 41 km of service roads, bus stops, improved intersections and access points, lighting, landscaping, and sanitation and drainage systems. In addition, seven wildlife crossings, also known as ecological corridors or wildlife crossings, will be implemented to protect the island's natural environment. The concessioned section extends from the southern approach of the future Chacao Bridge to the northern access intersection at Chonchi, enhancing traffic movement in an area that has historically experienced high accident levels. This initiative also complements the Chonchi–Quellón segment, whose comprehensive study was awarded in June 2025, strengthening a coordinated road development plan for the entire island.