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Political stability and a surging economy have helped Colombia emerge from the illegal drug trade and armed rebel entrenchment which previously choked its progress. Although security remains an issue, aggressive crime-fighting tactics begun by former President Álvaro Uribe – and continued by his successor, Juan Manue Santosl – have placated much of the organised crime and violent drug trafficking that plagued the country in the 1990s....

Political stability and a surging economy have helped Colombia emerge from the illegal drug trade and armed rebel entrenchment which previously choked its progress. Although security remains an issue, aggressive crime-fighting tactics begun by former President Álvaro Uribe – and continued by his successor, Juan Manue Santosl – have placated much of the organised crime and violent drug trafficking that plagued the country in the 1990s.

The resulting stabilisation has paid dividends, and the country's economy has flourished - GDP is projected to grow anywhere between 4% and 5.5% in 2011. International investors are also taking notice. Over the past year, ratings agencies Standard & Poor's and Moody's Investor Services upgraded Colombian bonds to investment grade. This opened the door for institutional investors, who typically require investment-grade ratings from two separate agencies.

Unsurprisingly, Colombian lawyers remain bullish on the prospects of Colombia's growing economy. The "increase in foreign investment has been incredible," says one attorney. "The trend is that it won't just stay in minerals." Multiple industries are benefiting, including oil, mining and tourism, and lawyers are seeing an upturn in work in the private equity and project finance areas.

Adding to these strong prospects are the string of free trade agreements (FTAs) which Colombia entered into during 2010. In March of that year, Colombia finalised an FTA with the EU that eased import conditions on Colombian coffee, banana, and sugar exports. This was followed months later by a similar agreement with Canada, which entered into force in July 2011, granting preferential market access to over 33 million well-heeled consumers for Colombian producers. Moreover, passage of the long-stalled Colombian-US FTA seems likely to pass more than ever this year, another welcome development and massive export market.

"We know there will be lots of foreign investment," says one lawyer. It will be needed; the government is planning, or has already started, massive upgrades in multiple infrastructure sectors, including road, rail, airports, ports, and public transport. Projects such as the Las Americas Highway, La Montana Highway, and Central Railway system are well underway.

The ambitious 1071km Ruta del Sol highway concession should draw the most attention due to its ambitious scope and $2.57 billion price tag. The highway's multi-phased construction will slice its way across the country and connect Bogotá to the Pacific coast. The infrastructure upgrades will enable greater travel efficiency and help Colombian production chains capitalise on the increased access to foreign markets created by the FTAs.