Problems or even failure in transportinitiatives are more likely for projects set in the urbanareas of developing countries. Connecting a rural village toan all-weather road or restoring a section of nationalhighway is usually straightforward. Costs are modest,institutional issues limited, and the benefits obvious. Incontrast, urban transport is not a single mode governed by asingle agency but a collection of modes with variedadministrative boundaries and many private sectorstakeholders. Successful urban transport strategies reflectan understanding of linkages among transport, land use, andenvironmental factors. Working out the complex localchallenges requires social, political, and technicalcapacities often in short supply in developing countries.And even when a project manages to attain its physicalobjectives, the civil and governmental capacity needed forsustainability often remains underdeveloped. Theinstitutional frictions and gaps point to the elements ofthe way forward on urban projects: thoroughly understand thelocal context, then build broad public consensus around thevalue of better transport and the value of institutionalarrangements to sustain it.