There is growing interest in using railtransit, trams, metros, light rail, to solve urbantransportation problems, particularly road congestion andair pollution. In developing urban rail projects, a range ofmajor cities around the world have turned to public-privatepartnership models, to leverage both public and privateresources and expertise. Dissecting the successes andfailures of public-private urban rail schemes, this noteexamines how policy makers can best deal with the main risksinvolved in designing, procuring, and implementing suchschemes. It also draws lessons on best practice indeveloping and managing contractual arrangements that canhelp ensure their success and sustainability.