The challenges in reducing water losses of the conveyance structures such as earthen and lined canals were assessedrnconsidering the influence of participating parties (farmers, contractor and funding agencies) and contributing factorsrn(hydrologic and hydraulic factors). The effect of conveyance efficiency, structural failure/performance, irrigationrnsystem management problems and water losses in Jemjem SSIP (which was constructed in 2004- 2006E.C), were thernmajor problems for this study. The main objective of this study is to assess the reason why more than 50% of the waterrndiverted is lost and to discover the solutions that can minimize the problems. To solve or estimate existing problemsrnscientifically, the method proceeded are ‘measuring flow volume of the main canal at different points using v-notchrnweir to estimate loss in each interval and their conveyance efficiency, calculating Manning’s roughness of the mainrncanal to compare with designed value of ‘n’, Estimating evaporation loss using energy balance method and estimatingrnseepage loss of the main canal using Kostiakov A.N empirical formula and using some questionery results to estimaternthe influence of water management problems. The designed value was taken from the design report and the existingrnconveyance efficiency is obtained by measuring discharge and depth of flow of the canal at different locations. Thernconveyance efficiency given at the design stage was 90% for the scheme which was directly taken from FAOrnrecommendations. However, the values obtained during the study were 34.9%. But, the conveyance efficiency selectedrnshould be based on construction materials, methods and qualities, managerial activities, technological and otherrnfactors affecting conveyance efficiency. The evaporation and seepage losses together constitute 3.63lit/sec whilernleakage and other operational losses account 23.07lit/sec/ (which is 56.27%) of the total main canal inflow. Such arndecrease in conveyance efficiency or increase in water loss is found to be due to inefficiency of management issue andrndue to inefficiency of contributing factors such as construction material and (hydrologic and hydraulic factors). Thus,rnmanagement problems, structural under performance and a designed conveyance efficiency taken directly fromrnstandard books had effect on the overall performance of Jemjem irrigation project. Irrigation structures should bernmaintained from time to time and Gates should be operated by trained operator to create equity of water distributionrnand also to make water management easy. Water shed management should be well implemented in the area so thatrnquantity of silt deposited will be reduced. Water committee should be changed to WUA and sufficient follow up shouldrnbe made to overcome water management problems existing in the project and similar projects in Ethiopia.