Procurement largely contributes to spending of the public funds, thus the procurementrnprocess must be highly monitored on how the procurement process are administrated tornensure efficiency and effectiveness. This research sought to Asses procurement performancernand its link with operational efficiency in Ethiopian Electric utility. The study mainlyrnfocused factors affecting procurement performance and operational efficiency andrnrelationship between procurement performance and operational efficiency in EthiopianrnElectric utility. The study adopted Explanatory method of research since the study intendedrnto explain cause and effect relationship between procurement performance and operationalrnefficiency in Ethiopian Electric utility. The target population was employees of EEU. Totalrnnumber of respondents in this study was 42. Primary data was gathered using structuredrnquestionnaires. Descriptive statistics was used to summarize the data. This includedrnpercentage and frequencies. Tables and other figural presentations were appropriately usedrnto present the data that was collected for ease understanding and analysis. Correlationrnanalysis was used to identify the relationship between procurement performance andrnoperational efficiency. A statistical package for social science version 20 was used for datarnanalysis.From the study findings it was concluded that procurement performance have a linkrnwith operational efficiency in Ethiopian electric utility thus the researcher recommendedrnthat the organization management should give attention to procurement planning to reducerndelays in procurement process, give training for procurement unit, audit and otherrnstakeholders about the process of procurement to enhance accountability and transparency.rnThe organization should also work with reliable supplier whose delivery schedule arernrealistic and within the organization requirementsrnKey words Prcurement perfomance and operational efficiency