The study focused on procurement challenges in ESC. This study was designed to fill the gap byrnidentifying procurement challenges to deliver ESC project on time and within the allocated budget.rnIt sought to answer the questions: What are challenges the project procurement and their influencernin the of ESC project in the case of kessem sugar factory project? Consequently, it proposed tornachieve the objectives: to assess the challenges the project procurement and their impact in the ofrnESC project in the case of kessem project and to examine factors need to be improved in order tornovercome the procurement challenges in ESC project in the case of kessem sugar factory project.rnThe researcher used questionnaires to collect quantitative data, distributed to purposefullyrnselected respondents from project procurement staffs of ESC and used key informant interview forrnqualitative data collection for selected project managers, staffs, and procurement managers.rnMethodologically, this study was designed to be descriptive.The study presented in five chaptersrneach with various sections through which the researcher has tried to discuss the different issuesrnrelated procurement challenges on the project performance.The key findings of the study were thatrnproject procurement function affected by various factors. Among them the performance of mainrncontractor, sub-contractors, suppliers and venders, the performance of procurement staff andrnconsultants in practicing the project procurement and quality of the work performed andrnequipment supplied are the major project procurement challenges which affected the performancernof ESC Kessem sugar factory project. The findings of this study should be understood andrnevaluated in light of the limitations of the study. This study is especially helpful to ESC projectsrnand other similar projects. It should be particularly helpful to the project procurement team andrnproject managers whose responsibilities include attainment of the project objective to the desiredrncustomer satisfaction. The study recommends to ESC project procurement team and toprnmanagement to look at the challenges of project the procurement discussed herein and adopts thernsuggested recommendations including usage of recent technology, standard contractor selectionrncriteria, skilled and experienced procurement staff, organized list of contractor, subcontractor,rnsuppliers and recorded performance in order to overcome the challenges. Further study should berndirected to the project procurement for further improvement.