The city of A.A has serious problems in the provision of sewerage service delivery .ThernAAWSA is authorized to give services in the area to the city residents. The Addis Ababarncity administration has also made private providers to take part in delivering the service.rnAs to comparing service delivery quality between the two, very few probably one i.ernWorld Bank in 2008 has made a comparison of the two. Comparing service delivery andrncustomersâ€™ satisfaction levels in the two organizations is reasonable to identify thernproblems. Therefore; the main objective of this study is to examine challenges of servicerndelivery in AAWSA and private providers. Comparison of service deliveries in bothrnorganizations are made using organizational and motivational factors which werernidentified as indicators of quality services delivery.rnDescriptive survey method was used to carry out the study. Questionnaire, interview andrnobservation were tools used to gather data from sample population of the twornorganizations by employing appropriate sampling techniques.rnThe collected data were organized, summarized and comparative analysis of the twornsector service deliveries were made. From the analysis the following findings wererndrawn.rnThe public provider (AAWSA) is better at giving trainings to its staff, guidance andrnsupport than the private providers. Service standards were established in bothrnorganization. There is better communication between the staff and the management in thernprivate sewage providing organizations. Staff in the private providers are betterrnempowered in decision making. Undesired work procedures were avoided and promptrnservices are given in the private providers.rnThere is established accountability system in the private sewerage service providingrnorganizations more than in AAWSA. Staff in the private sewerage service providingrnorganizations are more benefited based on their performance evaluation results than staffrnin AAWSA. The private providers have made available equipment and material facilitiesrnneeded to give services more than AAWSA does. AAWSA performed better atrnestablishing complaint handling system and collecting comments from customers.rnIn general, even though, the public provider (AAWSA) has been good at performing inrnsome indicators, in the over all assessment, the private sewerage service providingrnorganizations have better performances in the majority of the factors identified to assessrnservice deliveries of the two sector providers. So customers of private providers are betterrnsatisfied with the services given by the private sewerage service providing organizations