The EIA proclamation No 29912002 is among the most ill1portant environlllentol legislationsrnadopted by the country with a view to realize the constitutional rights of the people to live inrnhealthy environment and to achieve sustainable development. However, there have been frequentrninstances of non compliance of projects with the relevant EIA law. Thus, the objective of thisrnstudy is to indicate the challenges/or the effi!Ctive implementation of the EIA proclamation.rnIn order to achieve the o~ject ive of the study, apart pom reviewing the relevant documentary . ~rnliteratures, questionnaire, key informant interview, andfocus group discussions were used as thernmajor sources of data. Qualitative analyses were employed, and the analyses were multifacetedrnand iterative which eventually mirror out implementation challenges related with EIA regulatOlYrnregime, institutional capacity, judiciolsupport and incentive packages.rnThe findings of the study revealed that, lack of adequate EIA supportive legislations and lack ofrninstitutional capacity on the side of relevant sectoral agencies were identified as major hindrancernfor the implementation of EIA law. Moreover, it is learned that the judicial support towards thernenforcement of EIA has been totally neglected. EIA related violations were never reported to thernpolice for prosecution leaving the EII1 enforcell1ent ineffective. Finally, the study indicates thernabsence of incentive packagcs towards EII1 prolllotion. There is no incentivc mcchanisll1srnprovided by the government and other stake holdersfrir the development projects and programsrnwhich have excellent £111 pel/ormance.rnTherefore, strengthening the legal foundation of£IA, improving the institUlional capacity ofrnrelevant environmental units, establishing PlL and improving the involvements of federalrnprosecution offices towards the enforcement of EIA related violations, and linking the provisionsrnof inveslmenl incenlives wilh EIA pcrfimlloncc arc rccolllmended 10 improve thc ill1plell1cnlalionrnof the EIA legislation.